It is also known as an insurance premium. If you have any questions, please contact your FAST Team representative. Insurance expense is the amount of money that a company or individual pays to an insurance company to purchase an insurance policy. The journal entry is debiting travel expenses and credit cash. The journal entry is debiting expense 400 and credit petty cash 400. For the first option, we separate the transaction into two. We have two options to record the replenishment. In this process, R/3 Travel Management prepares settlement results so that Accounting can interpret them directly and create posting documents. The company needs to record the expense when the expense incurs rather than paid. Company needs to record expenses on the income statement and increase the petty cash balance to 500. 2)The goal of the entire business process is to attain correct posting of travel expenses to Financial Accounting and source-related cost accounting in Controlling. They do not enter the km again since it was already input in the original reimbursement and accounted for in the original fee. Journal Entry for Traveling Expense Traveling expenses are the expense that the company pays for the employee’s travel to perform service for clients. $55.00 fee), and the department is recovering 50% from another department, they only need to process the internal revenue/recovery transaction for 50% of the fee (i.e. Example: PQR Company has leased a place with monthly instalments of Rs.20,000, but the condition is to pay full rent a year (Rs.240,000) in advance. All types of accounting entries other than Sales and Purchase transactions are made using the Journal Entry. In the journal entry, the prepaid expense account is debited, and the cash account gets credited, which reflects the completion of payment. A Journal Entry is a multi purpose transaction where the debit and credit accounts can be selected. In a particular month, if a department incurred airfare charges for 10,000 km flown at ECONOMY class (i.e. A Journal Entry is an entry made in the general ledger and it indicates the affected accounts. If a department needs to reallocate or recover all or part of this ATEMI fee, they do not need to enter/update the number of KM in the Journal Entry or Internal Revenue Expense Recovery. IRS Publication 463, Chapter 1 contains detailed information on classifying whether an employee qualifies for deductible travel expenses. How do I process a Journal Entry/Internal Revenue-Expense Recovery for Airfare expenses after the Air Travel Emissions Mitigation Initiative (ATEMI)?Īs a result of the Air Travel Emissions Mitigation Initiative (ATEMI), departments who incur airfare related expenses will be charged an ATEMI fee monthly to operating and PI funds centers based on the Flight Class of service (ECONOMY or ABOVE-ECONOMY) and number of KM flown (i.e., between departure and arrival airports). This paper is current as of August 4, 2008.
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