How to account for a purchase on credit card with reimbursement

[Jannick Asmus]

Adam,

thanks for your input.

On 03.05.2008 14:34, Adam Funk wrote:
> On 2008-05-03, Jannick Asmus wrote:
> 
>> how to account for a payment of, say, a latte with credit card which is 
>> reimbursed by the company I am with. The credit card bill is charged to 
>> my personal bank account.
> ...
>> Comments are encouraged and, of course, are welcomed.
> 
> Well, here's how I do it:
> 
> 
> 1. purchase: one of these transactions for each one
> 
>   Dr Assets:Receivables:Expense Claims:{Employer}
>   Cr Liabilities:Credit cards:{Specific card}

This means that you are anticipating the due date of the receivable for 
expense reimbursement since you have not yet had a financial outflow to 
establish the formal claim against the employer at this point of time.

But this is really cherry picking and a little tiny issue of timing. :-) 
It certainly can be neglected.

> 2. reimbursement (done with payroll, so this is a monthly split)
> 
>   Dr Assets:Current:Main bank account
>   Dr Expenses:Income tax
>   Cr Income:Salary:{Employer}

Salary before income tax since you show the income tax separated as 
expense, isn't it?

>   Cr Assets:Receivables:Expense claims:{Employer}
> 
> 3. paying the bill (once a month, for the whole balance)
> 
>   Dr Liabilities:Credit cards:{Specific card}
>   Cr Assets:Current:Main bank account
> 
> 
> Only for item 1 do I show individual purchases.  Item 3 is for the
> whole credit card bill, which may or may not include some expense
> claims.  I also use the cleared/reconciled column in the expense
> claims account ("c" means the item has been submitted on a claim; "y"
> means I've been reimbursed for it).

Do you assign "c" and "y" in GC? If yes where?

Do you use the business feature in GC
- for CC bills?
- if yes: for employee's expenses to populate the CC bill?

> I welcome comments too.  I made this system up but it makes sense to
> me based on what I used to know about accounting.

Thanks again.

Best wishes,
J.