Processing employee expenses

When an employee submits an expense report, you process the expense and produce a check to reimburse the employee. As with an invoice payment, you must specify, release, and pay the expense. This procedure describes how to process employee expenses.

Employee expense transaction

To create a reimbursement check for an employee expense, you must complete a payment cycle.

Closing a cash payment cycle

Process an employee expense

  1. Use Employee Expense (EE20.2) to specify the expense.
  2. Specify this information:
    Approval Code

    Before you can release an expense to Accounts Payable for processing, you must assign an approval code. You can assign a code here or assign it during release.

    Total Expense Amount

    Specify the amount of the expense including both company-paid and employee-paid amount of the expense. This amount is used as a control total for the detail lines you specify for this expense.

    Total Employee Paid Amount

    Specify the total amount of the expenses paid by the employee in the company base currency. The system uses this amount as a control total for the detail lines you specify for this expense in Expense Detail (EE20.3).

    Advance

    If you selected Matching in the Employee Expense Reconciliation field in Company (AP00.4), and if there is an advance for the expense, specify the advance number to match the advance credit memo to the expense.

    Options button

    Click the Options button to override expense line defaults or specify additional options such as adding a hold code, changing the release for payment flag, or marking the expense as billable.

    Currency button

    Click the Currency button to define optional currency information for the expense.

    Payment button

    Click the Payment button to create a manual cash payment for the expense.

    Detail button

    Click the Detail button to specify detail lines for the expense.

    Comments button

    Click the Comments button to define a comment for the expense.

  3. Use Expense Detail (EE20.3) to specify the expense detail information. (You are automatically transferred to this form after adding the expense).
  4. Specify this information:
    Amount

    Expense amounts must equal the amounts specified on Employee Expense (EE20.2) before you can release the expense. Employee-paid expenses must equal the total employee paid amount. The total of employee paid expenses and company-paid expenses must equal the total expense amount.

    Type

    The type defaults based on the category you select. These are valid expense category types:

    • Employee Paid Expense (E)

    • Company Paid Expense (C)

    • Cash Payment (P)

    • Units (U)

    Asterisk (*) Button

    Click the asterisk (*) button to override default information, or to add an activity, account category, or user analysis field to the expense distribution.

    Add Comments Button

    Click the Add Comments button to add comments you want to associate with the expense.

    Note: You can also apply an expense to an advance on Employee Expense (EE20.2) as you specify the expense.

    You must apply expenses to advances before releasing the expense. This process is described in this step.

  5. If your company is defined for matching employee expenses to advances, use Employee-Advance Matching (EE30.1) to apply an unreleased expense to one or more open employee advances.
  6. Specify this information:
    Expense

    Specify the expense number or the payback number. After specifying the number, select the Select form action to display the open advances.

    FC

    Select the Apply line action next to each advance you want applied.

    Applied Amount

    Specify the amount you want applied. Select the Apply form action to apply the amount.

  7. If you did not assign an approval code during entry, use Expense Release (EE35.2) to assign an approval code to the expense.
  8. Release the expense.
    To Use
    Release selected employee expenses Expense Release (EE35.2). Select the Release line action for each expense you want to release, and then select the Change form action.
    Release all or a group of employee expenses Mass Employee Release (EE135)
  9. Run Cash Requirements (AP150) to select released expenses for payment.
  10. Specify this information:
    Pay Through Date

    All released advances not on hold, that have advance dates on or before the Pay Through Date are scheduled for payment.

    Emp Reimbursement

    You must select Yes in the Employee Reimbursement field on the Select Options tab to include expenses.

  11. Run Payment Forms Creation (AP155), Payment Tape Creation (AP160), or Electronic Payment File Creation (AP161) to pay scheduled expenses.
  12. Run Payment Closing (AP170) to change the expense status to historical and to create general ledger entries.
  13. Transfer expense distributions to the general ledger.
    To Use
    Transfer company-paid expenses Company Expense Posting (EE175)
    Transfer employee-paid expenses Invoice Distribution Closing (AP175)
  14. Run Invoice Accrual Reconciliation (AP136) to reconcile to General Ledger. This program lists the difference between what has been paid (using AP170) and what has been expensed (using AP175).