How do I reimburse an employee who paid out of pocket?
Raise a purchase order with Paid By set to Reimbursement, attach the receipt and pick the employee. On approval WorkSkedge sets the PO to Billed automatically, so all that is left is recording the payment back to the employee.
Updated August 31, 2026 · Verified against PURCHASE-ORDERS.md, FINANCE-SETTINGS.md
Steps
- 1Create a PO and set Paid By to Reimbursement.
- 2Attach a photo of the receipt.
- 3Select the employee who paid out of pocket.
- 4Link the PO to the project or work order the cost belongs to.
- 5Submit the request for approval.
- 6A manager approves it — the PO moves to Billed automatically.
- 7Record the payment to the employee to close the reimbursement.
When someone buys materials with their own money, the reimbursement flow pays them back without pretending a vendor invoice exists. The employee submits a PO with Paid by = Reimbursement and receipt photos attached, a manager approves it, WorkSkedge sets the PO straight to Billed, and the manager records the payment to the employee.
Before you start
- A receipt is required on every reimbursement PO.
- The employee being reimbursed must be selected on the PO.
- Field workers can only submit reimbursements when Allow field employees to submit reimbursements is enabled in Settings → Finance → Purchase Orders.
How the flow differs
| Step | Standard PO | Reimbursement PO |
|---|---|---|
| 1 | Submit | Submit |
| 2 | Approve | Approve |
| 3 | Receive goods | Skipped |
| 4 | Record vendor invoice (bill) | Skipped — auto-billed |
| 5 | Record payment | Record payment |
The receive and bill steps are skipped because the employee already received and paid for the items. WorkSkedge recognises the Reimbursement payment method and handles it on approval.
Payment methods and what each one requires
| Paid By | Workflow |
|---|---|
| Vendor Invoice | Standard flow — receive, then bill against the vendor invoice |
| Credit Card | Must select a company credit card; receipt required |
| Cash/Debit | Receipt required |
| Reimbursement | Auto-bills on approval; receipt required; employee selection required |
Notes and limits
- Reimbursement POs show a distinct badge in the purchase orders list so they are easy to spot.
- The reimbursement approval threshold in finance settings sets the maximum amount that can be auto-approved.
- Reimbursement is also available as a method when recording a payment against any billed PO.
Common errors
- Cannot submit the reimbursement — the receipt or the employee is missing. Both are mandatory.
- Field worker cannot see the option — reimbursements from the field are switched off in finance settings.
What it looks like in WorkSkedge
Frequently asked questions
Why does a reimbursement PO skip receiving and billing?
The employee already received and paid for the items, so there is nothing to receive and no vendor invoice to bill. WorkSkedge sets the PO to Billed on approval and leaves only the payment to record.
Is a receipt mandatory?
Yes. A receipt photo is required on all reimbursement POs, and also on Credit Card and Cash/Debit POs.
Can field employees submit reimbursements from their phone?
Yes, when Allow field employees to submit reimbursements is enabled in Settings → Finance → Purchase Orders.
Can reimbursements be approved automatically?
Yes — set a reimbursement approval threshold in finance settings and requests below that amount are auto-approved.
What if the purchase was made on a company credit card instead?
Use Paid By = Credit Card. You must pick the company credit card and attach the receipt; the standard receive and bill steps still apply.