Use this function to enter basic data information for expense rules in the system, which the employee will use when entering expenses in the Expense Form. The Expense Rule contains different expense categories such as Mileage, Entertainment (Which can used to register entertainment categories, entertainment expense codes and entertainment expense control records), Other Expenses (Ex: Business Travel Expenses and Misc. Expenses) and Allowances.
Enter the definition of the type of expense rule you want to use. One type of expense rule can be EVERYBODY, which will include all employees connected to the different codes in the same set of rules. It can also be for a specific employee, who has an individual set of rules.
The basic data for an Expense Code is registered in the Expense Codes tab. An Expense Code is used to define a specific cost within the rule(s). Types of codes can be: ONIGHT (overnight stay), MILES (Mileage), REP (Representation), MISC (Miscellaneous), or TAXI (taxi). Enter an easy to use text when describing the codes.
An Expense Rule is used in the system to calculate rules for different kinds of allowances and compensations. The rules will help you get a correct calculation of abroad allowance specified in a different currency than your own. Basic Allowance Calculation methods which will decide how the compensation needs to be calculated for the employee based on the length of travel is as below;
Segment based calculation will be available only if the Allowance Calculation Method is set to "Duration". This allow the user to have the same allowance rule with different allowance amounts for the first day and the remaining days.
In the Expense Rule, it is also possible to define which tax codes to be used with a specific expense code. See information from the IRS for further information regarding taxation rules. Use Tax Wage Code to view the sum of all expense sheet taxed amounts are transferred. Advance Wage Code which will view the advances from expense sheets are transferred. Non-Reimbursable Wage Code enter the wage code to which sums of non-reimbursable expenses from expense sheets will be transferred.
Select the Default Expense Rule option if required to automatically connected the expense rule to any employee who has no other expense rule connected. If cleared, employees will not be able to register their expenses as long as they are not connected to any expense rule.
If the Currency Rate from Credit Card Transaction option is selected the currency exchange rates given by the bank for credit card transactions will override the rates set in the application.
An information will appear when an expense sheet is created, approved, or authorized, stating that the total deductions exceeded the total allowances, if the Deductions Controlled option is selected.
When registering Expense codes enter the price and/or percentage for the
code. If you don't define a price, you must manually enter the price every time
you enter in the expense form. Use the List of Values to specify the Wage Code
you want to connect to this specific Expense Code. Define the Report Code, If
IFS/Project Reporting is installed. Report Codes are for reporting purposes and
it is important to have a set of standard codes that corresponds to the expenses
used in the Expense Sheet.
Example of a set of report codes are: TRAVCOST (travel cost), TRAVTIME (travel
time), ACC (accommodation cost), ALLOWW (allowance whole day), ALLOWH (allowance
half day), EXP (misc. expenses). The Report Codes defined here needs to be connected
to the Project Activities you are going to forward your expense sheets to.
For the Expense Code use the Default Tax Line to add the Tax Percentage. These tax codes will be used to create default tax lines when using the expense codes on an expense sheet. The Deductible % are automatically populated from the basic data defined for the tax code in IFS/Accounting Rules. Default Tax Lines are helpful to improve follow-up and lessen the amount of time spent on administrating expense sheets. Specifying a tax code to use with an expense code always has a higher priority than the Tax percentage defined on the expense code.
Before you enter Expense Codes and Expense Rules, the following must have been completed:
As a result of this entry, you can connect employees to a Expense Rule and the calculations can be done in the system.