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.

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:

1. Open the Expense Rule window and add a new record.
2. In the Expense Rule field, enter the name identifier of your expense rule.
3. In the Expense Rule Description, you can enter additional information about the expense rule (e.g., where and how it should be used).
4. Go to the General tab, where you can enter general information about the expense rule.
5. 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.
6. 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.
7. 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.
8. 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.
9. 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.
10. 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.
11. 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.
12. Select Save.

Register an Expense Code:

1. Select New in the Expense Code column.
2. Define and describe your expense code.
3. Use the list box in the Expense Type column and select among the types appropriate for the code.
4. 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.
5. Use the List of Values to specify the Wage Code you want to connect to this specific Expense Code.
6. 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.
7. Enter the valid To/From dates for the Expense Code.
8. Select Save.

Register Default Tax Lines for an Expense Code:

1. Select an existing Expense Code, right click and then click Default Tax Line.
2. Select New in the Default Tax Lines window that opens.
3. Select company.
4. Select a Tax Code from the List of Values.
5. The Tax Percentage and the Recoverable % are automatically populated from the basic data defined for the tax code in IFS/Accounting Rules.
6. If the company is set up to use Sales Tax, it is possible to modify value in the Recoverable % field. When recoverable percentage is modified, Recoverable % Modified check box will be selected automatically.
7. Select Save.