Exploring the Basics of Expense Types

Objective

After completing this lesson, you will be able to describe expense types.

Unit Overview

This unit explores the essential components of expense types. Throughout this unit, you gain a comprehensive understanding of expense types, including insights on how to access and effectively manage them.

After completing this unit, you are able to:

  • Access expense types.
  • Create a new expense type.
  • Edit an expense type.
  • Activate an expense type.
  • Deactivate an expense type.
  • Import expense types.
  • Access references.

Basics of Expense Types

The image shows a screenshot of the Capturing Spend section. This section includes four main options: Custom Fields, Payment Types, Expense Types for Expenses (highlighted in yellow), and Mileage. An Edit button is present for each option.

Expense types list items to add to an expense report and how an organization accounts for expenses. You can also change the behavior of specific fields here. SAP Concur supplies a list of common expense types by default. These can be changed or added as needed.

Linking the expense types to account codes lets the company see how much employees spend and where.

Concur Expense tracks two types of expenses: Active and Inactive. Active expense types are those available to users when creating expense reports. Inactive expense types are those not in use, therefore not visible to users.

The components of expense types are described below. The list of expense types can be sorted by Expense Type or Category.

Expense Type

This is the name of the item that is displayed to users.

Flag Expense Limit

Expenses over this amount are flagged as over the company's policy limit. The expense report can still be submitted, but a manager review is required for approval, with the over-the-limit expenses highlighted. You can leave this blank if no amount needs to be flagged.

Prevent Expense Limit

The user cannot submit expenses over this amount. You can leave this blank without a hard stop rule on the cost.

Category

Determines which fields a user fills out when creating an expense report and provides a way to report on groups of expenses. For example, Dinner, Lunch, and Breakfast all fall under the category Meal.

Caution

Category names are hard coded in the system. They cannot be edited, deleted, or created.

You must review the existing expense types and determine which ones to use or make inactive and if they want to set a flag or not allow amounts for each expense type.

Hint

One particular expense type is Miscellaneous in the Other Category. If this expense type is used, you can make comments that require the user to explain these expenses.

Account Codes

They match expense types to your company's Chart of Accounts in their accounting system.

The image shows a screenshot of a user interface for managing expense types in a software application. The interface is divided into several sections: 1. Top section, titled Manage Expense Types, has the following fields: Search, Status (Active Expense Types selected), Countries/Regions and Policy Groups (All Countries and Policy Groups selected); 2. Left section, titled Your Expense Types (32), displays a button Add New Expense Type and list of expenses with their status (highlighted in yellow), all marked Active; 3. Middle section, titled Edit Details, displays a subsection Policy Groups: Activation & Limits, with a few policy groups displayed, such as Executives, Marketing, Sales, with options to set Flag Expense Limit and Prevent Expense Limit (highlighted in yellow); 4. Right section, titled Category, highlighted in yellow, a drop-down with options like All Categories, Agent/Booking Fees, etc.; 5. Bottom section, with blue buttons Reset and Save.

Actions available to manage expense types:

  • Add a new expense type
  • Edit
  • Deactivate
  • Activate

Caution

Expense types cannot be deleted; instead their status is set to Inactive if they are not being used.

Summary

Understanding Expense Types is essential for several reasons:

  • Expense Tracking - Help categorize and accurately track spending within your company.
  • Compliance - Ensure that the expenses are in line with your company policies and guidelines.
  • Reporting - Create detailed financial reports that provide valuable insights into company expenditures.

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