Late Fee

[Former Member]

Dear all,

Can any body suggest how to deal with the below expense types in Travel Management.

1. "Credit Card Late Fee", a non-reimbursable expense type and treated as private expense.

2. "Credit Card Late Fee Adjustment," A payment made back by the credit card company in weivering the late fee at a later point of time.

Regards,

LNB

[Former Member]

Hi ,

You have to create expense type (V_T706B1) then assign wage to receipt (V_T706B4) and symbolic account to wage type (V_T706K) and then Conversion of Symbolic Account to Expense Account..

The only difference is In V_T706B1, expense type shall be paid by company if this payment is paid by company and not reimbursable to employee.

or select expense type private expense not reimbursable to employee if this payment is paid by employee and not reimbursable to employee.

I hope it would serve your purpose..

Regards,

Muhammad Umer

[Former Member]

Dear Muhammed,

Thanks a million for your quick response,

I have the below questions, can you please help me in giving clarity on the same?!

A. I have only the below options with me,

a. Paid by the company.

b. Reimburse to employee.

c. Taxable by employee, no payment to employee

d. Taxable by employee, payment to employee

e. Estimated cost, no reimbursement to employee

f. Already paid by company, taxable by employee.

e. Privte expense, no reimbursement to employee

Option 1. If i chose paid by the company, not reimburseble to the employee, I feel this amount is borne as company expenditure, not private expenditure.

Option 2. If I chose private expenditure, not reimburseble to the employee, I am unable to link it to credit card expenditure as only payment made by company is getting linked to credit card entry.

B. Also how can we treat the Credit card Late fee Adjustment, because it is payment returned back by the credit card company as a waiver of the late fee paid earlier.

Regards,

LN Bhattacharya

[Former Member]

Hi Bhattacharya,

A) What i have understand (correct me if i am wrong) that company is paying Credit Card Late Fee to credit card company on behalf employee but it not reimbursable and shall be charge back to employee..

In this case, you should have to create two expense types..

1) Credit Card Late Fee (Paid by company) and it will link to Credit card expenditure..

2) Credit Card Late Fee (charge back to employee) , same amount shall be charged back to employee.

Please note that Reimburse to employee type will be used in and amount shall be entered with negative sing

B) For Late fee Adjustment :If company is paying this fee then positive amount shall be recorded otherwise in your case credit card company is returning you , you just need to enter amount with negative sing for the same expense type which you are using for Late fee Adjustment.. It will automatically decrease the credit card company liability and expense type as well..

Hopes it have served your problem..

Regards,

Muhammad Umer