Discussion:Employee purchases

This is driving me nuts and I think I know how I should treat this, but I want to hear your comments.....

To account for employee purchases, meaning, some of our employees may purchase safety glasses or an item off of a PO that contains other company materials purchases, we have an employee purchases clearing account that is set up as "Other Asset."

On the PO, it is flagged on the item that it is an employee purchase. So, when my A/P gal gets the invoice in, she enters the voucher, sets up a payable debit employee purchases clearing , credit A/P. Then she will generate an invoice to that employee. Right now, the bill is set up to debit A/R, credit sales. I don't think we should book this to sales. I think we should credit employee purchases clearing so that account goes to zero, acting as a true clearing account.

We had just set up this ledger and I am finding these things as I go along and reconcile each month. What are your thoughts?