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How to record employee expenses in Sage

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Evening!
Could you please help me with the dilemma of better way to record employees expenses (paid separately from salary). As a Sage advises next:,, If you want to reimburse the employee separately, the easiest way to record this in Sage Accounts is to set the employee up as a bank account.
If you want to add the expenses to the employee's net wages, you can record the expenses using journals.,,
But my question is:,, Can I treat each employee as a supplier, in order to be able to record with more details and track later on how much each of them incur +also this way will give me a chance to relate each ofexpenses line to Project.

Thank you in advance

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23rd Jan 2019 17:08

Yup - supplier's fine. Personally, I think it's a better idea.

Not convinced that they'd be a Trade Creditor for FRS 102/105/whatever but you can work around that once a year.

Alternatively, just record them as payments as and when they're paid to the employee.

Whatever fits your way of working best.

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to lionofludesch
23rd Jan 2019 17:13

Thank you so much for the prompt reply!

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23rd Jan 2019 17:22

Treating the employee as a supplier is expedient but not correct.

I tend to post them as a journal or bank payment at the point of reimbursement. In the unlikely event of there being something significant unpaid at the year-end I'll
do an additional reversing journal dated at the year-end so it's captured.

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to andy.partridge
23rd Jan 2019 17:54

Ach - it's bookkeeping, Andy.

Not accountancy.

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to lionofludesch
23rd Jan 2019 21:12

My answer was bookkeeping.

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23rd Jan 2019 17:57

agree as a supplier - in sage - certainly allows for the project cost / department allocations etc - as stated previously
I would prefix the employee account with a general "* " or "# " or something similar ie *jonesAB- that would allow you to sort in sage by the prefix and have all staff accounts in an employee block - + be able to sort more easily around reporting times..
setting as bank account[s] takes up valuable nominal space

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to kiwilondon99
24th Jan 2019 09:22

Good tip with *.Thanks

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By Anita14
23rd Jan 2019 18:49

Completely agree with kiwilondon99. Also, adding them as a supplier makes it really easy to check if they've tried to claim the same thing before.

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24th Jan 2019 15:09

I make the supplier code Exp and the surname and initial
So ExpSmithJ

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