The Book-keepers Forum (BKF)
The Book-keepers Forum (UK) -> General Book-keeping & Accounting -> reimbursable expenses - double entry treatment manual system
Post Info TOPIC: reimbursable expenses - double entry treatment manual system
alexsmith


Member

Status: Offline
Posts: 6
Date:
reimbursable expenses - double entry treatment manual system
Permalink  

Hello - I'm looking for help to overcome a brain drain...
My new client is a trainer, she bills the companies she works for as part fee and part expenses which she has already paid out.
Do I account for this as follows:

Expenses paid out:
DR Expense accounts
CR Bank/ cash book

For each invoice sent:
DR Client account - total amount payable
CR Sales with fee only (income)
CR Recoverable expenses with the expenses owing (other income)

and then when invoice paid:
DR Bank
CR Client account with full amount

This seems to balance but I'm not convinced!hmm
Thanks in advance!

__________________
Dustin57


Senior Member

Status: Offline
Posts: 125
Date:
Permalink  

Your double entry seems fine, although when I account for the reimbursed expenses I normally credit a sales account as opposed to trying to contra them against the expenses originally incurred. For example I do some work for a consultant and when he recharges the expenses to his client I send all of the receipt to consultancy income. The reason for this is that he's VAT registered and therefore gross's up the expense, meaning that the reimbursed amount is never equal to the original receipt. I find doing it this way keeps the P&L cleaner.

 

-- Edited by Dustin57 at 13:18, 2008-07-21

__________________
"People who are exceptionally good in business arent so because of what they know but because of their insatiable need to know more"
Page 1 of 1  sorted by
 
Quick Reply

Please log in to post quick replies.
The Book-keepers Forum (UK) -> General Book-keeping & Accounting -> reimbursable expenses - double entry treatment manual system
Tweet this page Post to Digg Post to Del.icio.us
Members Login
Username 
 
Password 
    Remember Me  
©2007-2024 The Book-keepers Forum (BKF). All Rights Reserved. The Book-keepers Forum (BKF) is a trading division of Bookcert Ltd. Registered in England Company Number 05782923. 2 Laurel House, 1 Station Rd, Worle, Weston-super-Mare, North Somerset, BS22 6AR, United Kingdom. The Book-keepers Forum and BKF are trademarks of Bookcert Ltd. This forum is a discussion forum only. There will usually be more than one opinion to any question and any posting should not be viewed as a definitive solution. No responsibility for loss occasioned to any person acting or refraining from action as a result of any posting on this site is accepted by the contributors or The Book-keepers Forum. In all cases, appropriate professional advice should be sought before making a decision. We reserve the right to remove any postings which are offensive, libellous, self-promoting or engaged in covert marketing. We will not notify users of removals. The views expressed in the forum posts are those of the individual and do not necessary reflect or agree with those of The Book-keepers Forum. Any offensive or unsuitable posts will be removed by the moderators. Any reader of this forum can request for a post to be looked into by sending an email to: bookcertltd@gmail.com.

Privacy & Cookie Policy  About