Disclaimer:

• It is discouraged to have employees or shareholders paying out of their pockets for company expenses for accounting reasons.  Please verify with your accountant.
• The steps explained below are given only if it is absolutely necessary.

Steps:

1. Create a new payable account in your chart of account.
2. Name the payable account: Shareholder's prepaid expenses to refund back.
3. In the Class Options tab, set the Account Class to be Credit Card Payable.
4. Click Save and Close.
5. From the Home window of Sage 50, click Setup, Settings, Company, Credit Cards, Used.
6. Add a new Credit Card Name named after the shareholder's name.
7. Set the Payable Acct to the payable account created in 2.
8. Set the Expense Acct to a miscellaneous expense account (for any credit card fees which should not exists really).
9. Click OK.
10. Enter the actual purchase invoice and mark the Payment Method as the shareholder's name as set in 6.
11. Post the purchase invoice.
12. Open the Payments window.
13. Select Pay Credit Card Bill.
14. Select To the Order of to the shareholder's name as set in 6.
15. Fill in the rest of the payment based on how the company would refund the shareholder (cash or cheque) as usual.
16. Process the payment.