Audit Selection Rules

Audit selection rules are criteria that you select on the Create Audit Selection Rule page. These rules determine which expense reports are automatically selected for audit if the audit selection rule is true.

If you don't select any audit selection rules, Oracle Fusion Expenses automatically approves all expense reports.

Expenses includes the following audit selection rules:

• Audit a percentage of all expense reports

• Audit expense reports greater than a specified amount

• Audit expense reports with required receipts

• Audit expense reports with missing imaged receipts

• Audit expense reports with policy violations

• Audit expense reports of individuals on the audit list

• Audit expense reports with expenses older than a specified number of days

• Audit expense reports of individuals with a specific status

• Audit expense reports with specific keywords

• Audit expense reports with commute distance variance

Here are the details of some audit selection rules.

Audit a Percentage of All Expense Reports

Expenses randomly selects for audit the percentage of expense reports that you specify in the Audit Percentage field in the Random Selection section. Reports that aren't selected for audit due to an explicit audit selection rule are candidates for random audit selection.

Tip: To audit all expense reports, enter 100 in the Audit Percentage field.

Audit Expense Reports Greater than a Specified Amount

Expenses selects for audit all expense reports where the total report amount is greater than the amount you specify for the audit selection rule. For this audit selection rule, you specify the amount and the ledger currency to use.

For any expense report where the ledger currency you specified isn't the same as the reimbursement currency, Expenses converts the report currency to the ledger currency and calculates the expense report amount. Expenses uses the conversion rate in the General Ledger Daily Rates table that was in effect on the expense report submission date. If the calculated expense report amount is greater than the amount you specified for the audit selection rule, the report is selected for audit.

Note: If no conversion rate is defined in the General Ledger Daily Rates table for the expense report ledger currency on the expense report submission date, Expenses ignores this audit selection rule and the report isn't selected for audit.

Audit Expense Reports with Required Receipts

Expenses selects for audit all expense reports with at least one expense line that requires a receipt. This audit selection rule doesn't consider whether the employee actually provided the receipts.

Audit Expense Reports of Individuals on the Audit List

Expense reports of employees who are listed on the Manage Audit List Membership page are automatically audited if their status is active as evidenced by no end date or the current date is before the end date.

To ensure automatic auditing of employees' expense reports listed on the Manage Audit List Membership page, you must:

1. Assign this audit selection rule to the applicable business unit on the Rule Assignments page.

2. Select an applicable audit list rule and assign it to the same business unit you specified in step 1.

   Note: If you don't assign the audit list rule you selected in step 2 to the business unit specified in step 1, you can only add individuals to the Manage Audit List Membership page manually.

Audit Expense Reports with Expenses Older than a Specified Number of Days

Expenses reviews the receipt date of all expenses submitted with an expense report. If at least one receipt date is older than the expense report submission date by the specified number of days, the report is selected for audit. For example, if the expense report submission date is October 15 and the maximum age of expenses in the report is 7 days, the report is selected for audit if it contains expense items earlier than October 8. The audit selection rule calculation is submission date minus maximum age of expenses.

Audit Expense Reports with Specific Keywords

Expenses selects expense reports for audit based on a list of keywords that you specified. Here are the fields where the application searches for the keywords:

• In expense reports:

  • Purpose

  • Descriptive flexfields of character type, which includes ATTRIBUTE_CHAR_1 through ATTRIBUTE_CHAR_15

• In expense items:

  • Description

  • Justification

  • Merchant Name

  • Descriptive flexfields of character type, which includes ATTRIBUTE_CHAR_1 through ATTRIBUTE_CHAR_15

You can also define a score percentage to include words similar to keywords in the search. If you set the score percentage as 100%, the application selects expense reports that exactly match the keywords. As you reduce the score percentage, the application searches for additional words that are similar to keywords.

Audit Expense Reports with Commute Distance Variance

Expenses selects for audit an expense report with a commute distance variance when an employee creates a mileage expense with a home or office address that's different than what's on the Contact Information page of HCM.

To enable this audit rule, select Audit expense report with commute address variance on the Manage Expense Report Audit Rules page in Setup and Maintenance.