Issue/Symptom/Question

How can the expense reimbursements be entered to go to a different bank account than the employee's main bank account?

Applies To

Master Deductions

Master Reimbursements

Resolution/Fix/Answer

Secondary bank accounts are Deductions in PENTA.  Follow the following steps to have a separate pay run for expense reimbursements to go to an employees secondary account:

 1. Setup a Master Deduction to be used to assign to employees as the second bank account, make sure it is set to be Available for Direct Deposit and make it after-tax

 2. Setup a Master Reimbursement to be used for Expense Reimbursements, make sure it is set to use the Deduction Amount and linked to the Deduction created in step 1.  Also make it ater-tax.

 3. Link the Deduction to the Employee as a Voluntary Deduction and add the Bank Info.  The Amount should be zero so only the Reimbursements go into that Bank Account

Set the Deposit Directly into a bank account field to Y to access the Bank Acct Maintenance screen

 4. Enter the Deduction and Reimbursement with the same Amount into PENTA using the Deduction and Reimbursement Tabs of Time/Equipment/Production Units Entry window and process the payroll.Note: Entering only the deduction amount will not will not create an automatic reimbursement in a "one-time" timecard entry.  Both the ded/reimb are needed.

PENTA washes the amount through the Expense Accounts on the Reimbursement and the the Accrual Account on the Deduction.  The result is a debit to the distribution the Reimbursement Entry is charged to and a credit to Cash.  To prevent balances in multiple accounts, have the Accounts match (like 7730 in the example above).

Other options available:

1. Create a Vendor for each employee with the Direct Deposit Account setup, then enter and process expense reimbursements through AP
2. Create a Vendor with recurring AP entries if the amount is the only change each period, then process payments through AP