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5 Request Travel Authorization or Cash Advance

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This chapter contains the following:

Cash Advances: Explained

FAQs for Request Travel Authorization or Cash Advance

Cash Advances: Explained

A cash advance is an advance payment to an employee that covers out-of-pocket and incidental expenses while traveling or legitimate business expenses. Two business flows are impacted by a cash advance request. One flow processes the cash advance request and the other flow applies the cash advance to the employee's expense report.

The cash advance process begins when an employee requests a cash advance by completing the Request Cash Advance dialog box that is accessible in the Cash Advances region on the Expenses work area. Expenses tracks all requests for cash advances by the employee. After completing the cash advance request, the employee submits it to his manager for approval. If the manager approves the cash advance request, Expenses sends it to the expense auditor for approval. If the manager rejects the cash advance request, Expenses returns it to the employee. If the expense auditor rejects the cash advance, Expenses returns it to the employee. If the expense auditor approves the cash advance request, he specifies a due date by which the cash advance must be applied to the employee's expense report. After the mandatory approvals, Expenses sends a payment request for the cash advance to Oracle Fusion Payables which, in turn, sends a payment process request to Oracle Fusion Payments. Payments processes the payment process request and deposits the amount of the requested cash advance into the employee's primary bank account. The Cash Advance Clearing Account records the cash advances that are owed to the company.

After incurring business expenses, the employee creates and submits an expense report to his manager for approval. If the manager rejects the expense report, it is returned to the employee. If the manager approves the expense report, it is sent to the expense auditor for approval. The expense auditor audits the expense report. If the expense auditor rejects the expense report, it is returned to the employee. After the expense report is approved, the expense auditor then runs the Process Expense Reimbursement process. When this process applies all the unapplied cash advance amounts to the expense report, the process clears the Cash Advance Clearing Account and charges the expense to the applicable expense account. The process then sends a payment request for the reimbursement to Oracle Fusion Payables which, in turn, sends a payment process request to Oracle Fusion Payments. Expenses automatically applies available cash advances to the approved expense report. Payments processes the payment process request and the employee receives payment for the expense report amount minus the cash advance amount. Any unused cash advance amounts are applied to the next report or refunded to the company by the employee.

Note

Expenses tracks overdue cash advance balances. A cash advance is overdue if it was paid to the employee, but an unapplied amount exists after the due date specified by the expense auditor.

The following diagram illustrates the integration of the cash advance flow and the expense report flow.

Integration of the cash advance flow and the expense report flow.

FAQs for Request Travel Authorization or Cash Advance

How can I receive my cash advance?

After requesting a cash advance and receiving approval from your approvers and the applicable expense auditor, the cash advance is deposited directly into your primary bank account or mailed to you as a check if that is your preferred payment method.


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