Defining Accounting Data for Expenses

This chapter provides an overview of accounting-related data setup and discusses how to:

Set up cash advance sources.
Set up earnings codes.
Set up expense billing codes.
Set up expense types.
Set up expense type groups.
Set up local tax table.
Set up reimbursement action codes.

Understanding Accounting-Related Data Setup

PeopleSoft applications rely on tables to store business transactions and the structure and processing rules that drive your system. This chapter discusses how to define the components that make up some of the core of the Expenses system. Each part that you develop becomes integral to the process by which the system collects expense information, imports data from outside sources, processes expense transactions, and provides data to the payables and general ledger systems.

Setting Up Cash Advance Sources

To set up cash advance sources, use the Cash Advance Source (EX_ADVANCE_SOURCE) component.

This section provides an overview of cash advance source setup and discusses how to:

Define a cash advance source.
Define cash advance recipients.

Understanding Cash Advance Source Setup

In order to set up cash advances, you need to define where cash advance funds originate and whether or not a particular funding source requires your system to create and generate payments. You also need to define whether the recipient of the cash advance is an expenses user or a vendor. If you select the Vendor radio button, you must enter identification information for the vendor.

Pages Used for Setting Up Cash Advance Sources

Page Name	Object Name	Navigation	Usage
Cash Advance Source	EX_ADV_SOURCE	Set Up Financials/Supply Chain, Product Related, Expenses, Management, Cash Advance Source Travel and Expense, T and E Administration Center, Define Expense System, Accounting Data, Cash Advance Source	Create and define a case advance source and its associated ChartFields.
Cash Advance Reimbursement Receipt	EX_ADV_REIMBURSE	Click the Reimbursement link on the Cash Advance Source page.	Define the recipient for the funds from this particular cash advance source.

Defining a Cash Advance Source

Access the Cash Advance Source page.

Advance Source

Displays the identifier for a cash advance source.

Adjustment Advance

Select to make this cash advance source a preset value on expense documents, to be used when creating adjustment cash advances and post payment audit cash advances.

Note. If you select the Adjustment Advance check box, you cannot select the Generate Payment check box. If you do so, the system displays an error message.

Credit Card Default

Select if this cash advance source is created from a credit card feed.

Gross Up Indicator

Select if this source includes estimated income tax so that the recipient receives an after-tax amount.

Generate Payment

Select if granting a cash advance from this source requires a payment from your organization. Such sources might be system checks or electronic fund transfers, which cause your payables or payroll system to disburse funds to an employee. A cash advance source that generates a payment results in debiting the employee advance account that you specify in your accounting entry template. It also credits the cash account that you indicate in an external account when you define banks.

When you select this option, Expenses deactivates the ChartFields that are on the page.

When you clear the Generate Payment check box, a cash advance from this source debits the employee advance account that you specify in your accounting entry template, which credits the ChartFields that you select to offset the employee advance debit.

Defining Cash Advance Recipients

Access the Cash Advance Reimbursement Recipient page.

Employee	Select to generate payments to an employee.
Vendor	Select to generate payments to a vendor. Selecting this option requires you to input vendor data.

Setting Up Earnings Codes

To set up your earnings codes tables, use the Earnings Code (EX_EARNINGS_TBL) component.

This section provides an overview of earnings codes setup and lists the page used to set up and define earnings codes.

Understanding Earnings Codes Setup

You can use an earnings code to identify expense reimbursement amounts to the payroll system so that you do not process expense payments as payroll items. If you use one of PeopleSoft's payroll applications, you receive earnings codes from your payroll system. If you do not use a PeopleSoft payroll application, use this page to create earnings codes for your payroll system. Because earnings codes are effective-dated, you can create more than one to use at predetermined times.

Note. Do not update earnings codes in your expense system if you use a PeopleSoft payroll application. The system overrides these codes when the payroll system uses application messages (EARNINGS_FULLSYNC and EARNINGS_SYNC) to publish any earnings codes to Expenses.

Page Used to Set Up Earnings Codes

Page Name	Object Name	Navigation	Usage
Earnings Code	EX_EARNINGS_TBL	Set Up Financials/Supply Chain, Product Related, Expenses, Management, Earnings Code Travel and Expense, T and E Administration Center, Define Expense System, Accounting Data, Earnings Code	Set up earnings codes to use for payroll reimbursements.

Setting Up Expense Billing Codes

To set up expense billing codes, use the Expense Billing Code (EX_BILL_CD_TBL.GBL) component.

This section discusses how to define expense billing codes.

Page Used to Set Up Expense Billing Codes

Page Name	Object Name	Navigation	Usage
Expense Billing Code	EX_BILL_CD_TBL	Set Up Financials/Supply Chain, Product Related, Expenses, Management, Expense Billing Code Travel and Expense, T and E Administration Center, Define Expense System, Accounting Data, Expense Billing Code	Create billing codes to identify expense items that are billable and charged to PeopleSoft Project Costing ChartFields. These items are then passed to PeopleSoft Project Costing and PeopleSoft Billing for processing.

Defining Expense Billing Codes

Access the Expense Billing Code page.

Default

Select to make this billing code a preset value on expense documents.

Billing Action

Options are:

Billable: Select to identify an expense that is chargeable to a client.

Internal: Select to charge an expense item to accounts that are within the organization.

Nonbillable: Select to identify a project-related expense that is not billable to anyone.

Expenses delivers the values of Billable, Internal, and Nonbillable; however, you can add rows to designate more billing codes. Billing codes are effective-dated, so you can create more than one set of definitions that are to be used at predetermined times.

Setting Up Expense Types

To set up expense types, use the Expense Type (EX_EXPENSE_TYPE.GBL) component. Use the EX_TYPES_SETUP component interface to load data into the table for this component.

This section provides an overview of expense types setup and discusses how to:

Define expense type usage and requirements.
Define accounting distribution defaults.
Define per diem and merchant parameters.

Understanding Expense Types Setup

The expense types feature lets you identify and classify valid business expenses that employees incur. When you process an expense report, the billing code determines the group to which it belongs and the set of accounts to charge.

If you use Billing, an expense item must be billable and charged to Project Costing ChartFields in order for both applications to process it. Project Costing expense items with this billing action are the only ones that Project Costing selects on the billing worksheet and sends to Billing for subsequent invoicing.

Note. To make an expense type part of an expense type group, define the group before you define the location.

Pages Used to Set Up Expense Types

Page Name	Object Name	Navigation	Usage
Expense Types 1	EX_EXPENSE_TYPES1	Set Up Financials/Supply Chain, Product Related, Expenses, Purchase, Expense Type Travel and Expense, T and E Administration Center, Define Expense System, Accounting Data, Expense Type	Define usage and requirements for an expense type.
Expense Types 2	EX_EXPENSE_TYPES2	Click the Expense Types 2 tab on the Expense Types 1 page.	Define accounting distribution defaults for the expense type’s billing codes. You can also define the accounts that are used for overage amounts. For example, if an employee charges an amount that is greater than the per diem amount, the overage/unallowable amount can be booked to a different account.
Expense Types 3	EX_EXPENSE_TYPES3	Click the Expense Types 3 tab of the Expense Types 1 or Expense Types 2 page.	Define parameters for per diems, preferred merchants, or both.

Defining Expense Type Usage and Requirements

Access the Expense Types 1 page.

Physical Nature

Select Goods or Services to determine the value-added tax (VAT) treatment.

BenchMark Threshold %(percentage)

Enter a percentage if you use benchmark data. This figure represents the percentage that can exceed the benchmark amount when employees select this expense type on an expense report.

VAT Default

Click to access the VAT Defaults Setup page.

The VAT Defaults Setup page is a common page that is used to set up the VAT defaults for all PeopleSoft applications processing VAT transactions. On this page, you can define expense type defaults as applicable.

See Working with VAT.

Required Fields

Select options to designate mandatory fields for employees to complete on expense reports when they select this expense type.

Description	Select to require employees to enter a description of the expense type.
Preferred Merchant	Select to require employees to use preferred merchants that are associated with the expense type. If an employee does not select a preferred merchant, the system asks for a reason. If you select to require employees to use preferred merchants, then you must also set up one or more preferred merchants on the Expenses Types 3 page.
Transportation Type	Select to indicate that an expense type requires a transportation type for tracking reimbursable mileage. The Transportation Type field appears when the user selects this expense type, and the system requires a value.
Merchant	Select to require employees to enter a merchant or vendor for an expense type. This does not need to be a preferred merchant.
Originating Location	Select to require employees to enter their starting points for an expense type, such as airfare.
Location	Select to require employees to enter where charges for the expense type occurred. This field is important when calculating per diem reimbursements.
Number of Passengers	Select to indicate that the number of passengers is required for this expense type. This field is informational only.

Tax Related Indicators

Tax-related indicators flag an expense type that is taxable for the reimbursed employee.

Items with Tax Implications	Select if the expense type, such as an airline ticket that is associated with moving an employee’s family, is subject to income tax.
Gross Up Indicator	Select if estimated taxes are added to the expense type to reimburse an employee for a committed amount. For example, if 1,000 USD is promised as a lump-sum payment for moving costs and the employee’s income tax rate is about 28 percent, gross up the payment to 1,280 USD.

Expense Type Edit

You can make further specifications when you're using a particular expense type in an expense report.

None	Select if no editing is required.
Attendees	Select to require employees to provide names and organizations for individuals attending a function that is a business expense.
Per Diem	Select to prompt for input of times that include the start and end of the business day. Activates a per diem information button in an expense report, enabling the employee to select meals that another party, such as a vendor or lodging establishment, provides. The expense system can then deduct the appropriate amount from the per diem for that day.
Airfare	Select to require an airline ticket number.
Automobile	Select to require the distance to calculate reimbursement when using a personal automobile for business purposes. You must also define a distance rate for this expense type.
Per Diem Lodging	Select to indicate lodging where an employee stays with a family or a friend while on a business trip.
Hotel	Select to require the number of nights that are spent in a hotel.
Rental	Reserved for future functionality.

Rate Retrieval Table

Location Amount Table	Select to use location amounts that are determined either by the company or data sources such as Runzheimer or CONUS.
Per Diem Table	Select to use government-specified amounts that are related to location per diems. This table allows you to set up hourly or daily ranges so that you can prorate amounts.

Defining Accounting Distribution Defaults

Access the Expense Types 2 page.

Expense Type Group

Select a group to associate with this expense type.

GL ChartFields 1 Tab

Fetch	Select to populate the ChartFields with the same defaults that you define for the selected expense type group. This is only available if Dflt Group is not selected.
Overage	Select if you want amounts exceeding an expense amount ceiling to be booked to a different set of ChartFields. Note. In order to select the Overage check box, you must first select Allow Overage Accounting on the Installation Options - Expenses page. See Defining Expenses Installation Options.
Billing Type	Select a billing type for which you want to define ChartFields to use for the expense type. Expenses delivers values of Billable, Internal, or Nonbillable.
Dflt Group (default group)	Select to use the group defaults for this expense type’s billing codes.

Select the appropriate ChartField as the accounting distribution default when this expense type is associated with the billing code in an expense report. Create other rows to designate additional charged accounts for different billing codes.

Note. If any ChartField (other than Account) is associated with this expense type and the expense type is used on an expense report, the expense type accounting overrides the default for the expense transaction at the header level. However, if you change the accounting ChartFields at the transaction line level, the system uses only Account and, if applicable, Alternate Account.

Defining Per Diem and Merchant Parameters

Access the Expense Types 3 page.

Expense Type

Select the expense types to use to define a per diem expense type.

Deduction Percentage

Select the percentage to deduct for each expense type that you establish. When the employee selects this per diem expense type, they can select some or all of the expense types that are associated with the per diem. In the example that appears in the illustration, if an employee selects breakfast and lunch, Expenses deducts 35 percent of the reimbursable total (15 percent for breakfast and 20 percent for lunch) from the per diem amount. 100 EUR is the total amount for an employee's per diem. If the employee selects the deduction for breakfast (15%), then Expenses reduces the employee's 100 EUR per diem by 15% or 15 EUR. The employee then only gets back 85 EUR because that amount is outside of the per diem allowance.

Preferred Merchant

If applicable, select for this expense type. You can add more rows to create a list of merchants that you require employees to use. If the expense type appears in an expense report and the employee did not use a preferred merchant, the line item requires an explanation and could be flagged for auditing.

Setting Up Expense Type Groups

To set up expense type groups, use the Expense Type Group (EX_EXP_TYPE_GRP.GBL) component.

This section discusses how to define expense type groups.

Page Used to Set Up Expense Type Groups

Page Name	Object Name	Navigation	Usage
Expense Type Group	EX_TYPE_GRP	Set Up Financials/Supply Chain, Product Related, Expenses, Purchase, Expense Type Group Travel and Expense, T and E Administration Center, Define Expense System, Accounting Data, Expense Type Group	Create a group to collect and classify expense types for reporting and tracking.

Defining Expense Type Groups

Access the Expense Type Group page.

Overage

Select if you want amounts exceeding a per diem amount to be booked to a different set of ChartFields.

Note. In order to select the Overage check box, you must first select Allow Overage Accounting on the Installation Options - Expenses page.

See Defining Expenses Installation Options.

Billing Code

Select a billing type for which you want to define ChartFields to use for the expense type. PeopleSoft Expenses delivers the billing type values of Billable, Internal, or Nonbillable.

In the remaining columns, select the accounting distribution defaults when a member of this expense type group is associated with the selected billing code in an expense report. Create other rows to designate additional charged accounts for different billing codes.

Note. If any ChartField (other than account) is associated with this expense type group and an expense type group is used on an expense report, the expense type group accounting overrides the default for the expense transaction at the header level. However, if you change the accounting ChartFields at the transaction line level, the system uses only account and, if applicable, alternate account.

Setting Up Local Tax Tables

To set up location tax tables, use the Local Tax Table (LOCAL_TAX_TBL.GBL) component. Use the EX_LOCAL_TAX_SETUP component interface to load data into the table for this component.

This section provides an overview of local tax table setup and discusses how to set up local tax tables.

Understanding Local Tax Table Setup

Defining local tax tables enables employees to enter time reports that indicate different tax localities than are normally used. Time reports are sent to Time and Labor, which passes them on to a PeopleSoft payroll system. The payroll system then uses the local tax table from the time report to calculate applicable taxes.

Page Used to Set Up Local Tax Tables

Page Name	Object Name	Navigation	Usage
Local Tax Table	LOCAL_TAX_TBL	Set Up Financials/Supply Chain, Product Related, Expenses, Management, Local Tax Table Travel and Expense, T and E Administration Center, Define Expense System, Accounting Data, Local Tax Table	Define local tax tables for states and localities in the United States and its territories.

Defining Local Tax Tables

Access the Local Tax Table page.

The local tax table is effective-dated, so you can create more than one definition to use at predetermined times.

Setting Up Reimbursement Action Codes

To set up reimbursement action codes, use the Reimbursement Action Code (EX_REIMB_ACTIONS.GBL) component.

This section provides an overview of reimbursement action codes setup and lists the page used to set up reimbursement action codes.

Understanding Reimbursement Action Codes Setup

If an expense report line item is denied in the approval or auditing process, you must select one of the defined action codes to explain the reason.

Page Used to Set Up Reimbursement Action Codes

Page Name	Object Name	Navigation	Usage
Reimbursement Action Code	EX_REIMB_ACTIONS	Set Up Financials/Supply Chain, Product Related, Expenses, Payment Information, Reimbursement Action Code Travel and Expense, T and E Administration Center, Define Expense System, Accounting Data, Reimbursement Action Code	Set up codes to communicate your organization’s policies regarding the reason an expense item is denied.

Advance Source	Displays the identifier for a cash advance source.
Adjustment Advance	Select to make this cash advance source a preset value on expense documents, to be used when creating adjustment cash advances and post payment audit cash advances. Note. If you select the Adjustment Advance check box, you cannot select the Generate Payment check box. If you do so, the system displays an error message.
Credit Card Default	Select if this cash advance source is created from a credit card feed.
Gross Up Indicator	Select if this source includes estimated income tax so that the recipient receives an after-tax amount.
Generate Payment	Select if granting a cash advance from this source requires a payment from your organization. Such sources might be system checks or electronic fund transfers, which cause your payables or payroll system to disburse funds to an employee. A cash advance source that generates a payment results in debiting the employee advance account that you specify in your accounting entry template. It also credits the cash account that you indicate in an external account when you define banks. When you select this option, Expenses deactivates the ChartFields that are on the page. When you clear the Generate Payment check box, a cash advance from this source debits the employee advance account that you specify in your accounting entry template, which credits the ChartFields that you select to offset the employee advance debit.

Expense Type	Select the expense types to use to define a per diem expense type.
Deduction Percentage	Select the percentage to deduct for each expense type that you establish. When the employee selects this per diem expense type, they can select some or all of the expense types that are associated with the per diem. In the example that appears in the illustration, if an employee selects breakfast and lunch, Expenses deducts 35 percent of the reimbursable total (15 percent for breakfast and 20 percent for lunch) from the per diem amount. 100 EUR is the total amount for an employee's per diem. If the employee selects the deduction for breakfast (15%), then Expenses reduces the employee's 100 EUR per diem by 15% or 15 EUR. The employee then only gets back 85 EUR because that amount is outside of the per diem allowance.
Preferred Merchant	If applicable, select for this expense type. You can add more rows to create a list of merchants that you require employees to use. If the expense type appears in an expense report and the employee did not use a preferred merchant, the line item requires an explanation and could be flagged for auditing.