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Hi everyone,
A question came up at work that I'm hoping you can help me with
we are in collaboration with a 3rd party, we agreed to pay for something (in this case flights) with the expectation that the 3rd party would refund us the cost
so we had someone fly over to this company (it's easier for us to pay for our person as we have all the personal details of our colleague, it's faster and efficient if we do it) then we invoice them the costs with a receipt of the flight.
should this invoice be treated as income? if it is we are reporting more expenditure than we really incurred however it is countered off by the income. is there any accounting rule on this? also if it is counted as income is this treated any differently?
Thanks for all your help
Dan
A question came up at work that I'm hoping you can help me with
we are in collaboration with a 3rd party, we agreed to pay for something (in this case flights) with the expectation that the 3rd party would refund us the cost
so we had someone fly over to this company (it's easier for us to pay for our person as we have all the personal details of our colleague, it's faster and efficient if we do it) then we invoice them the costs with a receipt of the flight.
should this invoice be treated as income? if it is we are reporting more expenditure than we really incurred however it is countered off by the income. is there any accounting rule on this? also if it is counted as income is this treated any differently?
Thanks for all your help
Dan