Expense Report Prepayment

To create a Prepayment for Expense Reports

1.Create a holding account.

The holding account tracks the funds until they are applied to a vendor bill.

2.Write a check.

The check moves funds into the holding account and out of the checking out. Then, the funds are not available in the checking account for other payments.

3.Enter a Journal Entry.

The Journal Entry is used to apply the funds to the Expense Report.

 

Create a holding account

1.Navigate to Setup > Accounting > Manage G/L > Chart of Accounts > New ( Administrator ).

2.In the Type field, select Other Current Asset.

3.If you use account numbers, enter a number in the Number field.

4.In the Name field, enter Temporary Holding.

5.Click Save.

 

Write a check

1.Navigate to Transactions > Bank > Write Checks ( Administrator ).

2.In the Payee field, select your Employee.

3.On the Expenses subtab, in the Account column, select your Temporary Holding account.

4.In the Amount column, enter the prepayment amount.

5.Optionally include notes in the Memo to reference transaction.

6.Click Add.

7.Click Save.

 

Enter a Journal Entry

1.Navigate to Transactions > Financial > Make Journal Entry ( Administrator ).

2.Enter the Date

3.On the Lines Tab, select your:

- Debit: Accounts Payable (same account used for Expense Reports)

- Credit: Temporary Holding account

- Indicate the Name of the Employee on the Name Column.

4.In the Amount column, enter the prepayment amount

5.Click Add.

6.Click Save.

 

To apply the Prepayment against the Expense Report:

1. Navigate to Transactions > Purchases/Vendors > Pay Single Vendor.

2. Select the Employee.

3. Under Apply Tab, select the Journal Entry and the Expense Reports.

4. Click Save.