Hello,

I have a question about employee reimbursements.

Our company bought materials from a supplier and one of our employees paid with one's own credit card.

Then a handwritten cheque was issued to the employee.

I recorded this transaction in Sage 50 referring to the previous transaction recorded by the prior bookkeeper.

However, I am not sure if the way I did is the right method to do so.

Here is the process I record the transaction:

1.Purchase Invoice to the supplier with positive amounts

Dr. Purchases

Dr. GST paid on purchases

Cr. A/P

2.Purchase Invoice to the supplier with negative amounts

Dr. A/P

Cr. A/P Employee

3. General Journal

Dr. A/P Employee

Cr. Bank account

I think the previous bookkeeper recorded like this since the cheque is payable to the employee, not directly to the supplier.

Or should I just use the payment module and pay directly to the supplier with the memo?