Expense setup

Expense setup

Advance and Expense module can be setup through the tabs available on Expense Setup page. This article covers the options available to setup the expense claims process. Refer to the article on Advance Setup for details on how to setup the Advance claim process. You can also add more fields to the expense claim form, refer to the article on Custom Field Creation for more details.

Menu Path : Setup > HR Setup > Advances and Expense > Process Setup tab
Accessible to : Application Administrator

1. Process Setup



1. Enable Advance Request Feature - through this parameter you can enable advance request feature in Advance and Expense module. Refer article on Advance Overview for more details.
2. Enable Multiple Claim Types - through this parameter you can create multiple types of claims in Advance and Expense module. If you do not activate this feature initially and use the module without multiple types of claims, you can still activate the feature later on. When you activate this feature at that point all the previous expense requests will be mapped to a claim type - "Default" and the existing approval workflow will also be mapped to this claim type.
3. Track Expenses by Company - this parameter will be visible only for multi company organizations. If this parameter is Yes, then company selection will become mandatory when submitting an expense request.

2. Expense Setup

From this tab expense module parameters can be configured as explained below.

1, Verifier role mapping - You can map the role of verifier, verifier is responsible for verifying the supportings and other expense form details after it has been approved.

2. Controlling expenses through policies - If you want you can define policies which will govern the amount employees can claim against a head. Policies are created against expense heads, details are given in section 3 below.
- Expense policy mapping - select Yes to enable this feature, on selection as Yes the next two parameters will be visible. This feature cannot be deactivated once it is in use but you can always create expense heads without policies.
- Allow exceeding policy - if you select Yes then employees would be able to overwrite the amount in the claim and put a higher value but the claim would be then tagged as "Exceeding Policy".
- Approver for policy exception - the role you select here would get the claim for approval after it is approved by the regular approvers. This is called exception approval workflow. The exception approver will always be the last approver for an expense voucher.


3. Limit expenses by date - if this feature is enabled then system will not allow to input expenses beyond a certain date in past. As per the example shown here expenses can be entered for only 7 days in past.

4. Allow mapping of a Tour request to multiple claims - if this feature is enabled, then you can map tour request with multiple claims. 

5. Allow mapping of Tour requests created after - using this parameter you can specify a cut off date, Tour requests created on or after this date will be visible for mapping in the Expense form 


6. Show Category drop-down - if this parameter is enabled then while filling up the expense details the user will have to select the category of expense first and after that the expense head can be filled up. Please note that expenses heads can be created with same name across categories and hence it is recommended to enabled this parameter or to ensure that expense heads are unique across categories.

8. Format for expense payment advice - this can be in Excel or PDF, these advice are used to process expense payments to the employees 

9. Map expense heads by claim type - this parameter enables you to control which expense head can be claimed through which claim type. This parameter is visible only when multiple claim type parameter is enabled from the first tab. After the parameter is enabled the heads can be mapped at claim type level. When the parameter is enabled all the existing heads are mapped to all claim types by default but any new head created in Expense Heads tab will not be mapped to any claim type automatically and will have to be mapped manually. When this parameter is deactivated the mapping of claim types with heads is deleted and all heads can be claimed in all claim types.


10. Remarks compulsory - through this parameter you can make inputting of remarks while filling up the expense form as compulsory



11. Request Initiators - you can select the initiators who will be able to create an expense request. There can be multiple initiators.

Managing Claim Types


12. Claim Type - If you activate "Enable Multiple Claim Types" in Process Setup, then you can create multiple types of claims, the advantage of using this feature is that for each claim type you can have a different approval workflow. If you do not activate this option, then only one approval workflow can be designed. Once this feature is activated it cannot be deactivated.

When this feature is activated two claim types will be added by default in Inactive status.
1. Project Expenses : added if Project module is enabled these claims are used to link the Projects to the claim
2. Travel Expenses : added if Tour process is enabled, these claims are used to link the Tour requests to the claim
Both these claim types cannot be deleted but can be deactivated if they are not to be used.

To create new claim type follow these steps -
1. Create the Claim Type in the bottom row as shown above, click on Save
2. Click on the Submit on the bottom of the page

Map Approvers - Click on Approvers to define the approvers, by default Manager is made the level 1 approver. The image shown below will open where you can setup multiple levels of approvers.


Approvers/Verifier can be changed at any point of time and the updated workflow will be applied to new claim requests, claim requests already in process will go as per the workflow which was defined at the time of the request. If the request is returned and then resubmitted then it will go as per new workflow.

Deactivating / Deleting Claim Types

If you do not want to use a claim type you can deactivate it. The claim type will be removed from vouchers which are in draft status, in all other vouchers the claim type will be visible. A claim type can be deleted only if it has not been used in any voucher.

Mapping Heads to Claim Types


- new heads can be mapped 
- existing heads can be deleted. Deleted heads will not be removed from in-process / approved / verified / paid vouchers

To manage visibility of expense requests on mobile and browser refer to the article on Managing visibility of records.

3. Setting up Expense Heads

Menu Path : Setup > HR Setup > Expense Setup > Expense Heads tab
Accessible to : Application Administrator
On this page the expense heads which are to be made available to the employees are created and maintained. There are four system defined categories under which you can create these heads, these are :

1. Local Conveyance - used for local travel / conveyance
2. Outstation Travel Expenses - used for claiming hotel, travel allowance, air / train fare
3. Periodic Official Expense - used to claim expenses which occur on periodic basis like monthly telephone bills
4. Miscellaneous Expense - used for any other expense head


Creating a new expense head

1. Click on "Add New" button at the bottom of the table

2. Update the following fields
- Select the category
- Provide the head description
- Billable : this flag is used to decide if the head can be billed to clients / customers or not, this classification is not visible in the expense claim form but can be seen in Expense reports
- Type : can be Manual or Policy. If head type is "Manual" then there are no checks or validations and employees claim any amount. But if head type is "Policy" then you can create a policy for this expense head as per your company policy
- Attribute - this flag is available only if head type = policy; this is used to create another classification within the head. For example, a head like Hotel Stay can have multiple attributes like - Metro / Non Metro / Overseas. Each attribute can have its own policy
- Supporting compulsory - if you want the supporting document to be uploaded compulsorily for an expense head then select this parameter for the expense head

3. Click on Submit to update the head. For a policy based head the row will be pink in color initially, and head will be save in Inactive status. You cannot activate the head till policy has been created. Click on "Manage Policies" button to update the policy.

Deactivating / Deleting Expense Heads

You can deactivate a head if you do not want to use it anymore. To deactivate, click on "Deactivate" button. When you deactivate a head it cannot be used in any subsequent submission but it will remain in all existing claims.
You can delete a head as long as it has not been used in any expense claim. To delete a head, click on "Delete" action button.

4. Creating Expense Policy

There are four parameters which need to be defined to setup the expense policy completely. These parameters are -

1. Unit – Unit can be Amount / Employee / Days / Kilometers.
2. Limit – A limit can be defined. This limit is used to check against the value being entered and if the input is higher than the limit then it is not allowed to be entered. Limit corresponds to the input parameter which can be amount / days / kms.
3. Scope – this is used to define the scope of the policy. It can be All or Custom. Custom scope is defined by creating a formula similar to any other eligibility formula. Complex formula with selection criteria like Department, Seniority Level can be created. Scope is applied when the expense claim is submitted. For example, if an expense is with scope - Department > Sales then the head will be visible only for employees who are mapped to Sales department when the claim is being submitted. If employee's department is changed and claim is in Submitted or any subsequent status it will not make any difference.
4. Rate – this parameter is available only if the unit is in days or kms. This is used to specify the amount per unit.

Policy for a Head without attributes

To create a policy you need to provide the values for the four parameters as shown below -


The screen shot above shows a policy which puts a limit of INR 1000 on Daily Per Diem. This policy is applicable to all employees. System will prompt the user to input the days for the claim and will auto calculate the amount. If "Allow exceeding policy" is enabled then users will be allowed to overwrite the amount, if not enabled then amount will be uneditable.

Policy for a Head with attributes

If you have activated attributes within a head then you can create attributes and also proceed to further design the policy. There are two steps in designing a policy with attributes.

1. Create the attribute list - in the first step list down the attributes which you want to be used. When the head is shown to the employee it will be shown with the attribute. For example, the head shown below will be shown as "Gift-Customer" or "Gift-Employees"

2. Create the policy for each attribute - policy for each attribute needs to be created. Refer the section above on creating policy for a head without attributes for details on how to create a policy.


Editing an expense policy

Policies can be edited and changed at any point of time but when the policy is changed then all in-process expense claims are rejected and employee is notified.

Refer to the article on - Setting up currency for more details on how currency used in policy is applied when creating an expense claim.


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