Setting Up Expense Types

To set up expense types, use the Expense Type (EX_EXPENSE_TYPE.GBL) component. Use the EX_TYPES_SETUP component interface to load data into the table for this component.

Page Name

Definition Name

Usage

Expense Types 1 Page

EX_EXPENSE_TYPES1

Define usage and requirements for an expense type.

Expense Types 2 Page

EX_EXPENSE_TYPES2

Define accounting distribution defaults for the expense type's billing codes.

Expense Types 3 Page

EX_EXPENSE_TYPES3

Define parameters for per diems, preferred merchants, or both.

Note: The data that is entered using these pages can also be loaded as an Application Data Set (ADS). For more information about ADS, see Migrating Data Using Application Data Sets

Expense types enables you identify and classify valid business expenses that employees incur. When you process an expense report, the billing code determines the group to which it belongs and the set of accounts to charge.

If you use PeopleSoft Billing, an expense item must be billable and charged to PeopleSoft Project Costing ChartFields for both applications to process it. PeopleSoft Project Costing expense items with this billing action are the only ones that PeopleSoft Project Costing selects on the billing worksheet and sends to PeopleSoft Billing for subsequent invoicing.

Note: To make an expense type part of an expense type group, define the group before you define the location.

Use the Expense Types 1 page (EX_EXPENSE_TYPES1) to define usage and requirements for an expense type.

Navigation:

  • Set Up Financials/Supply Chain > Product Related > Expenses > Purchase > Expense Type > Expense Types 1

  • Travel and Expense > Travel and Exp Admin Center > Define Expense System > Accounting Data > Expense Type > Expense Types 1

This example illustrates the fields and controls on the Expense Types 1 page.

 Expense Types 1 page

Field or Control

Description

Non-Reimbursable

Select to indicate that this expense type is not a reimbursable expense.

When an employee creates an expense report using My Wallet or Create Expense Report pages, and they select an expense type that has the Non-Reimbursable check box selected, then the Non-Reimbursable check box will be selected on the transaction pages and will be inaccessible.

Physical Nature

Select Goods or Services to determine the value-added tax (VAT) treatment.

BenchMark Threshold % (bench mark threshold percent)

Enter a percentage if you use benchmark data. This figure represents the percentage that can exceed the benchmark amount when employees select this expense type on an expense report.

VAT Default (value-added tax default)

Click to access the VAT Defaults Sub-Search Page.

This page is a common page that you use to set up the VAT defaults for all PeopleSoft applications processing VAT transactions. On this page, you can define expense type defaults as applicable.

Update Image

Click to access the Expense Type Image Page, where you can add, remove, or change an image.

Alternative Description

Click to access the Expense Type - Text Message page where you can enter an alternate expense type description for an expense type.

India GST Defaults

Select to view the India GST Defaults page. For more information, see India GST Default page section in this document.

This link is available only if the Enable India Goods and Service Tax check box is selected on the Installation Options - Overall Page.

Required Fields

Select options to designate mandatory fields for employees to complete on expense reports when they select this expense type.

Field or Control

Description

Description

Select to require employees to enter a description of the expense type.

Preferred Merchant

Select to require employees to use preferred merchants that are associated with the expense type. If an employee does not select a preferred merchant, the system asks for a reason. If you select to require employees to use preferred merchants, then you must also set up one or more preferred merchants on the Expense Types 3 page.

Transportation Type

Select to indicate that an expense type requires a transportation type for tracking reimbursable mileage. The Transportation Type field appears when the user selects this expense type, and the system requires a value.

Merchant

Select to require employees to enter a merchant or supplier for an expense type. This does not need to be a preferred merchant.

Originating Location

Select to require employees to enter their starting points for an expense type, such as airfare.

Location

Select to require employees to enter where charges for the expense type occurred. This field is important when users calculate per diem reimbursements.

Number of Passengers

Select to indicate that the number of passengers is required for this expense type. This field is informational only.

Tax Related Indicators

Tax-related indicators flag an expense type that is taxable for the reimbursed employee.

Field or Control

Description

Items with Tax Implications

Select if the expense type, such as an airline ticket that is associated with moving an employee's family, is subject to income tax.

Gross Up Indicator

Select if estimated taxes are added to the expense type to reimburse an employee for a committed amount. For example, if 1,000 USD is promised as a lump-sum payment for moving costs and the employee's income tax rate is about 28 percent, gross up the payment to 1,280 USD.

Expense Type Edit

You can make further specifications when you're using a particular expense type in an expense report.

Field or Control

Description

None

Select if no editing is required.

Attendees

Select to require employees to provide names and organizations for individuals attending a function that is a business expense.

Warning! When you select this radio button, the system automatically populates the Attendee page with the employee data of the employee who creates the expense report, but no further attendee data is required by the system before the employee submits the expense. Any additional attendees must be entered manually by the employees to meet the requirements of their organizations. No additional edit check is available in PeopleSoft Expenses to verify the additional attendee data entered.

Per Diem

Select to prompt for input of times that include the start and end of the business day. This option activates a per diem information button in an expense report, enabling the employee to select meals that another party, such as a supplier or lodging establishment, provides. The expense system can then deduct the appropriate amount from the per diem for that day.

Airfare

Select to require an airline ticket number.

Automobile

Select to require the distance to calculate reimbursement when an employee uses a personal automobile for business purposes. You must also define a distance rate for this expense type.

Per Diem Lodging

Select to indicate lodging where an employee stays with a family or a friend while on a business trip.

Hotel

Select to require the number of nights that are spent in a hotel.

Rental

Reserved for future functionality.

Rate Retrieval Table

Field or Control

Description

Location Amount Table

Select to use location amounts that are determined either by the company or data sources such as Runzheimer or CONUS.

Per Diem Table

Select to use government-specified amounts that are related to location per diems. This table enables you to set up hourly or daily ranges so that you can prorate amounts.

No Receipt Required

This section is not shown when using the Receipt Required feature, which is defined on the Receipt Required page for the business unit.

Field or Control

Description

No Receipt Required for Automobile Expense Types Edits

Select to indicate that the No Receipt check box on the Create Expense Report page is to be automatically selected and greyed when the Automobile expense type is selected.

Because the No Receipt check box is automatically selected on the expense report, this does not trigger approvals when No Receipt is also selected as an option for Approver Refinement Templates. The same applies for Risk in that alerts should not be triggered when No Receipt option is also selected in the Risk Template.

When the No Receipt check box is selected by default on an expense report, a comment is required. The system automatically enters the text, “No receipts are required for Automobile Expense Type Edits” into the comment area.

This option is only available when Automobile is selected in the Expense Type Edit section of this page.

India GST Defaults Page

Use the India GST Defaults page (EX_TYPE_GST_SEC) to set up India GST defaults for all PeopleSoft applications processing India GST transactions.

This is an optional setup. You may use this page to specify additional default settings for India GST.

Field or Control

Description

Physical Nature

Select Goods or Services to determine the GST treatment. If you select Physical Nature as Goods, an HSN code is required. If you select Physical Nature as Services, an SAC code is required.

Tax Category Code

Select a tax category code. The tax category codes are retrieved from the Tax Determination page. See Tax Determination Page

Service Type

Select a service type. This field is displayed only if you have selected the Physical Nature field as Services.

HSN Code

Displays the HSN (Harmonized System of Nomenclature) code used for product coding and classification of goods. The field is available only if the Enable India Goods and Service Tax check box is selected on the Installation Options - Overall Page.

Note: The HSN codes displayed in the prompt are setup in the Global Setup Pages.

SAC Code

Displays the SAC (Service Accounting Codes) code used for identification of services. The field is available only if the Enable India Goods and Service Tax check box is selected on the Installation Options - Overall Page

Note: The SAC codes displayed in the prompt are setup in the Global Setup Pages.

Use the Expense Types 2 page (EX_EXPENSE_TYPES2) to define accounting distribution defaults for the expense type's billing codes.

You can also define the accounts that are used for overage amounts. For example, if an employee charges an amount that is greater than the per diem amount, the overage or disallowed amount can be booked to a different account.

Navigation:

Set Up Financials/Supply Chain > Product Related > Expenses > Purchase > Expense Type > Expense Types 1. Select the Expense Types 2 tab on the Expense Types 1 page.

This example illustrates the fields and controls on the Expense Types 2 Page. You can find definitions for the fields and controls later on this page.

 Expense Types 2 page

Field or Control

Description

Expense Type Group

Select a group to associate with this expense type.

Enable Group Location Limits

Select to include the expense type into the expense type group selected. This indicates that the amount for this expense type is compare with an authorized limit, which is associated with the expense type group.

If you do not select this check box, the expense type is excluded from being compared to a group authorized amount limit.

By default, this check box is selected if the expense type belongs to one expense type group.

GL ChartFields 1 Tab

Field or Control

Description

Fetch

Select to populate the ChartFields with the same defaults that you define for the selected expense type group. This is available only if Dflt Group is not selected.

Overage

Select if you want amounts exceeding an expense amount ceiling to be booked to a different set of ChartFields.

Note: This option appears when the Allow Overage Accounting check box is selected on the Installation Options - Expenses page.

See Installation Options - Expenses Page.

Billing Type

Select a billing type for which you want to define ChartFields to use for the expense type. PeopleSoft Expenses delivers values of Billable, Internal, and Nonbillable.

Dflt Group (default group)

Select to use the group defaults for this expense type's billing codes.

Select the appropriate ChartField as the accounting distribution default when this expense type is associated with the billing code in an expense report. Create other rows to designate additional charged accounts for different billing codes.

Note: If any ChartField (other than Account) is associated with this expense type and the expense type is used on an expense report, the expense type accounting overrides the default for the expense transaction at the header level. However, if you change the accounting ChartFields at the transaction line level, the system uses only Account and, if applicable, Alternate Account.

Use the Expense Types 3 page (EX_EXPENSE_TYPES3) to define parameters for per diems, preferred merchants, or both.

Navigation:

Set Up Financials/Supply Chain > Product Related > Expenses > Purchase > Expense Type > Expense Types 1. Select the Expense Types 3 tab from the Expense Types 1 or Expense Types 2 page.

This example illustrates the fields and controls on the Expense Types 3 Page. You can find definitions for the fields and controls later on this page.

 Expense Types 3 page

Field or Control

Description

Expense Type

Select the expense types to use to define a per diem expense type.

Deduction Percentage

Enter a percentage to deduct for each expense type that you establish. When the employee selects this per diem expense type, he or she can select some or all of the expense types that are associated with the per diem.

In the example that appears in the sample page, if an employee selects breakfast and lunch, PeopleSoft Expenses deducts 35 percent of the reimbursable total (15 percent for breakfast and 20 percent for lunch) from the per diem amount. If 100 EUR is the total amount for an employee's per diem. If the employee selects the deduction for breakfast (15%), then PeopleSoft Expenses reduces the employee's 100 EUR per diem by 15% or 15 EUR. The employee only receives 85 EUR because that amount is outside of the per diem allowance.

Deduction Amount

Enter an amount to deduct for each expense type that you establish. The currency used for the deduction amount is the base currency for the employee.

This option is calculated the same as deduction percentage except it uses a flat amount to deduct from the total per diem amount.

Calc Code (calculation code)

Select a calculation code for the expense type. The system uses this calculation code to calculate the per diem for the expense type.

Preferred Merchant

If applicable, select for this expense type. You can add more rows to create a list of merchants that you require employees to use. If the expense type appears in an expense report and the employee did not use a preferred merchant, the line item requires an explanation and could be flagged for auditing.