Expense Types

An expense type is a potential expense that employees or contingent workers can incur. Expense types are granular expenses. For example, if Accommodations is an expense category, then possible expense types are Hotel, Motel, and Bed and Breakfast.

After you set up an expense type, employees can select it from the Type list on the Create Expenses page. The Type list can display up to 250 expense types.

Setting up expense types in Expenses includes the following actions:

• Creating expense types

• Itemizing expense types

• Enabling project-enabled expense types

• Enabling automatic population of the tax classification code

Creating Expense Types

When you create an expense type on the Create Expense Type page, you assign an account to the expense type. This enables the application to allocate expenses to a specific account. Additionally, you can specify whether receipts are required when users submit expense reports for approval. You can also require submission of a receipt over a specified amount. Receipt submission requirements can be set up for cash expenses, corporate card expenses, or both.

After creating expense types, associate them with corporate card expense types on the Card Expense Type Mapping tab of the Create Expense Template page. Corporate card expense types come predefined with Expenses or you can add them as additional lookups. Associating defined expense types with corporate card expense types enables Expenses to correctly derive expense types during the corporate card transaction upload process.

Itemizing Expense Types

Itemization is the breaking down of charges in a granular fashion so they can be applied to specific accounts. Itemization applies to both corporate card expense types and cash.

You set up itemization on the Itemization tab of the Create or Edit Expense Type page according to your company's requirements. You decide whether to enable, disable, or require itemization by employees or contingent workers when they create an expense item during expense entry. During itemization setup, you also decide one of the following:

• Whether expense types you define are eligible during expense entry for itemization only.

• Whether expense types you define are also available as an independent, single expense type.

Note:

When itemization is set up as Required or Enabled, include at least one expense type on the Itemization tab of the Create Expense Type page.

Specify whether a card expense type is a candidate for automatic itemization on the Card Expense Type Mapping tab of the Create Expense Template page. If you enable automatic itemization for an expense type, you must then select a default itemization expense type. A default itemization expense type is one to which expenses are automatically populated when they're outside the defined itemization. For example, suppose a deploying company maps corporate card expense types to expense types and identifies a default itemization expense type called Miscellaneous. When the corporate card feed file is uploaded to Expenses, any unmapped expense types default to the Miscellaneous expense type.

Note:

If automatic itemization is disabled for a specific expense type, then the expense type isn't automatically itemized for you.

Enabling Project-Enabled Expense Types

Project-enabled expense types are associated with a project expenditure type in Oracle Fusion Project Costing if the user is allowed to enter project information. For example, a project-enabled expense type enables a consultant to allocate his consulting expenses to a specific project and its tasks during expense creation report.

To set up project-enabled expense types on the Project Expenditure Type Mapping tab of the Create Expense Type page, select the Enable projects check box. You must also select a default project expenditure type, which is a project expense type to which unspecified project unit expenses are assigned. Additionally, you can specify whether receipts are required for project expenses when the user submits an expense report.

The project-enabled expense type can be mapped to a specific project unit and a project expenditure type on an exception basis. It's the association of a project-enabled expense type with a project unit and a project expenditure type that derives accounting in Oracle Projects Costing.

Note:

Before you can project-enable expense types, you must perform the following prerequisite setup in Oracle Fusion Project Foundation:

• Project unit: A unique identifier of a group of projects that are managed as a unit.

• Project expenditure type: A classification of cost.

Enabling Automatic Population of the Tax Classification Code

When you create an expense type on the Create Expense Type page, you can specify the tax classification code that applies to the expense type. The tax classification code specified during the setup of an expense type is automatically populated onto the Create Expense Item page during expense entry. If necessary, the user can override the specified tax classification code when creating an expense item if the tax field is enabled on the report.