Setting Up Policy Rules

Access the Policy Definition Entry form.

Policy Name

Enter the name of an expense policy. The expense policy determines the expense categories that are available for reimbursement and provides the rules for each expense category such as the daily allowance amount, audit limits, receipt requirements, whether a preferred supplier is required, and so on.

Policy Description

Enter the description associated with the policy name in the unlabeled field to the right of the policy name.

Apply only to non-billable expenses

Select this option to specify whether the audit rules for the policy apply to all expenses or to nonbillable expenses only. If you apply audit rules to nonbillable expenses only, they do not apply to expenses that are billed to a client.

Per Diem Expense Category

Enter a UDC (09E/EC) that specifies the expense category for the per diem group. For example, you might assign MLS (meals) as the per diem expense category for BFST (breakfast), LUN (lunch), and DIN (dinner) expenses.

The expense category that you specify in this field must also be specified in the Expense Category field.

Daily Allowance

Enter the amount that an employee is allowed to spend per day on an expense item.

Hard Edit

Enter a value that specifies whether the system issues a warning or error message to the employee when the expense amount exceeds the daily allowance and percent tolerance. An error prevents the employee from completing the expense report. Values are:

0: Warning message only.

1: Error message. The employee must change the expense amount.

Percent Tolerance

Enter the percentage of the daily allowance that an employee is allowed to exceed before receiving an error message. The system does not use the percent tolerance for warning messages.

Audit Amount

Enter the maximum amount allowed for an expense. If an expense exceeds the audit amount, the system automatically identifies the expense report for an audit regardless of whether audit rules are established.

Use Rate

Enter a value that specifies whether to use a default rate to calculate expenses, such as mileage. Values are:

0: Do not use.

1: Use.

Rate

Enter the price at which the expense was incurred for a specific unit of measure. For example, the rate might be the cost of a hotel room per night or the cost of a car rental per day.

Unit Of Measure

Enter a UDC (00/UM) that identifies the unit of measurement for an amount or quantity. For example, it can represent a barrel, box, cubic meter, liter, hour, and so on.

Rate Override

Enter a value that specifies whether the user can override an expense rate. Values are:

0: Do not allow.

1: Allow.

Receipt Required

Enter a value that specifies whether an employee must submit a receipt for the expense. Values are:

0: No receipt required.

1: Receipt required.

Receipt Amount

Enter the maximum amount allowed before a receipt is required. Expense amounts that are equal to or less than the receipt amount specified do not require a receipt regardless of the value in the Receipt Required field.

If you do not require a receipt, leave this field blank.

Preferred Supplier

Enter a value that specifies whether the employee must use a preferred supplier for the expense category. If an employee does not use a preferred supplier as required, the system automatically identifies the expense report for an audit regardless of the audit rules established. Values are:

0: Not required.

1: Required.

Location

Enter a UDC (09E/EL) that indicates where the expense was incurred. The system uses location information to determine the policy to which the expense applies and to derive the appropriate tax rate area and tax explanation code for the expense. For transportation expenses, use the location where the ticket was purchased.

You can specify policy rules by location, as well as by expense category. For example, the rate that you allow for a hotel room might be different for Japan and the U.S., or it might be different for San Francisco and Denver. You can enter * to indicate all locations.

Use Allowable/Unallowable Rule

Select for an expense category to indicate whether you want to differentiate between allowable and unallowable expense amounts. If you select this option, the system allocates expense amounts that exceed allowable amounts to a different account.