Creating A Replacement Receipt Template

About replacement receipts

A replacement receipt documents business expenses when the original receipt is unavailable. Organizations use these forms when receipts are lost, damaged, never provided by the vendor, or otherwise unavailable.

Template overview

This template provides a foundation for creating your organization's replacement receipt process. Customize it to match your internal policies, approval workflows, and expense management procedures.

Customizing the template

Modify the "Department/Program" field to match your structure (or remove it for small organizations). Adjust expense categories to align with your chart of accounts—add relevant categories, remove unused ones, or add sub-categories for detailed tracking.

Setting approval thresholds

Most organizations establish dollar thresholds for replacement receipt approval. Consider these factors when setting your thresholds:

Common threshold structures

• Under $25-100: Standard processing, no additional approval
• $50-200: Manager or supervisor approval
• Over $100-250: Senior leadership or finance approval

Factors to consider

• Organization size: Smaller organizations may use lower thresholds
• Budget constraints: Tighter budgets warrant more oversight
• Staff autonomy: Balance trust with accountability
• Risk tolerance: Higher thresholds require more organizational risk acceptance
• Administrative capacity: Lower thresholds increase approval workload and can create bottlenecks

Excluded expenses

Identify expenses that should not use replacement receipts. Common exclusions include:

• Large capital purchases: Equipment and furniture need original receipts for asset tracking (common)
• Grant-specific expenses: Some funders require original receipts regardless of amount
• Per diem reimbursements: These typically have separate documentation requirements
• Recurring vendor payments: These should have invoices or statements

Managing frequency and overuse

Regional considerations

If your organization works internationally, some regions have different receipt norms. In countries like India and the Philippines, vendors commonly don't provide receipts. Document these regional differences in your policy and ensure staff working in these regions don't face consequences for legitimate replacement receipt use.

Setting expectations

Establish clear guidelines about replacement receipt frequency:

• Define what constitutes "occasional" use (e.g., no more than 2-3 per month)
• Clarify acceptable reasons for regular use (e.g., regional vendor practices)
• Specify when patterns trigger review

Consequences for overuse

Be thoughtful when setting consequences for excessive replacement receipt use. Consider a graduated approach—start with conversations and support (receipt tracking tools, expense management training), then move to formal reminders or increased oversight if patterns continue. Serious or persistent issues might warrant restricted spending privileges or card access.

Important: Frame consequences around protecting organizational compliance rather than punitive measures. Staff in regions where receipts are genuinely unavailable should not face consequences.

Create Instuctions on completing the form

Business Purpose field

Provide staff with clear instructions for the Business Purpose field. This brief description should explain the business need specifically, give good and bad examples.

Good examples:

• "Meeting with potential board member Sarah Johnson"
• "Office supplies for annual report production"
• "Taxi from airport to conference venue"

Vague examples to avoid:

• "Meeting"
• "Supplies"
• "Transportation"

Integration with expense processes

Document how staff should submit completed replacement receipts:

• Attach to expense management system entries
• Include with reimbursement requests
• Submit with invoice documentation
• File with monthly expense reports

Ensure your accounting team knows how to handle these forms in your financial systems.

Policy documentation

Once you've customized the template and set thresholds, document your replacement receipt policy:

• Include in your employee handbook or finance manual
• Add to new employee onboarding materials
• Reference in expense reimbursement policies
• Review annually and update as needed

Best practices

• Keep it simple: Don't overcomplicate the process for small, legitimate expenses
• Communicate clearly: Ensure all staff understand when and how to use replacement receipts
• Review regularly: Monitor usage patterns to identify policy adjustments needed
• Support staff: Provide tools and training for receipt management before imposing restrictions
• Document decisions: Keep records of why exceptions or consequences were applied