Module 1: EXPENSE REPORT OVERVIEW AND BASIC SETUP

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Introduction

Microsoft Dynamics Courseware Overview………...0-2 Student Objectives……….0-3

Module 1: EXPENSE REPORT OVERVIEW AND BASIC SETUP

Lesson 1: Introduction to Travel and Expense Management ... 1-2 Lesson 2: Travel and Expense Management Process Flow ... 1-3 Lesson 3: Report Header Setup ... 1-5 Lesson 4: Report Lines Setup ... 1-8 Lab 1.1: Create an Expense Category ... 1-19 Lesson 5: General Setup ... 1-21 Lab 1.2: Set Up Delegates ... 1-36 Lesson 6: Module Review ... 1-37

Module 2: PAYMENT METHODS

Lesson 1: Defining Payment Methods ... 2-2 Lesson 2: Setting Up Reimbursements ... 2-5 Lesson 3: Importing Credit Cards ... 2-9 Lab 2.1: Credit Card Import ... 2-15 Lesson 4: Credit Card Dispute Management ... 2-17 Lesson 5: Module Review ... 2-20

Module 3: WORKING WITH EXPENSE REPORTS

Lesson 1: Optional Practices ... 3-2 Lab 3.1: Creating a Travel Requisition ... 3-8 Lesson 2: Create Expense Reports ... 3-11 Lesson 3: Posting Expense Reports ... 3-26 Lab 3.2: Create and Submit an Expense Report ... 3-29 Lesson 4: Budgetary Control ... 3-31 Lesson 5: Module Review ... 3-34

Module 4: WORKFLOW MANAGEMENT

Lesson 1: Workflow Overview ... 4-2 Lesson 2: Workflow Terminology ... 4-12 Lesson 3: Travel and Expense Workflow Types ... 4-12 Lesson 4: Working with Travel and Expense Workflows ... 4-16 Lab 4.1: Creating an Expense Report Workflow ... 4-24 Lab 4.2: Submitting an Expense Reports by Using Workflow ... 4-28 Lesson 5: Module Review ... 4-30

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Module 5: EXPENSE POLICIES

Lesson 1: Travel and Expense Policies ... 5-2 Lab 5.1: Create an Expense Policy ... 5-12 Lesson 2: Audit Policies ... 5-15 Lab 5.2: Create an Audit Policy ... 5-20 Lesson 3: Project Expenses ... 5-22 Lesson 4: Module Review ... 5-31

Module 6: PER DIEMS

Lesson 1: Set up Per Diems ... 6-2 Lesson 2: Request Per Diems on an Expense Report ... 6-8 Lab 6.1: Create Per Diems Rules and Enter in an Expense Report ... 6-11 Lesson 3: Module Review ... 6-14

Module 7: CASH ADVANCES

Lesson 1: Cash Advances Process Flow ... 7-3 Lesson 2: Set up Cash Advances ... 7-3 Lesson 3: Create a Cash Advance Request ... 7-6 Lab 7.1: Create a Cash Advance Request ... 7-9

Lesson 4: Approve a Cash Advance Request ... 7-10 Lesson 5: Post a Cash Advance Request ... 7-11 Lesson 6: Apply a Cash Advance to a Expense Report ... 7-14 Lab 7.2: Return Unused Cash Advance ... 7-18 Lesson 7: Module Review ... 7-19

Appendix A: PREREQUISITE FOR SAMPLE CREDIT CARD IMPORT

BASIC SETUP

Module Overview

Travel and Expense Management uses the Enterprise Portal and the Microsoft Dynamics AX® _{client. Most administration and configuration is performed in the} Microsoft Dynamics AX client while most users will access Travel and Expense Management functionality from the Enterprise Portal to enter expense reports and cash advance requests. This chapter covers the overview and basic setup of Travel and Expense Management in Microsoft Dynamics AX 2012.

Objectives

• Describe the purpose and benefits of using Travel and Expense Management module in Dynamics AX 2012

• Describe the workflow for creating and approving expense reports • Setup basic data required to use the Travel and Expense Management

Introduction to Travel and Expense Management

Use Travel and Expense Management to create an integrated workflow where you can store payment method information, import credit card transactions, and track the money that employees are spending when they incur expenses for your business. You can also define expense policies and automate the reimbursement of travel expenses.

Purpose and Integration

In Microsoft Dynamics AX 2012, the Travel and Expense Management module with integrated workflow capabilities helps manage, track, and reimburse travel and entertainment expenses. Travel and Expense Management has a strong value proposition for organizations with discretionary spending. Travel and

entertainment expenses are a significant part of a company's controllable expense. To help curb these costs, Travel Expense Management provides a mechanism to define and apply expense policies, in addition to flagging and reporting on abusers of the policies.

Additionally, automating the entry and reimbursement of travel and entertainment expenses reduces processing costs versus manual entry. Travel and Expense Management has tight integration with other Microsoft Dynamics AX modules of Accounts payable, General ledger and Project accounting.

Travel and Expense Management Process Flow

In this lesson, Travel and expense process flows are explained. The process flow described is an overview and details of specific processes and workflows will be discussed later in this course.

Use this diagram to follow Travel and Expense process flows.

FIGURE 1.1: TRAVEL AND EXPENSE PROCESS FLOW

Credit Card Import

Prior to creating an expense report, it is possible to for the employee to import credit card transactions from a bank statement into AX. These transactions are then available in the expense report to be classified and added to an expense report. This makes entering expense reports easier for users by reducing data entry. This is typically used where an employee has a company credit card.

Note: For more information on credit card importing, refer to Appendix C of this training content.

Cash Advances

You can use the Cash Advance Request page to request a cash advance from your employer. You might request a cash advance for several reasons, such as to pay for parking at a sales meeting or if you plan to have lunch with a customer. Value Added Tax (VAT) on purchases that are made with a cash advance is not eligible for recovery. Cash Advance Requests are entered in Enterprise Portal.

Travel Requisitions

Before you travel for business and incur expenses that you charge to your organization, you may be required to create and submit a travel requisition. The travel requisition contains information about the projected costs of your travel. The expense costs that you enter in a travel requisition do not have to be exact. You only have to enter an estimate of the expense costs that you may incur. Travel Requisitions are entered in Enterprise Portal.

Expense Entry Flow

Expense reports are entered through the Enterprise Portal. They cannot be entered through the rich client. The expense report is in a typical header and lines format. The expense report header contains basic information about the report such as the employee, the location and the date. The lines contain the detail of the expense transactions.

Submit Expenses

After you have entered all of the information in your expense report that is required by your organization and attached any required expense receipts, the next step is to submit the expense report for approval. Expense reports are submitted through the Enterprise Portal.

Workflow Approvals

The Dynamics AX workflow module routes the expense reports for approval. Approval actions can be completed in the enterprise portal or in the rich client. Specific workflow for Expense reports are addressed later in this course.

Reimbursements and Payments

The approved expense report is posted through a ledger journal. This is posted by an administration person in the rich client.

The employee can be associated with a vendor or ledger account. Any reimbursements, per diems or cash advances owing to the employee will automatically be allocated as a transaction on the associated vendor or ledger account. A payment journal can then be used to pay the employee.

Credit Card Disputes

There may be times when you incur a credit card expense, and the transaction that appears on the credit card statement is incorrect. If this scenario occurs, first contact the merchant where the expense was incurred. However, if you cannot resolve the issue by contacting the merchant, you can create a credit card expense dispute. This dispute is then sent to the credit card institution.

You can assign another worker as a delegate to submit a credit card expense dispute on your behalf. Adding delegates are discussed later in this course. Credit card disputes are entered in Enterprise Portal.

Report Header Setup

Before entering data on an expense report in Enterprise Portal, you can setup header information that may be used on the expense report.

Travel Locations

Use the Travel Locations form to enter standard locations of travel. This field can be entered on the expense report header and is optional. This field is used to specify where the travel occurred. It can also be used as a condition in the workflow configuration and/or expense policy rules.

To set up the travel locations, follow these steps:

1. Click Travel and expense > Setup > Optional setup > Travel locations.

2. Click New to create a new location. 3. Type an identifier in the Location field.

FIGURE 1.2: TRAVEL LOCATIONS FORM

Dispute Reason Codes

If an employee discovers an erroneous transaction on their expense report, they can file a transaction dispute. Because a transaction dispute can occur for different reasons, you can create reason codes that include information and instructions specific to a type of dispute.

To create dispute reason codes, follow these steps:

1. Click Travel and expense > Setup > Disputes > Dispute reason codes.

2. Click New to create a new location.

4. Enter a name for the dispute code and a reason for the dispute that explains the dispute type that you selected in step 3.

FIGURE 1.3: DISPUTE REASON CODES FORM

Expense Purpose

Use the Expense purpose form to create a standard list of expense purposes, such as trade show, conference, or training. The expense purpose is optional and can be entered on the expense header. Users can enter any description on the expense header; they are not limited to these options. Entering common purposes in this form will make data entry easier for user. This information can be used for reporting and analysis

To create a expense purpose, follow these steps:

1. Click Travel and expense > Setup > Optional setup > Expense purposes.

FIGURE 1.4: EXPENSE PURPOSES FORM

Report Lines Setup

Report lines setup describes the forms used to set up line items when entering information on travel and expense reports.

Payment Methods

Use the Payment Methods form to set up different forms of payment for travel and entertainment expenses. Users must indicate the method of payment which they used for each expense line on the report.

To open the Payment methods form click Travel and expense > Setup > Travel and expense entry > Payment methods. The Payment method form uses the following fields to define each payment method used in Travel and Expense Management.

Field Example

Payment Method and Description Credit Card

Expense Owner Employee

Offset Account Type and Offset Account

Bank Account, 1103

Note: For more information on Payment method setup and accounts, refer to the Payment Methods chapter of this course.

Expense Categories

Use the Expense categories form to setup the type of expense transactions that the company would like to track. There are various standard expense types which affect what type of information can be recorded about the expense.

To set up expense categories follow these steps:

1. Click Travel and expense > Setup > Travel and expense entry > Expense categories.

2. Click New to create a new expense category and then type in the Category ID.

3. Select the Use in Project check box if the expense category will be used to track expenses in the Project module. If you select this check box, the Project, Cost accounts, and Revenue accounts Fasttabs become available in this form.

Note: For a complete list of fields associated with the Fasttabs use the Help

files in Microsoft Dynamics AX 2012.

FastTab Description

Project View project category information. This

FastTab is available only if you select the Use in Project check box. The

following fields are available if the expense category is linked to a project:

Select a Category Group associated with the expense.

Use the Items sales Tax to select the item sales tax group for the expense category.

Use the Worker to select whether the employee identification should be displayed on the expense transactions.

Use the Estimate and Subscription check boxes to identify if the expense category can be used in estimates and subscriptions.

Use the Active in Journals check box if this expense category is available for posting in journals.

Use the Default to select the Default line property that the expense transaction is attached to.

Cost accounts View or select a cost price account to apply the expense category to. This FastTab is available only if you select the Use in Project check box.

Revenue accounts View or select sales price account to apply the expense category to. This FastTab is available only if you select the Use in Project check box.

Expense View or edit information about the selected expense category.

Expense Type: The expense type contains a predefined list of transaction types. Each type has different fields available during data entry. For example, if the user enters an expense category which is expense type of Meals, then they may enter a list of guests.

Default payment method: This is the payment method most commonly used for the expense category. It will default on the expense report to make data entry easier for the users.

Main account: This is the ledger account that the expense will be posted to. When the expense report is posted through a ledger journal, the debit entry will be to this account and the credit entry will be dependent on the expense line method of payment.

Sales tax group: This is a default item sales tax group for this expense category. This will default

on the expense line to make data entry easier for users.

Statistics group: This is used for grouping expense categories for reporting purposes

FastTab Description

Allowed payment methods View the payment methods that are enabled for the selected expense category. To add new payment method, click the Add button. To remove a payment method from the expense category, highlight the

payment method and click the Remove button.

You can set a default payment method by selecting the Is Default check box. Subcategories Create subcategories for the selected

expense category. When you add subcategories, employees are required to enter more detailed information about expense reports.

Enter the name of the expense

subcategory. This name should correlate with the expense category that it is attached to. For example, if the main category is Car rental, the subcategory name could be Fuel charge.

Depending on how your organization uses expense categories, there are many options to further define expense categories. Use the buttons on the top of the Expense Category form to further define how the categories are used. The following table describes the available buttons.

Button Description

Transactions View the transactions that are related to the selected category.

Note: This button is available only if the expense category is linked to a project.

Setup After clicking the Setup button the following submenu items are available:

Note: This button is available only if the expense category is linked to a project.

Workers: Maintain a list of employees who are authorized to use the category.

Projects: Maintain a list of projects that are available for the category.

Cost price - hour, Cost price – expense: Set up a cost price for hour and expense categories.

Sales price - hour, Sales price -

expenses, Sales price - fee, Sales price – subscription: Set up a sales price for hour, expense, fee, and subscription categories.

Service subscriptions: Set up subscriptions that are attached to the selected subscription category.

Line property setup: Set up a line property for the category.

Note: You cannot attach a line property to a subscription category because line properties are not used for subscription transactions.

Ledger posting: Set up ledger posting by category.

Button Description

Function After clicking the Function button the

following submenu items are available:

Note: This button is available only if the expense category is linked to a project.

Create subscription fee: Create

subscription transactions for the selected subscription category.

Index subscription: Update the index/base price for subscriptions that have the selected fee category attached to them.

Accrue subscription: Accrue revenue for subscription transactions that are attached to the selected expense category.

Committed costs Opens the Committed cost form.

Note: This button is available only if the expense category is linked to a project.

Forecast Select all rows in a forecast that include the specified category and copy or delete those rows, or transfer them to the general ledger.

Note: This button is available only if you select the Use in Project check box

Project control View the project control forms to gather and export data to a Microsoft Excel worksheet.

Note: This button is available only if the expense category is linked to a project

Mileage rate tiers Opens the Mileage rate tiers form.

Note: This button is available only when the selected category has a mileage expense type.

Shared Categories

Shared expense categories that can be used across all of the legal entities in your organization. For example, if you create a shared expense category for Meal expenses, the Meals category name and description will be used by all of your legal entities.

To set up the shared categories, follow these steps:

1. Click Travel and expense > Setup > Travel and expense entry > Shared categories.

2. Click New to create a shared category.

3. Type an identifier in the Category ID field and a Category name. 4. Select the Can be used in Expense check box to allow this category

5. Select an Expense type.

6. Add any Subcategories your organization may need for further clarification.

Merchants

Merchants are specified for various expense categories. Common merchants can be setup to make data entry easier for users. Users must select from this list during expense entry if they want to indicate the merchant

Use the Merchant form to create a list of merchants that workers can select from when entering line item expenses in an expense report.

To create a merchant follow these steps:

1. Click Travel and expense > Setup > Optional setup > Merchants. 2. Click New and enter the name of the Merchant or organization. 3. Select the Expense type that this merchant might be associated with. 4. Select the Preferred check box if the merchant is preferred by your

organization. For example, a merchant might be preferred if it is a hotel that offers a 5% discount to employees of your organization.

Lab 1.1: Create an Expense Category

Scenario

Contoso has decided to track Expenses for internet and phone use. To do this they have decided to create a category called Internet and Phone and will be tracked as a miscellaneous expense type with a default method of payment of Company Credit Card. These expenses should be posted to the account 601500, Travel expenses. This Expense is a shared category and can be used in Project and Expense.

High Level Steps

1. Create a shared expense category called Internet and Phone and assign Miscellaneous as the expense type.

2. Select Gen Exp as the Project category for this expense category and set up this category to post to the Main account 601500.

Detailed Steps

1. Create a shared expense category called Internet and Phone and assign Miscellaneous as the expense type.

a. Click Travel and expense > Setup > Travel and expense entry > shared categories.

b. Click New to create a new expense category and then type “Internet and Phone” as the Category ID and Category name. c. Select the Can be used in Project and Can be used in Expense

check boxes.

d. Select Miscellaneous as the Expense Type and click Close. e. Click Expense categories on the left hand navigation pane. f. Click New and then select Internet and Phone as the Category

a. On the Project FastTab, select Gen Exp as the Project Category group.

b. On the Expense FastTab, select COMPANYCC as the Default payment method.

General Setup

This lesson provides general setup needed to streamline processes and improve productivity when using travel and expense procedures. This includes the following:

• Setting up delegates • Specify display field • Create statistic groups • Define expense policies • Define general parameters

Delegates

Use the Delegate setup form to define one or more users who can enter, update, delete or view expense reports on another's behalf for a specified date range. The Delegate is the user who can see or enter expense reports for the Employee. To define delegates follow these steps:

1. Click Travel and expense > Setup > Travel and expense entry > Delegates.

2. Click New and then select a Worker. 3. Select a Delegate.

4. Enter the Start date for the period that the delegate will be active. 5. Enter the ending date for the period that the delegate will be active.

Note: It is also possible for the employee to set up Delegates for themselves in Employee Self-Service Portal (EES). If a user accesses this from the portal, they can only enter delegates who can enter report on behalf of themselves.

Note: Delegates can also enter travel requisitions and manage credit card disputes.

Display Fields

Use the Display fields form to specify which fields should be visible on the enterprise portal. This allows you to customize the fields shown on the enterprise portal without needing to access the development environment. These changes will affect all workers entering expense reports. This is a global setting and any changes to this table will be applied to all companies running the application. All available fields on the expense report header are listed on the Header fields tab. All fields in the expandable section on the expense report lines are listed on the Transaction fields.

The Visibility options are Display, Do not display or Read only. To specify display field follow these steps:

1. Click Travel and expense > Setup > Travel and expense entry > Display fields.

2. Select the Labels you would like to edit and then select the appropriate Visibility option for that Label.

3. Use the Copy settings button to apply the selections that you make in this form to other legal entities.

Statistic Groups

Use the Statistics Groups form to setup expense reporting groups. The expense categories can be placed into a statistics group on the Expense categories form. These groups are used in the Statistics on cost groups report (Travel and expense > Reports > Statistics > Statistics on cost groups).

To define statistic groups click Travel and expense > Setup > Statistics > Statistic groups, then click New, and enter a Statistics group name and Description.

FIGURE 1.10: STATISTICS GROUP FORM

Policies

Organizations have different ways to exercise control over any travel and expense costs. Travel and Expense policy is usually formulated on an enterprise basis, with some provision for adaption at the legal entity level, operational unit level, or even a more granular level to accommodate various conditions. The policy

Scenario: Expense Policy Setup

April, the Accounts Payable Administrator, is responsible for setting up expense policies for Contoso. This process involves several steps:

1. Plan how the policies should be organized 2. Create expense policies

3. Create travel policies

4. Begin the travel and expense reporting process

Procedure: Policies

Scenario: Expense Policy Setup

April, the Accounts Payable Administrator, is responsible for setting up expense policies for Contoso. This process involves several steps:

1. Plan how the policies should be organized 2. Create expense policies

3. Create travel policies

4. Begin the travel and expense reporting process Procedure: Setup Expense Policies

To setup an expense policy, follow these steps:

1. Open Travel and Expense > Setup > Policies > Expense. 2. Click Policy in the New group of the Action pane.

3. Enter a Name for the policy, and optionally enter a detailed Description.

4. In the Policy organization tab, choose the Select Organization hierarchy.

5. Select the desired organization entity from the Available

organizations node, and then click Add >>; the entity will move to the Selected organizations node.

8. Select an action in the Do the following field. Available options are: o Allow users to submit and approve but display a warning

message

o Do not allow users to submit or approve and display a warning message

o Do not allow users to submit until they enter a justification o Do not allow users to approve until they enter a justification o Do not allow user to submit or approve until they enter a

justification

Travel and Expense Parameters

The Travel and expense parameters form is used this to set up default

information, rates, and calculations for Travel and expense. To open this form click Travel and expense >Setup > Travel and expense parameters.

This form is divided into the following Links:

Link Description

General Set parameters for mileage rates, personal

expenses, travel requisitions, distributions, expense policies, and project drillback. You can also configure display options.

Financial Set parameters for ledgers, ledger journals, and taxes. You can also select default parameters for encumbrances, and for travel requisitions and expense reports that are over budget.

Corporate Card Set the default account for credit card disputes. You can also add links to your organization's process for handling credit card disputes and links to related

information

Per diem Set parameters for per diem expenses

Fax Cover pages If receipts that are related to expense reports are sent by fax, enter the

instructions and default information that are included on the cover pages of the faxes.

General Parameters

To open the General parameter link click Travel and expense >Setup > Travel and expense parameters > General link. Use the following fields to define general parameters throughout the Travel and Expense module.

Field Description

Standard rate of mileage Enter the company standard rate paid for mileage. This is expressed in the company currency and will be applied to the number of miles entered on the expense report for Mileage type expense categories.

Note: Mileage rate tiers can be set on the expense category however if a value exists in this parameter it will override the values in the rate tiers

Personal expenses paid by This field determines whether personal expenses are Paid by the employee or whether the company will pay the expense (Paid by company) and then post as a transaction on the employee account. If this is set to employee then when the expense report is posted and a journal is created, personal expense lines will not appear in the journal. If this is set to company then personal

expenses will be posted against the employee account as an amount owing to the company.

Display entire expense report on

drillback Select this check box to display a whole expense report that contains project-related expense lines.

If this check box is cleared, only the expense lines that are related to the project document are displayed.

Field Description Pre-authorization of travel is

mandatory

Select this check box to require that a travel request be submitted and approved before a worker can submit an expense report.

Allow editing of distributions

before posting Select this check box to allow the distributions on an expense report to be changed before the expense report is posted.

Evaluate travel and expense policies

• Select when the system evaluates expenses to determine whether an expense policy has been violated. The system can check for violations when one of following events occurs:

• An expense entry is entered and saved.

• The expense report is submitted. Intermediate page when

creating expense report

• Select when a list of the unreconciled expenses that are assigned to a worker is displayed when the worker creates a new expense report:

• Always show: The page is displayed even if the worker has no

unreconciled expenses.

• Only show when unreconciled transactions exist: The page is displayed only when unreconciled transactions are assigned to the worker.

• Never show: The page is never displayed.

Financial Parameters

To open the Financial parameter link click Travel and expense >Setup > Travel and expense parameters > Financial link. Use the following fields to define financial parameters throughout the Travel and Expense module.

Field Description

Ledger daily journal name

Enter the journal name that should be used when creating the journal to post the expense report.

Enable tax recovery from

expenses Select this check box to recover taxes for eligible expenses. Post cash advances immediately Select this check box to immediately

post an expense report to the general ledger. If this check box cleared, a journal is created but not posted. Tax included Select this check box to indicate that

sales tax is included in the worker's expense amount by default. Release encumbrances on closing

travel requisitions Select this check box to release encumbered funds when an approved travel requisition is closed.

Allow travel requisition submit on budget over run for general ledger budget and project budget

Select this check box to allow workers to submit travel requisitions that exceed either the allowed budget that is set in the general ledger or the allowed budget for a project. Allow expense report submit on

budget over run for general ledger budget and project budget

Select this check box to allow workers to submit expense reports that exceed either the allowed budget that is set in the general ledger or the allowed budget for a project.

Allow expense report approval on budget over run for general ledger budget only

Select this check box to allow

managers to approve expense reports that exceed only the allowed budget that is set in the general ledger.

Corporate Card Parameters

To open the Corporate card parameter link click Travel and expense >Setup > Travel and expense parameters > Corporate card link. Use the following fields to define Corporate card parameters throughout the Travel and Expense module.

Field Description

Dispute default account Select the default account for disputes about credit card transactions.

Link to dispute process Enter the link to information about your organization's process for handling disputes about credit card transactions.

Link to dispute-related

FAQs Enter the link to frequently asked questions (FAQs) or related information about disputes about credit card transactions.

Per Diem Parameters

To open the Per Diem parameter link click Travel and expense >Setup > Travel and expense parameters > Per Diem link. Use the following fields to define Per Diem parameters throughout the Travel and Expense module.

Field Description

Minimum hours for per diem Enter the minimum number of hours that a worker must work in a day to be eligible to receive a per diem.

Meal percent Enter the default percentage of the per diem for meals that is used on the first and last days. The work day on the first and last days may be shorter than a standard work day. Therefore, the amount of the per diem on these days may differ from the standard amount. Hotel percent Enter the default percentage of the per

diem for hotel expenses that is used on the first and last days. The work day on the first and last days may be shorter than a standard work day. Therefore, the amount of the per diem on these days may differ from the standard amount.

Other percent Enter the default percentage of the per diem for miscellaneous expenses that is used on the first and last days. The work day on the first and last days may be shorter than a standard work day. Therefore, the amount of the per diem on these days may differ from the standard amount.

Meal reduction fields

(breakfast, lunch, dinner) Enter the amount that the per diem is reduced for breakfast, lunch and dinner.

For example, if a worker receives a complimentary breakfast, you may want to reduce the amount of the per diem by 10 percent.

Per diem rounding Select the type of rounding that is used for per diems.

If you select normal rounding, any expense that has an amount of 0.5 is rounded up to 1.00, and any expense that has an amount that is less than 0.5 is rounded down to 0.0.

Base per diem calculation on Select whether a per diem is based on a calendar day or a 24-hour period.

Fax Cover Pages Parameters

To open the Fax cover pages parameter link click Travel and expense > Setup > Travel and expense parameters > Fax cover pages link. Use the following fields to define Fax cover pages parameters throughout the Travel and Expense module.

Field Description

Instructions Enter the instructions that workers must follow when they create a cover page for a fax that is used to send receipts that are related to an expense report. Click Translations to select the language that is used for the instructions.

Field Description

User ID Select this check box to store a worker's

unique Microsoft Dynamics AX identifier in the bar code that is used on the cover page of the fax.

Bar code Select the bar code that is used on the

Lab 1.2: Set Up Delegates

Scenario

Julia Funderburk, worker code 000131, will be entering expense reports on behalf of Charlie Carson, worker code 1000. Setup Julia as a delegate for Charlie Carson.

High Level Steps

1. Use the Delegate form to assign Julia Funderburk as a delegate.

Detailed Steps

1. Use the Delegate form to assign Julia Funderburk as a delegate. a. Click Travel and expense > Setup > Travel and expense entry

> Delegates.

b. Click New to create a new delegate.

c. Select Charlie Carson as the Worker and click Select. d. Select Julia Funderburk as the Delegate and click Select. e. Click Close.

Module Review

This lesson provides an overview of the Travel and Expense functionality and describes how setting up parameters can enhance the functionality as well speed up data entry in Enterprise Portal.

Test Your Knowledge

Test your knowledge with the following questions.

1. What is the purpose of the Travel and Expense functionality?

Sequencing Activity

2. Put the following steps in order for an Expense policy procedure by numbering each to indicate the correct order.

Steps

Plan how the policies should be organized. Create travel and expense policies.

Begin the travel expense reporting process. Setup travel and expense policy parameters.

3. Is it possible to enter delegates through the Employee Self-Service Portal? ( ) True

4. Are reimbursements, per diems or cash advances owed to the employee automatically allocated as a transaction on the associated vendor or ledger account.

( ) True ( ) False

Test Your Knowledge Solutions

Module Review and Takeaways

1. What is the purpose of the Travel and Expense functionality? MODEL ANSWER:

In Microsoft Dynamics AX 2012, the Travel and Expense Management module with integrated workflow capabilities helps manage, track, and reimburse travel and entertainment expenses. Travel and Expense Management has a strong value proposition for organizations with discretionary spending. Travel and

entertainment expenses are a significant part of a company's controllable expense. To help curb these costs, Travel Expense Management provides a mechanism to define and apply expense policies, in addition to flagging and reporting on abusers of the policies.

Additionally, automating the entry and reimbursement of travel and entertainment expenses reduces processing costs versus manual entry. Travel and Expense Management has tight integration with other Microsoft Dynamics AX modules of Accounts payable, General ledger and Project accounting.

Sequencing Activity

2. Put the following steps in order for an Expense policy procedure by numbering each to indicate the correct order.

Steps

1 Plan how the policies should be organized. 3 Create travel and expense policies.

4 Begin the travel expense reporting process. 2 Setup travel and expense policy parameters.

3. Is it possible to enter delegates through the Employee Self-Service Portal? (√) True

4. Are reimbursements, per diems or cash advances owed to the employee automatically allocated as a transaction on the associated vendor or ledger account.

(√) True ( ) False

Module Overview

Travel and Expense Management allows you to use multiple payment methods when you enter expenses. You can set up different payment methods. In

addition, you should know how each payment method affects the reimbursement process.

Objectives

• Define offset accounts for payment methods. • Define the types of payment methods.

• Reimburse employees through the Accounts Payable module. • Import credit card transactions to an expense report.

Defining Payment Methods

You can define different payment methods. In addition, you can set up offset accounts and define the reimbursement process of the expenses.

When an employee enters data in an expense report, he or she specifies the method by which they paid for an expense. Consider the following two scenarios that describe how an organization might use payment methods for travel and expense.

Scenario 1:

The organization does not use corporate credit cards, per diems, or cash advances. All expenses are prepaid by the employee. The organization chooses to set up one payment method for all travel expenses.

Scenario 2:

The organization issues a corporate credit card to its employees for travel expenses. Employees can use the corporate credit card for personal expenses (within company policy). However, they must itemize the expenses when they create the expense report. Employees also have the option to pay out-of-pocket. The organization has a need for three payment methods: one for the out-of-pocket expenses, one for the corporate card expenses, and one for the personal expenses incurred on the corporate card.

Payment Methods Setup

Use the Payment Methods form to set up different forms of payment for travel and entertainment expenses. Users must indicate the method of payment that they used for each expense line on the report.

To set up payment methods, perform the following steps:

1. Click Travel and expense > Setup > Travel and expense entry > Payment methods.

2. Click New to create a new payment method.

3. In Payment method, type the payment method, such as cash or credit card, and in the Description, enter a brief description of the payment method.

5. Select the Offset account type, Offset account, and Offset account name for the transaction.

6. Select the Import only check box to indicate that the payment method type is used only with imported transactions.

Note: The Expense owner field is used to define the person or organization whose money is used to pay for the expense, and not necessarily the same person or organization who pays the expense.

Note: The Expense owner is displayed on the Expense report detail form.

Accounts Setup

When the expense report is completed, it is posted through a ledger journal. The Offset account type and Offset account fields specified for the payment method in the Payment methods form are used as the offset in the final journal posting. The following table describes the possible offset account types.

Offset

Account Type Description Purpose

None If the offset type is set to None, the offset account must be manually specified in the journal before posting. This puts the responsibility on the finance team to decide which account to use for the credit side or offset account of the journal.

Used if a user is required to enter the offset manually, before posting the journal.

Worker If the offset type is set to Worker, the offset account will be the account specified on the Worker form. This is used if the worker paid for the

expense and he or she needs to be reimbursed. It is also used for cash advances, mileage, and per diems. The reimbursement feature will be covered in more detail later in this course.

Used if a worker is to be reimbursed for the expense.

Ledger If the offset type is set to Ledger, you must specify the ledger account that you want to use as the offset.

This may be used if the expense is paid by company credit card. However, the account is not set up as a vendor or bank account.

Bank If the offset type is set to Bank, you must specify the bank account that you want to use

Used if the expenses are paid on a company credit card that is set up as a

Offset

Account Type Description Purpose

Vendor If the offset type is set to Vendor, you must specify the vendor account that you want to use as the offset. This is typically used if a third-party such as a customer or contract employee needs to be

reimbursed for expenses. It can also be used if the company credit card is set up as a vendor account.

Used if the expense is to be reimbursed to a third-party such as a customer, contract employee, or vendor. This can also be used for company credit cards if they are to be set up as a vendor, instead of as a bank account.

Note: If you are using the vendor account type for a customer, the customer must be set up as a vendor to pay them by using the accounts payable functionality.

Note: The offset account type on the expense method of payment determines the credit side of the entry when the expense report is posted.

Setting Up Reimbursements

Part of the payment methods setup involves setting up workers for

reimbursement payments. If the employee is to be paid by check, you must set up the employee with an account to pay against. Generally, the employee is set up as a vendor and an Accounts Payable check is drawn, or a direct deposit is made for the employee.

Note: You can also set up the employee as a ledger account and make the payment in another format, such as through integration to payroll.

Note: Workers and employees are set up in the Human Resource module. There are two worker types: Contractors and Employees.

Reimbursements by Using Vendor Accounts

You can reimburse an employee for an expense report by using the Vendor details form in Procurement and sourcing. However, before you can reimburse an employee, you must create a vendor group for employees and a vendor record for the employee whom you want to reimburse. To set up employee

reimbursements by using vendor accounts, perform the following steps: 1. Set up an employee vendor group.

2. Create a vendor account for an employee. 3. Map a vendor account to an employee.

Set Up an Employee Vendor Group

To set up an employee as a vendor group, perform the following steps: 1. Click Accounts payable > Setup > Vendors > Vendor groups. 2. In the Vendor group field, enter a unique identifier for the vendor

group.

3. Optional: In the Description field, enter a short description of the vendor group.

4. Optional: In the Terms of payment field, select the terms of payment that apply to the employees who are assigned to the vendor group. Although this field is not mandatory, terms of payment is part of managing all vendor accounts and is strongly recommended. 5. Optional: In the Settle period field, select the standard interval

between the due date for payments to the employees in the vendor group, which is defined by the Terms of payment, and the date on which the payments are drawn from your bank account. Although this field is not mandatory, it is important for liquidity calculations that are based on the cash-flow forecast.

6. Select a tax group for the employee vendor group.

FIGURE 2.2: VENDOR GROUPS FORM

Create a Vendor Account for an Employee

To create a vendor account for an employee, perform the following steps: 1. Click Accounts payable > Common > Vendors > All vendors. 2. Click Vendor in the New group to create a new vendor record. 3. In the Record type field, select Person.

4. In the Name field, select the name of the employee. Do not enter a new name.

5. In the Group field, select the vendor group that applies to the vendor.

6. Enter values in the other fields as appropriate.

7. If you will pay the employee by using checks, you can click Setup > Address and set up an alternative address that has an address type of Remit-to.

Note: Use the existing Party record that was created when the Employee record was created, rather than creating a new Party record.

FIGURE 2.3: VENDORS FORM

Map a Vendor Account to an Employee

To map a vendor account to an employee, perform the following steps: 1. Click Human resources > Common > Workers > Employees. 2. Select the employee whom you want to add to a vendor account, and

then, on the Travel and Expense management tab, click Map worker to vendor.

3. In the Account type field, select a Vendor account type. In the Account field, the vendor account number that you have created for the employee will appear automatically, by default.

4. Enter a Per diem amount for the employee if your company uses per diems. This is an optional field.

Map a Ledger Account to an Employee

You can also map the employee to a ledger account and make the payment in another format, such as through integration to payroll. To map the employee to a ledger account, perform the following steps:

1. Click Human resources > Common > Workers > Employees. 2. Select the employee whom you want to map to a ledger account, and

then, on the Travel and Expense management tab, click Map worker to vendor.

3. In the Account type field, select the Ledger account type, and then, in the Account field, select the ledger account number to which you want to post expenses reimbursable to employees.

Importing Credit Cards

Imported credit card transactions are displayed in a separate list for a user to add them to an expense report. This makes data entry easier and ensures that data entered in the expense report is correct.

Note: Importing credit card statements is optional. You can ask your employees to manually enter expenses incurred on a corporate credit card.

Statement Import

Importing a credit card statement requires that the format of the file is in alignment with the schema for credit card transactions. The process of taking a credit card file from a credit card institution and putting it into the correct format requires development skills and the use of transformations. This is covered in the AIF training course.

For the purposes of this course, a sample file already in the correct format is provided. This is also provided in text in Appendix A. If the sample file is not available, please copy the text from Appendix A and save it as an XML file to complete the following procedure.

Importing credit card transactions requires the credit card number to be set up for the employee. This can be set up under Worker > Credit cards. The file from the credit card provider contains the credit card number. Dynamics AX uses it to associate the expense to the correct employee.

Credit card import files can be imported one at a time. This can be done in Travel and Expense management > Periodic > Credit cards > Credit card import from folder. Under File, select file to import and under Format, select the port that you configured.

When the service is completed, you will get an infolog informing you of either success or failure. If the operation was successful, you will see the newly imported credit card transactions under Travel and Expense management > Periodic > Credit Cards > Credit card transactions. If the import service failed, you can get detailed information under System administration > Periodic > Services and Application Integration Framework > Exceptions.

Credit card import files can also be placed in a folder to be imported. This is set up in Travel and Expense management > Periodic > Credit cards > Import a specific credit card file. This provides more advanced functionality because it allows bulk import of many files and moves the files to a new ‘processed’ folder to indicate that the files were imported correctly.

To set up recurring automatic import of credit card transactions, perform the following steps:

1. Click Travel and Expense management > Periodic > Credit Cards > Credit card import from folder.

2. Click the Folder icon to locate the folder that contains the credit card transactions that you want to import.

3. Click the Format drop-down arrow to select the format for the import.

Credit Card Transactions Inquiry

The Credit card transactions form shows all imported transactions. This form opens or shows all transactions that have not yet been added to an expense report. If the Show transferred box is selected, the form will show all transactions that have been added to an expense report.

To view the Credit card transactions form, click Travel and Expense

Management > Periodic > Credit Cards > Credit card transactions. Use the General tab to view details about the credit card that was used for a selected credit card transaction. Use the Posting tab to view the posting status of a selected credit card transaction.

Credit Card Mapping

Imported credit card transactions can be automatically classified to an expense category if the imported credit card statement contains categories. To view the credit card category from the imported statement on the Credit card

transactions form, click Travel and Expense management > Periodic > Credit Cards > Credit card transactions > General tab.

FIGURE 2.6: CREDIT CARD TRANSACTIONS - GENERAL

The Category 01 and Description AIRLINE is in the import file.

This category can be mapped to the expense category, Flights, so that the expense category is automatically entered for employees in the expense report. Employees will still need to add the expense to their report.

Note: To set up credit card category codes and map them to the correct expense categories, click Travel and Expense management > Setup > Credit

Selecting Unreconciled Expenses

You can select the unreconciled imported credit card expenses that you want to add to an expense report, in the Employee Services Portal.

FIGURE 2.7: NEW EXPENSE REPORT

Notifications

Use the Open credit card transactions form to send email messages to workers who have open credit card transactions that must be entered in an expense report.

To send notifications about open credit card transactions, perform the following steps:

1. Click Travel and expense > Periodic > Notifications > Open credit card transactions.

2. In the Subject field, type the subject, and in the Text, type the text of the email.

transaction can be open before a notification is sent to the worker. 4. Use Select to select the worker (Name field) to whom you want to

send the notification, the type of credit card (Card type field), or both.

Note: Using the notification email functionality requires setting up an SMTP server and Email parameters in System administration > Setup > System >

Email Parameters.

Lab 2.1: Credit Card Import

Scenario

Julia Funderburk has just returned from a business trip and she wants to add a 200 USD expense for a plane ticket to an expense report. She used her VISA credit card to pay for the ticket. She has created and .xml file with all her credit card transaction information in it called L1Data Julia.xml in a folder called Labfiles. Import the 200 USD expense into the system and verify all the information in the file is correct.

Note: The Credit Card Import Lab is optional. Before starting the Credit Card Import Lab, you must complete the APPENDIX A: SAMPLE CREDIT CARD IMPORT PRE-REQUISITE associated with this training course.

Objectives

This lab provides practice for importing credit card transactions.

High Level Steps

1. Import Julia’s credit card transaction.

2. Verify the credit card transaction was imported correctly with the correct information.

Detailed Steps

1. Import Julia’s credit card transaction.

a. Click Travel and Expense > Periodic > Credit cards > Import a specific credit card file.

b. Click the Folder icon to locate the credit card file.

c. Double-click Allfiles, double-click Labfiles and then double-click L1data. Julia.xml.

d. Click the Format drop-down arrow and then click VISA. e. Click OK.

correct information.

a. Click Travel and Expense management > Periodic > Credit cards > Credit card transactions.

b. Highlight the line item that corresponds to the information in the scenario and then click the General and Posting tabs to view all the information that was imported.

Credit Card Dispute Management

Disputes and chargebacks are an inevitable part of credit card processing. Managing the whole dispute process to completion has traditionally been a manual process that could end up being a complicated, laborious and paper-intensive task. This usually results in high processing costs in terms of human resources spent and could also result in losses to the enterprises if they do not keep an audit trail of potential transactions that could be disputed and ensure chargeback occurred for the ones that were actually disputed, as applicable. Credit card dispute management provides a framework that will help enterprises automate their credit card transaction dispute process independent of the card provider for dispute management.

Scenario: Credit Card Transaction Dispute

Nancy, an employee at Contoso, just returned from a sales event where she used her corporate credit card for all her expenses. She is now in the process of filing her expenses when she identifies an anomaly in the credit card transactions. Nancy identifies one transaction with an incorrect amount. It should have been 50.52 U.S. dollars (USD) but it was 56.52 USD instead. After posting the expense report, Nancy must dispute the anomaly on her credit card.

Procedure: Submit a Dispute

To submit a dispute on a corporate credit card transaction related to an expense report, follow these steps:

1. Open the Employee services web page in your Internet browser. 2. Click the Credit card disputes link under the Manage Expense

section.

3. Click New > Submit a dispute to start a new dispute.

4. The Credit card transaction dispute wizard will launch; click Next to begin the dispute.

5. Select or verify the Employee, Credit card number, and Transaction dates, and then click Next.

transactions that will be disputed and then click Next. 7. Select the Dispute reason.

8. Enter the Expected amount and Expected amount currency. 9. Use the Attach document button to attach any evidence or proof for

the dispute.

10. Click Next and verify the information on the Dispute summary screen.

11. Click Submit to finalize the dispute.

12. The system displays the Dispute submitted successfully page. Use the Print button to print a copy of a dispute letter, and then click Finish to close the wizard.

Module Review

The Travel and Expense functionality is an important part in managing expenses. In addition, you can use this functionality to set up parameters that can speed up data entry in the Employee Services Portal.

Test Your Knowledge

Test your knowledge with the following questions.

1. Which of the following payment methods account types is typically used for an expense that is reimbursed to a third-party, such as a customer, contract employee, or vendor?

( ) Customer ( ) Employee ( ) Vendor ( ) Ledger

2. Which of the following payment methods account types requires the user to enter the offset account manually, prior to posting in the journal?

( ) Manual ( ) Ledger ( ) Worker ( ) None

3. What is the primary purpose of the Expense owner field? ( ) To define who entered the expense

( ) To define who is responsible for entering the expense

( ) To define the person or organization whose money is used to pay for the expense

4. There are two worker types—Contractor and Employee, and they are set up in the Human Resources module.

( ) True ( ) False Sequencing Activity

5. Put the following steps in order by numbering each to indicate the correct order.

Steps

Set up an employee vendor group. Map a vendor account to an employee. Create a vendor account for an employee.

6. Importing a credit card statement is a mandatory process when you are using company credit cards.

( ) True ( ) False

Test Your Knowledge Solutions

Module Review and Takeaways

1. Which of the following payment methods account types is typically used for an expense that is reimbursed to a third-party, such as a customer, contract employee, or vendor?

( ) Customer ( ) Employee (√) Vendor ( ) Ledger

2. Which of the following payment methods account types requires the user to enter the offset account manually, prior to posting in the journal?

( ) Manual ( ) Ledger ( ) Worker (√) None

3. What is the primary purpose of the Expense owner field? ( ) To define who entered the expense

( ) To define who is responsible for entering the expense

(√) To define the person or organization whose money is used to pay for the expense

4. There are two worker types—Contractor and Employee, and they are set up in the Human Resources module.

(√) True ( ) False

Sequencing Activity

5. Put the following steps in order by numbering each to indicate the correct order.

Steps

1 Set up an employee vendor group. 3 Map a vendor account to an employee. 2 Create a vendor account for an employee.

6. Importing a credit card statement is a mandatory process when you are using company credit cards.

( ) True (√) False

Module Overview

When you work with Expense Reports, you can view the descriptions of the travel and expense business process components. Expense Reports also lists the forms associated with each business process component, and describes the tasks associated with each business process component.

Objectives

• Create an expense report.

• Select expense categories for expense line items. • Itemize expenses.

• Distribute expenses. • Mark expenses as personal. • Add guests to expense reports. • Attach receipts to an expense report. • Submit expense reports.

• Post expense reports. • Create a travel requisition.

Optional Practices

You can use the following optional practices to start your travel and expense business process.

• Travel Requisitions • Cash Advances • Credit Card Import

FIGURE 3.1: PROCESS FLOW DIAGRAM

Travel Requisitions

A travel requisition is a source document that contains details of expenses that will be incurred in the future. A travel requisition is submitted for review and is used to obtain authorization of future expenses. When the expense report for those expenses is created, the travel requisition can be referenced to record the authorization of the expenses.

Your organization may require that a travel requisition be submitted before an employee incurs an expense that is charged to the organization. This applies whether the employee is charging expenses to a corporate credit card, spending cash received from a cash advance, or incurring out-of-pocket expenses that will be reimbursed by the organization.

Travel requisitions and policies also help with budget control. For example, if your organization is working on a fixed-price project, the expenses of the project team members must fit within the budget of the project. Requiring that travel expenses be approved before they are incurred can help ensure that the project stays within budget.

You can set up policies for travel requisitions from the Travel requisition list page.

Creating a Travel Requisition

To create a travel requisition, perform the following steps:

1. Click Expenses on the top link bar, and then, on the Quick Launch, click Travel requisitions.

2. On the Action Pane, on the Travel requisition tab, in the New group, click Travel requisition.

3. Select or enter the business purpose, and select the destination and financial dimensions that are being charged for the requested travel. 4. On the Estimated expenses tab, click Add new expense.

5. Select the expense category and the project ID, if the expense line is related to a project.

6. Select the estimated date of the expense, enter the estimated cost of the expense, and select the currency that you are using for the expense.

7. If necessary, edit the currency exchange rate, and then click Insert.

Note: If an exchange rate is set up, it will default. If an exchange rate is not set up, the user receives an error message that the exchange rate is not defined. In both cases, the user can manually enter an applicable exchange rate.

8. Click Distribute to distribute the expense line among more than one department, group, company, or organization.

Note: The Distribute functionality can be used in the following two scenarios: 1. When you want to charge a legal entity, main account, or financial dimension

other than the default.

2. When you want to distribute charges between multiple legal entities, main

accounts, or financial dimensions.

For examples, refer to the "Distribute Expenses" lesson in this chapter.

9. On the Expense line details tab, enter more detailed information about the expense line.