Discussion:Employee purchases
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| Revision as of 14:46, 24 June 2008 Bushmaster (Talk | contribs) (I would do this.) ← Previous diff |
Revision as of 22:23, 24 June 2008 Inagpurwala (Talk | contribs) (I agree with you) Next diff → |
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| {{ForumReplyPost|UserID=Bushmaster|Date=24 June 2008|Text=I would do this. Credit A/P for entire amount. Debit A/R employee for their part, debt inventory/purchases for balance. | {{ForumReplyPost|UserID=Bushmaster|Date=24 June 2008|Text=I would do this. Credit A/P for entire amount. Debit A/R employee for their part, debt inventory/purchases for balance. | ||
| When employee pays, credit a/r employee, reduce their paycheck or collect the cash.}} | When employee pays, credit a/r employee, reduce their paycheck or collect the cash.}} | ||
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| + | {{ForumReplyPost|UserID=Inagpurwala|Date=24 June 2008|Text=I agree with your concept - MsTwizz. Instead of crediting Sales account, should be credited Clearing account.[[User:Inagpurwala|Inagpurwala]] 17:23, 24 June 2008 (CDT) | ||
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Revision as of 22:23, 24 June 2008
Discussion Forum Index --> Accounting Questions --> Employee purchases
| 24 June 2008 | |
| Hello All,
This is driving me nuts and I think I know how I should treat this, but I want to hear your comments..... To account for employee purchases, meaning, some of our employees may purchase safety glasses or an item off of a PO that contains other company materials purchases, we have an employee purchases clearing account that is set up as "Other Asset." On the PO, it is flagged on the item that it is an employee purchase. So, when my A/P gal gets the invoice in, she enters the voucher, sets up a payable debit employee purchases clearing , credit A/P. Then she will generate an invoice to that employee. Right now, the bill is set up to debit A/R, credit sales. I don't think we should book this to sales. I think we should credit employee purchases clearing so that account goes to zero, acting as a true clearing account. We had just set up this ledger and I am finding these things as I go along and reconcile each month. What are your thoughts? | |
Bushmaster (talk|edits) said: | 24 June 2008 |
| I would do this. Credit A/P for entire amount. Debit A/R employee for their part, debt inventory/purchases for balance.
When employee pays, credit a/r employee, reduce their paycheck or collect the cash. | |
Inagpurwala (talk|edits) said: | 24 June 2008 |
| I agree with your concept - MsTwizz. Instead of crediting Sales account, should be credited Clearing account.Inagpurwala 17:23, 24 June 2008 (CDT) | |
