Record and Reimburse Employees' Business-Related Expenses | Microsoft Docs

Business Central supports transactions for employee in a similar way as for vendors. Accordingly, employee posting groups exist to make sure that employee ledger entries are posted to the relevant accounts in the general ledger.

If employees spend their own money during business activities, you can post the expense to the employee's account. Then you can reimburse the employee by making a payment to the employee's bank account, similarly to how you pay vendors.

To record an employee's expense

You post employees' expenses on the General Journal page.

1. Choose the icon, enter General Journals, and then choose the related link.
2. Open the relevant general journal batch. For more information, see Working with General Journals.

3. On a new journal line, fill in the fields as necessary. Hover over a field to read a short description.

   NOTE

   author: edupont04 ms.service: dynamics365-business-central ms.topic: include ms.date: 04/01/2019 ms.author: edupont

   The general journal only shows a limited number of fields on the journal line by default. If you want to see additional fields, such as the Account Type field, choose the Show More Columns action. To hide the additional fields again, choose the Show Fewer Columns action.

4. Repeat step 3 for all the expenses that the employee has incurred.

   TIP

   If you want to enter multiple expense lines above one balance-account line for the employee's bank account, then select the Suggest Balancing Amount check box on the line for your batch on the General Journal Batches page. Then the Amount field on the balance-account line is automatically prefilled with the value that is required to balance the expenses.

5. Choose the Post action to record the expenses on the employee's account.

To reimburse an employee

You reimburse employees by posting payments to their bank account on the Payment Journal page.

1. Choose the icon, enter Payment Journals, and then choose the related link.
2. Open the relevant payment journal batch. For more information, see Working with General Journals.
3. Fill in the fields as necessary. For more information, see Making Payments.
4. Alternatively, choose the Suggest Employee Payment action to automatically insert journal lines for pending employee reimbursements.
5. Choose the Post action to register the reimbursement.

To reconcile reimbursements with employee ledger entries

You apply employee payments to their related open employee ledger entries in the same way as you do for vendor payments, for example on the Payment Reconciliation Journal page, based on the related bank statement entries. For more information, see Applying Payments Automatically and Reconciling Bank Accounts. Alternatively, you can apply manually on the Employee Ledger Entries page. For more information, see the related Reconcile Vendor Payments with the Payment Journal or from Vendor Ledger Entries.

See Also

Post Transactions Directly to the General Ledger
Working with General Journals
Reverse Postings
Finance
Working with Business Central

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