Instructional Video: Representation in Expense
With Expense, you can easily register and manage representation expenses in accordance with your company's policies and applicable accounting requirements. Representation expenses require additional information to ensure correct accounting treatment and VAT handling. This guide explains how to register representation expenses, what information is required, and how to avoid common mistakes.
What Is Representation?
Representation refers to expenses incurred in connection with:
- ๐ฝ๏ธ Meals with customers or suppliers
- โ Business meetings and refreshments
- ๐ Employee events and staff entertainment
- ๐ค Customer activities and networking events
๐ Certain information must always be provided to ensure correct accounting and compliance.
Register a Representation Expense
Step-by-Step
- Open the Expense App
- Create a new purchase or open an existing transaction
- Take a photo of or attach the receipt
- Select Representation as the expense type
- Complete the required information
- Click Save
โ The representation expense has now been registered.
Required Information for Representation
Provide the Following Information
When registering representation, enter:
- ๐ฅ Number of Participants
- ๐งพ Names of Participants
- ๐ฏ Purpose of the Representation
- ๏ฟฝ๏ฟฝ Company Name (for External Representation)
โ This information is required for proper documentation and accounting.
External Representation
External representation refers to activities involving:
- Customers
- Suppliers
- Business Partners
- Prospective Customers
Examples
- Customer lunch
- Business dinner
- Supplier meeting
๐ Always enter the company name and participant information.
Internal Representation
Internal representation refers to activities involving your organization's own employees.
Examples
- Staff party
- Kickoff event
- Christmas dinner
- Internal meetings
๐ Enter participant details and the purpose according to your company's guidelines.
Account for Representation Expenses
Step-by-Step
- Select the correct representation account
- Review VAT and accounting information
- Complete all required representation details
- Click Save
โ The transaction is now ready for reporting and approval.
Common Mistakes to Avoid
Avoid submitting representation expenses with:
- โ ๏ธ Missing purpose
- โ ๏ธ Missing participant information
- โ ๏ธ Incorrect number of participants
- โ ๏ธ Missing company name for external representation
- โ ๏ธ Unclear or incomplete comments
๐ Always complete all required information before submitting the expense report.
๐ก Best Practice Tips
Capture the Receipt Immediately
- ๐ท Take a photo of the receipt as soon as the purchase is made.
- โ Reduce the risk of lost documentation.
Register Participants Quickly
- ๐ Add participant information while the details are still fresh.
- โ Improve documentation accuracy.
Clearly Describe the Purpose
- ๐ฏ Provide a meaningful explanation of the business purpose.
- โ Simplifies approval and auditing.
Use the Correct Representation Template
- ๐ฝ๏ธ Ensure the appropriate internal or external representation template is selected.
- โ Supports accurate accounting and VAT treatment.
Frequently Asked Questions (FAQ)
Do I need to enter participant information?
Yes. Participant information is required for representation expenses.
Do I need to state the purpose?
Yes. The purpose of the representation is mandatory.
Can I register representation expenses in the mobile app?
Yes. The entire process can be completed directly in the Expense app.
What happens if required information is missing?
The report may need to be corrected or supplemented before it can be approved.
Summary
- ๐ฝ๏ธ Register representation expenses directly in Expense
- ๐ฅ Enter participants and the number of attendees
- ๐ฏ Document the purpose of the activity
- ๐ข Enter the company name for external representation
- โ Ensure accurate accounting, VAT handling, and reporting
- ๐ Simplify representation management with Expense