Employee used company card for personal use
We have an employee who accidentally used her company p-card for personal use, so she now owes a reimbursement to our business. What is a best practice for processing this? I'm considering marking the charges as Billable and she writes a personal check to the company. Interested in feedback from others on how this is handled in their businesses.
Best Answer
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@DonnaS One thing that I do for our employees, if they are going to be reimbursed for something else, I just have them create a negative expense and mark it as reimbursable. I also have them put it in the same category as the expense that was made by mistake. If the employee is not being reimbursed, then I think what you have planned is about as good as you can get. Good Luck!
Answers
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Our company has set up a category called "Personal Expense" that our employees use if they accidentally use a corporate card for a personal expense. We then do a payroll deduction on their next paycheck for these expenses. Both the "Personal Expense" category and the payroll deduction flow through an Other Receivable account on the balance sheet.
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We have a similar set up to @kdearixon. We considered adding negative amounts, but unfortunately our accounting system and integration break down when an 'expense' is processed for a negative amount.
