How to Add Prepaid Expenses to an Expense Report

As an employee, you can add prepaid expenses to an expense report only if the expense type is enabled for prepaid expenses. You don't receive reimbursement for a prepaid expense as the company pays it directly to a vendor before or after you add it to an expense report.

You can’t specify a personal expense as prepaid or apply a cash advance for the prepaid expense. You can mark only cash expenses as prepaid expense. You can't mark itemized lines as prepaid expenses. You can mark only the parent expenses as prepaid expenses, if its expense type is enabled for prepaid expenses.

You can review the prepaid expenses before submitting the expense report. The expense report displays the prepaid amount details in the Amount column in the Expense Items section. The prepaid amounts are excluded from the amount reimbursable to you to provide accurate reimbursement information, and the Report Total section displays a separate component for the prepaid amount.

Approvers can view the prepaid expenses details in the approval notification when reviewing the expense reports for approval. Auditors can view the prepaid expenses details on the Audit Expense Report page, but they can’t modify the prepaid flag that’s set by the employee. Also, auditors can't short pay or adjust prepaid expenses.

To create an Expense Report and add prepaid expenses to the report, complete these steps:

1. Click the Create Report card.

2. On the Create Expense Report page, enter a description in the Purpose field.

3. Click Create Item.

4. On the Create Expense Item page, add values for the required fields.

5. Select the This is a prepaid expense check box.

   Note: The Create Expense Item page displays this check box only if the selected expense type has prepaid expenses enabled.

6. In the Description field, enter the description for the expense.

7. Click Save or Save and Close.