How Expense Report Payment Requests Are Processed
The payment options your company chooses determines the reimbursement processes to run and the payment requests that are created.
To reimburse card issuers and employees for business expenses, the expense auditor runs the Process Expense Reimbursement process and the corporate card administrator runs the process, Create Corporate Card Issuer Payment Requests. Payment requests are created in Oracle Fusion Payables, after which corporate card issuers and employees are paid by Oracle Fusion Payments.
The following figure illustrates the flow of data when the expense auditor runs the process named Process Expense Reimbursement.
Settings That Affect Expense Report Payment Requests
Settings that affect expense report payment requests for Both Pay transactions:
-
Employee Liability Account: Set up as a system option on the Edit Expenses System Options page
Note: This account is used only if there are cash expenses in the expense report and reimbursement is due to the employee. -
Corporate Card Issuer Payment Liability Account: Set up in Payables
-
Expense Clearing Account and Payment Option: Set up in the Create Company Account dialog box
How Expense Report Payment Requests Are Processed
After expense report approval is complete, expense reports are ready for reimbursement. The following processing must occur:
-
Process expense reports containing Both Pay corporate card transactions.
-
Run the Process Expense Reimbursement program.
If the payment option is Both Pay, expense reports that contain corporate card transactions require additional processing.
Process Expense Reports Containing Both Pay Corporate Card Transactions
When the expense report approval process is complete, Both Pay expense reports are automatically processed. The Both Pay processing creates corporate card issuer expense reports to pay the card issuers. All Both Pay corporate card transactions in the expense report are copied into a new expense report to which the report number is appended with a .1. If corporate card transactions exist for more than one card in the report, a new expense report is created that is appended as .1, .2.
The following information from the original expense report isn't copied into the corporate card issuer expense report:
-
Project and task information
-
Tax classification codes
-
Accounting distributions
The accounting distributions for the corporate card issuer expense report are created against the expense clearing account defined for the company accounts of the corporate card transactions. The original expense report and the newly created corporate card issuer expense report are now ready for reimbursement processing.
Run the Process Expense Reimbursement Program
Expense auditors run the Process Expense Reimbursement program to process expense reports and to create payment requests in Payables. This process includes the following actions:
-
Populates Payables Open Invoice Interface tables.
-
Creates employee and corporate card issuer payment requests.
-
Handles processed and rejected expense reports.
The Process Expense Reimbursement program selects all expense reports that are ready for reimbursement and creates header and line records for each report in the Open Invoice Interface tables. Only business expenses are eligible for reimbursement to the employee and they're categorized as Business or Business - Employee Paid.
Each expense report has one corresponding header record in the Open Invoice Interface tables. A child line is created in the interface table for each expense item eligible for reimbursement with the following information:
-
Expense amount and supporting details
-
Tax event class and tax classification codes
-
Project and task information
-
Payment function and payment method
-
Payee, whether employee or corporate card issuer
-
Employee liability account or the corporate card issuer payment liability account
For expense reports containing Both Pay and Company Pay transactions, the reimbursement process creates reversal lines in the Open Invoice Interface tables so the employee invoice can derive the net amount due to the employee.
After populating the Open Invoice Interface tables, the Process Expense Reimbursement program invokes the Import Payables Invoices process in Payables. Payables creates payment requests using the information in the Open Invoice Interface tables. When there is no accounting distribution for a line item in the Open Invoice Interface tables, Payables creates accounting distributions using the distributions from Expenses. Payables then invokes Oracle Fusion Tax to calculate tax for the expense lines with tax classification codes.
During payment request creation, Payables rejects records in the Open Invoice Interface tables if errors occur. Examples of errors are dates in closed accounting periods or invalid payment methods. The Process Expense Reimbursement program removes rejected records from the interface table and updates the status of the expense reports to Payables Rejected. Whenever the Process Expense Reimbursement program runs, it selects all the Payables Rejected expense reports for reprocessing. The expense auditor then reprocesses the remaining expense reports for reimbursement.
All expense reports, for which payment requests are created, are updated with a payment request identifier. After payment requests are created, they remain in a Never Validated status until the invoice validation process is run in Payables. After validation, payment requests are processed in Payments.
The following table describes the payment options for corporate card transactions in expense reports and the reimbursement processes that are run to generate payment requests.
|
Payment Options in Expense Reports for Corporate Card Transactions |
Reimbursement Processes to Run |
Payment Requests Created |
|---|---|---|
|
Process Expense Reimbursements |
Employee Payment Requests |
|
Individual Pay Only |
Process Expense Reimbursements |
Employee Payment Requests |
|
Process Expense Reimbursements |
|
|
Both Pay Only |
Process Expense Reimbursements |
Corporate Card Issuer Payment Requests |
|
|
|
|
Process Expense Reimbursements |
|
|
Process Expense Reimbursements |
|
|
|
|
|
|
|
|
|
Corporate Card Issuer Payment Requests |
|
|
|
|
|
|
|
Company Pay Only |
|
Corporate Card Issuer Payment Requests |