Our company requires the expenses are paid by the person at the highest rank. In my company, as long as another person wants to pay others people's expenses and get his own money back later,we are fine becasue it is rare and employee reimbursement is not too big so $ of timing difference is immaterial. but for the corporate credit, it is a pool and if only few people provide us codes online, the amount of timing difference is big.
-criss(criss);
2012-11-14{244}(#69230@41)
Option 2: Record credit card statement whole amount to their department cost. Let the BVA ( Budget vs Actual) report tell the story on the monthly basis,assuming your company has a good budget control up to CFA level.
-puamliu(羽毛);
2012-11-14(#69213@41)
That is not a good idea. they will ask us to reverse the accural and provide us the GL and cost centers. The problem with reversal is, say, if we post the expense to the home cost center of 10 people,1 of them will worry about the fluctruation and provide us the code, it is good to have that but we have to manual reverse some line items and re post these. and there will be another one and another one till the month is closed.
that is the sad part of accounting, we are cost center only and we are supposed to provide services.
-criss(criss);
2012-11-14{333}(#69229@41)
accrual and reverse are not supposed to repeat for the same transaction and reason for a few months in a row. Controller's team will come and challenge. SFA still needs to explain the variance when she/he can expose the issue to the executives.
-cmaing(CMAing);
2012-11-14(#69232@41)
why there are issues? maybe, you are talking about a different kind of accrual?
-criss(criss);
2012-11-14(#69233@41)
Let me make it clear. Re-classing is definitely necessary once the expense report is received. In our case, credit card users are mostly head of department and would not take the expense report seriously unless their department budgets are impacted.
-puamliu(羽毛);
2012-11-15(#69245@41)
Not sure I agree with your point of accrual is not a good way. In my understanding, accrual is a must way in order not to overstate income.accrual first reverse second then wait for the actual cost come in to hit GL(include reclass) is the typically steps to follow.
-cmaing(CMAing);
2012-11-15{127}(#69251@41)
you are right. I know what you mean. what I mean is waiting for cost centers and GLs for the costs not the costs themselves. We have those.LZ's complain is she has the costs but does not know where to post those because users delay in provding the coding.
-criss(criss);
2012-11-15{117}(#69253@41)