Per diem

In accounting, per diem means a fixed daily allowance paid for lodging, meals and incidental expenses in place of reimbursing actual cost. Within the federal rate for the place and date it substantiates the amount of the expenseFoundationsExpenseOutflows or other using up of assets, or incurrences of liabilities, from delivering or producing goods, rendering services or carrying out other activities — recognized when incurred, not when paid under an accountable planPayrollAccountable planAn employer reimbursement arrangement under which an employee's business expense reimbursements are not wages: the expense has a business connection, the employee adequately accounts for it within a reasonable time, and any excess is returned within a reasonable time. Fail one test and the reimbursement is taxable wages; time, place and business purpose still need recording.