[GNC] Revisit Topic: Reimbursable Expenses

[David Cousens]

Steven,

As Adrien has said the account should be an Asset account for the reasons he
gave. 

When you first incur a reimbursable expense the transaction to your credit
card account should have a credit for the amount of the expense to your
credit card account and a debit to the Reimbursables asset account for the
amount. 

When you invoice the customer for that reimbursable expense you will create
splits as part of the invoice transaction which has a credit entry to the
Reimbursables account and a debit entry to the Accounts Receivable. Other
items in the invoice might have credit entries to the Services income
account and debit entries to the Accounts Receivable. The debit entries for
these individual items in the invoice will usually be summed into a single
debit entry to the Accounts Receivable. This effectively transfers the
reimbursable amount to the Accounts Receivable account.

When the customer pays you and you deposit the check the recording
transaction has a debit entry to Business Checking account and a credit
entry to the Accounts Receivable. This completes the cycle for recording the
reimbursable expense and its repayment.

David Cousens



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David Cousens
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