5Cash Advances

This chapter contains the following:

Cash advance approval rules are configurable rules for approving cash advances. A cash advance is an advance payment to an employee that covers out-of-pocket and incidental expenses while traveling or legitimate business expenses.

Oracle Fusion Expenses integrates with Approvals Management Extensions of the Oracle Service-Oriented Architecture (SOA) suite and Oracle Business Process Management Suite (BPM) to allow deploying companies to build flexible approval routing rules. This ensures that proper approval authority is enforced.

The BPM Worklist provides an interface to administer the cash advance approval rules based on your company's business needs. A BPM Worklist administrator, such as a user with the Financial Application Administrator (FUN_FINANCIAL_APPLICATION_ADMINISTRATOR) role can access the cash advance approval rules in the BPM Worklist.

When you submit a cash advance request, Expenses invokes the cash advance approval process, which in turn invokes a set of cash advance approval rules created in AMX to build the list of approvers. AMX then sends out approval notifications to the approvers identified by the cash advance approval rules. This process is repeated until all cash advance approvals are complete.

The predefined cash advance approval rule routes every cash advance request by an employee to his or her immediate supervisor for approval. Once the immediate supervisor approves the cash advance request, it is automatically sent to the expense auditor for final approval.

If you are authorized to manage cash advance approval rules, you can:

  • Navigate to the BPM Worklist.

  • Modify the predefined cash advance rule.

Navigate to the BPM Worklist

The cash advance approval rules are managed through the BPM Worklist application. Users who are authorized to manage the cash advance approval rules see an Administration link displayed in the corner of the application.

To create new rules or modify existing rules, click the Administration link, click the Task Configuration tab, click the Data Driven tab, and then select the FinExmWorkflowCashAdvanceApproval approval flow in the panel. The cash advance approval flow contains the predefined rule set: Approval by immediate supervisor.

Modify the Predefined Cash Advance Rule

The predefined rule set for approval of cash advances using the supervisory hierarchy is called CashAdvanceApprovalStage: CashAdvanceApprovalRuleSet. This predefined cash advance rule defines the approval of cash advances of any amounts by the immediate supervisor.

You can modify the predefined cash advance rule by performing any of the following tasks:

  • Modifying the predefined cash advance rule

  • Adding new cash advance rules

  • Deleting existing cash advance rules

The following table contains parameters for the predefined CashAdvanceApprovalStage : CashAdvanceApprovalRuleSet rule set that you can modify to accommodate your cash advance approval needs.

Field Predefined Value Description

List Builder

Supervisory

This rule set uses the supervisory hierarchy to retrieve approvers.

Response Type

Required

The approval notification requires a response.

Number of Levels

1

The maximum number of supervisory levels required for completion of cash advance approval. You can modify the numbers of levels required by changing the value. For example, if you change 1 to 2, two levels of approvals will be required.

Starting Participant

HierarchyBuilder.getManager("supervisory",Task.creator,-1,"","")

The first approver in the approval chain.

Top Participant

HierarchyBuilder.getPrincipal("FINUSER30",-1,"","")

The last approver in the approval chain.

The approval process does not go beyond this participant in the approval hierarchy.

To use this rule without additional modification, you must change the predefined last approver user name to the last approver name in your organization, cost center, or department.

Auto Action Enabled

False

This parameter enables or disables the automatic approval action.

Auto Action

Null

The type of automatic approval action taken, such as Approve or Reject.

The administrator of the cash advance approval rules can perform the following modifications:

  • Create additional rules.

    For example, you can define new rules to conform to your company's cash advance approval policies.

  • Add additional levels of supervisory approval.

    For example, if the cash advance amount exceeds the threshold that the administrator configured, the cash advance request is sent to the next supervisory level for approval.

  • Set up automatic cash advance approval.

    For example, if the cash advance amount is under a certain amount, then the cash advance is automatically approved and it does not require the supervisor's approval. This feature expedites the approval process for smaller amounts, since the need to wait for the supervisor's approval is eliminated.

To modify an existing cash advance approval rule in the Data Driven configuration page, select the rule set to modify and click the Edit icon in the Tasks to be configured pane. You can now add, modify, or delete rules within the specified rule set. The changes take effect when you click the Commit Task icon in the Tasks to be configured pane. Saving changes by clicking the Save icon saves the changes, but it does not activate them. If needed, you can undo changes by clicking the Reset icon.

Oracle Fusion Expenses enables you to delegate cash advance entry to another person on your behalf. In the delegated cash advance process, the cash advance owner needs to approve the cash advance request after the delegated user enters the request. Then, the request is sent for manager's approval.

If you're an existing customer, the cash advance request is sent for manager's approval directly after the delegated user enters the request. In this case, the cash advance owner need not approve the cash advance request.

However, you can modify the process and add the cash advance owner approval stage to the process.

Here are the steps to add the cash advance owner approval stage to the delegated cash advance process.

  1. Navigate to the Oracle BPM Worklist application.

  2. From the Settings and Actions menu, select Administration. The Administration tab appears.

  3. Click the Task Configuration tab.

  4. In the Tasks to be configured pane, select the FinExmWorkflowCashAdvanceApproval task.

  5. Before you make changes to the workflow, verify these settings:

    1. Click the Assignees tab and verify that the value of the Reviewers field is set as ReviewersForDelegation.

    2. Click the Go to rule icon in the Cash Advance Approval stage and verify that the CashAdvanceOwnerApprovalRule rule file appears in the rule sets list.

    3. Click Notifications tab and verify that REVIEWERS is assigned as the recipient of the Complete task status.

  6. Go back to the Assignees tab.

  7. To modify the workflow, click the Edit icon in the Tasks to be configured pane.

  8. Here is how you add a stage to the workflow:

    1. Click the Edit icon in the first step of the workflow.

    2. Select Add Stage > Add Sequential Stage. A new stage is added to the workflow after the first stage.

  9. Here is how you edit the first stage:

    1. Enter SoaOLabel.CashAdvanceOwner as the participant name.

    2. Select Rule-based for the Assignees based on field.

    3. Click the Edit icon for Business rule, enter CashAdvanceOwnerApprovalRule as the business rule, and then click Create Rule.

    4. Select Advanced.

    5. Select the Specify skip rule check box and enter string-length(/task:task/task:payload/task:SubmitterUserName)=0 in the field. This edits the rule to skip this participant if cash advance submitter is the owner.

    6. In the Tasks to be configured pane, click Save.

  10. Here is how you edit the second stage:

    1. Enter SoaOLabel.CashAdvanceApprover as the participant name.

    2. Select Rule-based for the Assignees based on field.

    3. Enter CashAdvanceApprovalRuleSet as the business rule, and then click Create Rule.

    4. In the Tasks to be configured pane, click Save.

  11. Here is how you edit the CashAdvanceApprovalRuleSet rule file:

    1. Click the Go to rule icon in the second stage.

    2. Select the CashAdvanceApprovalRuleSet rule file.

    3. Set the value of the Starting Participant field to HierarchyBuilder.getManager("supervisory",Task.payload.ownerUserName,-1,"","").

    4. In the Tasks to be configured pane, click Save.

  12. To commit the modified rule set, click the Commit task icon in the Tasks to be configured pane.

Upload a Cash Advance File from a Third-Party System

You can provide cash advance data using a comma-separated plain text .csv file that is uploaded to Oracle Universal Content Management using the File Import and Export page. After the file is uploaded, the expense auditor runs the Upload Cash Advance process from the Scheduled Processes page.

Valid cash advance records are created or updated directly into the cash advance tables. Rejected records are listed in the output file, along with the reason for rejection.

The following table contains fields in the cash advance file that you create in TextPad and upload.

Note: Each line in TextPad must contain at least 10 elements. If more than 10 elements are used, it's assumed that the Purpose field contains one or more commas and these extra fields are concatenated.
Field Required Notes Maximum Characters

Cash Advance Number

Yes

Not applicable

60

Person Number

Yes

  • Either the person number or the email must be provided.

  • If both, they must match.

  • A valid and active employee record must exist.

  • When a person has multiple assignments, only the current assignment is used.

120

Email

Yes

  • Either the person number or the email must be provided.

  • If both, they must match.

960

Unapplied Amount

Yes

Not applicable

18

Status

Yes

  • Status must be either APPROVAL_COMPLETE or PAID.

  • For a status of PAID, indicate the unapplied amount.

30

Cash Advance Type

Yes

Must be one of the existing lookup codes for the EXM_CASH_ADVANCE_TYPE lookup type. The values are OTHER and TRAVEL.

30

Due Date

No

MMDDYYYY

8

Trip Start Date

No

MMDDYYYY

8

Trip End Date

No

MMDDYYYY

8

Purpose

Yes

This last field can contain commas.

240

Uploading the Cash Advance File

To upload the cash advance file, follow these steps:

  1. Sign in to Expenses as the expense auditor.

  2. Navigate to: Navigator > Tools > File Import and Export.

  3. On the File Import and Export page, click the Upload (+) icon.

  4. In the Upload File dialog box, click Browse to find the file that you want to upload.

  5. From the Account choice list, select fin/expenses/import.

  6. Click Save and Close .

Running the Upload Cash Advance Process

To run the Upload Cash Advance process, follow these steps:

  1. Navigate to: Navigator > Tools > Scheduled Processes.

  2. On the Scheduled Processes page, click Schedule New Process.

  3. In the Schedule New Process dialog box, select the Job option.

  4. From the Name choice list, select Upload Cash Advances and click OK.

  5. In the Process Details dialog box in the File Name field, enter the same file name that you uploaded in Step 4 in the previous task.

  6. From the Allow update of existing records choice list, select Yes and click Submit.

    If you select Yes, you can update existing cash advances. If you select No, you can't update existing cash advances. You can only create new cash advances.

    Note: If you select Yes to update an existing record, but the existing cash advance has already been invoiced, the record is rejected.
  7. Click the Refresh icon.

    The upload cash advance details appear.

  8. Review the .log and .txt files by clicking the attachment links.

  9. Sign out as the expense auditor.

  10. Sign in to Expenses as an employee.

  11. From the Expenses work area, review the Cash Advances infotile.

How Accounting Entries for Cash Advances Are Distributed

When a cash advance is paid to an employee, the amount to be reclaimed from the employee is tracked in the Cash Advance Clearing account. Then, when the cash advance is applied to an expense report, the amount is reversed from the clearing account.

The following table shows an example of a cash advance of 500 USD and an expense report with a total amount of 500 USD.

Document Amount

Cash Advance

500 USD

Expense Report

700 USD

Data in the preceding table is used in subsequent sections to illustrate how accounting entries are distributed when each document is processed.

Setting That Affects Accounting Entries

The setting that affects accounting entries for cash advances is the Cash Advance Clearing account on the Manage Expenses System Options page. This setting can only be implemented for a business unit.

The clearing account for each cash advance is derived by overlaying the natural account from the Cash Advance Clearing account on the Default Expense account of the employee.

How Accounting Entries are Distributed

After a cash advance is approved and audited, it is processed to Oracle Payables as a payment request.

The following table summarizes the accounting distribution that is generated when the cash advance is processed in Payables.

Account Debit Credit

Cash Advance Clearing

500 USD

Not applicable

Employee Liability

Not applicable

500 USD

The following table summarizes the accounting distribution that is generated when the cash advance is applied to the expense report and the expense report is processed in Payables.

Account Debit Credit

Cash Advance Clearing

Not applicable

500 USD

Employee Liability: Reclaim cash advance

500 USD

Not applicable

Employee Liability: Expense report

Not applicable

700 USD

Expense

700 USD

Not applicable

Oracle Fusion Expenses enables your employees to get cash advance for use in international travels in a currency other than the functional currency before they go on an international trip. When they come back from travel they submit their expense report. The cash advance is applied to the expense report for that specific international travel, when reimbursement currency is selected to match the cash advance currency.

Before you set up this feature, ensure that these prerequisites are met:

  • Your company has capability to pay the cash advance in the allowed currencies.

  • The cash advance options for your business unit has the Enable Advances option set to Yes.

Here are the tasks you need to do to set up this feature:

  1. Enable reimbursement currency selection

  2. Specify cash advance currencies

Specify Cash Advance Currencies

Here are the steps to add cash advance currencies allowed:

  1. In the Setup and Maintenance work area, select these options:

    • Offering: Financials

    • Functional Area: Expenses

    • Task: Manage Cash Advance and Authorization Policies

  2. On the Manage Cash Advance and Authorization Policies page, select the required business unit.

  3. In the Edit Specific Business Unit dialog box, select the currencies for cash advance in the Advance Currencies Allowed field.

  4. Click Save and Close.

Your employees can now request cash advances in the currencies you specified.