travelling expenses
This query is : Resolved
18 June 2010
Dear sir,
Under what head of account one can book those Expenses made for the travel of workers or employees of a company, to purchase of spares, to service any machine, to pay some fees & taxes etc?
How to account If any external person comes for to give some services like, machinery erection, service or as consultant the traveling expenses, boarding & lodging expenses made for them by the company?
What are all the expenses come under the Traveling expenses A/C?
Under what head of account one can book those Expenses made for the travel of workers or employees of a company, to purchase of spares, to service any machine, to pay some fees & taxes etc?
How to account If any external person comes for to give some services like, machinery erection, service or as consultant the traveling expenses, boarding & lodging expenses made for them by the company?
What are all the expenses come under the Traveling expenses A/C?
19 June 2010
All exps to be Book in repair & Maintenance Machinery.
19 June 2010
I NEED MORE CLARIFICATIONS SIRS.
PLEASE RESOLVE MY OTHER QUERIES ALSO !
PLEASE RESOLVE MY OTHER QUERIES ALSO !
02 August 2025
Sure! Let me clarify your queries on **traveling expenses** accounting in detail:
---
### 1. **Travel expenses for company’s own employees (e.g., workers, staff):**
* When employees travel for **official work** like purchasing spares, servicing machines, paying fees or taxes, their travel costs can be classified based on purpose:
* **Traveling expenses** — for journeys (conveyance, tickets, fuel, tolls)
* **Boarding and lodging expenses** — if they stay overnight away from the workplace
* **Other specific accounts** if related to certain activities (e.g., “Repair & Maintenance Expenses” if for servicing machines)
* Typically, companies keep a **Traveling Expenses** or **Employee Travel Expenses** ledger for such costs.
---
### 2. **Travel expenses for external persons (e.g., consultants, service providers, technicians):**
* If the company incurs travel costs on behalf of external consultants or service providers:
* The costs can be booked as **“Professional Fees”** or **“Contractor Charges”** (if billed under a service contract)
* Alternatively, some companies maintain a separate **“Travel Expenses – Outsiders”** or include it within the **“Consultancy Charges”** or **“Service Charges”** account.
* Boarding and lodging paid for them can be similarly categorized.
* If the expenses are reimbursed later by the consultant, it can be treated as a **receivable** from the consultant.
---
### 3. **What expenses come under "Traveling Expenses"?**
* Transportation costs such as:
* Air/train/bus/taxi fares
* Fuel and tolls related to official journeys
* Vehicle hire charges
* Boarding and lodging costs incurred during official travel (sometimes shown separately)
* Daily allowances, if paid separately for travel (though often shown as salary components)
* Expenses like visa fees, passport charges related to official travel
* Local conveyance for official purposes
---
### 4. **For servicing machines or maintenance:**
* If travel is specifically related to **repair & maintenance** (like sending staff to service machines or external technicians coming to your site), many companies post these expenses under **Repair & Maintenance Expenses** or split them into:
* Repair & Maintenance – Labour
* Repair & Maintenance – Travel & Other Expenses
---
### **Summary table**
| Type of Travel Expense | Suggested Accounting Head |
| -------------------------------------------------- | --------------------------------------------------------------------- |
| Employee travel for official work | Traveling Expenses / Employee Travel Expenses |
| Boarding & lodging for employees on travel | Boarding & Lodging Expenses (or Travel Expenses) |
| Travel & related expenses of consultants/outsiders | Professional Fees / Consultancy Charges / Travel Expenses – Outsiders |
| Travel related to machine servicing | Repair & Maintenance Expenses (Travel portion) |
| Purchase-related travel expenses | Purchase Expenses or Traveling Expenses (based on company policy) |
---
If your company has an accounting manual or policies, it's best to follow the prescribed heads. But generally, these are the common practices.
Would you like me to help draft journal entries for any of these scenarios?
---
### 1. **Travel expenses for company’s own employees (e.g., workers, staff):**
* When employees travel for **official work** like purchasing spares, servicing machines, paying fees or taxes, their travel costs can be classified based on purpose:
* **Traveling expenses** — for journeys (conveyance, tickets, fuel, tolls)
* **Boarding and lodging expenses** — if they stay overnight away from the workplace
* **Other specific accounts** if related to certain activities (e.g., “Repair & Maintenance Expenses” if for servicing machines)
* Typically, companies keep a **Traveling Expenses** or **Employee Travel Expenses** ledger for such costs.
---
### 2. **Travel expenses for external persons (e.g., consultants, service providers, technicians):**
* If the company incurs travel costs on behalf of external consultants or service providers:
* The costs can be booked as **“Professional Fees”** or **“Contractor Charges”** (if billed under a service contract)
* Alternatively, some companies maintain a separate **“Travel Expenses – Outsiders”** or include it within the **“Consultancy Charges”** or **“Service Charges”** account.
* Boarding and lodging paid for them can be similarly categorized.
* If the expenses are reimbursed later by the consultant, it can be treated as a **receivable** from the consultant.
---
### 3. **What expenses come under "Traveling Expenses"?**
* Transportation costs such as:
* Air/train/bus/taxi fares
* Fuel and tolls related to official journeys
* Vehicle hire charges
* Boarding and lodging costs incurred during official travel (sometimes shown separately)
* Daily allowances, if paid separately for travel (though often shown as salary components)
* Expenses like visa fees, passport charges related to official travel
* Local conveyance for official purposes
---
### 4. **For servicing machines or maintenance:**
* If travel is specifically related to **repair & maintenance** (like sending staff to service machines or external technicians coming to your site), many companies post these expenses under **Repair & Maintenance Expenses** or split them into:
* Repair & Maintenance – Labour
* Repair & Maintenance – Travel & Other Expenses
---
### **Summary table**
| Type of Travel Expense | Suggested Accounting Head |
| -------------------------------------------------- | --------------------------------------------------------------------- |
| Employee travel for official work | Traveling Expenses / Employee Travel Expenses |
| Boarding & lodging for employees on travel | Boarding & Lodging Expenses (or Travel Expenses) |
| Travel & related expenses of consultants/outsiders | Professional Fees / Consultancy Charges / Travel Expenses – Outsiders |
| Travel related to machine servicing | Repair & Maintenance Expenses (Travel portion) |
| Purchase-related travel expenses | Purchase Expenses or Traveling Expenses (based on company policy) |
---
If your company has an accounting manual or policies, it's best to follow the prescribed heads. But generally, these are the common practices.
Would you like me to help draft journal entries for any of these scenarios?
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