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This chapter contains the following:

Corporate Card Transaction Files: How They Are Processed

Wait Days: Explained

Corporate Card Issuer Payment Requests for Company Pay Transactions: How They Are Processed

FAQs for Define Credit Card Data

Corporate Card Transaction Files: How They Are Processed

Before you can begin processing corporate card transaction files, your company must work with the corporate card issuers to establish connectivity and to determine the transaction file format and the transaction file delivery frequency. After establishing a secure connection, your company receives transaction files. The application loads the transaction file and validates the transactions. The application loads eFolio summary and detail transactions if they are present in the file. All valid transactions are created as expense items and are available to employees for inclusion in the expense reports. All invalid transactions are available for corporate card administrators to review and correct. After correction, these transactions are validated again and become available for expense reporting.

When you implement the corporate credit card functionality for Oracle Fusion Expenses, one of the essential decisions you need to make is whether your company or its employees are responsible for paying the credit card issuer. The three payment options that you can implement in Expenses are the following:

  • Individual Pay where the employee pays the corporate card issuer for all corporate card transactions

  • Company Pay where your company pays the corporate card issuer for all transactions

  • Both Pay where your company pays the corporate card issuer for business expenses and the employee pays the corporate card issuer for personal expenses

This figure shows an overview of the corporate card transaction files processing.

Corporate card transaction files processing

A Setting That Affects Corporate Card Transaction Files

The process flow of corporate card transaction files is based on which of the three payment options your company decides to implement. Your company can implement one, two, or all three of the payment options by geographical region, organizational hierarchy, or other criteria. For example, a global company might have Both Pay implemented in the US and Individual Pay implemented in the UK. Another company might have Both Pay for one set of organizations and Individual Pay for another set of organizations within the UK.

When creating a new company account for a specific corporate card program, you select a payment option from the Payment Due From choice list on the Create Company Account page.

How Corporate Card Transaction Files Are Processed

This section provides examples of the corporate card transaction files process flow for each payment option. For each example, assume that an employee reports cash and categorizes corporate card transactions as both business and personal when creating and submitting an expense report.

Individual Pay

The Individual Pay payment option is simpler than Both Pay or Company Pay. Whether you identify corporate card transactions as business or personal expenses, the employee pays the corporate card issuer for both business and personal expenses. When the employee creates an expense report, both business and personal transactions are reported. The employee is, however, reimbursed by your employer for the corporate card business expenses.

The following table provides an example of Individual Pay corporate card transaction files processing:


Action

Description

Set up company account and download data file.

Obtain the corporate card transactions data file from your corporate card provider.

Upload data file into Expenses.

Upload and validate your corporate card transactions files.

Create and submit expense report.

When you create an expense report, you select the corporate card transactions that you want to submit on the report. You determine if transactions are business or personal expenses. By default, transactions are identified as Business.

Note

You are only reimbursed by your employer for business expenses. Once processed on an expense report, corporate card transactions are no longer available in the list of transactions to be added to expense reports. This is true for both business and personal expenses.

Review and approve expense report.

After you submit the expense report, your manager must approve it. After managerial approval, the expense report is verified to ensure that required receipts are attached and that the report is in compliance with your company's business policies.

Reimbursement.

After the expense report has been reviewed and approved, it is ready for invoice creation in Payables to facilitate payment processing. To create an invoice with the amount due to the employee, run the Process Expense Reimbursements program. Then the payment to the employee is processed through Oracle Fusion Payments.

Company Pay

For the Company Pay payment option, your employer pays the corporate card issuer for all corporate card transactions incurred by its employees. The employee is only reimbursed for cash business expenses. Corporate card transactions reported as business expenses have no effect on the amount that is reimbursed to the employee.

Note

If the employee reports any transactions as personal expenses, these transactions are offset against any cash business expenses reported. Therefore, the amount reimbursable to the employee is reduced by the amount of the corporate card personal expenses.

The following table provides an example of Company Pay corporate card transaction files processing:


Action

Description

Set up company account and download data file.

Obtain the corporate card transactions file from your corporate card provider.

Upload data file into Expenses.

Upload and validate your corporate card transactions files.

Create and submit expense report.

When you create an expense report, select the corporate card transactions that you want to submit. You determine if transactions are business or personal expenses.

Cash expenses are not charged to the company corporate card but are considered business expenses. Cash expenses are not reimbursed as corporate card business expenses. Corporate card transactions designated as personal expenses reduce the amount you are reimbursed.

Note

You are only reimbursed by your employer for cash business expenses. Once processed on an expense report, corporate card transactions are no longer available in the list of transactions to be added to expense reports. This is true for both business and personal expenses.

Review and approve expense report.

After you submit the expense report, your manager must approve it. After managerial approval, your expense report is verified to ensure that required receipts are attached and that the report is in compliance with your company's business policies. Any corporate card transactions designated as personal expenses are also displayed to the managers for review.

Export the expense report from Expenses to Payables.

After the expense report has been reviewed and approved, it is ready for invoice creation in Payables to facilitate payment processing.

To create the invoice with the amount due to the employee, run the Process Expense Reimbursements program. Then the payment to the employee is processed through Oracle Fusion Payments.

To create an invoice with the amount due to the card issuer, run the Create Corporate Card Issuer Payment Requests process. Then the payment to the employee is processed through Oracle Fusion Payments. The card issuer can be paid at any time, regardless of the status of the expense report.

Both Pay

For the Both Pay payment option, your company pays the corporate card issuer for transactions that are categorized as business expenses. The employee pays the corporate card issuer for all corporate card transactions reported as personal expenses. An invoice cannot be created for the corporate card issuer until the expense report is exported to Payables as an invoice.

The following table provides an example of Both Pay corporate card transaction files processing:


Action

Description

Set up company account and download data file.

Obtain the corporate card transactions data file from your corporate card provider.

Upload data file into Expenses.

Upload and validate your corporate card transactions files.

Create and submit expense report.

When you create an expense report, select the corporate card transactions that you want to submit.

Note

You will only be reimbursed by your employer for cash business expenses. Once processed on an expense report, corporate card transactions are no longer available in the list of transactions to be added to expense reports. This is true for both business and personal expenses.

Review and approve expense report.

After you submit the expense report, your manager must approve it. After managerial approval, your expense report is verified to ensure that required receipts are attached and that the report is in compliance with your company's business policies. Once the Payables review process is complete for an expense report, a new expense report containing only corporate card transactions is created based on the existing report by copying only the corporate card transactions categorized as business, which is used to pay the card issuer. If the expense report contains transactions charged to two corporate cards, two reports will be created to pay the corporate card issuers. These reports are named 1 and 2 respectively.

Process expense reimbursements.

After the card issuer expense report is created, it is ready for invoice creation in Payables to facilitate payment processing.

To create the invoice with the amount due to the employee and to the card issuer, run the Process Expense Reimbursements program. Then the payment to the employee and the corporate card issuer is processed through Oracle Fusion Payments. The invoice due to the employee contains accounting distributions and project accounting, when applicable, for both the cash and corporate card expenses.

The corporate card issuer invoice contains a single accounting distribution for all corporate card expenses against the expense clearing account.

Wait Days: Explained

Oracle Fusion Expenses allows you to hold the main corporate card transactions from use by users until the detail corporate card transactions arrive. This ensures that users can include the itemization provided by the card issuer in their expense reports.

Two types of wait days control the maximum duration that the application waits for the detail transactions to arrive:

  • Transaction detail wait days

  • Merchant wait days

These wait days are applicable only when the merchant provides Level 3 detail transaction data. That is, there is no wait period for transactions from merchants who do not provide Level 3 transaction detail.

Transaction Detail Wait Days

Transaction detail wait days is the number of days the application is set up to hold the main transaction data while waiting for Level 3 detail transaction data from a merchant, which may or may not arrive.

You can set a wait period at the corporate card program level by selecting a value in the Transaction Detail Wait Days choice list in the Upload Rules tab on the Create Corporate Card Program page. If defined, the application uses the smaller value between the transaction detail wait days and the merchant wait days as the wait period for the main transaction.

Merchant Wait Days

Merchant wait days, which is calculated by the application, is the difference in the number of days between receiving the main transactions and receiving Level 3 detail transactions when the detail transactions arrive for the first time. Thereafter, the merchant wait days is computed as follows:

[(Detail transactions arrival date - Main transactions arrival date) + Most recent merchant wait days for the main transactions upload]/2

 

A merchant can provide Level 3 detail transactions either with the main transactions or as a separate delivery. If they are provided as a separate delivery, the Upload Corporate Card Transaction File process holds the main transactions for a specified time period while waiting for the Level 3 detail transactions. During this wait period, which is expressed in days, the main transactions are not available in expense reports. After each delivery of Level 3 detail transactions, the merchant's wait days is updated by the application according to the preceding formula.

Note

The actual time that data arrives is not a factor in the merchant wait days or the application transaction wait days' calculation.

The following table shows the calculations associated with detail transactions and merchant wait days based on transaction data arrival dates using sample data. The table is based on a transaction detail wait days setting of 5 days.


Data Upload

Main Transactions Arrival Date

Detail Transactions Arrival Date

Merchant Wait Days

Application Transaction Wait Days

Latest Date Transactions are Available in Expense Report

Actual Date Transactions are Available in Expense Report

 

 

 

First Time: Detail transactions arrival date minus main transactions arrival date

Thereafter: Detail transactions arrival date minus main transactions arrival date plus most recent merchant wait days for the main transactions upload divided by two.

Application: Uses the minimum of transaction detail wait days or merchant wait days for the main transactions upload plus one day.

Date the transaction detail wait days end.

Actual date the main and detail transactions are available in the expense report.

Main Transactions 1

May 1

N/A

N/A

The merchant has never provided Level 3 detail transactions. Hence, there are no merchant wait days in the application.

0 Days

The merchant did not provide Level 3 details transactions. Hence, the application does not wait.

May 1

Available immediately.

May 1

Available immediately.

Detail Transactions 1

N/A

May 5

4 Days

N/A

N/A

May 5

Main Transactions 2

May 7

N/A

4 Days

Previously calculated merchant wait days.

5 Days

The application waits for the minimum of 5 transaction detail wait days or 4 merchant wait days plus one day.

May 11

May 7 + 5 application wait days = May 12.

N/A

Detail Transactions 2

N/A

May 9

3 Days

(May 9 minus May 7) +4 /2.

N/A

N/A

May 9

Main Transactions 3

May 12

N/A

3 Days

Previously calculated merchant wait days.

4 Days

The application waits for the minimum of 5 transaction detail wait days or 3 merchant wait days plus one day.

May 15

May 12 + 4 application wait days = May 16.

N/A

Corporate Card Issuer Payment Requests for Company Pay Transactions: How They Are Processed

The corporate card administrator runs the Create Corporate Card Issuer Payment Requests process to generate the payment requests for corporate card issuers when there are corporate cards that use the Company Pay payment option. The Create Corporate Card Issuer Payment Requests process is run only when the Company Pay payment option is used.

Note

This process can be run at any time. Since the company's objective is to pay the card issuer on time, running the Create Corporate Card Issuer Payment Requests process is not dependent on when the employee submits the expense report.

This figure shows how the:

  • Create Corporate Card Issuer Payment Requests process generates payment requests to pay corporate card issuers when the corporate cards use the Company Pay payment option.

  • Process Expense Reimbursement process generates payment requests to pay employees when the corporate cards use the Company Pay plus cash payment option.

Create Corporate Card Issuer Payment Requests process and the Process Expense Reimbursement process

Settings That Affect Corporate Card Issuer Payment Requests for Company Pay Transactions

Settings that affect expense report payment requests for Company 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 Oracle Fusion Payables

    This account records the amount the company reimburses the corporate card issuers for expenses incurred by the employees on their corporate cards.

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

    This account holds accounting for corporate card transactions temporarily. The account is cleared when the expense reports containing the corporate card transactions are processed by Oracle Fusion Payables.

How Corporate Card Issuer Payment Requests for Company Pay Transactions Are Processed

The Create Corporate Card Issuer Payment Requests process has the following components:

  • Populate Payables Open Invoice Interface tables

  • Create corporate card issuer payment requests

  • Handle processed and rejected expense reports

Populating Payables Open Invoice Interface Tables

For each corporate card, the Create Corporate Card Issuer Payment Requests process creates one invoice header record in the Payables Open Invoice Interface table. All corporate card transactions for the corporate card are created as child lines. The accounting distributions for the transactions are created using the Expense Clearing Account for the corporate card.

Creating Corporate Card Issuer Payment Requests

After populating the Payables Open Invoice Interface table, the Create Corporate Card Issuer Payment Requests process invokes the Import Payables Invoices process in Payables. Payables creates payment requests using the information in the Payables Open Invoice Interface table. Tax processing is not applicable for corporate card issuer payment requests.

Handling Processed and Rejected Expense Reports

During payment request creation, Payables rejects records in the Payables Open Invoice Interface table if there are errors, such as dates in closed accounting periods or invalid payment methods. After payment requests creation is complete, the Create Corporate Card Issuer Payment Requests process removes any rejected records from the interface table. The corporate card administrator must then take the necessary action to reprocess the corporate card transactions for reimbursement.

Finally, all expense items corresponding to the corporate card transactions, for which payment requests are created, are updated with a corresponding payment request identifier.

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.


Expense Report Payment Options for Corporate Card Transactions

Process Run

Payment Requests Created

  • Cash

  • Company Pay

  • Process Expense Reimbursements

  • Create Corporate Card Issuer Payment Requests

  • 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

FAQs for Define Credit Card Data

How can I enforce corporate card usage policies?

Oracle Fusion Expenses enables your company to set up corporate card usage rules to enforce its policies regarding the use of corporate cards. On the Manage Corporate Card Usage Policies page, you can define the allowable amount for each expense category that can be charged as a cash expense. Above this allowable amount, employees are required to use their corporate cards. Employees who exceed the allowable limit receive a warning message, while completing expense entry, that reminds them to use the corporate card or an error message that actually prevents submission of the expense report. The application also notifies the auditor and manager of the policy violations. Alternatively, if no limits are defined, Expenses allows you to submit cash expenses of any amount.


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