Pay an employee’s expense claim using payroll

Repay an employee’s expense claim by adding it to their payments in a draft pay run from payroll so they can see the reimbursement on their payslip and you can claim back the GST.

Before you start

  • In your chart of accounts, create a new suspense account, eg 'Expense claim suspense'. Select the Enable payments to this account checkbox.
  • Create a reimbursement pay item. For example, expense claim reimbursements.
  • Link the reimbursement pay item to the suspense account.
  • Approve and authorise the employee's expense claim in Xero.

Add an expense claim to an employee's payslip

  1. From a draft pay run, click the employee who needs a reimbursement.
  2. Click Add Reimbursement Line.
  3. Enter the claim amount.
  4. Click OK then click Save.
  5. Post the pay run.

Once the pay run is posted, you'll need to record the payment.

Record an expense claim payment

  1. In the Accounts menu, select Expense Claims.
  2. Click the Awaiting Payment tab.
  3. Open the expense claim you want to record.
  4. Enter the payment details. Then select the same suspense account as the reimbursement pay item.
  5. Click Paid.
  6. Run the Account Transactions report for the suspense account.
  7. Make sure the debit and credit entries for the claim are the same.
If the balance isn't zero, check that the claim and payment amounts are the same.