Employee Reimbursements via Payroll Cycle

Example:  Paying Medical flex reimbursement via payroll.

1. Set up a new Payable account called Expense Reimbursement.  Assign Sub-Table 40 (employees) to this account.
2. Set up a company detail code for the reimbursement using a calculation method of ‘B.’  Note that all Subject To: taxes are None, and all other tax/accrual deductions have been unselected.  Also, the expense account is the new payable account.  Set the Coding option to E for table 40 (employee).
   
3. Add the detail code to the employee level.
4. When an employee turns in a flex reimbursement request, record it through normal A/P procedures (i.e., Enter Invoices to Pay); instead of coding it to the normal A/P account, record it to the special purpose A/P account.  Our example uses the 2012 account for employee reimbursement, which we set up in Step 1.  Use the employee number as the vendor.  The expense coding for the A/P entry will continue to be coded to the 2180-Flex Medical Payable (with the employee number as the Sub-Account.)
5. Next time you run a Payroll, the employee will automatically be paid for all the reimbursement(s) posted at the time of the payroll.  This will show on their check stub in the Earning section, which has the description Reimbursement.