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How to account for the various expenses of an event?

By hosting an event, it may involves transportation cost, accommodation cost, advertising cost and so on. How do you account for these expenses? Need to put into different accounts or just under an "event" account?
While preparing for the annual budget, only a lump sum was reserved under "event" acccount instead of those "advertising", "transportation".

Answers

Victor Shah
Title: Account Manager
Company: FlowRocket, LLC
(Account Manager, FlowRocket, LLC) |

You can actually do it either ways depending on the reporting required by management. But for a better reporting purpose, i would personally do it by creating those Advertising, Transportation and such expenses as sub-account of Event Account. This way your summarized Budget v/s Actual and Income Statement will only have Event Expense as comparison and you can have actual reported as well by a separate category of expenses as sub account.

I hope this helps.

Let me know if you have any other specific questions.

Dhruthi Shah
Title: Controller
Company: Expro
(Controller, Expro) |

Hi

Cost should definitely go in respective GL.

Event is an activity. An activity will have many costs in it. Budget can be defined at activity level.

If you use SAP, you can define budget for event activity by creating an AFE and internal order number. Actual costs will be in different GLs but all rolling into same internal order number which has an overall budget attached to it

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