How to account for a purchase on credit card with reimbursement

[James Kerr]

On Saturday 03 May 2008, 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}
>
> 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}
>   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).
>
>

That's how I would do it. It maintains an accurate record of your true 
financial situation and provides any useful information that might 
reasonably be required.


Jim