This chapter describes the system setup required to enter and track expenses.
The following items must be configured before adding users and allowing them to enter expenses.
Expense sheets are available only with a valid WebExpense license.
Items to Configure
• Tax Codes - To automatically determine the amount of tax paid on an expense amount• Expense Codes - To categorize expenses and define which taxes are applied to each type of expense
• Expense Columns - To determine which fields are available on expense sheets
• Expense Approval Paths - To define who approves each expense sheet
• Expense Templates - To define what template is used to enter expenses
Optional • Payment Methods - To track how users are paid for expenses
• Expense Settings - To capture additional, custom information on the expense sheet
Tax Codes
• Tax codes define the taxes applied to expenses, for business activities and purchases.• When you create a tax code, you will be required to provide:
a. A name for the tax, which will display on the user’s expense sheet
b. A formula for calculating tax based on the net amount of the expense (see below)
Configure at:
Administration > Expenses > Tax Codes 1. Click Add Tax Code.
2. Enter a name and formula that will be used to calculate tax.
3. Click Save.
Setting Up Expense Sheets 37
Understanding the Tax Formula
• Each tax code has a formula that tells Replicon how to calculate tax based on the net expense amount. This formula can be edited at the system level or when the tax is applied to an expense code. The for-mula at the expense code level will apply only to that expense code.
• You may create a rated tax (calculates tax as a percentage of the net amount) or a flat tax (adds a flat amount to the net amount).
• Example 1 - The formula for a 7% state sales tax would be entered as $Net*0.07
• Example 2 - The formula for a flat tax (such as airport tax) would be entered as 10.00
Expense Codes
• Expense codes define the different costs incurred for business activi-ties and purchases.• When adding an expense code, you must specify:
a. The name of the expense code, which users will select to cat-egorize each expense
b. Whether it is based on an expense rate (e.g., mileage) or a flat amount (e.g., hotel). If the expense code is based on an ex-pense rate, you must enter the appropriate rate and the unit to which that rate applies. For example, if you are entering an expense code for mileage, the rate might be $.80 per mile.
c. The formula to calculate the net (pre-tax) amount based on the total (see Understanding the Gross to Net Formula)
d. The taxes which apply to expenses under that code. For each tax you assign to the expense code, you can use the default tax formula or edit it for this code.
Configure at:
Administration > Expenses > Expense Codes 1. Click Add Expense Code.
2. Enter a name and description.
3. From the Type drop-down field, select whether the expense code is based on an expense rate (e.g. mileage) or a flat amount (e.g. hotel).
• The Expense Rate fields display for rate-based expense codes.
Enter a rate and the unit to which it applies.
• The Gross To Net Formula field displays for flat-rate expense codes. Enter a formula to calculate the net (pre-tax) amount.
4. In the Code field, enter an optional code used to identify the code.
5. In the Tax Codes section, you can edit the tax formula for each code.
The changes will apply only to this expense code; the original tax for-mula for the tax code will remain unchanged.
6. Click Save.
Understanding the Gross to Net Formula
• The ‘gross to net’ formula instructs Replicon how to calculate back-wards from the gross (total expense amount) to the net (pre-tax amount) for an individual expense. Providing this formula will ensure expense amounts are correct, whether the user enters the net or the gross amount for a specific expense.
• When entering the gross to net formula, you may enter a simple for-mula (useful for expenses with only one tax) or a complex, multi-level formula using parentheses to indicate precedence (useful for
expenses with more than one tax).
• Example 1 - For a 7% state sales tax, the gross to net formula would be entered as $Gross/1.07.
• Example 2 - For a 6% sales tax and a flat tax of $10.00, where the 6% sales tax is applied to the net amount before the flat tax is added, the gross to net formula would be entered as ($Gross-10)/1.06. Parentheses are used to indicate that the 10 dollars should be subtracted from the gross amount before the 6% sales tax is deducted.
Expense Columns
• The Expense Columns page allows you to specify which fields are valid for expense sheets entered by your users. You may want to disable any fields that are not used by your organization.• Any field selected on this page will be available to the user, however they may be disabled on the expense sheet by default. Users can add the fields to their expense sheet using the Settings.
Configure at:
Administration > Expenses > Expense Columns
1. Select the columns you want to make available on the expense sheets.
2. Click Save.
Setting Up Expense Sheets 39