How To Guide

Employee Expense Reports

Table of Contents

Determine the categories for tracking employee expenses ................................................................... 2

Establish a general ledger account for each expense ............................................................................ 2
Set up an Expenses costs accounting code for each expense group .............................................. 3
Set up a Miscellaneous Business Partners accounting code for each expense group .................. 3
Set up the Mileage Allowance for your Mileage charge code ................................................................ 6
Set up the User account for expense processing ................................................................................... 7
Set up the Miscellaneous BP that is linked to the User account ........................................................... 8
Processing expense reports ...................................................................................................................... 9
Posting expense reports .......................................................................................................................... 10
Expense posting generates a Log file ..................................................................................................... 11
Journal entry generated for the Expense Posting ................................................................................... 12

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 Employee Expense Reports

Determine the categories for tracking employee expenses

In this example we will track the following:

1. Airfare
2. Automobile
3. Mileage
4. Hotel
5. Employee Meals
6. Parking

Establish a general ledger account for each expense

Go to... Common Data / GL Accounting Tables / General / GL Accounts.

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 Employee Expense Reports

Set up an Expenses costs accounting code for each expense group

Go to... Parameters / Financials / Accounting Interface / Accounting Codes.

Repeat setting up codes for each expense group.

Assign the respective GL

account here.

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 Employee Expense Reports

Set up a Miscellaneous Business Partners accounting code for each expense group

Go toParameters / Financials / Accounting Interface / Accounting Codes.

Assign a Collective employee expense clearing account to line 8, Expenses Costs. This accounting
code line is referenced by the EXP (Refund of Expenses) automatic journal.

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 Employee Expense Reports

Setup a charge code for each of your expense groups.

Go to Parameters / AP-AR Accounting / Expenses / Charge Codes.

Assign the corresponding

Expense cost accounting code
(see p.3).

Set the Valuation type to

Unitary for all charge
codes except Mileage,
which should be set to
Costs Miles/Km.

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 Employee Expense Reports

Set up the Mileage Allowance for your Mileage charge code

Go to Parameters / AP-AR Accounting / Expenses / Mileage allowances.

Set up Category 1 with its respective reimbursement allowance per mile.

(In the below example for Category 1, $0.41/mile is the reimbursement rate).

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 Employee Expense Reports

Set up the User account for expense processing

Go to Parameters / Users / Users.

Now set up the A/P and A/R Parameters Definitions for the User. Go to the Parameter Definitions tab
and define the EXPBPR field to be MISC, which is the miscellaneous business partner account setup for
expense processing.

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 Employee Expense Reports

Set up the Miscellaneous BP that is linked to the User account

Go to Common Data / BPs / BPs.

On the Accounting tab, assign the EXP Miscellaneous Business Partners Accounting Code to the BP.

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 Employee Expense Reports

Processing expense reports

Go to AP-AR Accounting / Expenses / Expense Form entry.

First select the Employee (User) and then choose the Period.

Qty - For the mileage you can enter the actual number of miles traveled and X3 will calculate the mileage
reimbursement. For any other charge, set the quantity to 1.

You can assign a dimension to the charge code line. Depending on how you wish to structure your
dimension types, you can have one charge code and use dimensions to catalog the different elements
(airfare, hotel, auto, etc.).

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 Employee Expense Reports

Posting expense reports

Go to AP-AR Accounting / Expenses / Expense Posting.

This function posts the expense entries and a credit to the expense clearing account.

Check this box to get an

actual journal entry to
be generated.

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 Employee Expense Reports

Expense posting generates a Log file

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 Employee Expense Reports

Journal entry generated for the Expense Posting

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