Account for reimbursements

To complete the steps in this article, log in to your account from a web browser at waveapps.com.

When someone makes a purchase for your business using their personal funds, your business has received a short-term loan from that person. This means the money you owe them is a reimbursement.

Learn how to account for reimbursements with a video.

Create an expense account

Enter an expense transaction

Bookkeep the repayment

Create an expense account

To record the reimbursement, create a liability account under Other Short-term Liability in your chart of accounts. Learn how to add a new account or category.

Enter an expense transaction

First, create an expense transaction:

1. On the left-side menu, click Transactions.
2. At the top right, click Add transaction > Add withdrawal.
3. Enter the date of the purchase, a description, and the amount.
4. For the Account, select your reimbursement account.
5. For the Category, select the relevant expense category.
6. Add sales tax, if applicable.
7. Click Save.

The amount to be reimbursed will appear on your balance sheet in your reimbursement account.

Bookkeep the repayment

Once you’ve been repaid, to complete the reimbursement, categorize the imported transaction, or create a transaction to show the repayment.

If you import transactions, categorize the repayment to your reimbursement account.

To create the reimbursement transaction:

1. On the left-side menu, click Transactions.
2. At the top right, click Add transaction > Add withdrawal.
3. Enter the date of the reimbursement, a description, and the amount reimbursed.
4. For the Account, select the account used to pay the reimbursement.
5. For the Category, select your reimbursement account.
6. Click Save.