Set Up a Miscellaneous Expense Policy

You can set up and enforce miscellaneous expense policies to help control, manage, and reduce miscellaneous expenses. Examples of miscellaneous expense policies include policies for laundry, internet cable, and parking.

This topic covers the following aspects of setting up a miscellaneous expense policy:

Set Up a Miscellaneous Expense Policy
Set Up Policy Violations
Complete the Miscellaneous Rate Spreadsheet
Associate the Miscellaneous Expense Policy with an Expense Type

Here's how you can set up a miscellaneous expense policy and complete the miscellaneous rate spreadsheet to upload to the application:

In the Setup and Maintenance work area, go to the following:
- Offering: Financials
- Functional Area: Expenses
- Task: Manage Policies by Expense Category
On the Manage Policies by Expense Category page, select Miscellaneous from the Create Policy choice list.
On the Create Miscellaneous Expense Policy page, you can set any or a combination of these rules:
1. In the Miscellaneous Eligibility Rule section, set the Minimum Number of Days for Miscellaneous Expense Reimbursement rule.
2. In the Rate Type section, select one of the following:
  - Rate limit
  - Percentage reimbursement
  - Percentage reimbursement with upper limit
3. In the Rate Definition section, define the rate based on any one or a combination of the following rate limits:
  - Single instance limit
  - Daily sum limit
  - Monthly limit
  - Yearly limit
    With the Yearly limit selected, you can specify the Period Start Month and Period Start Day to set the start date of the limit.
  - Lifetime limit
    This limit enforces the maximum reimbursement allowed for an employee during their entire period of association with a company or business unit, from the hire date to the current date.
    For example, an expense incurred by an employee can be reimbursed up to an amount of $2000 during their tenure as an employee within a company. The employee can choose to claim the total cost at one go or over a period of time. The total amount claimed or reimbursed can't exceed the limit set over the lifetime of the employee with the company.
4. Set up Multiple currencies or define a Single currency in the Rate Definition section.
5. Define the rate determinant based on Role, Gender, and Location in the Rate Determinants section.
6. Define the tolerance level of policy violation in the Policy Enforcement section to warn or prevent users from submitting a report. See the "Set Up Policy Violations" section of this topic for more information.
Click Save.
Complete the miscellaneous rate spreadsheet and upload it to the application. See the "Complete the Miscellaneous Rate Spreadsheet" section of this topic for an example.

Example of Setting a Miscellaneous Policy with Eligibility Rule and Rate Limit

The example shows how to set up a policy where a minimum of 5 days of miscellaneous expenses must be accrued before the expense is eligible for reimbursement. This part of the policy is typically used when a company wants to enforce a laundry policy where the employee can only be reimbursed for laundry expenses if the trip is greater than a specified number of days. The policy is set up with a single instance rate in US dollars, by job, and is enforced by a warning and an error.

In the Setup and Maintenance work area, go to the following:
- Offering: Financials
- Functional Area: Expenses
- Task: Manage Policies by Expense Category
On the Manage Policies by Expense Category page, select Miscellaneous from the Create Policy choice list.
On the Create Miscellaneous Expense Policy page in the Miscellaneous Eligibility Rule section, do the following:
1. Select Minimum number of days for miscellaneous expense reimbursement.
2. Days = 5.
In the Rate Type section, select Rate limit.
In the Rate Definition section, do the following:
1. Select Single instance limit.
2. Select Single currency.
3. Currency = USD US Dollar.
Note: If a currency rate conversion is necessary to verify a policy rate limit, you must define a conversion rate in Oracle Fusion General Ledger.
In the Rate Determinants section, do the following:
1. Select Role.
2. Role Type = Job.
In the Policy Enforcements section, do the following:
1. Select Policy violation warning.
2. Warning Tolerance Percentage = 10.
3. Select Display warning to user.
4. Select Prevent report submission.
5. Error Tolerance Percentage = 20.

Set Up Policy Violations

You can set up policy violations for a miscellaneous expense policy as shown in the following table.

Policy Violation	Application's Action	Effect	Calculation
Warning	Generates a warning policy violation when a miscellaneous expense exceeds the defined tolerance.	You see a warning if you selected Display warning to user. A warning is always displayed to the approver, whether or not you select Display warning to user.	Policy Rate * (1+Warning Tolerance/100)
Error	Generates an error policy violation when a miscellaneous expense exceeds the defined tolerance.	You see an error and you're prevented from submitting the miscellaneous expense.	Policy Rate * (1+Error Tolerance/100)

Policy Violation

Application's Action

Effect

Calculation

Warning

Generates a warning policy violation when a miscellaneous expense exceeds the defined tolerance.

You see a warning if you selected Display warning to user.

A warning is always displayed to the approver, whether or not you select Display warning to user.

Policy Rate * (1+Warning Tolerance/100)

Error

Generates an error policy violation when a miscellaneous expense exceeds the defined tolerance.

You see an error and you're prevented from submitting the miscellaneous expense.

Policy Rate * (1+Error Tolerance/100)

Complete the Miscellaneous Rate Spreadsheet

To complete a miscellaneous rate spreadsheet, perform the following steps:

On the Create Miscellaneous Policy page, click the Create Rates button.
Download the predefined spreadsheet to your local drive for completion.

Note: If you select rate determinants in the Rate Determinants section, you complete the predefined spreadsheet. If you don't select any rate determinants, you create miscellaneous rates in the Create Rates dialog box.

On the Create Miscellaneous Rates spreadsheet, complete the fields as shown in the following example:

Role	Single Instance Limit (USD)	Start Date
ACC500.Accounting Manager	155	1/1/2014
SAL600.Salesperson	150	1/1/2014
SAL700.Sales Manager	160	1/1/2014
All Others	150	1/1/2014

Click Upload.

When rates are successfully uploaded, the policy status is valid. To use the miscellaneous rate policy for calculation of miscellaneous expenses, you must:

Activate the miscellaneous expense policy.
1. On the Manage Policies by Expense Category page, select the miscellaneous expense policy that you created and click Activate.
Assign the miscellaneous expense policy to an expense type.

Assign the Miscellaneous Expense Policy to an Expense Type

To assign the miscellaneous expense policy to an expense type, perform the following steps:

In the Setup and Maintenance work area, search for the Manage Expense Report Templates task and click Go to Task to open the Manage Expense Report Templates page.
Click Create or select an applicable template for a business unit.
On the Create Expense Report Template page, create a template for miscellaneous expenses.
On the Expense Types tab, click Create to open the Create Expense Type dialog box.
In the Create Expense Type dialog box, select Miscellaneous from the Category choice list.
On the Policies tab in the Create Expense Type dialog box, select the miscellaneous expense policy you created, specify the start date, and optionally specify an end date.