Travel Expenses
Also called: Travelling Expense
Flights, bus fares, hotels and daily allowance for staff travelling on business, on the Profit and Loss statement.
In detail
Travel Expenses records the cost of staff moving about for the business: bus and air fares, hotel nights, meals on the road and per diems for a Pokhara sales trip or a trek reconnaissance. Each trip should carry a cost center, such as Marketing - YFF for sales trips, so the owner can see what winning business costs. Travel is usually settled from petty cash or an employee advance; the advance goes to Advances and Prepayments when paid and is cleared here when the bills come in. A duplicate ledger, Travel and Conveyance, also exists; a common split is to use it for local fares. Tour costs resold to customers belong in Cost of Sales.
Formula
Travel Expenses for the period = Fares + Lodging + Meals + Per diems on claimed trips
Accounting entry
| Account | Debit | Credit |
|---|---|---|
| Travel Expenses | Rs 10,000 | |
| Cash | Rs 10,000 |
How to record it in BRAccount
- 01Collect the tickets, hotel bills and the signed travel claim.
- 02Go to Invoicing > Journal Entry > New dated the claim date.
- 03Debit Travel Expenses with cost center Marketing - YFF and credit Cash, or Advances and Prepayments if an advance was given.
- 04Attach the claim and submit. The entry below posts.
- 05Review trips by cost center on Financial Reports > Profit and Loss Statement with the Cost Center filter.
When to use it
Post by Journal Entry or Purchase Invoice. The chart also has Travel and Conveyance for local taxis; keep long trips here.
Example from the demo books
Dr Travel Expenses Rs 10,000, Cr Cash Rs 10,000 for the sales manager's Kathmandu to Pokhara trip, cost center Marketing - YFF.