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Expense Report Payment Requests: How They Are Processed

Expense Report Payment Requests: How They Are Processed

Oracle Fusion Expenses provides reimbursement functionality that ensures corporate card issuers and employees are reimbursed for business expenses. Expenses uses Oracle Fusion Payables to process expense reports for reimbursement. To reimburse card issuers and employees, the expense auditor runs the Process Expense Reimbursement process and the corporate card administrator runs the process, Create Corporate Card Issuer Payment Requests. After payment requests are created in Payables, corporate card issuers and employees are paid by Oracle Fusion Payments. This topic explains how payment requests are generated in Expenses and how they are processed in Payables.

This figure shows the flow of data when the expense auditor runs the Process Expense Reimbursement program.

Process Expense Reimbursement program

Settings That Affect Expense Report Payment Requests

Settings that affect expense report payment requests for Both Pay transactions are the following:

  • Employee Liability Account, which is set up as a system option in the Edit Expenses System Options page

    Note

    This account is used only if there are cash expenses in the expense report and reimbursement is due to the employee.

  • Corporate Card Issuer Payment Liability Account, which is set up in Payables

  • Expense Clearing Account and Payment Option, which are set up in the Create or Edit Company Account popup

How Expense Report Payment Requests Are Processed

Expense reports are ready for reimbursement processing after expense report approval processing is complete. After approval, expense reports that contain corporate card transactions require additional processing if the payment option is Both Pay for the company accounts associated with the corporate card transactions.

After expense report approval, the following stages of expense report processing occur:

  • Process expense reports containing Both Pay corporate card transactions.

  • Run the Process Expense Reimbursement program.

Processing Expense Reports Containing Both Pay Corporate Card Transactions

Processing Both Pay expense reports is automatically initiated by the approval process when the expense report approval process is complete. The Both Pay processing creates corporate card issuer expense reports to pay the card issuers. All Both Pay corporate card transactions in the expense report are copied into a new expense report identified by appending a .1 to the original expense report number. If there are corporate card transactions for more than one card in the expense report, a new expense report is created for the transactions for each card and is appended as .1, .2, and so on.

The project and task information, tax classification codes, and accounting distributions from the original expense report are not copied into the corporate card issuer expense report. The accounting distributions for the corporate card issuer expense report are created against the expense clearing account defined for the company accounts of the corporate card transactions. The original expense report and the newly created corporate card issuer expense report are now ready for reimbursement processing.

Running the Process Expense Reimbursement Program

Expense auditors run the Process Expense Reimbursement program to process expense reports in Expenses and to create payment requests for payments in Payables. This process has the following components:

  • Populate Payables Open Invoice Interface tables.

  • Create employee and corporate card issuer payment requests.

  • Handle processed and rejected expense reports.

The Process Expense Reimbursement program selects all expense reports that are ready for reimbursement processing and creates header and lines records for each expense report in the Payables Open Invoice Interface tables. Only business expenses are eligible for reimbursement to the employee and they are categorized as Business or Business - Employee Paid.

Note

If a payee record does not exist for an employee who needs to be reimbursed, the application creates a payee record in Payments.

Each expense report has one corresponding header record in the Payables Open Invoice Interface tables. A child line is created in the interface table for each expense item eligible for reimbursement with the following information:

  • Expense amount and supporting details

  • Tax event class and tax classification codes

  • Project and task information

  • Payment function and payment method

  • Payee, whether employee or corporate card issuer

  • Employee liability account or the corporate card issuer payment liability account

For expense reports containing Both Pay and Company Pay transactions, the process creates reversal lines in the Payables Open Invoice Interface tables so the employee invoice can derive the net amount due to the employee.

After populating the Payables Open Invoice Interface tables, the Process Expense Reimbursement program invokes the Import Payables Invoices process in Payables. Payables creates payment requests using the information in the Payables Invoice Open Interface tables. When there is no accounting distribution for a line item in the Payables Open Invoice Interface tables, Payables creates accounting distributions using the distributions from Expenses. Payables then invokes Oracle Fusion Tax to calculate tax for the expense lines with tax classification codes.

During payment request creation, Payables rejects records in the Payables Open Invoice Interface tables if there are errors, such as dates in closed accounting periods or invalid payment methods. The Process Expense Reimbursement program removes the rejected records from the interface table and updates the status of the expense reports to Payables Rejected. The expense auditor then takes the necessary action to reprocess these expense reports for reimbursement. The Process Expense Reimbursement program selects all the Payables Rejected expense reports for reprocessing whenever it is run.

All expense reports, for which payment requests are created, are updated with a payment request identifier. After payment requests are created, they remain in a Never validated status until the invoice validation process is run in Payables. After validation, payment requests are processed for payment in Payments.

The following table describes the types of payment options for corporate card transactions in expense reports and the processes that are run to generate their associated payment requests.

Note

When the expense report contains only cash expenses, then the Process Expense Reimbursement process runs and creates employee payment requests.


Payment Options in Expense Reports for Corporate Card Transactions

Process Run

Payment Requests Created

  • Cash

  • Individual Pay

Process Expense Reimbursements

Employee Payment Requests

Individual Pay Only

Process Expense Reimbursements

Employee Payment Requests

  • Cash

  • Both Pay

Process Expense Reimbursements

  • Employee Payment Requests

  • Corporate Card Issuer Payment Requests

Both Pay Only

Process Expense Reimbursements

Corporate Card Issuer Payment Requests

  • Cash

  • Company Pay

  • Process Expense Reimbursements

  • Create Corporate Card Issuer Payment Requests

  • Employee Payment Requests

  • Corporate Card Issuer Payment Requests

  • Individual Pay

  • Both Pay

Process Expense Reimbursements

  • Employee Payment Requests

  • Corporate Card Issuer Payment Requests

  • Cash

  • Individual Pay

  • Both Pay

Process Expense Reimbursements

  • Employee Payment Requests

  • Corporate Card Issuer Payment Requests

  • Individual Pay

  • Company Pay

  • Process Expense Reimbursements

  • Create Corporate Card Issuer Payment Requests

  • Employee Payment Requests

  • Corporate Card Issuer Payment Requests

  • Cash

  • Individual Pay

  • Company Pay

  • Process Expense Reimbursements

  • Create Corporate Card Issuer Payment Requests

  • Employee Payment Requests

  • Corporate Card Issuer Payment Requests

  • Both Pay

  • Company Pay

  • Process Expense Reimbursements

  • Create Corporate Card Issuer Payment Requests

Corporate Card Issuer Payment Requests

  • Cash

  • Both Pay

  • Company Pay

  • Process Expense Reimbursements

  • Create Corporate Card Issuer Payment Requests

  • Employee Payment Requests

  • Corporate Card Issuer Payment Requests

  • Individual Pay

  • Both Pay

  • Company Pay

  • Process Expense Reimbursements

  • Create Corporate Card Issuer Payment Requests

  • Employee Payment Requests

  • Corporate Card Issuer Payment Requests

Company Pay Only

  • Process Expense Reimbursements

  • Create Corporate Card Issuer Payment Requests

Corporate Card Issuer Payment Requests


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