An employee has paid for an item he got direct from a supplier direct from his wages. I have deducted it after tax so that bit is ok. The invoice for the item will be posted as normal to nominal x. When I post the wages journal would I be correct in posting the portion that he has paid for the item to the nominal as a credit that the original invoice was posted to? Or would I post it to whatever sales nominal?
If this was paid for through the company and then the employee reimbursed the cost through his wages then yes I would post it as a credit to the nominal that the original invoice was posted to as it will then not show in the P & L. Can't see another way of doing it, but someone else might have a better idea?
I originally thought the same as you, then my mind went into over-analysis mode and thought maybe it would be considered a sale at zero profit. Both have the same effect overall, but at least the way you mentioned doesn't over-state purchases or sales. Things like this really confuse me
