Business Finance Folks, a question...

[sam_gordon]

Short version... what determines if an employee has to provide a receipt for an item on an expense report?

Long version... at my former company, every item on the expense report had to have a receipt with it. At my current company, when I started (in November 22), the online expense system required a receipt (pretty sure it was required, I did it out of habit). We changed CC a couple of months ago, and now I get messages "a receipt is optional for this transaction" (I provide one anyway).

Is it just up to the company to decide whether they want to require receipts?

 

[Jml813]

Generally, It's the company policy that determines this.

 

[SirDuff]

At my current organization, be get a DSA (essentially a per diem that also covers hotel) so we don't need to provide receipts though we do need to submit boarding passes and the hotel bill (though the daily rate of the hotel doesn't matter) to prove that we did travel and that we did stay in a hotel.

At my old job which they changed the rule shortly before I left that anything under, I think 20 USD didn't need a receipt (may have been 10 USD) to avoid needing to get receipts for small purchases (especially when you're traveling in rural Africa or something).

 

[GAN]

Company policy. Years ago the company I worked for didn't require anything under $25. The company I'm with now requires one for every transaction -but can be flexible if needed.

 

[wvjules]

My company's policy is anything over $75 requires a receipt. That is clearly laid out in our policies and when we do our expense reports we need to select that we uploaded all required receipts. This true when using a personal CC and are requesting reimbursement and also when using the preferred method of the corporate AmEx.

 

[nene0182]

If being submitted through the Concur system and on a corporate card, the company I work for doesn’t require a receipt for anything under $75 (most just submit receipts if they have them) If it is one of the divisions where reports are processed manually or they are directly reimbursing an employee for an expense, all receipts are required.

 

[SC Minnie]

Yeah, company policy. My company uses Concur as well and we have to provide a receipt for anything over $25. I always have my receipts anyway just in case.

We used to have to provide a receipt for everything regardless of how much.

 

[_19disnA]

Policy varies by company. Ours requires receipts for certain expenses. An example would be airline receipts to prove you actually flew instead of driving in an effort to profit from the trip. We use a travel firm to book airlines & hotels and you have to provide a copy of the document they send you as proof of travel.

Your HR department could probably provide guidance on what is/isn't required if you aren't sure how to handle something.

 

[sam_gordon]

Your HR department could probably provide guidance on what is/isn't required if you aren't sure how to handle something.

No. It's obvious the receipts are optional (says so in the software). I was just curious if there was legal(?) reason or if it was company policy.

 

[wvjules]

Choosing a receipt threshold: The IRS says $75
The IRS requires businesses to keep receipts for all business expenses of $75 and up.

 

[WDWEPCOT]

A lot depends on the audit and co / most are over $25 or if it’s a gift ( taxes come into play ) - all depends on a bunch of things - what co reimburse what clients require for backup if items are billed to Clients etc

 

[_19disnA]

Choosing a receipt threshold: The IRS says $75
The IRS requires businesses to keep receipts for all business expenses of $75 and up.

I agree. Has always been my impression that the company has to follow IRS guidelines which may change from time to time. They may also issue internal guidelines that are MORE restrictive (but not LESS) in order to comply with those guidelines. On a few occasions have seen memos that indicate the "IRS requires this/that" but most travel expense policies start from what is legally required.

 

[starry_solo]

My employer requires it for all reimbursements.
The program I volunteer for requires it for all reimbursements.

 

[sam_gordon]

Choosing a receipt threshold: The IRS says $75
The IRS requires businesses to keep receipts for all business expenses of $75 and up.

Interesting. I have a couple of transactions WELL over $75 (hotel and rental car) and software currently says the receipt is optional. Haven't completed the transaction, but I'll watch to see if it changes to required.

 

[tvguy]

Another vote for "depends what the company policy is"
My first employer's policy (back in 1979) for food if you were more than 75 miles from the office was, Flat $50 for all three meals, no receipt required. They would pay for alcohol. If you were in a high cost city, they would pay what it cost with a receipt.
A later employer required a VERY specific receipt for food. They wanted a receipt that show exactly what you ordered.......say a hamburger, soft drink and ice cream. They would not pay for alcohol, and if you tipped more than 15% they would not reimburse the overage on the tip.

 

[lanejudy]

Interesting. I have a couple of transactions WELL over $75 (hotel and rental car) and software currently says the receipt is optional. Haven't completed the transaction, but I'll watch to see if it changes to required.

Is it an expense you entered manually? We use an expense report system which ties in with the credit card and for certain vendors we don't need to supply a physical receipt because it automatically comes through electronically.

 

[sam_gordon]

Is it an expense you entered manually? We use an expense report system which ties in with the credit card and for certain vendors we don't need to supply a physical receipt because it automatically comes through electronically.

No. As soon as the card is run, the transaction appears in the app. We can upload a receipt, we have to mark if its billable, if so to who, and what category.

 

[disneychrista]

Company policy. Unless you are getting a per diem (flat amount per day for meals/expenses) I have never heard of a company that didn't require a reciept for reimbursement.

 

[tvguy]

Interesting. I have a couple of transactions WELL over $75 (hotel and rental car) and software currently says the receipt is optional. Haven't completed the transaction, but I'll watch to see if it changes to required.

My last company hotels and rental cars normally would not require an expense report as they are all pre-paid directly by corporate when the reservation was made. Corporate (allegedly) gets some discount. I say allegedly because one employee put together a proposal for a trip with a budget based on rates he was quoted by the hotel, and those rates were lower than the "discount" corporate rate.

 

[sam_gordon]

Company policy. Unless you are getting a per diem (flat amount per day for meals/expenses) I have never heard of a company that didn't require a reciept for reimbursement.

Not reimbursement. Company card.