Request for Help

[Dhananjay]

Hi All



I am an Indian business house with functional currency INR. My employees do travel frequently to foreign countries. For this purpose I do purchase foreign currency from agents like LKP Forex OR Thomas Cook. This currency is then given to employee as advance for foreign travel. On completion of tour employees submit the expense voucher and settles the advance.

Now pls. give me your valuable guidance/suggestions as to how to fit this transaction in AP and what accounting entries will get generated at each level.....



Thanks
Dhananjay