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Hi! May I ask how can we close AP transactions where in:

  1. The Company is issuing check payable to cash (through checks and payments module) to employee in order to buy goods/services
  2. After the employee’s purchase, he will liquidate the cash with the corresponding receipts, sometimes there is an excess amount or short amount.
  3. AP transaction should be recorded under the actual vendor where purchase was made,(not under the employee).

How can we properly record and close these kinds of transactions.

Thank you in advance!

Hello,

I think, instead of issuing an AP Prepayment to the employee as the vendor, we want to give the employee Petty Cash to make the purchases. Here are some ideas; you can find more examples of Petty Cash accounting entries with Google and YouTube.

Use Banking → Cash Transfers to transfer from the main bank account to Petty Cash. Petty Cash represents small amounts the company keeps in a “cash drawer”.

When the employee enters his Expense Claim with the receipts, she marks the purchases as NOT due to employee.

 

Enter Bills to the vendor using the receipts and mark them paid from the Petty Cash Account.  Alternatively, you may use a Quick Check paid with Petty Cash payment method, from Petty Cash account, and attach the bill.  Here are more posts related to maintaining and using Petty Cash:

 

 

 

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