Forum Discussion

Magnolia1's avatar
Magnolia1
Experienced User
3 years ago

Reimbursed Expenses

Hi I am doing the bookkeeping for my husbands consultancy. He gets paid into his company most of it I code to professional fees (4-1000) however I don't know how to code the reimbursed expenses he gets back. Is it coded under a 6- account being an expense which i could name reimbursed expenses but that doesn't seem right. It is not income of course, perhaps costs of sales?? Can someone clarifiy this please?

Marty

  • Hi

     

    I suggest that you record it as income as reimbursed expense account. My reasoning behind this is that you are invoicing the client for this so it should be shown on the P&L as same.

     

    The original expense is recorded, as you say in the expense account 6-XXXX 

     

    Hope that makes sense to you and helps

     

    Lisa

  • LRBooks61's avatar
    LRBooks61
    Ultimate Cover User

    Hi

     

    I suggest that you record it as income as reimbursed expense account. My reasoning behind this is that you are invoicing the client for this so it should be shown on the P&L as same.

     

    The original expense is recorded, as you say in the expense account 6-XXXX 

     

    Hope that makes sense to you and helps

     

    Lisa