11.13. Employee Expenses

Advances through Cash Book / Bank Statement

This procedure is used for cash advances granted from the cash register or bank, and it facilitates the tracking of these advances, their order and how long it takes to discount them.

Registering the Advance Payment

If the advance if granted by the treasury it is registered in the cash journal corresponding to the date it was given. In the Cash Journal widow, Cash Line tab, enter a new record, with the following elements:

• Cash Type = "Cash Advances";

• Business Partner = the employee;

• Amount = amount given in advance, with minus;

• Details in Cash Management.

The cash advance is granted through bank account transfer it is registered in the bank statement corresponding to the date it was granted. In the Bank Statement window, Statement Line tab, register the advance transaction, with the following elements:

• Statement Amount, Charge Amount = amount given in advance, with minus;

• Charge = "Advance Payment" (charge defined with this purpose);

• Business Partner = the employee;

• Details in Bank Statement.

Employee Expense Justification

The Employee Expense Justification window located in the Open Items menu, is used to justify the advance payments made to employees. The following fields are available:

• Name, Description

• Expense Book Account - the cash book defined for employee expense justifications (defined in the Cashbook window, with "Employee Expense Justification" checked);

  • Statement Date - date used to register the justification for payments;

  • Account Date - date used on the resulting accounting transactions when posting the payments defined in Expense line tab;

  • Business Partner - the employee;

• Beginning Balance - this field is automatically filled with the maximum available amount for discounting, for the selected advance line. The amount can be changed with a smaller value. if the advance will not be closed;

  • Statement Difference - the sum of the values entered on the lines;

• Ending Balance = Beginning Balance - Statement Difference;

• Document Action button:

  • "Complete" - press after entering all the justification lines in order process the justification. After processing, if the Ending balance is not 0 the Close button will become available;

The Advance Line tab is used to register the employee advances by selecting the corresponding bank statement or cash journal lines. You can also select lines from the drafted documents, but the justification cannot be completed until the source document is also completed.

Note: When selecting the statement lines, only those which have a charge whose expense account is equal to the account defined for the employee, in the Employee Prepayment field, will be displayed.

The Expense Line tab is used to register justification payments (invoices, accommodation, transport, etc.).

Closing the Advance Balance

If the difference between the advance payment and the justificative payments in not 0, press the Close button to generate a cash journal line through which the advance is returned or completed:

• Cash Type = "Cash advances";

• Document Type = the document type corresponding to the payment/receipt mandates;

• Business Partner - the employee;

• Amount = the value of the ending balance (Ending Balance field);

Once the process has been generated, the Close button becomes inactive.

Starting with version 13.09, you have the possibility to select a cash journal line corresponding to the ending balance.

Reports

The Open Cash Advances Report, located in the Open Items -> Cash Management menu, offers information regarding the cash advances that have not been justified at date of the report. This information can be filtered by Cash Book, Bank Account and/or Account Date.

In order to ensure the data is correct, you need to run this report on a Business Partner.

Starting with version 13.10, the data displayed in the report are filtered after the rule: Expense Charge Account ID = Employee Prepayment Account ID.

Advances through delegation/employee cards

This procedure is used when cash advances are granted through delegation cards that have been issued individually for each employee.

In the case of discounting using delegation cards, the employee uses this card to pay or to withdraw money from cash machines (ATMs), depending on the necessities.

Initial Setup

For cash advances using delegation cards (for each employee), define the bank account corresponding to the bank where the delegation account was opened, using the Bank window located in the Initial Setup -> Organization Rules menu. Details in Open Items Setup.

Registering the Expenses

Expenses paid through advances are registered in the Expense Report window, located in the Time and Expense menu. The following fields are available:

• Document No, Description

• Employee - business partner registered as an employee;

• Report Date - date of the expense report;

• Price List - determines the price and currency for the reported products;

The Report Line tab:

• Expense Date - the date of the justificative document (in the case the discount is done for a period bigger than one day, this date can be different from the Report Date;

• Product - select the corresponding product (e.g. Transport expenses, Accommodation, etc. )

• Quantity - enter the quantity corresponding to the line (in the case of daily pay, enter the number of granted daily pays, in the case of tickets, enter the number of granted tickets, etc.);

• Expense Amount = Invoice Price- enter the line's unit price;

• Note, Description

Note: In the case of justification documents (fiscal invoice, fiscal bill- gas, etc.), enter, in the Description field (by following the "5# Rule"): #TaxID#VendorName#DocumentSerialNumber#DocumentDate#.

In this case, always enter 1 in the Quantity field and the grand total (including VAT) of the justification document in the Invoice Price and Expense Amount fields.

After entering all the lines, go back to the Expense Report window, verify the Approval Amount (the expense discount total amount), complete the discount by pressing the Document Action button.

Generating the Expense Invoice

Generating the vendor invoice through which the employees are paid for their expenses is done by using the Create AP Expense Invoices by Price List and Create AP Expense Invoices processes, located in the Time and Expense menu.

The Create AP Expense Invoices is used to generate batch vendor invoices and the Create AP Expense Invoices by Price List allows you to select the Expense Report for which the invoice will be generated.

Closing the Expense Report

After generating the expense invoices, they need to be matched with the corresponding bank statement lines and payments:

In the Bank Statement window, expense invoices need to be matched with statement lines, with the following properties:

• Statement Line Date = Account Date - the expense report date;

• Business Partner - the employee;

• Invoice - select the expense invoice;

• Transaction Amount = Statement Amount = invoice amount with negative sign (is a payment);

After saving the statement line, press the Create Payment button, through which the corresponding payment will be generated:

• Tender Type - Direct Deposit;

• Document Action - Complete;

After the payment has been generated, the Payment field in the Statement Line tab will be updated with the corresponding data.

Details in Bank Statement.