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
- From a draft pay run, click the employee who needs a reimbursement.
- Under Reimbursements, click Add.
- Select the reimbursement pay item.
- Enter the claim amount.
- (Optional) Add a description for the employee's payslip.
- Click Save.
- Post the pay run.
Once the pay run is posted, you'll need to record the payment.
Record an expense claim payment
- In the Accounts menu, select Expense Claims.
- Click the Awaiting Payment tab.
- Open the expense claim you want to record.
- Enter the payment details. Then 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.