How to handle expense checks that include per-diem

[Andrew Sackville-West]

On Fri, Nov 02, 2007 at 08:49:43AM -0700, Bill Michal wrote:
> Hello,
> 
>  
> 
> I would like to run an idea past the experts.  I have expenses related to
> travel for my employer (airfare, hotel, car rental, cell phone, .) plus I
> receive a per-diem for each day I travel.  I created a new account called
> Expenses:Work to record these specific expenses and a new account called
> Income:Reimbursement to record expense checks.  My idea was that when I
> received an expense check, record it in Income:Reimbursement then transfer
> an amount equal to the current balance of expenses (or all of it if expense
> total exceeds check).  Any balance in Income:Reimbursement is transferred to
> Income:Checking Account.
> 
>  
> 
> Does that sound right?

not to me. I would create an asset account called "Reimburseable
expenses" or some such. When I make a work related expense, it would
be a transfer to that asset account. Then when I get reimbursed, it
would likewise be transfered to that account. The theory is that money
owed to you is an asset. Money you pay on behalf of your employer
increases the value of that asset. Money paid to you by your employer
as a reimbursement reduces the value of that asset.

At some point you have to deal with that account, if yoiu have
recieved money in excess of what you are owed, then at some point you
either have to pay it back, or write it off as income. LIkewise if you
never get reimbursed for some expense, then you write it off as an
expense later. 

hopefully, that makes sense, and I understood your question.

A
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