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Amortizing Travel Expenses

Treating current period travel expenses as pre-paids for future event?

My organization is holding a client event in June of this year. One of our event planners is traveling to the location between now and then and is submitting invoices for their expenses after the fact. My Finance Manager is insisting that these current period expenses be booked as prepaids to be expensed in June despite the travel having already occured in order to align with their budget.

Is there a better treatment for these sort of expenses related to a planned future event?


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Apr 30th 2018 20:07

In the advertising industry we commonly hold onto all revenue and expenses until a project is completed in deferred revenue/cogs accounts. If all expenses related to your client project are treated the same you should be able to do the same thing for this event. This allows the staff member to submit expense reports and not have to wait months to be reimbursed, or be able to hide any expenses they don't want to highlight.

The budget for your event should have categories where you can still internally reconcile how the activity is matching up to the budget. If the event is canceled, then all submitted activity will be posted in the immediate fiscal period.

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