Sometimes we give cash advances as a backup payment option to employees who travel. How do we account for that in Expensify?
Hello @RBlack, thanks for the follow up information, it was just what I needed!
Expensify doesn't have the concept of cash advances, but I know of a few different large companies that use Expensify to help track this.
How this works is that the employee adds their expenses to a report as normal, and then adds a negative reimbursable expense in the amount of their cash advance. This tells our system to decrease the reimbursable total by the amount of the negative expense.
Below is an example of how that would look on a report.
This process actually works much better if the cash advance and the expenses are submitted together, because you'll only pay your employee back for the expenses not covered by their advance.
Hello @RBlack, happy to help with this. Before I make any suggestions to account for this, can you confirm the below?
Thank you! That was very helpful but raises an addition issue/question. It is our corporate policy that only business expenses be put on a corporate charge card. Because of this, the company automatically pays all corporate card payments directly to the card issuer. This means these expenses do not need to be reimbursed to the employee. We use the bulk of expense reports to account for what is charged on corporate cards for the sake of accounting and auditing. However, for various reasons, there also might be a time when an employee uses their own funds to pay for a corporate expense. This means we would need to account for 3 different payment types.
Is there a way to accommodate these 3 payment types within Expensify?
Hello @RBlack, so sorry for the delay here!
You can very easily track all three type of expenses in Expensify, that won't be a problem.
The ideal solution is to use Expensify to manage and track company card spend. This is done through Domain Control in Expensify, and offers other helpful features like Automatic Statement Reporting and Reconciliation.
If you use statement reporting in combination with managing company cards, we will put all company card expenses onto a report for the cardholder and then remind them to code and submit those expenses at the end of the statement period.
In regard to the other two types, cash advance expenses and reimbursable expenses, I'd recommend making it a policy that employees always submit them together.
Looking at this another way, your employees are going to have reimbursable expenses and non-reimbursable expenses which they should submit separately to accommodate the cash advances that sometimes occur.
Things you can use to help employees with their reimbursable expenses would be Scheduled Submit at the policy level, automatic reimbursement for reports under a specific dollar amount you set, and setting clear submission guidelines for them to follow.
Please add specific functionality for cash advances. So we don't need to do workarounds.
Will a negative reimbursement balance roll over from one report to the next, if it is not cancelled out in a current expense period?
Hi SCMTorreya, and welcome to the Expensify community!
A negative reimbursement balance will not roll over from one report to the next.
If you have a negative reimbursement balance, the employee would need to return the overage to the company, or you might want to try splitting an expense and moving it to the next report to ensure that the reimbursable total is equal to or higher than any negative expenses on the report.
Here's a doc that explains how to split an expense in Expensify.