Re: A funny thing happened...

In message <n0kcg2dh7hfv8jicletpccmvo8rhka6ipc@xxxxxxx>, John Russell <jrussell@xxxxxxxxxxxxxxxxxxx> writes

I agree with that except that, as I've suggested to Ewan, when you're
recording in the books who the payment goes to, and certainly where you are
reimbursing against a receipt, the "proper way" is to 'look through' who
actually made the purchase on behalf of the Group and record the name of the
supplier as shown on the receipt.

I record who I actually paid, who the supplier was and what it was that was purchased/ paid for. That way there is a full and complete record however in the published accounts it shows what we spent the money on and/or the supplier as appropriate and not who actually bought the item on our behalf so I don't think we are far apart.

I'm sure there are accountants out there who can give a reference to GAAP,
but I have always found that advice given by HMRC, and before them the IR,
is worth following, and HMRC say (in Chapter 5 of Guide 480 Expenses and
Benefits):

Purchases on employer’s behalf
Businesses are often run in such a way that employees make payments on their
employer’s behalf.
For example an employee may buy stamps, stationary and items of equipment
for the employer
and be reimbursed the costs incurred from petty cash or by cheque. Such
transactions are not
providing the employee with either earnings or expenses because the employee
has received no
money of his own. Accordingly such reimbursements need not feature on the
P11D.

All makes perfect sense.

Note: 1) such transactions are not 'employee' expenses, so shouldn't be
recorded as such.

Correct, I don't.

2) stationary is spelt with an 'a'.

Are you sure? You may wish to check that because whilst I know that you are not often wrong there is always a first time ;-)
--
Paul Harris
.

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