#4303

Know your Receipts in Japan!

The Ryoshusho Culture in Japan is Dire to Smooth Relations with your Accounting Team

Are you in Japan on business and working with a Japanese firm? Will you be taking your clients out for a meal?
Recently I have been doing some consulting work for one of Japan’s eminent Chinese cuisine restaurants, Ginza Aster, and I learned that many of the international clients are confused by the receipt culture in Japan. Like most other good eateries in Japan, the Ginza Aster staff will always inquire if you need a Ryoshusho as you pay your bill. Ryoshusho and Receipt both actually refer to a receipt but in my mind, the Ryoshusho is closer to a “proof of payment” document. If you are having a business meal, you would definitely want to get a Ryoshusho so here is my attempt at explaining how this works.

First, let me say, I completely understand the confusion!

Since beginning my corporate experience 27 years ago solely in Japanese companies, I always moan and groan about the details involved in reimbursement from accounting for meals with clients that could be expensed. Over time and with many wallet breaking “learning” experiences, I came to understand that taxation differs for meals that are under 5000 yen per person. Now you can understand why many corporate dinners with clients are ordered as set meals that have drinks included for under 5000 yen per person. This is a smart way to handle it.

In Japanese companies, we always had to get pre-approval of any client meal if it was over a certain amount (the amount rules will vary by company) and if it were an after-the-fact reimbursement request we would need to report who went, the purpose of the event and provide an official receipt or “Ryoshusho”. Yup, if you work in corporate Japan, you have definitely heard this word.

I was very lucky to work in two firms that were really strict about receipt compliance (it drove me crazy at the time though) because I learned how careful firms must be in terms of entertainment expense (Kosai-hi). My theory is that the Ryoshusho importance comes from Japan being a “seal” based system instead of signature-based. I was even instructed to stamp my seal on the back of taxi receipts to help accounting know I had made sure to check and approve each and every slip before submission at the end of the month.

Don't Try to Process your Expense with a Regular Receipt!

So, official seals on the Ryoshusho and receipts make them valid and in-house process friendly. I have always been in sales and this involves meals and teatime meetings with clients on a regular basis. Per proper etiquette, I would usually try to pay for both parties if I had requested the meeting and Japanese companies I worked with always agree on this being the proper way to interact with important clients.

BUT!! And here comes the really important caveat! If I brought the regular receipt (the one issued straight from the register) back to the office in hopes of reimbursement, hmmmm, never gonna happen! During your first months or maybe year at the firm, your accounting head will be nice and come over to your desk and patiently point out that they need an official “Ryoshusho” to process the reimbursement. They might even be kind enough to have someone in accounting go back to the restaurant or coffee shop and request issuance of the type of receipt they need for the first few times you forget or dismiss the rule. But watch out!! If you continue to forget to have the correct one issued, you can be in for some interesting “learning” experiences.

That is why I now truly appreciate restaurants like Ginza Aster that will always ask if you are in need of the official “Ryoshusho”. For a busy marketing professional, this can be the question that saves you another trip back to the same place on a later date!

Albeit, staying in a Japanese company for a longer period (maybe two or more years) will afford many new opportunities, increased trust, responsibility and respect, there is also a lot of unspoken expectation for you to know the system and respect the rules. This expectation actually gets stronger as you stay longer because accounting will now expect you to be one enforcer and teacher of the rules, not one who tries to shirk the details and let someone else handle it.

Once when I was general manager of our sales department and we had a growing number of clients in India, I went to this amazing country for a two-week business trip. During the trip, I treated a client to a nice dinner at a hotel near the Taj Mahal. Unfortunately, due to a problem with the cash register there, I was unable to get a properly signed Ryoshusho (or the closest thing to it) from the hotel staff. In lieu of the official ryoshusho I should have given it my best shot by acquiring a handwritten receipt on the hotel letterhead. I did not give the rule proper respect and just kind of hoped my accounting team would let it slide. Well, now that I think about it that was a pretty arrogant attitude that put my accounting colleagues in somewhat of a pickle. My “learning experience” turned out to be me footing the 30,000 yen bill ☹ . That hurt!

In most Japanese companies, the accounting section is literally UNABLE to process a reimbursement for expenses without a receipt. The required Ryoshusho (not the usual receipt from the register) includes the name of the your company (because you are paying on behalf of your company), the type of payment, and has all the information of the establishment with the orange or red ink seal of the person who actually issued the ryoshusho at the restaurant. It also clearly shows the date and the amount.

One of the most important parts of the Ryoshusho is that it has the seal of the person who issued it. If that is not shown, there is a good chance your accounting section will ask you to take the receipt back and get the stamp. After a few re-visits to restaurants, I found out that you can pretty easily take the regular receipt back to the restaurant and they will kindly issue you a ryoshusho even a few days after the actual meal.

Everyone involved in this process is always very cooperative but if your accounting team feels you are somehow being lazy about the receipt or not giving the rule proper respect….. you are in for some very picky follow up on everything you try to process. So….take the advice of a veteran salesperson who has been able to thrive and benefit from the support of her accounting team, don't take the rules lightly and don't shrug off the importance of the Japanese ryoshusho system. It might seem like a lot of hassle, but when everyone works together, your in-house admin can run like a well-oiled machine.

Ginza Aster is one place that will always remind you at the register :)
http://www.ginza-aster.co.jp/shop/index.html

5@example.com image

5@example.com

5@example.com's other advice

Perfect Homemade Ramen at Kita Kamakura images

Perfect Homemade Ramen at Kita Kamakura

I am actually trying to avoid meat, but I just cant avoid this Ramen.When you step outside the Kita Kamakura station (Yokosuka Line one stop before Kamakura Station) you will see the Red Awning j…

Have you Heard of Water Shield? It's a Vegetable and No, I haven’t Heard of it Either. images

Have you Heard of Water Shield? It's a Vegetable and No, I haven’t Heard of it Either.

In Japan, this vegetable is called “Junsai” and I remember seeing it in my local supermarket, wondering what it was, and then moving on to the more familiar Nori or seaweed area as usual. This is som…

Menu Translation in Japan, What a Great Job! images

Menu Translation in Japan, What a Great Job!

I feel very lucky that part of my job is Japanese to English menu translation. Do you know how many little jewels lie silent on that Japanese menu in front of you every time you enter a soba, tempura…

Japan offers you a "Retreat of the Heart" images

Japan offers you a "Retreat of the Heart"

I read recently about how it is very important to be able to retreat within yourself. Are you able to do that? Do you find peace and calm for retrospection as you walk around, take care of daily task…

Do You Know "Hidari Gawa Tsuko?" Pass on the left in Japan images

Do You Know "Hidari Gawa Tsuko?" Pass on the left in Japan

"To the Left, To the Left" is one of my favorite songs and it well applies to some parts of my life....okay, yes you're right, Ill avoid that topic for today :) But, "To the Left" is an important…

"Little Forest" Shows you the Japan Heartland images

"Little Forest" Shows you the Japan Heartland

Thats right! I am not 12 years old. I actually have lived half a century as of this year.https://www.youtube.com/watch?v=q_CUp9suEeoMaybe that is exactly why I love Pixar films that show the …

You might also like

What to do at a Japanese Funeral | Funeral Etiquette images

What to do at a Japanese Funeral | Funeral Etiquette

Attending a Japanese funeral can be stressful, even shocking, if you don't know what to do. The more you know beforehand the better, as you'll be able to comfort and support mutual friends and their …

Former Deep Japan Writer image

Former Deep Japan Writer

Don't Wear Black in Japan images

Don't Wear Black in Japan

In Japan, the color white is attributed to happiness and good times. Death is a time of mourning and so people must dress in the color of depression, black. Men usually wear a black suit with a black…

GenS image

GenS

Yurei, Yokai and Obake: Japan's Very Busy Ghost Scene images

Yurei, Yokai and Obake: Japan's Very Busy Ghost Scene

Ghosts and spirits hold a place in the folklore of many cultures around the world. In the western world, Halloween, observed on October 31st, is a time for scary, spooky tales, while Latin America…

jdlawrence image

jdlawrence

Enjoy bath, Japanese style images

Enjoy bath, Japanese style

Enjoy taking bath with Babu(Bub), a popular Japanese bath tablet to Relax after Exploring Japan on Foot.All travelers know how sight seeing can be exhausting. Especially walking around on foo…

mimichan image

mimichan

5 Traditional Japanese Villages to Explore images

5 Traditional Japanese Villages to Explore

The rural area of Japan is quite worth an exploration. Many villages in Japan have typical Japanese styles. Although they are quite far away from big cities, you can enjoy enchanting natural views an…

Alexlovetravel image

Alexlovetravel

Buying Protein and Sports Supplements in Japan images

Buying Protein and Sports Supplements in Japan

To maintain muscle mass and optimal athletic performance, it’s important to adhere to a strict training and diet regimen. That’s why it’s essential that gym-goers and athletes always be able to acces…

Alexandrine image

Alexandrine