Accounting Entries for Advance Borrowed Travel Expenses

1. When an out-of-towner borrows business trip funds in advance:?

Borrow: other receivables - employee name.

Loan: bank deposit.

2. The actual travel expenses incurred are less than the amount borrowed in advance. When the company recovers the remaining amount:?

Borrow: bank deposit.

Administrative expenses - travel expenses (included into relevant accounts according to the department to which they belong).

Credit: Other receivables - employee name.

3. The actual travel expenses incurred are more than the amount borrowed in advance. When the company pays the remaining amount:?

Borrow: Management expenses - travel expenses (included into relevant accounts according to the department to which they belong) .

Credit: Other receivables - employee name. When outbound personnel borrow money in advance for business trips, and then compare the actual travel expenses with the pre-loan items, they should be accounted for through relevant secondary accounts such as "other receivables" and "administrative expenses".

When reimbursing travel expenses, some unconscious employees will adopt some methods to overreport travel expenses. Common forms include:

1. False invoices or buying invoices from invoice dealers. There is no consumption at all in the invoicing unit and false expenses are reported. Such behavior not only increases the company's travel expenses, but also brings tax risks to the company. Once discovered, severe penalties will be imposed. Inquiries can be made through invoices. When reimbursing, in addition to invoices, the reimbursor is required to provide relevant vouchers, such as hotel bills, catering order details, screenshots of payment methods, itinerary details, etc. to prevent false claims.

2. There is actual consumption, but the invoice amount is higher than the actual consumption amount paid. This type is more difficult to prevent. Usually many units have various reimbursement standards, but high reimbursement is often within the reimbursement standards. This kind of suggestion is based on conscious awareness. If you want to control it, you can also refer to the previous related methods.

3. Use electronic invoices for repeated reimbursement. This can be prevented by entering invoices for reimbursement or checking for duplication.

4. There is actual consumption, and the invoice is consistent with the actual situation, but the discount that should be enjoyed is not enjoyed. Use the points and rebates of the invoicing unit to obtain benefits, such as buying full-price tickets. This can be done through finance A review or audit makes recommendations and pays attention to them.

Reference for the above content? Baidu Encyclopedia-Travel Expenses