2. Expense Processing – An Overview

2.1 Introduction

Banks incur many expenses while performing their day to day functions. The expense processing (XP) module of Oracle FLEXCUBE deals with vendor payment for any type of expenses that the bank incurs. Some salient features of the module are:

• The XP Module processes and monitors expenses – advance payments, reimbursement claims, account payables.
• It also maintains details of purchase orders related to the expenses incurred by the organisation.
• It allows payments to be done against advances, captures retention money collected and paid, etc.
• It is primarily a back-office system. It comprises a comprehensive contract processing and management reporting system.

This chapter contains the following sections:

• Section 2.2, "Maintenances to Process Expenses"
• Section 2.3, "Product Creation for Processing Expenses"
• Section 2.4, "Processing an Expense Contract"
• Section 2.5, "Defining Advices for a Contract"
• Section 2.6, "Recording the Value of the Items on a Contract"
• Section 2.7, "Making Payments"

2.2 Maintenances to Process Expenses

The following maintenances need to be done for processing expenses in Oracle FLEXCUBE

• List of Documents and Details for following categories:
  • Transport
  • Invoice
  • Insurance
  • Others

• Vendor Maintenance
• Budget Code Maintenance

2.3 Product Creation for Processing Expenses

You can create an XP product in the XP Product Definition screen with basic information XP specific preferences as under:

• Indicating Preference for specifying Contract Level Expense GL’s
• Budget tracking details for the booking/payment amount
• Specifying vendor restriction
• Specifying document details

2.4 Processing an Expense Contract

You can capture the details of an expense contract in the XP Contract Details screen.

The Contract Details screen is divided into three sub-screens, each invoked by clicking a tab. The sub-screens are:

• The Contract Main screen
• The Contract Document screen
• The Contract Advice screen

In the Contract Main screen, you can capture the basic details of the contract you are entering. System will perform Validations for Budget tracking. You can specify document details in Document Screen. A screen is available to record individual item details under a single asset code in cases where many similar assets are grouped under one category.

2.5 Defining Advices for a Contract

The advices that can be generated for the different events in the lifecycle of a contract are defined for the product to which the contract is linked. For example, you may have specified the following advices for an XP product:

• Booking Advice
• Payment Advice
• Amendment Advice

These advices will default to contracts associated with the product. If any of the advices is not applicable to the contract you are processing, you can suppress its generation by ticking the suppress field.

2.6 Recording the Value of the Items on a Contract

A contract can have several items towards which you would incur an expense. You can record the value of each item on a contract in the Expense Processing Items screen.

2.7 Making Payments

The following operations can be performed on a payment, through the Expense Processing Payments screen:

• Making a payment
• Deleting a payment
• Reversing a payment

In Oracle FLEXCUBE, you can process refunds for a fully liquidated expense contract.