How Expense Item Accounting Is Derived
This topic provides an example of the expense item accounting flow so you can understand how expense item accounting works. With this understanding, you can set up default expense accounts properly to generate valid expense account combinations.
Before you can derive distributions, you must:
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Define default expense accounts in your human resources application for each person who uses Oracle Expenses Cloud.
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Decide whether or not to give employees the capability of changing the company segment and the cost center segment
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Decide whether or not to give employees the capability of changing all segments in the default expense account
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Set up the natural expense account for expense types in the expense template.
Settings That Affect Expense Item Accounting
The following setups affect expense item accounting:
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Default expense account set up
Every person who uses Expenses must be set up with a default expense account in your human resources application.
Note: If you don't set up default expense accounts for all users, they can't submit expense reports. -
Natural expense account setup
When you create an expense report template on the Create Expense Report Template page, you set up expense types and specify the natural expense account for each expense type. The natural expense account is a segment in the default expense account.
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Optional expense accounting privilege assignment
You can assign the expense accounting privilege named Override Expense Account Allocation for all employees. Then, they can change the Company and Cost Center segments of the default expense account on the Create or Edit Expense Item page.
To set up the Override Expense Account Allocation privilege, navigate to: Setup and Maintenance > Tools > Security Console.
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Optional accounting profile option setup
You can set the accounting profile option named EXM_ALLOW_FULL_ACCT_OVERRIDE to Yes for all or specific employees. Then, they can change any segment of the default expense account on the Create or Edit Expense Item page.
To set the accounting profile option for all employees, navigate to: Setup and Maintenance and search for and select Manage Administrator Profile Values. Search for the profile option named EXM_ALLOW_FULL_ACCT_OVERRIDE in the Profile Option Code field and set the Profile Value choice list to Yes at the site, product, or user level.
How Expense Item Accounting Is Derived
The example in the following table describes how expense item accounting works.
|
Step |
Action |
Initial Expense Account |
Resulting Default Expense Account |
|---|---|---|---|
|
1. |
An employee's default expense account is set up in the human resources application where:
|
01-520-0000-0000-000 |
Not applicable. |
|
2. |
Employee creates an expense report and selects the expense type of Hotel. Hotel = 7670 in the Travel expense template. |
01-520-0000-0000-000 |
01-520-7670-0000-000 |
|
3. |
Employee has the expense accounting privilege of Override Expense Account Allocation assigned him. Employee sees the following segments on the Create Expense Item page:
|
01-520-7670-0000-000 |
02-540-7670-0000-000 |
|
4. |
Accounting profile option named EXM_ALLOW_FULL_ACCT_OVERRIDE is enabled. Employee sees the entire default expense account with all the segments on the Create Expense Item page. He can change any or all segments.
|
02-540-7670-0000-000 |
02-540-7670-3251-478 |
If you change accounting segments on the Create or Edit Expense Item page, the change is applied to the Expenses accounting distributions in the background. When the expense report is processed for reimbursement, Oracle Payables Cloud pulls the expense item accounting information from Expenses to generate accounting. The resulting invoice or payment request reflects the accounting.