Accounting for expense claims

Expense claims are used by staff members who are claiming back funds where they have personally paid for something whilst working on behalf of the company, such as accommodation, fuel or food expenses.

Each claim can be made up of multiple receipts which are then submitted for approval. Claims are then approved by authorized users, and can be grouped by staff member and batch paid.

All the accounting for claims is automatically created. Expense claims can only be processed in base currency.

Also see Setting up employees for claiming expenses and Claiming personal expenses.

Expense claim workflow

  • A new claim is created by the staff member.
  • The claim is then submitted for approval.
    • Whilst awaiting approval the claim is given a status of Pending. If the staff member has the permission to approve claims, this status is skipped and the claim automatically becomes Approved.
  • When the claim is marked as Approved  by an authorized user, an accounting journal is created to account for the amount due to be paid to the staff member.
    • To ensure the accounting is correctly created, the account code must be assigned to the staff member record. Approved claims can be canceled, but the accounting journal will need to be marked as canceled manually.
  • When a claim is marked as Paid by an authorized user, an accounting journal is created to clear down the liability value and make an entry on the bank account code.
    • Paid claims cannot be canceled or deleted.


Managing expense claims

You will need the "Bookkeeping" permission to be able to approve, cancel or delete claims.

How to approve an expense claim

It is not possible to set approval limits.
  1. Go to  Accounting > Expense claims to view all expense claims.
  2. Select the claims to approve.
  3. Click the Approve button.

Approving an expense claim will post an expense claim journal (type EX) to record the expense and the liability.

How to cancel an expense claim

A pending claim can be deleted or canceled.

If a claim has already been approved it can only be canceled. The accounting journal created at the point of marking it approved will need to be manually canceled.

Paid expenses cannot be canceled at all.

  1. Go to Accounting > Expense Claims.
  2. Tick the checkbox next to the claim to be canceled.
  3. Click the Cancel button.

This will update the claim status to "canceled".

Once you have canceled the claim you will need to cancel the accounting entries:

  1. Search for the journal using the claim number then click on the journal ID to open it.
  2. Enter a reason for modification.
  3. Click the Cancel button to zero the accounting entries and move them to the suspense nominal codes.

How to delete an expense claim

  1. Go to  Accounting > Expense Claims.
  2. Click the trash icon against the claim to be deleted.

Paying expense claims

  1. Go to  Accounting > Expense claims  to view all expense claims.
  2. Use the filters to view the claims for a single employee (you can click their name on the listing to filter by them).
  3. Tick the checkboxes next to the claims to be paid.
  4. Click the Pay button.
  5. Select the bank account which the payment will come from, enter a reference and the payment date.
  6. Click the Pay claims  button.

Paying a claim will enter a bank payment (BP) from your bank account into the employee's expense account, and mark the claims as "Paid".

Recharging expenses to clients

If you are incurring these expenses on behalf of a client, then you can create an invoice quickly off the back of the claim. When submitting the claim, ensure that you select the client name, and if relevant, a project too. Then click the Submit claim button. The claim will be allocated to the client and you can then create a draft invoice ready for processing in Sales. Learn more about recharging expenses here.

Accounting for expense claims

The following journal entries are made during the expense claims workflow.

On approving a claim

EX journal:

Account code Debit Credit Tax code
Staff expense liability code   X T9 / -
Income statement expense code X   Taken from expense account code
2201 Purchase tax control account X   Taken from expense account code

On paying a claim

BP journal:

Account code Debit Credit Tax code
Staff expense liability code X   T9 / -
Bank account    X T9 / -
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