Allocate the expense report using supporting records and a documented basis. Reconcile the split back to the original amount so that the same charge is not counted twice.

Accounting records, calculator and glasses on a desk
Illustrative photograph by Cht Gsml.

Establish what was purchased

Collect the receipts, report, approval and explanation of which teams benefited. Distinguish a cost-centre allocation within one company from a charge belonging to another legal entity. The latter may need separate accounting and tax consideration.

Do not infer the allocation solely from the employee who submitted the claim. Ask the budget owners for the activity, users, period or other evidence that explains the split. Where a precise division is unavailable, refer the proposed basis to the accountant for review.

Keep the total intact

For example, a training invoice covers staff from two departments. Match the attendee list to the departments and record the allocation used. Confirm that allocated lines add up to the invoice total, including the treatment of any tax and rounding. Retain the original supplier document.

If the report includes both direct and shared charges, identify them separately. An allocation is a reporting treatment, while the supplier or employee payable still needs to reconcile to the actual claim.

Make the entry reviewable

Record the original transaction reference, each cost centre, amounts and approval of the basis. Keep later changes traceable and explain a material difference from the prior method. At close, ask the reviewer to check that the cost-centre report agrees to the general ledger and that unresolved allocations have an owner.

Related practical guidance

For the surrounding records and responsibilities, see bookkeeping basics, company records to keep, bookkeeping and accounting.

Official guidance: the relevant official guidance.

Help with your company records

For accounting, bookkeeping and related compliance support, contact Raffles Corporate Services at [email protected] or WhatsApp +65 8501 7133. Tell us which records or process need attention so we can discuss the relevant next steps.