How to Record FAR Travel Cost Overages
Recording travel expenses that exceed the Joint Travel Regulations (JTR) per diem rates, making them unallowable.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Direct Project Travel - Allowable | Expense | 250.00 | - |
| Unallowable Travel Costs - FAR 31.205-46 | Expense | 150.00 | - |
| Accounts Payable | Liability | - | 400.00 |
💡 Accountant's Note
FAR 31.205-46 limits reimbursement for lodging, meals, and incidental expenses to the rates set by the JTR/FTR. Any amount spent above these caps must be recorded in a segregated unallowable account.
Practitioner & Systems Framework
💻 ERP Architecture
Use an automated travel management system that flags per diem overages and automatically routes them to an unallowable GL account.
⚠️ Audit Flags
Travel expenses processed without comparing against GSA/JTR per diem rates for the specific location and date.
📄 Required Documentation
Expense reports, receipts, and a copy of the GSA per diem rate table for the destination.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.
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