Reimbursable Out-Of-Pocket Costs

AAA

DEFINITION of 'Reimbursable Out-Of-Pocket Costs'

Cash payments that an individual or company incurs on behalf of the company, and that will be refunded sometime in the future. While some of these costs may have personally benefited the employees, companies are willing to repay employees for incurring these expenses, because they come about as a result of performing their job.

INVESTOPEDIA EXPLAINS 'Reimbursable Out-Of-Pocket Costs'

A reimbursable out-of-pocket cost for a sales representative could be a restaurant bill from courting a potential client or the cost of gas to drive to a sales course in a neighboring city.

Most companies have guidelines to help employees determine what expenses are considered reimbursable out-of-pocket costs and which are not. Usually, employees will have to retain receipts and give detailed explanations for their purchases.

RELATED TERMS
  1. IRS Publication 463: Travel, Entertainment, ...

    A document published by the Internal Revenue Service that provides ...
  2. Expense

    1. The economic costs that a business incurs through its operations ...
  3. Home Office Expense

    Expenses incurred from the operation of a business or the performance ...
  4. Out-Of-Pocket Expenses

    An expense incurred and paid for by an individual for personal ...
  5. Incidental Expenses

    Expenses including fees and tips for porters, baggage handlers ...
  6. Write-Off

    A reduction in the value of an asset or earnings by the amount ...
Related Articles
  1. Tax Tips For The Individual Investor
    Retirement

    Tax Tips For The Individual Investor

  2. If I pay for a course to learn about ...
    Investing

    If I pay for a course to learn about ...

  3. Is Your Employer-Provided Life Insurance ...
    Insurance

    Is Your Employer-Provided Life Insurance ...

  4. Pages From The Bad CEO Playbook
    Retirement

    Pages From The Bad CEO Playbook

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center