Suppose , a company issues several debits cards to its employees who normally work on site to meet their day to day needs of expenses such as food, hotel , accommodation, any small parts or equipments while implementing the job on site.
When they use their company debit cards , the money is realeased from the company current bank account.
And the at the end of the month, the employees give all the cash receipts to the accounts . And the bookkeeper match those receipts with the original bank statement and record those transaciton in the system and calim the input VAT if applicable. It is normally recorded as the direct bank payment to the relevent nominal code (if no VAT invoice found) and match the transaction with the original bank statemnet at the end of the month and reconcile the bank transactions.
Do you think that the bookkeeper should record all the debit card transaction to the employee's separate expense A/c in sage system. That means , the bookkeeper can open a supplier account in the purchase ledger for each employee who hold the debit card of the company to make the payment. And all teh transactions was posed to his a/c as payment on account. And at the end of the month , the employee must submit an expense claim sheet showing the list of all the transaction used by the company debit card issued to him by the company and the debit card was under his name so that he is authorised to make payment using the debit card on behalf of the company to buy necessary things for the sake of company's interest. The employee is not allowed to take any cash advance using the company's debit card from the cash machine for his own expendures. If he does , then he must submit expense claim sheet showin the advanced cash withdrawl made by himself from the company bank account using the debit card.
Now, can anybody help me to decise which procedure shoud be the best procedure to record such transaction in the accounting system.
Samiur Rahman, FIAB