Expense Reports
This guide explains how to manage employee expenses, from submission to reimbursement. Whether you're an employee submitting receipts or a manager approving them, this guide covers the entire process.
What is an Expense Report?
An Expense Report is a document that groups together all the business-related costs an employee has incurred over a specific period (like a business trip or a month). It acts as a formal request for reimbursement.
Why do we use them?
- Reimbursement: ensures employees get paid back for utilizing personal funds for company business.
- Tracking: keeps a record of how much the company is spending on travel, meals, and supplies.
- Approval: allows managers to review costs before money is paid out.
💡 Real-World Example:
Imagine you travelled to a client meeting. You paid for a taxi, bought lunch, and stayed in a hotel. You would create one Expense Report for "Client Visit - March" and add three lines (Taxi, Lunch, Hotel) to it.
Where to Find It
Navigate to: HR → Expense Reports
You'll see a list of all your expense reports.
- Employees see their own reports.
- Managers/HR see reports submitted for their approval.
The Expense Workflow
An expense report goes through these stages:
graph LR
A[Draft] --> B[Submitted]
B --> C{Manager Review}
C -->|Approve| D[Approved]
C -->|Reject| A
D --> E[Paid]
- Draft: You are still adding receipts and editing details.
- Submitted: You've sent it to your manager. You can't edit it anymore.
- Approved: The manager has accepted the expenses.
- Paid: Accouting has reimbursed you (via payroll or direct payment).
Creating an Expense Report
Step 1: Create the Report Header
- Go to HR → Expense Reports.
- Click Create Expense Report.
- Fill in the basic details:
- Description: A clear name (e.g., "Dubai Trip - Oct 2023").
- Employee: Your name (usually auto-filled).
- Date: The date of submission.
Step 2: Add Expense Lines
In the Expense Lines section, click Add Item for each receipt:
| Field | What to Enter |
|---|---|
| Description | What did you buy? (e.g., "Taxi to Airport") |
| Category | Choose a category (Travel, Meals, Office Supplies). |
| Date | The date on the receipt. |
| Amount | The total amount you paid. |
| Currency | If you paid in foreign currency (e.g., USD), select it here. |
[!TIP] You can drag and drop receipt images into the Attachments section of each line strictly for proof!
Step 3: Submit for Approval
Once you've added all your expenses:
- Check the Total Amount.
- Click Submit to Manager.
For Managers: Approving Expenses
When an employee submits a report, you will receive a notification.
- Open the Expense Report.
- Review each line item and the attached receipts.
- Action:
- Approve: If everything looks correct.
- Reject: If expenses are against policy or missing receipts. (You can leave a comment explaining why).
Accounting Impact
When an expense report is Approved and Posted, the system creates a journal entry:
Dr. Travel Expense $150.00
Dr. Meals Expense $50.00
Cr. Employee Payable $200.00
- Debit: Increases the company's expense accounts.
- Credit: Increases the amount the company owes the employee (Liability).
Troublehshooting & FAQ
Q: I forgot to add a receipt to a submitted report! A: Ask your manager to "Refuse" or "Reject" the report. It will go back to Draft status, and you can add the missing receipt and submit it again.
Q: Can I request an advance payment? A: No, Expense Reports are for reimbursement (money you already spent). For advance money, use the Cash Advance feature in the HR module.
Q: What if I lost a receipt? A: Check your company policy. Usually, you need to provide a written explanation or a bank statement screenshot.