Difference Between Reimbursement, Expense, and Receipt

Modified on Wed, 23 Aug, 2023 at 1:38 AM

Confused, what's the difference between reimbursement, expense, and receipt? This article outlines the differences between them by showing the interconnection of them in a hierarchy. 

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In short, reimbursement consists of expenses, and it is necessary for each expense to have a receipt or proof of payment for the transaction that requires reimbursement.

Hierarchy of Reimbursement in Jack

The hierarchy of the three terms (Reimbursement, Expense, and Receipt) in Jack is depicted in the picture below:

As shown in the image above, a reimbursement consists of expenses, each of which requires a receipt or proof of payment. The receipt should include details such as the merchant, purchase date, amount, description, and the Drafter can add any necessary supporting documents in the expense. Some examples of reimbursement, expense, and receipt:

  • The reimbursement named "Client Meeting 1 January 2023" consists of two expenses. The first expense comprises a taxi fare with its receipt and associated details, while the second expense includes a receipt from Starbucks and its corresponding details.

  • The reimbursement named "Business Trip 1-7 January 2023" consists of ten expenses. Each expense is supported by a receipt for its respective transaction, such as flight tickets, meals, entertainment, and other miscellaneous expenses.




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