There are no accounting considerations until the Expense Claim is approved
On Approval the following occur (illustrated with example above) :
Example
Home-Company : 1-NZ Employee : Joe Job : 1234 (GLabcNZ) Airfares $400+GST (15%)
Inter-Job : IC2 (GLinterNZ)
Creditors (GLcredNZ) GST (GLgstNZ)
Away-Company : 1-AUS Job : 3456 (GLabcAUS) Airfares $200+GST (10%)
Inter-Job : IC9 (GLinterAUS)
Creditors (GLcredAUS) GST (GLgstAUS)
Employee : Joe
Only Only the GST incurred in the Country of the Home-Company is Claimable. In this example all the Air Fares were purchased in NZ.
| Transaction | Home-Company | Away Company |
|---|---|---|
| Create nominated Job Transaction | Dr GLabcNZ $400 Job 1234 | Dr GLabcAUS $220 $200 Job 3456 |
| Create Intercompany Control | Dr GLinterNZ $220 $200 Job IC2 | Cr GLinterAUS $220 Job IC9$200 Job IC9 |
The example assumes a foreign currency translation of 1. If it were AUD-1 : NZD-1.25 the Cost in the Away-Company would be $160.