How to handle advancements to employees for Company's expenses?
Sample scenario below is for an employee called "Employee A" who takes a $2000 advance from the Company for a company's exhibition trip to Germany.
STEP 1 : Make Advance Payments to Employee A.
STEP 2 : Recognise the actual expenses incurred with the receipts provided by Employee A.
(a) Scenario 1 - When the initial payment of $2000 to Employee A was more than the actual receipts of $1850. This resulted in Employee A owes Company $150.
(b) Scenario 2 - When the initial payment of $2000 to Employee A was less than the actual receipts of $2250. This resulted in Company owes Employee A $250.