Revenue recognition

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Suresh Venkatesan (Querist)
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30 November 2012 Dear Expert,

Please help me out in the following situation:

My Mgt. wants me to book the travel cost (Abroad) as revenue to the Client, my argument is it is just a reimbursement, no proper clarity in the 'Contract'. It just says travel reimbursable at actual. Client based at US, billing is done in US$.

If it is possible what should be the description made in the invoice? and in which head it should be accounted?

kindly suggest at your earliest.

Regards
Suresh

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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01 December 2012 If the expense has been incurred by your company and then you are recovering the same on actual basis, then it is reimbursement of expenses.

Such amount shall be reduced from the amount of expenditure.

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