Setting up employees for claiming expenses

Introduction

Expense claims are used by staff to record personal expenses they have incurred on behalf of the business. A claim is:

  1. Enter by the staff member, with each receipt being assigned against an expense category.
  2. Submitted by the staff member. No accounting transactions occur at this point.
  3. Approved by a manager. The expenses are put against their expense account as a company liability.
  4. Paid (along with any other claims) from a bank account to the staff member.

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 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 a liability type account code.
  2. For each different category of expense that can be claimed, an account code is needed. For example, accommodation, travel, fuel. 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 details.
  5. Now click on  Permissions  for the staff member.
  6. Use the Accounts-Bookkeeping option to allow/restrict them from approving their own claims.
  7. Save the staff member permissions.

Create expense claim categories

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

  1. Go to Accounting > Chart of accounts .
  2. Select the Overheads  or Direct expenses account type, either is fine, but check with your accountant to be sure which one you are going to use.
  3. Click the  Add a new 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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