What is an advance travel report?
This is a document drawn up at the end of the trip, which is submitted to the company’s accounting department to confirm expenses for the amount issued in advance. An advance report on travel expenses serves two purposes for an organization:
- is a document confirming expenses in relation to financial resources issued to the employee immediately before his departure on the trip;
- acts as the basis for compensation for the employee’s personal expenses incurred during the performance of his official assignment.
Until 2015, in addition to preparing an advance report, the list of documentation that was required to be drawn up each time a trip was made was quite large. It included a travel certificate, official assignment, etc. From 2021, only an expense report is required.
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The following documents were provided with the advance report: Receipt-agreement and receipt for PKO (there is no receipt for cash register).
Question
Can these documents be taken into account to calculate the taxable base for income tax?
Expert's answer
What documents must be attached to the advance report to confirm the expenses incurred?
A specific list of documents that an accountable person must attach to the expense report has not been established.
Regardless of the type of expense, documents confirming payment must be attached to the advance report, for example:
• cash register check (Article 1.1, clause 1, Article 1.2 of the Law on the application of cash register systems);
• a document received during settlements in remote or hard-to-reach areas.
If the advance payment was received by an accountable person to make an advance payment to the organization’s counterparty (IP) for goods (work, services), then it is enough to attach only a document confirming payment to the advance report.
The advance report must also be accompanied by primary documents for the purchase of goods (works, services), containing mandatory details. If an advance was received for the purchase of inventory items, then you need to provide documents confirming their receipt (invoices, sales receipts, etc.). It is enough to attach copies of these documents to the expense report if the originals are transferred to the organization’s warehouse (IP).
Ready-made solution: Procedure for filling out and submitting an advance report (ConsultantPlus, 2019) {ConsultantPlus}
Does the receipt for the cash receipt order confirm the expenditure of accountable amounts?
The advance report must be accepted for accounting, and the amount indicated in it must be taken into account in settlements with the accountable person (reimbursement of expenses) if the report is approved by the manager. As a rule, the manager approves the expense report if he has no doubt that the order has been completed by the accountable person, the costs have actually been incurred, and the valuables have been paid for. The receipt for the cash receipt order (PKO) and the supplier’s transfer documents (invoices, acceptance certificates, etc.) confirm the fact that the accountable person spent money on their purchase.
In tax accounting, valuables purchased by an employee for an organization, as well as expenses incurred by him on behalf of the organization, are accepted for tax accounting on the basis of an approved advance report, sales receipts or invoices, as well as documents confirming the fact of payment (Letter of the Ministry of Finance of Russia dated October 14, 2019 N 03-03-06/1/78500).
It is important that the documents confirming the fact of payment meet the requirements listed in paragraph 1 of Art. 252 of the Tax Code of the Russian Federation.
{Ready solution: Does the receipt for the cash receipt order confirm the expenditure of accountable amounts (ConsultantPlus, 2019) {ConsultantPlus}}
If the receipt-agreement and PKO documents contain all the necessary details, then we believe you can accept this expense to calculate the analogue of profit.
Selection of documents:
Ready-made solution: Is it possible to recognize expenses on an advance report and deduct VAT if there is no cash receipt (ConsultantPlus, 2019) {ConsultantPlus}
The explanation was given by the accountant-consultant of LLC NTVP "Kedr-Consultant" Natalya Borisovna Petrova in December 2019.
When preparing the answer, SPS ConsultantPlus was used.
This clarification is not official and does not entail legal consequences; it is provided in accordance with the Regulations of the CONSULTATION LINE ().
This consultation has passed quality control:
Reviewer: Selezneva Irina Akhmatyasavievna, Associate Professor of the Department of Accounting, Finance and Auditing, Izhevsk State Agricultural Academy
How to file business trip expenses
Drawing up the document in question is impossible without attaching to it a package of documents confirming travel expenses. These may be:
- ground transport tickets;
- air tickets;
- checks and receipts for purchased goods and services;
- travel certificate form (if the company uses it when sending its employees);
- rental agreement for accommodation or documents from the hotel;
- report on completed tasks.
IMPORTANT! The only type of finance issued for which expenses are not subject to mandatory confirmation is payment for a business trip in the form of daily allowance. Therefore, they are not required to be mentioned in the expense report. They can only be indicated on the travel certificate; accordingly, if this document was drawn up when going on a business trip, then mentioning the daily allowance becomes mandatory.
When traveling outside the territory of our state, due to the specific features of such shipments, the following documentation is also provided as documentation confirming the costs:
- a receipt for payment of the state tax fee for the service of producing a foreign passport;
- a receipt for financial expenses made at the visa center;
- other documentation confirming the fact of spending money on various consular and visa government fees.
In addition to receipts and checks, when drawing up an act of funds spent on a business trip, the purpose of which was to perform official assignments outside our state, the employee will additionally need to provide a copy of the first page of the international passport, as well as the page on which the fact of crossing the borders of countries is noted.
Issuance of accountable funds
An employer can give an employee funds for reporting - this is permitted by the instructions of the Central Bank of the Russian Federation “On making cash payments” dated October 7, 2013 No. 3073-U. Such amounts are issued for the purchase of office supplies and household equipment, for payment of communication and postal services, as well as for travel and entertainment expenses.
The amount of funds issued on account is not limited by law. As well as a list of employees to whom they can be issued. If such funds are issued constantly, it is advisable to approve the list of accountable persons by order of the manager . But if the need for this arises from time to time, amounts for reporting are issued upon the employee’s application. In it, he must indicate the amount and period for which it will be issued.
Important! Only the employee can receive the amount for the report! Funds are not issued to unauthorized persons.
When issuing the amount, the accountant draws up a cash receipt order . Accountable funds are allowed to be issued not only in cash - they can be transferred to the employee’s card. The employer prescribes the procedure for issuing amounts in this way and reporting for them in local regulations.
Previously, the rule was: until the accountable person accounts for the previous amount, a new one cannot be issued to him. It has now been cancelled. That is, even if the employee did not submit the previous advance report, he can receive a new amount.
Instructions for preparing an advance report
For reporting, the current legislation regulates a unified form, which is published under the number AO-1. The following information is consistently indicated on the front:
- Full name of the posted employee;
- his personnel number;
- full name of the position he holds;
- information about the primary document (in most cases this is a cash order or an extract confirming a money transfer);
- information about the amount of money remaining from the advance payment for the last business trip (if any).
On the reverse side of the sheet, detailed information about each expenditure of the issued funds is written down:
- date of;
- serial number;
- name of the expenditure;
- the amount of money spent;
- name and details of the document confirming the fact of financial expenditure.
ADVICE! When drawing up a document, it is recommended to use an example of filling out an expense report. This will avoid making mistakes and inaccuracies, which, in turn, will help prevent further possible problems with the tax office.
The period for submitting such reports is regulated at the legislative level. The documentation must be provided to the accounting department of the enterprise within three working days from the date of the citizen’s arrival from the trip.
If these deadlines are violated, funds issued to the employee will be classified as debt. Accordingly, the employer will have the full right to recover the deficiency from the employee’s next payment of remuneration.
You may be interested in : Step-by-step instructions for applying for a business trip
When and why to report
The employee must account for the use of the accountable amount. This must be done no later than three days from the date :
- the end of the period for which this amount was issued;
- returning to work after a business trip or sick leave, if the last reporting day fell on them.
The expense report has two purposes :
- confirm the legality of spending the amount received by the employee;
- confirm the completeness of settlements between him and the employer.
It’s not enough to just draw up a report—you need to attach supporting documents to it. These include cash and sales receipts, strict reporting forms (including tickets, hotel receipts), as well as delivery notes, invoices and other documents that were issued to the accountable person by the seller.
Sample filling
Sample of filling out an advance report for a business trip:
Cash withdrawal from the cash register
To issue an advance from the cash register, we issue a cash receipt order (in the top three, this is the “Cash Withdrawal” document):
In the type of operation we indicate “Issuance to an accountable person”:
The wiring turned out like this:
Issuance of non-cash funds
In this case, the funds are transferred to the employee’s card account (the account to which a bank card is linked, with which the employee can withdraw this money).
In the troika, this operation is formalized by the usual document “Write-off from the current account”:
Also, do not forget to indicate in the form of the “Transfer to an accountable person” operation:
The wiring turned out like this:
Employee reports
But an advance report is issued to an employee for a reason, but to fulfill a certain official assignment. Therefore, the moment comes when the employee must report to the accounting department in form AO-1.
This is a printed form that indicates:
- everything that we gave to the employee for reporting
- everything he spent this money on (or didn’t spend it, or maybe there was an overspending)
- Supporting documents (checks, invoices, acts, tickets...) are attached to this form.
Here is an example of the AO-1 form:
This report (AO-1) is compiled by the employee together with the accounting department and approved by the manager. At the very bottom, the number of documents and sheets on which they are attached to the report is indicated (checks are usually pasted in whole packs onto A4 sheets).
So, in order to print such a report (AO-1), write off debt on 71 accounts from an employee, and also accept expenses in the top three, there is the document “Advance report”:
Let's briefly go through his bookmarks:
Reflection of the purchase of fixed assets in accounting
According to the rules of tax accounting, fixed assets up to 100,000 rubles. are written off as current expenses upon commissioning, and over 100,000 rubles. included in fixed assets and reflected in expenses through depreciation.
Details are in the article “Procedure for tax accounting of fixed assets.”
Accept fixed assets for accounting at their original cost, which includes the cost of purchasing the object and other related expenses (delivery, installation, customs duties, intermediary commissions, etc.).
Reflect the following entries in your accounting:
- Dt 71 Kt 50 (51) - issued on report;
- Dt 08 Kt 71 - purchased OS;
- Dt 01 Kt 08 - transferred the object to fixed assets.
For other entries used in asset accounting, read the article “Accounting for fixed assets - accounting entries.”
Issuance of monetary documents
A monetary document can be, for example, a plane ticket that an organization purchased for an employee who is going on a business trip.
After purchase, this ticket is accounted for as the debit of account 50.03:
When issuing this ticket to an employee for reporting (before a business trip), the accounting department draws up the document “Issue of monetary documents”:
And on the “Cash Documents” tab this very ticket is indicated:
The posting turned out like this (the ticket was written off from account 50.03):
I will specifically mention:
- We have the right to issue reports only to employees of the organization - persons with whom we have concluded an employment or civil law contract.
- The list of such persons is approved by a separate order of the head.
- The same order stipulates the maximum period within which the employee must report to the accounting department; if an employee goes on a business trip, this period is automatically extended until his return.
How to correctly prepare and submit an advance report when purchasing an operating system?
An advance report is necessary in order to report on what the transferred funds were used for, as well as in order to take into account the costs of goods, and in a particular case, for fixed assets, which can be equipment, real estate and movable property, etc. .e Thus, following the rules when filling it out is very important.
First of all, it should be mentioned that the report is prepared according to the form approved by the State Statistics Committee - N AO-1. The form requires filling out the following information:
- Front side of the document:
- Employee details – last name, first name, patronymic and position;
- Assignment of advance funds;
- Date of execution of this report;
- A tabular part that includes information about advance funds issued previously and now, the expenditure of funds on the purchase of fixed assets and their balance.
- Reverse side of the expense report:
- The tabular part, which includes the types of expenses for the acquisition of fixed assets and their monetary expression in the form of amounts;
- Signature of the reporting person and its decoding.
Since the list of accountable persons at the enterprise is established by order of the director, it is they, and not someone else, who must receive funds for purchases and prepare expense reports.
Important ! As a rule, three days are allotted for drawing up the report after the funds received have been spent on fixed assets.
This report is accepted from the accountable person by an employee of the accounting service, who has the authority to keep records of fixed assets and operations on them. He makes a note on the report, and also fills out the detachable part of its form. The detachable part is a receipt for acceptance of the advance report, returned to the reporting person.
However, the above actions are not enough to take into account the expense report, and consequently the fixed asset. It should also be handed over to the manager, who will check and approve it.
