Definition - What does Out-of-Pocket Expenses mean?
Out-of-pocket expenses refers to those expenses that a person pays "out of their own pocket" with the knowledge that they will be reimbursed for those expenses in the near future. Typically, this type of repayment exists in relationships between employers and employees wherein the employee is doing something on behalf of the employers company.
Justipedia explains Out-of-Pocket Expenses
One of the most common out-of-pocket expenses occurs when a person must pay for traveling (car, bus, train, airplane, etc.) with their own funds in order to accomplish something for the company that they work for. For example, most companies will have a set monetary amount that they will reimburse a person for when they take their own car on a work-related trip. A typical reimbursement amount is about 10-15 cents per mile. As long as the individual accounts for their mileage driven, the company will reimburse them at a later date.