1. Create Expense Type:
Click on the "Masters" tab --> Select the "Expense Type" as shown below.
The listed fields include Expense Type category, Expense Type, Expense Type Code, Policy Applicable, and Policy Limit Amount besides the edit and delete buttons. For seamless integration with the ERP/Accounting system, the Expense Types and Expense Type Codes setup in those systems must match the types and codes set up here.
To create a new expense type click on the "Create New" button as shown below.
The fields are described below:
a. Expense Type Category (Required): Enter the category of the expense, similar expenses can be categorized together under one heading. This is where expenses are tied to specific categories. Some of the listed categories are airfare, meals, per diem, others, etc.
b. Expense Type (Required): Enter the Type of Expense, this is the description/name of the expense type. Users will see this within the expense type drop-down field while creating a transaction.
c. Expense Type Code (Required): Enter the Code of the Expense, this is the corresponding code tied to the expense type, as defined in the ERP/Accounting system. Users of the application will not view this field.
d. Policy Applicable? (Optional): Check if the policy is applicable for the expense type, this will enable a policy limit for the expense type.
e. Policy Limit Amount (Optional): Enter a policy amount. The application will enforce this amount only if the policy applicable checkbox is checked. If the policy applicable checkbox is checked and if the amount has been exceeded, a user will have to enter additional comments in the transaction screen.
f. Receipt Policy Applicable? (Optional): Check if receipt policy is applicable for the expense type, this will enable a receipt policy limit for the expense type.
g. Receipt Policy Limit Amount (Optional): Enter receipt policy amount. The application will enforce this amount only if the receipt policy applicable checkbox is checked. If the receipt policy applicable checkbox is checked and if the amount has been exceeded, a user will have to enter comments in the transaction screen, if the receipt is not attached.
h. Mileage Expense Type (Optional): Check if the expense type is the Mileage Expense type. If this box is checked, the particular expense type will be listed as mileage type expense and the application will insert the mileage amount from a user’s profile.
i. Alternate Amount Labe (Optional):l Enter the alternate label required for the amount label. The admin can change the label of the amount field on the expense transaction screen.
Fill the mandatory details (fields in bold are required) and click on a "Create" button to save the details.
The newly created expense type will get displayed on the expense type list.
2. Edit Expense Type:
To edit the expense type click on a small pencil icon as shown below.
Update the required data as here we have checked the Policy Applicable and entered the Policy Limit Amount as 100 then click on the "Save" button as shown below.
The example expense type is listed as meals in the description and the expense type GL code is 8520 per the Accounting system. The policy has been enabled for this expense type and the policy amount is $100. If a user submits a transaction for 'Meals' expense type greater than $100, then the application will mandate the user to enter additional comments explaining the reason for exceeding the policy as shown below.
Below is the screenshot of how the violation is shown to the approver when the $155 Meal expense is submitted.