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 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.
- (Optional) Add a description for the employee's payslip.
- 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.