Record and Reimburse Employees' Business-Related Expenses

Dynamics NAV 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.

NOTE

Employee transactions can be posted in the local currency only. Reimbursement payments to employees do not support discounts and payment tolerances.

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 in the General Journal window.

  1. Choose the Search for Page or Report 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. Choose a field to read a short description of the field or link to more information.

  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 in the General Journal Batches window. 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 in the Payment Journal window.

  1. Choose the Search for Page or Report 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 in the Payment Reconciliation Journal window, based on the related bank statement entries. For more information, see Applying Payments Automatically and Reconciling Bank Accounts. Alternatively, you can apply manually in the Employee Ledger Entries window. For more information, see the related How to: Reconcile Vendor Payments Manually.

See Also

How to: Post Transactions Directly to the General Ledger
Working with General Journals
How to: Reverse Postings
Finance
Working with Dynamics NAV


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