Setting up employees for claiming expenses

Expense claims are used by staff to record personal expenses they have incurred on behalf of the business. A claim is submitted by a staff member and then approved and paid by an authorized user.

To use the expense claim feature the following needs to be set up:

  1. Staff members need to be assigned a claim account number. This is the account (nominal) code into which all their claim values are recorded. Since the values recorded for an expense claim are amounts due to be paid to the staff member, these account codes are usually classified as liabilities.
  2. An account code is needed for each different category of expense that can be claimed - for example, accommodation, travel, or fuel expenses. These account codes also specify the tax rate of the claim item.

Assign the staff member a claim account

Before the staff member can create a claim they will need to be assigned an expenses account.

  1. Go to Settings > Staff/Users > List staff.
  2. Click on the staff member name to view their details.
  3. Select their claim account in the Expense account field. Since this is where the amount due to be paid to the staff member is recorded it is usually a liability type code. You may want to create a new code for the staff member at Accounting > Chart of accounts.
  4. Save the staff member's details.

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Staff members with the "Bookkeeping" permission can approve their own claims. To enable or disable this permission:

  1. Click on Permissions for the staff member.
  2. Use the Accounts > Bookkeeping option to allow/restrict them from approving their own claims.
  3. Save the staff member's permissions.

Create expense claim categories

Each type of expense claim should have a separate account code where the expenses will be accumulated.

  1. Go to Accounting > Chart of accounts.
  2. Select the relevant account type on the left-hand side - your accountant can tell you which one to use.
  3. Click the Add a new account/nominal code button.
  4. If tax can be claimed on this type of expense, select the relevant tax class.
  5. Opt to Show on expenses screen.
  6. Save.

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