Allowances (reimburseable expenses)

[Mike or Penny Novack]

On 3/30/2015 2:12 AM, Jill Terry wrote:
> Thank you Michael.
>
> Yes, I KNOW it is not a gnucash question, but this group has been 
> helpful to others with accounting questions in the past and that is 
> why I posted here in the hope that somebody else does a similar thing 
> and could share how they do it.   I am glad you were polite, there 
> really is no need to be rude :)
>
> Yes, as I am also Treasurer of the said club, I totally agree with you 
> and I too demand an expense sheet and receipts before paying expenses. 
> However, as you asked ;)  here is my situation:
>
> I am given an annual allowance to cover incidental costs throughout 
> the year.  It used to be an honorarium, however, after checking with 
> tax office, club members voted to change it to expenses (I voted 
> against that!).   No paperwork is generated and it is not for specific 
> expenses.
>
> Unless I hear of a better way, for now I have simply made an expense 
> account called "reimbursed expenses".
>
> Thanks for your  help
>
> Cheers
> Jill 

Now I am really confused. You are cutting a check to reimburse yourself 
for (personal expenditures on behalf of the club, mileage on behalf of 
the club) and you don't know how much of that reimbursement was for 
what? Isn't that a matter of you keeping some record? (and then sending 
this memo to yourself).

Try imagining yourself wearing two hats, Jill Person and Jill Treasurer. 
How would this be handled were you separate people? What information 
would Jill Person be required to keep and then send to Jill Treasurer to 
justify the reimbursement? Assume that Jill Person kept a copy. Wouldn't 
that information allow her to enter the reimbursement transaction into 
her personal books just as it allowed Jill Treasurer to properly 
allocate the expenses in the club books?

Michael

PS: When you spend personal money on behalf of the club that is a 
transfer between asset accounts. When you receive a reimbursement that 
is again a transfer between asset accounts. Your initial question was 
what to do about some portion of the reimbursement that was NOT for cash 
you had laid out (the mileage reimbursement, a reduction in a personal 
expense).