When you look at a sample expense report, it may take you a while to figure out exactly what it says. With a sample report you have to be sure that you are looking at the same sort of report. You need to be careful with sample expense reports because they are almost always an attempt by an accountant to put an even more favorable spin on a previously recorded transaction. You need to know what it says to make a judgment about a situation.
There are many ways that a sample expense report can present information that does not match up with what you would expect it to say. For example, in a sample report, the accounting department is just a little further down the line than the actual purchasing department. Therefore, if the total cost of a product is higher, then the report has to look like a lower cost one. If the total cost of a product is lower, then the report has to look like a higher cost one. Even if the figures do not match up, the report will have to present the idea that it was because it was an added on expense.
Even though the sample expense report might appear to be correct, there is a chance that it is not and you should follow the advice of the accounting department when dealing with this situation. For example, if the totals do not match up and the report appears to be correct, then you should assume that the differences have been made up. If the total cost is higher, then the difference is already reflected on the total.
If the total cost is lower, then there may be some confusion. So, if you see a total that appears to be lower, you should write it down and see if it can be verified later. In some cases, the difference between the total and the amount that were actually spent is one hundred dollars or less. In these cases, an invoice from the original vendor will be necessary.
The way a sample expense report is presented can give you an indication of how much of the total cost was ‘wasted’ and how much was considered an added on expense. However, if this is the case, you should also know how much is the actual expense. A sample report is only meant to help you understand what you will see on the report, but it should not replace your normal accounting knowledge.
When you find yourself getting the credit or debit that you think is an added on expense, it is important to ask the seller for proof. If they cannot provide documentation that is based on their own records, then you should go back to the sample report and work out the question on your own. In most cases, the sellers will provide you with some sort of written statement that indicates how much was spent. This should be taken as a sign that you are right, even if you cannot be absolutely certain without a written document.
The next time you go to look at a sample expense report, you will see some areas that you need to look for. For example, if you are not sure what type of item you are looking at, you should open the sample expense report and cross reference it with the one that you would receive. Sometimes a sample report will show items such as hidden items or invoices that have already been paid for. In this case, you should not use the items or pay the merchant for them.
Most other expenses that are not immediately apparent should also be looked at. These include ‘foreign travel’ expenses, pension, and annuity expenses, payments for moving expenses, telephone expenses, etc. In many cases, the total of all of these expenses is zero and so should not be included in the calculation. If you are unsure, then you should start with the smaller expenses first, then work your way up.