The following options are available for creating a business expense report:
choosing receipts from the receipts wall;
From the menu Expenses->My business expenses->New expense report.
Expense report header
When creating a new expense employees name and report date have to be entered. If the employees banking account number has not been entered to users form, it can be added here. It is also possible to note that reimbursement to be received in cash or another person may also be the recipient of the payment.
Explanations about the report may be added to the comment section. Additional documents (not expenses documents) can be added to the report as attachments if necessary.
Expense report items
If completing an expense report was started by selecting receipts from the receipts wall, a line for each receipt has been created and only the distribution of costs has to be done.
If preparing an expense report was started by creating a new report from the “My expenses” menu, documents can be added here. You can start adding documents to the expense report if the report header has been completed and saved.
By clicking the button “Add expenses” the following window opens and you can select expenses documents from files saved on the computer as well as the receipts wall.
When adding receipts to the report an expense distribution must also be completed for each document. Fields that are mandatory to complete are the expense type, total document sum, and to whom this expense will be reimbursed. If the report was created from the receipts wall, expense distribution must also be added to the report lines – these can be made by clicking on the brown writing on the row (for example on the “undetermined” supplier name).
If in the accounting settings (Accounting->Settings->Travel, business expenses) an unjustified expense distribution is permitted with a tick, it is permitted to submit receipts to the company on the rows of which the personal expenses of the reporting person may also be reflected that the company will not compensate. In such a case a tick must be made after the name of the reporting person in the expense distribution and the sum that is not the company’s expense on that expense document must be highlighted.
Sending the expense report for approval
If all of the desired rows have been entered i.e. the expenses documents have been added, approvers can be added to the report and sent from the desktop of the preparer of the report.
The logic of the Envoice expenses module is structured so that all expenses documents contained in one report and the report itself move forward in the process together. Until all receipts related to one report are not digitised, the first receipts cannot be recorded.
For recording it is possible to select:
Whether a business expenses interim account is used;
An interim account is not used.
When using an interim and advance payment account receipts are recorded one by one to these accounts and the final expense entries will only be made on the basis of the report. If interim and advance payment accounts are not used, expense entries will be made directly from each receipt.
If the business expenses interim account is used, the following recordings are made:
For each receipt:
debit – business expenses interim account in the receipt net amount;
debit – input VAT account in the receipt VAT amount;
credit – payable to supplier / reporting person in the receipt amount.
For a report if corrections do not have to be made:
debit – expenses account in the expense amount;
credit – business expenses interim account.
For a report if corrections have to be made for example in respect of an expense not belonging to the company (the receipt also reflected the personal costs of the reporting person), the expense entry is made in a smaller sum and adjusted in respect of input VAT:
debit – expenses account in the amount of the company’s expense;
debit – business expense interim account in the negative expense amount;
debit – business expenses interim account in the negative net amount not belonging to the company;
debit – negative input VAT on the part not belonging to the company;
credit – negative payable to supplier / reporting person in the amount not belonging to the company.
If the business expenses interim account is not used, the following recordings are made:
For each receipt:
debit – expenses account;
debit – input VAT account;
credit – payable to supplier / reporting person.
With a report if for example a correction must be made in respect of a part not belonging to the company (the reporting person’s personal expenses were also reflected on the receipt), the respective reduction entry will be made in respect of a previously recorded expense:
debit – negative expenses account;
debit – negative input VAT account;
credit – negative payable to supplier / reporting person.
NB! If a corrected part or additional entries do not become evident with the report, only the receipt expense entries will be made.
If the company uses dimensions like department and region in this example, these can be attached to the expense report as well. Recording is completed with a click on the green button “Finish recording”.
All receipts are recorded one by one in the expenses module. When recording, the accountant will review that all receipts are correct and belong to the company and will add the tax codes. After recording the final receipt, additions will also be made to the report according to the recordings made from the receipts.
More additions must be made in the business expense report if necessary. If everything is correct there as well, the entire accounting processing of one report will finish with recording the business expense report and the report will be sent for an approval round that the reporting person attached when finishing the report.
Approving expense reports
Definitively recorded expense reports move to the approval view of approvers according to the approval round order attached to them. Reports that are being approved are displayed in the respective subdivision on the expenses desktop:
Overview of expense reports
An overview of expense reports is available:
in the expenses module from the menu point “Archive”;
in the purchase invoices module from the menu point “Archive”.
Only the report itself is displayed in the expenses module but each receipt that was recorded is available as a separate document in the purchase invoices archive and is reflected there as a “purchase invoice”.