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
Make sure you've:
Created a suspense account in your chart of accounts, with the 'Enable payments to this account' checkbox selected. For example, expense claim suspense.
Created a reimbursement pay item. For example, expense claim reimbursements.
Linked the reimbursement pay item to the suspense account.
Approved and authorised the employee's expense claim in in Xero.
Add an expense claim to an employee's payslip
- From a draft pay run, click the employee who needs a reimbursement.
- Click + Add Reimbursement Line.
- Enter the claim amount.
- Click OK and click Save.
- Post the pay run.
Once the pay run is posted, you'll need to record the payment.
Record an expense claim payment
- Go to Accounts, then click Expense Claims.
- Click the Awaiting Payment tab.
- Open the expense claim you want to record.
- Enter the payment details and select the same suspense account as the reimbursement pay item.
- Click Paid.
- Run the Account Transactions report for the suspense account.
- Make sure the debit and credit entries for the claim are the same.