EC Intercompany Accounting Concept

There are no accounting considerations until the Expense Claim is approved

On Approval the following occur :

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 the GST incurred in the Country of the Home-Company is Claimable. In this example all the Air Fares were purchased in NZ.

 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.