How are flight credits or vouchers reflected in financial records?
Short answer
Flight credits from canceled bookings are held by the airline and tied to the traveler. They usually do not appear as assets in your company’s financial records. The original flight purchase remains expensed, and when a credit is later used, only any additional amount charged appears as a new transaction.
How flight credits are treated
What happens depends on the fare type:
- Refundable fares: The charge is refunded to the original card. The refund appears as a credit that offsets the original expense.
- Non-refundable but changeable fares: The airline issues a flight credit tied to the traveler. No refund appears in your financial records.
- Non-refundable, non-changeable fares: The ticket value is forfeited and remains expensed.
How credits appear in financial records
- Original booking: Recorded as a normal travel expense.
- Cancellation:
- Refundable fares generate a credit transaction.
- Non-refundable fares do not generate any offsetting entry.
- Credit redemption: When a flight credit is used, only any remaining balance charged to the card appears as a new expense. The credit itself does not appear as a separate line item.
Important limitations to know
- Flight credits are managed by airlines, not Ramp or your accounting system
- Credits are tied to individual travelers and typically cannot be transferred
- Credits have airline-defined expiration dates
- Finance teams must track unused credits outside the ledger
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