Back to P200: Project Accounting Extended Scenarios

Lesson 10: Processing Employee Expenses Paid with Corporate Cards

Part 5: Time and Expenses

In this lesson, you will learn how to configure the system for processing expense receipts with corporate cards.

Corporate Cards: General Information

By using Acumatica ERP, you can track payments to vendors, which your company or employees of your company have made by using a corporate credit card.

Learning Objectives

In this lesson, you will learn how to do the following:

Create a GL account, cash account, and payment method for a corporate card
Create a vendor that represents the card issuer in the system
Create a corporate credit card in the system
Assign the corporate card to employees

If the Expense Management feature is not included in your license, you configure a card issuer as a vendor; then you can track the corporate credit card payments and reconcile the credit card balance in the system with the card statement balance. If the Expense Management feature is included in your license, you configure a corporate credit card to provide your employees with ability to pay work-related expenses from a corporate account.

Configuration of Accounts and Payment Methods

To track payments that have been made by using a corporate credit card, you need to create a cash account that represents the corporate credit card in the system, link the cash account to an accrued liability account, and create a payment method. The cash account that is used for corporate cards should be configured as follows:

A separate GL account should be configured for each bank (card issuer) and currency. For each corporate credit card, you define one accrued liability account in the chart of accounts. The accrued liability account must be in the same currency as the corporate credit card.
Each GL account has a separate cash account with the following settings specified on the Cash Accounts (CA202000) form:
The cash account must be associated with the same branch as the corporate card is.
The Clearing Account check box is cleared.
The Restrict Visibility with Branch check box is cleared.
The Use for Corporate Cards check box is selected.
Only one payment method can be associated with the cash account—that is, only one payment method can be listed on the Payment Methods tab of the Cash Accounts form.
Optionally, the Requires Reconciliation check box is selected; if it is, a numbering sequence must be specified in the Reconciliation Numbering Sequence box. The predefined CARECON numbering sequence can be selected. Although the cash account that is used for a corporate card must have only one associated payment method, this payment method can be selected for multiple cash accounts. If a payment method is selected for a cash account that is used for a corporate card, in the Summary area of the Payment Methods (CA204000) form, the Use in AP check box is selected. Also, on the Settings for Use in AP tab of the form, this payment method should have the following settings:
Not Required (Additional Processing section): Selected
Require Unique Payment Ref. (Payment Settings section): Cleared

Configuration of Corporate Cards

To finish the configuration, you need to create an entity that represents the corporate card in the system and associate this entity with the liability account. You can do this in either of the following ways:

If the Expense Management feature is disabled on the Enable/Disable Features (CS100000) form, on the Vendors (AP303000) form, you create a vendor that represents the bank that issued the corporate credit card. For this vendor, you specify the accrued liability account as the Expense Account. For more information about processing AP bills for expenses paid with a corporate card, see Payments with a Corporate Card: General Information.
If the Expense Management feature is enabled on the Enable/Disable Features (CS100000) form, on the Corporate Cards (CA202500) form, you create a corporate card that company employees will use to process expenses. You enter the card number for matching transactions on a bank statement. In the table on the form, you add the employees that are allowed to use the corporate card; multiple employees can use a single corporate card. If the card currency diﬀers from the currency of an employee who uses the corporate card, for this employee, the Enable Currency Override and Enable Rate Override check boxes must be selected on the General tab (Employee Settings section) of the Employees (EP203000) form. (This section of the form also contains the Currency ID box, where the employee currency is specified.)
```
               If the Multiple Base Currency feature is enabled on the Enable/Disable Features form, the base
               currency of the cash account that corresponds to corporate card must be the same as base
               currency of the employee. For more information on configuring multiple base currencies, see
               Multiple Base Currencies: General Information.


     For more information about processing expense receipts and expense claims paid with a corporate card, see
     Expense Receipts with Corporate Cards: General Information. For information about processing refunds to
     corporate cards, see Expense Returns to Corporate Cards: General Information.
```

Corporate Cards: To Configure a Corporate Card

This activity will walk you through the process of creating the necessary entities for processing of expense receipts with corporate credit cards.

Story

Suppose that Jon Waite and Alberto Jimenez—employees of the SweetLife Fruits & Jams company—can use a corporate credit card for charging their business expenses. Acting as an implementation manager of SweetLife, you need to create an account, payment method, and cash account for company corporate cards, as well as to create the corporate card itself in the system.

Configuration Overview

In the U100 dataset, the following tasks have been performed to support this activity:

The Expense Management feature has been enabled on the Enable/Disable Features (CS100000) form.
On the Entry Types (CA203000) form, the BANKFEE entry type has been added.
On the Employees (EP203000) form, the accounts for Jon Waite and Alberto Jimenez have been created.

Process Overview

To create a corporate card, you will first create a GL account on the Chart of Accounts (GL202500) form. You will create a payment method for the card on the Payment Methods (CA204000) form. You will specify the GL account and payment method for a cash account, which you will create on the Cash Accounts (CA202000) form. Finally, you will create a corporate credit card on the Corporate Cards (CA202500) form.

System Preparation

To prepare to perform the instructions of the activity, sign in as an implementation manager by using the gibbs username and the 123 password.

Step 1: Creating a GL Account for a Corporate Card Create a GL account as follows:

Open the Chart of Accounts (GL202500) form, and on the form toolbar, click Add Row.
In the new line, create an account with the following settings:

Account: 29000
Account Class: OTHCURLIAB
Type: Liability
Description: Corporate Credit Card
Post Option: Detail

Save your changes.

Step 2: Creating a Payment Method To create a payment method for the corporate credit card, do the following:

On the Payment Methods (CA204000) form, add a new record.
In the Payment Method ID box of the Summary area, type CORPCC.
In the Summary area, specify the following settings:

Means of Payment: Credit Card
Description: Corporate card payment method
Use in AP: Selected
Use in AR: Cleared This payment method is not going to be used for customer payments.
Require Remittance Information for Cash Account: Cleared Remittance information is not required by this payment method for the related cash accounts.

On the Settings for Use in AP tab, clear the Require Unique Payment Ref. check box in the Payment Settings section so that a unique payment reference number is not required for each payment document created with this payment method. Make sure that Not Required is selected in the Additional Processing section. Payment documents created with this payment method do not require additional processing, such as printing checks.
Save the payment method.

Step 3: Creating a Cash Account Create a cash account as follows:

On the Cash Accounts (CA202000) form, add a new record.
In the Cash Account box of the Summary area, type 29000, and specify the following settings:

Account: 29000 - Corporate Credit Card
Branch: SWEETEQUIP
Requires Reconciliation: Selected
Restrict Visibility with Branch: Cleared
Use for Corporate Cards: Selected
Reconciliation Numbering Sequence: CARECON - CA Reconciliation

On the Payment Methods tab, on the table toolbar, click Add Row, and in the Payment Method column, select CORPCC.
On the Entry Types tab, on the table toolbar, click Add Row, and in the Entry Type ID column, select BANKFEE.
Save the created cash account.

Step 4: Creating the Corporate Credit Card To create the corporate credit card, do the following:

On the Corporate Cards (CA202500) form, add a new record.
In the Summary area, specify the following settings:

Branch: SWEETEQUIP
Name: USD Corporate Card
Card Number: 7890
Cash Account: 29000 - Corporate Credit Card

On the table toolbar, click Add Row, and in the Employee ID column, select EP00000003 - Jon Waite.
Add one more row and select EP00000004 - Alberto Jimenez in the Employee ID column.
Save the created credit card.
You have configured a corporate credit card.

Expense Receipts with Corporate Cards: General Information

Acumatica ERP supports the use of corporate credit cards in expense receipts and expense claims. This helps employees to categorize and track expenses, including the expenses related to a project. For example, while in the field, employees can buy something that they want to charge on a project and pay for it with a corporate card. Employees can also have out-of-pocket expenses that are then reimbursed to these employees.

Learning Objectives

In this lesson, you will learn how to do the following:

Create an expense receipt for company expenses paid by the corporate credit card
Process an expense claim for the expense receipt paid with the corporate credit card
Process personal expenses paid with the corporate credit card
Process company expenses paid with a personal account
Review the documents and transactions that are generated on release of the expense claim

Applicable Scenarios

You process an expense receipt with a corporate credit card if you are an employee who incurs expenses for the company and wants to record expenses paid by a company credit card. You process an expense claim for expense receipts, including receipts paid with corporate credit cards, if you are an accountant who wants to process the recorded expenses.

Payment of Expense Receipts with Corporate Cards

On the Expense Receipt (EP301020) form, you create expense receipts for the employee account that is associated with your user account. You can also create expense receipts for any subordinates. In each expense receipt, you specify the key settings as follows:

In the Amount box, you specify the amount paid with a corporate card. You can specify the amount in the card currency or in a foreign currency.

               If the Multiple Base Currency feature is enabled on the Enable/Disable Features (CS100000)
               form, the base currency of the cash account that corresponds to the corporate card must be
               the same as base currency of the employee. For more information on configuring multiple
               base currencies, see Multiple Base Currencies: General Information.

    In each line with corporate card expenses, you can specify a positive amount to claim expenses, or a
    negative amount, which means that you should refund these expenses to the corporate card. For more
    information about processing a refund of company expenses paid with a corporate card, see Expense
    Returns to Corporate Cards: General Information.

In the Paid With box (in the Expense Details section of the Details tab), you select how the expense receipt has been paid. The following options are available:
Personal Account: The company expenses that you (the employee) paid with your own funds; the company will need to reimburse this amount to you. This is the default option if your employee account has no active corporate card assigned.
Corporate Card, Company Expense: The company's expenses that are paid with a corporate card. This is the default option if your employee account has an active corporate card assigned. Corporate card expenses cannot be split. That is, on the Expense Receipt form, in the Expense Details section of the Details tab, the Employee Part of an expense receipt paid with a corporate card must be 0.
Corporate Card, Personal Expense: Your personal expenses that are paid with a corporate card.
For the lines with the Corporate Card, Company Expense or Corporate Card, Personal Expense method in the Paid With column, you select the corporate card from which the expenses have been paid in the Corporate Card box. By default, the system specifies the corporate card in this box as follows:
The corporate card used in the employee's most recent expense receipt is selected (if the corporate card is still active in the system and assigned to the employee). The most recent receipt is determined by the receipt's creation date.
If the corporate card that was used most recently is unavailable—that is, inactive, deleted, or no longer assigned to the employee—the system inserts the employee's only active card or the first active card it finds for the employee. The first corporate card is the first card in the employee's card list; this list is sorted alphabetically by name.
In the Ref. Nbr. box, you enter the reference number that usually matches the number of the original receipt.
In the Project/Contract, Project Task, and Cost Code box, you enter the contract, or the project budget key, if the incurred expenses are related to a particular project or contract.

Claiming of Expense Receipts Paid with Corporate Cards

On the Expense Claim (EP301000) form, you can claim with a single expense claim all of your expense receipts paid with corporate cards. Each expense claim line on the Details tab contains a link to an expense receipt. If you create a new expense claim line on the form that does not originate from any expense receipt, on release of the expense claim, the system creates the corresponding expense receipt for that expense claim line and inserts the link into the expense claim. Aer you have added expense claim lines, you click Submit to assign the expense claim the Approved status. Then you click Release. The system assigns the expense claim the Closed status and creates the corresponding AP documents for the expenses. On release of the AP documents, the system generates a project transaction (if expenses are related to a particular project) and the corresponding GL transaction. On release of this project transaction, the system updates the actual amount in the corresponding project budget line to decrease the expenses recorded to the project budget and returns the refunded amount to the balance of the credit card. The following table summarizes the types of the documents that are prepared on release of the expense claim, depending on the sign of the amount in the line and the value in the Paid With column.

Paid With                     Total Line Amount              AP Document Type               Number of Documents

Personal Account              Positive                       AP bill                        A single document for all
                                                                                            expense claim lines of this
                                                                                            type

Personal Account              Negative                       AP debit adjustment            A single document for all
                                                                                            expense claim lines of this
                                                                                            type

Corporate Card, Personal      Positive only                  AP debit adjustment            A single document for all
Expense                                                                                     expense claim lines of this
                                                                                            type

Corporate Card, Company       Positive or 0                  Cash purchase                  One document or multi-
Expense                                                                                     ple documents, depend-
                                                                                            ing on the state of the
                                                                                            Post Summarized Com-
                                                                                            pany Expenses by Cor-
                                                                                            porate Card check box
                                                                                            on the General tab of the
                                                                                            Time and Expenses Pref-
                                                                                            erences (EP101000) form
Paid With                   Total Line Amount            AP Document Type            Number of Documents

Corporate Card, Company     Negative                     Cash return                 One document or multi-
Expense                                                                              ple documents, depend-
                                                                                     ing on the state of the
                                                                                     Post Summarized Com-
                                                                                     pany Expenses by Cor-
                                                                                     porate Card check box

For the lines that have the Corporate Card, Company Expense option selected in the Paid With column on the Details tab of the Expense Claim (EP301000) form, the system aggregates the AP documents (cash purchases or cash returns) generated on release of the expense claim as follows:

If the Post Summarized Company Expenses by Corporate Card check box is selected on the Time and Expenses Preferences form, the system creates a single document for each group of expense claim lines with this Paid With option that have the same expense receipt date, receipt reference number, corporate card, and tax calculation mode.
If the Post Summarized Company Expenses by Corporate Card check box is cleared, the system creates a separate AP document for each expense claim line with this Paid With option.

Workflow of Claiming Expenses Paid with Corporate Cards

The following diagram illustrates the workflow of an employee claiming an expense paid with a corporate credit card. Expense Receipts with Corporate Cards: To Claim Expenses for a Project

This activity will walk you through the process of creating and processing expense receipts with corporate cards.

Story

Suppose that the West BBQ Restaurant customer ordered the installation service for previously bought juicers from the SweetLife Fruits & Jams company. The project accountant of SweetLife created a project to account for the provided services. Jon Waite, a SweetLife employee, worked in the customer's restaurant installing a juicer on January 29, 2025, and realized that there was not enough electric cable. Jon went to a construction store and bought 20 meters of electric cable for $27, which he paid for with a company corporate card. He also bought a cup of coﬀee in a cafe near the store and paid $6 for it by using the same corporate credit card. Then Jon took a taxi, for which he paid $10 in cash, to return to SweetLife. The next day, January 30, another SweetLife employee, Alberto Jimenez, went to a meeting with the customer to discuss the project. He took a taxi and paid $25 by using a corporate card. Acting as Jon Waite, you will enter all related expenses into the system and file a claim for the reimbursement of expenses.

Configuration Overview

In the U100 dataset, the following tasks have been performed to support this activity:

The Expense Management feature has been enabled on the Enable/Disable Features (CS100000) form.
On the Projects (PM301000) form, the WESTBBQ7 project has been created, and the INSTALL project task has been created for the project and specified as the default task. The cost budget of the project includes a single line with 12 hours of installation.
On the Non-Stock Items (IN202000) form, the CABLE, MEAL, and TAXI non-stock items with the Expense type have been created.
On the Employees (EP203000) form, the accounts for Jon Waite and Alberto Jimenez have been created.

Process Overview

First, you will create an expense receipt for Jon Waite paying for electric cable on the Expense Receipts (EP301010) form. You then will create an expense claim, which will also include expenses for the taxi and coﬀee, on the Expense Claim (EP301000) form. As the last step, you will create the second expense receipt, for Alberto Jimenez paying for the taxi, on the Expense Receipts form.

System Preparation

To prepare to perform the instructions of the activity, do the following:

Sign in to the system as Jon Waite by using the waite username and the 123 password.
In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the business date in your system is set to 1/29/2025. If a diﬀerent date is displayed, click the Business Date menu button, and select 1/29/2025 from the calendar. For simplicity, in this activity, you will create and process all documents in the system during this business date.

Step 1: Creating the First Expense Receipt To create an expense receipt to enter the purchase of electric cable, do the following:

Open the Expense Receipts (EP301010) form.
On the form toolbar, click Add New Record. The system opens the Expense Receipt (EP301020) form.
In the Summary area, select CABLE in the Expense Item box.
Make sure that the expense date is 1/29/2025 and EP00000003 - Jon Waite is selected in the Claimed by box.
On the Details tab, specify the following settings:

Description: Electric cable
Unit Cost: 27.00
Project/Contract: WESTBBQ7
Project Task: INSTALL (inserted automatically)
Cost Code: 00-000
Paid With: Corporate Card, Company Expense
Corporate Card: 000001 - USD Corporate Card (inserted automatically)

Save the receipt, and notice that it has the Open status. Step 2: Processing an Expense Claim for the Expense Receipt To claim the expense receipt you have created, along with the cost of coﬀee and a taxi, do the following:
While you are still viewing the expense receipt on the Expense Receipt (EP301020) form, on the form toolbar, click Claim. The Expense Claim (EP301000) form opens. On the Details tab, notice the line for the electric cable.
On the table toolbar of the Details tab, click Add Row, and specify the following settings in the new row (see the screenshot below):

Date: 1/29/2025
Expense Item: MEAL
Description: Coffee
Quantity: 1
Unit Cost: 6
Paid With: Corporate Card, Personal Expense Notice that when you select Corporate Card, Personal Expense in the Paid With column, the system automatically populates the Project/Contract column with the non-project code (X) and clears the Project Task, Cost Code, Customer, and Location columns.
Corporate Card: 000001 - USD Corporate Card (inserted automatically)

Click Add Row, and specify the following settings in the new row:

Date: 1/29/2025
Expense Item: TAXI
Description: Taxi
Quantity: 1
Unit Cost: 10
Project/Contract: WESTBBQ7
Project Task: INSTALL (inserted automatically)
Cost Code: 00-000
Paid With: Personal Account
```
    Figure: The expenses to be claimed
```

In the Summary area, make sure that the claim total is $43.
Save the expense claim.
On the form toolbar, click Submit. The system assigns the Approved status to the claim.
On the form toolbar, click Release. The system assigns the Released status to the claim. In the Link to AP table on the Financial tab, review the documents that the system has generated for the claim: a $27 cash purchase for the cable, a $6 debit adjustment for the coﬀee, and a $10 bill for the taxi.

Step 3: Creating the Second Expense Receipt To create an expense receipt to enter the amount spent on the taxi by Alberto Jimenez, do the following:

In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, set the business date to 1/30/2025.
Open the Expense Receipts (EP301010) form, and on the form toolbar, click Add New Record. The system opens the Expense Receipt (EP301020) form.
In the Summary area, specify the following settings:

Expense Item: TAXI
Claimed by: EP00000004 - Alberto Jimenez

On the Details tab, specify the following settings:

Description: Taxi to the customer's site
Unit Cost: 25.00
Project/Contract: WESTBBQ7
Project Task: INSTALL (inserted by default)
Cost Code: 00-000
Paid With: Corporate Card, Company Expense
Corporate Card: 000001 - USD Corporate Card (inserted automatically)

Save the expense receipt.
On the Projects (PM301000) form, open the WESTBBQ7 project. On the Cost Budget tab, notice that the following lines have been added to the budget when the expense claim that you have processed in this activity has been released. (Alberto Jimenez's expenses on the taxi have not been recorded to the project budget because these expenses have not been claimed yet.)

The line with the CABLE item has an actual amount of 27.00
The line with the TAXI item has an actual amount of 10.00 You have recorded corporate card expenses to the project budget.