Originally Posted by
bchandler02
THIS! If I purchase airfare, I expense that amount, and we're good to go. If a refund then comes along back to my corporate card, I not only have to expense that amount as a negative, but then I have a balance on my corporate card. This means that further expenses have to be marked as DO NOT PAY which takes significant work until the balance is used - and then there's that one pesky expense at the end where you have to split it between do not pay and to be paid.
That is expressly what the COC contemplate as a best practice. Here it is one step further because the client paid for the ticket with its card and will also receive the refund. It is OP who agreed not to expense certain items.
But, even if paid for on your own card and then invoiced to the client:
1. Purchase ticket for $1,000.
2. Cancel segment and receive refund of $100.
3. Stay in hotel billable to client for $500.
The client statement would show all three transactions and net out at $1,400 due from client. If the refund comes after the invoice is issued, the client would run a credit balance with the vendor for some period of time and would ultimately receive the cash back from the vendor if the contract is ended.