Implementing Expenses
What this domain tests
This domain tests Expenses setup and its integration with Payables: policies, categories, types, templates, audit rules, corporate cards, cash advances, approval, and reimbursement.
Core rules
- Expense categories group expenses for reporting and accounting; expense types define what an employee selects, including receipt and policy requirements. They are related but not interchangeable.
- Expense policies set limits, receipt thresholds, and eligible expenses. Audit rules flag exceptions such as missing receipts, over-limit amounts, or duplicate claims.
- Expense report templates control which fields and expense types are available. Approval routes by supervisor, cost center, or auditor.
- Corporate card transactions are imported and matched to expense reports. Unmatched card transactions remain a liability and must be reconciled.
- Cash advances are issued and later applied to expense reports. An unapplied advance is not automatically cleared; it must be applied or returned.
- When reimbursement is through Payables, approved expense reports are imported into Payables as invoices and paid through the Payables payment process.
Worked example
An employee claims a $120 meal against a $75 daily policy limit. The audit rule flags the report. The approver must adjust the claim or document an exception. After approval, the reimbursement is imported into Payables as an expense report invoice, validated, and included in a payment process request.
Traps
- Treating expense category and expense type as the same.
- Assuming an approved report bypasses audit.
- Forgetting to apply a cash advance.
- Expecting Expenses to pay outside Payables when the reimbursement method is Payables.