Accounting treatment for travel reimbursements

[Alton Brantley]

I have two separate ways of handling business travel that’s reimbursed by my employer, depending on the reason for the travel.

Case 1. Professional education, training, professional organizationes, etc.
These items in some cases are legitimate business expenses which you can deduct on your personal income tax
In these cases, I have an account tree of Expenses, and sub-accounts under those expenses of reimbursed. e.g.

Personal Business Expenses-Event 1
	Travel
    	    less-employer reimbursement
	Lodging
	    less-employer reimbursement
	Food
            less-employer reimbursement

Whatever I pay for the category I record in the category
When I get reimbursed, it’s income(or expense reduction) credited to the corresponding subaccount
I use this model for each business-related event so I can track both activities and ensure I’ve collected reimbursements

When I do taxes, I build my report to include subaccounts, so that I get the Net out of pocket expenses to record as personal business expense.

Case 2: Business meeting not required for a tax- deductible activity (no continuing education or professional reason, e.g. trade show)

In these cases, I use the same account tree of expenses, EXCEPT any excess of expenses over reimbursement is just an elective expense and is non-deductible.

So, if I’m allowed $150 a day for a room, but I spend $175 for a room, the additional $25/day is just an elective expense.

In both cases, your employer has charged the amount you were reimbursed to their business expense, so you are not entitled to.
How the remainder is taxed is based on your eligibility to take the remainder as either a deductible or non-deductibe expense.


RE: 
I've been using gnucash for years ... such a great, useful application.
I've been able to figure out the answers to most of my questions, with the
help of help documents, mailing list archives, and the published book, but
I still have a couple of questions. They're really about accounting topics,
not gnucash per se, but everyone on this list is so helpful I thought I
would ask.

One question I have is about the proper accounting treatment for travel
reimbursements from my employer. For example, suppose I take my personal
vehicle on an overnight trip for work. I pay for a hotel room, meals, and
fuel using my credit card. When I return, I fill out a travel form and I am
reimbursed according to the following scheme: