Register Expense Rule and Expense Code
Explanation
Use this function to enter basic data information
for expense rules in the system, which the employee will use when entering allowances,
compensations, etc., in the Expense Form. There are some specified basic rules that you
have to consider. See information from the IRS for further information regarding taxation
rules.
An Expense Rule is used in the system to calculate rules for different
kinds of allowances and compensations. The rules will help you get a correct calculation
of abroad allowance specified in a different currency than your own.
Enter the definition of the type of expense rule you want to use. One
type of expense rule can be EVERYBODY, which will include all employees connected to the
different codes in the same set of rules. It can also be for a specific employee, who has
an individual set of rules.
The basic data for an Expense Code is registered in the Expense Codes
tab. An Expense Code is used to define a specific cost within the rule(s). Types of codes
can be: ONIGHT (overnight stay), MILES (Mileage), REP (Representation), MISC
(Miscellaneous), or TAXI (taxi). Enter an easy to use text when describing the codes.
In the
Expense Rule window it is also possible
to define which tax codes to be used with a specific expense code.
Segment based calculation will be available
only if the Allowance Calculation Method is set to "Duration". This allow
the user to have the same allowance rule with different allowance amounts
for the first day and the remaining days.
Prerequisites
Before you enter Expense Codes and Expense Rules, the following must have been
completed:
- You must define the rules that should be used in the system for calculation of
allowances and different types of compensations.
System Effects
As a result of this entry, you can connect employees to a Expense Rule and the
calculations can be done in the system.
Window
Expense Rules
Related Window Descriptions
Expense Rule
Expense Rule/Expenses
Procedure
Register an Expense Rule:
- Open the Expense Rule window and add a new record.
- In the Expense Rule field, enter the name identifier of your
expense rule.
- In the Expense Rule Description, you can enter additional
information about the expense rule (e.g., where and how it should be used).
- Go to the General tab, where you can enter general
information about the expense rule.
- In the Tax Wage Code field, you can enter the ID of a wage code
to which sums of all expense sheet taxed amounts are transferred.
This setting is valid if you are using IFS Payroll component.
- In the Advance Wage Code, you can enter the ID of a wage code to
which advances from expense sheets are transferred.
This setting is valid if you are using IFS Payroll component.
- In the Non-Reimbursable Wage Code field, you can enter the wage
code to which sums of non-reimbursable expenses from expense sheets will be
transferred.
- In the Allowance Calculation Method field, select how the
employee's allowance will be calculated based on the length of travel:
- Calendar - the allowance will be calculated based on calendar
days, e.g. a travel expense registered from 5PM on Monday to 5PM on
Tuesday will yield 2 days' worth of allowance.
- Duration - the allowance will be calculated based on how many
hours the travel took, e.g., a travel expense registered from 5PM on
Monday to 5PM on Tuesday will yield one day's worth of allowance (24h).
- None - the allowance will not be calculated based on the
travel's length.
- You can select the Default Expense Rule check box to
automatically connected the expense rule to any employee who has no other
expense rule connected.
If cleared, employees will not be able to register their expenses as long as
they are not connected to any expense rule.
- If you select the Currency Rate from Credit Card Transaction
check box, the currency exchange rates given by the bank for credit card
transactions will override the rates set in the application.
- If you select Deductions Controlled check box, an information
will appear when an expense sheet is created, approved, or authorized,
stating that the total deductions exceeded the total allowances.
- Select Save.
Register an Expense Code:
- Select New in the Expense Code column.
- Define and describe your expense code.
- Use the list box in the Expense Type column and select among the types appropriate for
the code.
- Enter the price and/or percentage for the code. If you don't define a price, you must
manually enter the price every time you enter in the expense form.
- Use the List of Values to specify the Wage Code you want to connect to this specific
Expense Code.
- Define the type of code in the Report Code column, if you have IFS/Project Reporting
installed. Report Codes are for reporting purposes, if you have IFS/Project
installed. It is important to
have a set of standard codes that corresponds to the expenses used in the
Expense
Sheet. Example of a set of report codes are: TRAVCOST (travel cost),
TRAVTIME (travel time), ACC (accomodation cost), ALLOWW (allowance whole day), ALLOWH
(allowance half day), EXP (misc expences). The Report Codes defined here needs to
be connected to the Project Activities you are going to forward your expense sheets to.
- Enter the valid To/From dates for the Expense Code.
- Select Save.
Register Default Tax Lines for an Expense Code:
- Select an existing Expense Code, right click and then click Default Tax Line.
- Select New in the
Default Tax Lines window that opens.
- Select company.
- Select a Tax Code from the List of Values.
- The Tax Percentage and the Deductible % are automatically populated from the basic data defined
for the tax code in IFS/Accounting Rules.
- Select Save.