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FAQ: What is the Expensify Card Auto Reconciliation process?

Rachael Hopkins
Rachael Hopkins Expensify Success Coach - Admin Posts: 865 Expensify Team
edited March 31 in Expensify Card

If your company or organisation uses the Expensify Card and we have an Auto Reconciliation process happening with your accounting software, you may be mystified as to what’s going on under the hood! So let’s break it down in really simple terms…

Step 1. Purchases are made and your Expensify Card balance is paid every day.

A: Real-life - A purchase is made on an Expensify Card. The Pending balance (including any holds for things like pay-at-pump fuel, hotel authorisations etc) is deducted from your ‘Settlement Account’ (your business checking account) each night. Don’t worry, this account is set when you apply for the Expensify card, and you can’t somehow change it accidentally!

B: Accounting-land - After the card balance is paid each night, a journal is added to your accounting system. It credits the bank account (GL account) and debits the Expensify Card Clearing Account. This ‘bank account’ is set on the Expensify Card ‘settings’ so you want to be really careful it matches the real-life settlement account from above. You can check this under Settings > Account > Payments - the business bank account will be labelled ‘Settlement Account’ if it is being used to settle the Expensify Card balance.

If you want to see the Settlement figures by date, use the Company Card Reconciliation Dashboard, Settlements tab.

Step 2. Expenses are Submitted, Approved and Exported to accounting software.

A: Real-life - A user submits their expenses (this could be long after the purchase is made) on a Report, and the Report is Approved and then exported to the Accounting software.

B: Accounting-land - When the report is exported, we add a journal in your accounting system. It credits the Clearing Account and debits the Liability Account for the amount of the purchase. The Liability Account is set up like a bank account in your ledger, but specifically for the Expensify Card.

If you want to check the Expense figures, use the Company Card Reconciliation Dashboard, Reconciliation tab.

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