Fusion Expenses

Understanding the Fusion Expenses

§ The Expenses incurred by the Employee’s while travelling on a Business trip in an Organization and
inturn the expense can be claimed by the Employees after coming back from the trip.

§ The Employee expenses can be submitted via by logging in to the Expense portal.

§ The Employee expenses can be of two Types, One is expenses paid to the Card issuer and the Expenses
reimbursed to the Employees.
§
§
Expenses process flow

User Creates
Submit the Manager’s Auditor’s
Expense report
Expense report Approval Approval
From Expenses

Reimbursemen
t & Cash
Advance Job

Employee Expense
reports Paid in
Oracle Payables /
Third Party
 Topics

•
Ø Managing Expenses System Options
Ø Setting Up Expense Report Templates and Types
Ø Enabling Expense Fields
Ø Configuring Expense Approval Rules
Ø Expense Report Descriptive Flexifields
Ø Managing Conversion Rates and Policies
Ø Entering Expenses
Ø Recurring Expenses
Ø Primary Bank Account
Ø Managing Delegates
Ø Spend Authorizations Overview
 Objective

• Manage Oracle Expenses system options

• Set up expense report templates
• Configure approval rules
• Define conversion rates
• Expense report descriptive flexifields
 Managing Expenses System Options

•
From the Manage Expenses System Options page, you can set application options that control various processes in expense
reporting across all business units or for specific Business Unit.

The following terms apply to system o ptions:

• Payment method: A method of payment, such as check, cash, or Electronic Funds Transfer (EFT)
• Terms and agreements: Expense report policies and rules that employees are typically asked to accept
before submitting their expense reports.
• Bar code: A printable bar code that uniquely identifies each employee's expense report
• Reimbursement currency: The currency in which the employee is reimbursed.

•
 Expense Descriptive flexifield

Ø Descriptive Flexifields are used to track the additional information.

Ø Global, User-Defined, and Business Unit Flexifields:
Ø Provide consistent global data capture.
Ø Capture granular user-defined data.
Ø Collect specific business unit information with flexibility.
Ø Reduce redundant setup.
Ø Improve approvals process.
Ø Provide rich data for enhanced reporting and analysis.
 Setting Up Expense Templates
•
Ø Expense report templates enable companies to control the expense types visible to each business unit.
Ø The following terms apply to expense report templates:
Ø Expense type: A potential expense that you can incur that was defined by the administrator during setup
Ø Expense report template: A grouping of related expense types that are defined for a specific business unit. Examples include
expense report templates for travel, education, and relocation.
Ø Expense item: The actual expense that was incurred and is always associated with an expense type during expense entry on an
expense report.
Expense report Template Consideration
What kind of expense report template is required?
Do you need multiple expense report templates?
Do you use multiple languages within a business unit?
What are your expense category requirements?
What expense types are required within the categories?
What are your receipt requirements? What is the dollar level?
What type of itemization is required for your expense types?
 Defining the Default Expense report template

• The following rules apply to default expense report templates.

• Each business unit can have only one default expense report template associated with it.
• For any business unit, you can have one or more expense report templates in addition to the default expense report
template.
• You cannot share expense report templates across business units.
• Note: You cannot implement Expenses if an expense report template is not associated with a business unit.
 Expense Type Overview
•
Ø An expense type is a potential expense that employees or contingent workers can incur.
Expense type can be Lodging, meals, Mileage, Entertainment, miscellaneous.
Creating Expense Types
Ø Assign a natural account to the expense type. This enables the application to allocate expenses to a specific account.

Itemize Expense Types

• Itemizing expenses:
Ø Breaks down charges granularly so you can apply them to specific accounts
Ø Applies expense types to both corporate card expense types and cash
Ø When itemization is set up as Required or Enabled, include at least one expense type on
Ø the Itemization tab of the Create Expense Type page.
 Itemize Expense Types
• Itemizing expenses:
Ø Breaks down charges granularly so you can apply them to specific accounts
Ø Applies expense types to both corporate card expense types and cash
Ø When itemization is set up as Required or Enabled, include at least one expense type on
Ø the Itemization tab of the Create Expense Type page.

Setting Up Project-Enabled Expense Types

Ø Project-enabled expense types are associated with a project expenditure type in Oracle Project Costing.
Ø For example, a project-enabled expense type enables a consultant to allocate his consulting expenses to a specific project and
tasks when the expense report is created.

Receipt Requirements and Policies

Ø Complete the selections on the Receipt Requirements tab to determine the receipt requirement behavior.
Ø Complete the selections on the Policies tab to determine the policies you want to use.
 Enabling the Expense fields
● Setup Precedence of Modifiable ● Set up and setup and ● Page
Fields
maintenance task
● 1- Highest Precedence ● Expense Type ● Create Expense type page
● Manage Expense report Templates ● Expense fields tab
● 2 ● Expense template ● Create Expense report
● Manage Expense report template Template Page, Expense Fields
Tab.
● 3. ● Manage Policies ● Create Expense policy
● Manage Policies by Expense

category.
● 4 Line description required Profile ● Manage Profile Options
option.
Manage Profile Option
●

● 5 ● Tax Fields ● Edit Tax Fields

● Manage Tax Fields
Capturing the Attendee Information for Expense Categories
 Approvals for Expense reports

• Approval by supervisor based on report amount

• Approval by cost centre owner in parallel or serial mode
• Approval by Project manager in parallel or serial mode.
• Approval by speciality based on expense type in parallel or serial mode.

Approval Rules and rule sets

You need to apply number of properties and rule & rule sets
• For each expense reports, one rule must be true with in each rule set.
• If the expense report doesn’t satisfy any rule in the rule set, the approval process displays an error.
• To deactivate a rule set, check the Ignore this participant check box for that rule set.
 Expense DFF (Descriptive Flexifields)
• Global, and Context
By Configuring the DFF you can leverage other extensibility features in Oracle Fusion Expenses, such as the
use of custom attributes, to capture additional data.
Can be captured at 4 different levels : Expense report Headers, Expense Lines, Cash advance and Expense
Attendees

Ø Captures the granular level user data.

Ø Improves the approval process.
Ø Provide rich data for Enhanced reporting and analysis.
•
Types of DFF’s
1. Global Descriptive flexifield.
2. User Defined descriptive flexifield.
3. Business unit specific flexifield.
 Managing conversion rates and policies

In this example, the employee reports expenses on the expense report in GBP but is reimbursed in USD.
The table illustrates how warning and error tolerance percentages work with conversion rate policies.

Conversion Rate ● Warning Warning Error Tolerance Error Tolerance

● ● Tolerance Tolerance Percentage ●
● Percentage ● ●

● Conversion Rate 5% ● 1.579 10% ● 1.579 + .1579 =

● Type = Corporate ● + .07895 = ● ● 1.7369
● where 1 GBP = ● 1.65795 ●
● 1.579 USD ●
●
 Entering Expenses

In the Expenses work area, you can enter cash or corporate card transactions as expense items. After entry, you can:
• Save the expense items temporarily in the Expense Items section on the Overview page for inclusion in a future
report.
• Add the expense items to a new expense report.
• Add the expense items to an existing expense report.
• Create expense items in a new or existing report.
 Manage Delegates

A delegate is a person you have authorized to perform expense entry and management of your expense reports.
In Expenses, you can:
Ø When an employee is on leave and delegates his responsibility to create/raise expense reports.
Ø Delegate another person to enter your expense reports.
Ø Enter expense reports for another person.

Business Value of Managing Delegations:

Ø Removes administrative burden from executives.
Ø Improves user experience.
Ø Expedites expense report submission.
 Spend Authorization in Expense reports
Ø When a spend authorization is approved, it is available for use against actual expenses.
Ø You assign an approved authorization to each expense in your expense report.
Ø The application alerts you when the expense account is different from the authorization account.
Ø
An Employee requests a spend authorization for approval of estimated expenses for a future activity.
A Spend Authorization request proceeds through the following process which the employee initiates.
 Expense report at distinct stages

Ø Expense report not Submitted.

Ø Expense report Pending Manager’s Approval.
Ø Expense report Pending Auditor’s Approval.
Ø Expense report Withdrawal.
Ø Deletion of an expense report.
Ø Expense report status in Ready for Payment.
Ø Expense report status in Ready for Payment Processing.
Ø Expense report status in Rejected.
Ø Expense report status in Paid.
 Auditor Action
•
• Complete Audit
• Reject Expense Reports
• Request More Information
• Warn User and Complete Audit
• Waive Receipt
• Release Payment Hold
• Confirm Manager’s Approval
• Return Approved Expense Reports