Expensify+Xero Configuration for Client Billable

I'm having difficulties understanding how I can configure the Xero+Expensify integration for the following scenario:

  • Consulting company with several travelers, all using Expensify to produce reports
  • We have not setup the Xero integration yet, as all our testing has failed to meet the needs (so we're cash coding manually)
  • We currently have multiple Expensify Policies - nearly one for each client, as they all have different expense rules for us since we re-bill them
  • On the Xero side, all travel expenses get booked as a 'Direct Cost' type Expense at the CUSTOMER+PROJECT level, here is an example showing 3 projects for client "LB" and 1 project for client "HGS"
  • On the Expensify side, all travel reports should be categorized how the client has asked us to Categorize them (e.g. Airfare, Hotel, Rental Car, etc.)
  • I'd like all Expensify Expense Categories for a Client (Policy level?) get mapped to a single Xero Expense Category for that customer (Expensify user would have to tag with customer+project or similar)

What is the right way to configure this in Expensify? I can't seem to figure it out, yet it seems to me that this would be a common practice for a Consulting company that travels, uses both Expensify & Xero.

Thanks in advance for any insights.

bforeste

Best Answers

  • Nicole TrepanierNicole Trepanier Posts: 107 Expensify Success Coach
    Accepted Answer

    Hi @Bforeste To clarify, are your projects set up as tracking categories or are you using the new Projects module? We aren't able to support Projects at this time. If they are set up as tracking categories, we would be able to tag each expense with both a project and a customer by enabling these on the coding tab of your configuration.

    For the categories, only one account from your chart of accounts can be selected on each expense. We pull in any accounts that are either expense types or have 'show in expense claims' checked. We don't have a way to select both the category (travel, airfare, hotel, etc.) and the direct cost account.

  • Nicole TrepanierNicole Trepanier Posts: 107 Expensify Success Coach
    Accepted Answer

    @Bforeste Thanks for clarifying. Unfortunately, when categories are selected in Expensify from your chart of accounts imported from Xero, only one can apply to each expense line and when we export it back to Xero, only the selected category will be sent.

    While you could have them select the category in expensify as the Client + Project from your chart of accounts in Xero, you wouldn't be able to also select, airfare, hotel, meals, etc.

Answers

  • BforesteBforeste Posts: 3

    Hi Nicole - our projects do not use the Xero 'project' feature. Rather, each project has it's own 'revenue' and 'expense' accounts. So - for project travel expenses, we book ALL travel expenses to the project's unique expense account (unique for each CLIENT+PROJECT).

    We use the Xero tracking categories for other purposes, not for project-based P/L.

    So - multiple Expensify categories (e.g. airfare, hotel, rental, meals, etc.) that map to a single Xero GL account (direct cost) at the CLIENT+PROJECT level. Also - currently each client is setup with their own Expensify 'Policy' (the original purpose was based off this requirement to have a mapping different for each project account).

    Thanks

    bforeste

  • BforesteBforeste Posts: 3

    Thanks for your analysis Nicole - I assumed that is where I would end up. It appears I have a couple alternatives to handle the requirement:
    1. I create additional Xero GL accounts 'under' the CLIENT+PROJECT level (not sure if I get maxed out somewhere on the GL account number) so that my GL structure is CLIENTa+PROJECT1+AIRFARE, CLIENTa+PROJECT1+HOTEL, CLIENTb+PROJECT1+AIRFARE, etc.
    2. Keep doing the cash coding manually & not integrating Expensify into Xero. What makes this more difficult is that we have a single corporate card, but Xero does not have visibility to the sub-accounts within that credit card feed (that I know of). So all charges get lumped together & we have to look at paper statements to see "that charge is Employee 1, that is Employee 3, etc."

    Of course, if anyone else in the forum has other suggestions or ideas I can use to workaround this - I'm open to all ideas.

    Bforeste

  • Nicole TrepanierNicole Trepanier Posts: 107 Expensify Success Coach

    @Bforeste You won't get maxed out on categories within Expensify if you need to create more options in your chart of accounts for #1. That would be a good option. The other option I can think of, if you aren't using both of your tracking categories, would be to set those up as hotel, travel, meals etc. Let me know if there is anything I can do to help!

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