Expense Receipts with Corporate Cards: General Information

MYOB Advanced supports the use of corporate credit cards in expense receipts and expense claims. This helps employees to categorize and track expenses, including those related to a project. For example, while in the field, the workers of a construction company or professional service provider might buy something to be tracked in a project and pay for it with a corporate card. Employees may still have out-of-pocket expenses that are then reimbursed.

Learning Objectives

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

• Create a GL account, cash account, and payment method for a corporate credit card
• Create the corporate credit card in the system
• Create an expense receipt with the corporate credit card
• Process an expense claim for the expense receipt paid with the corporate credit card

Applicable Scenarios

You process an expense receipt with a corporate credit card when you want to record expenses paid for by using a corporate credit card.

Configuration of Corporate Cards

Corporate credit cards can be configured on the Corporate Cards (CA202500) form. The card number is used for matching transactions on a bank statement. If multiple employees use a single corporate card, these employees are listed in the table on the form.

Before you create corporate cards on the Corporate Cards form, the specified GL accounts, cash accounts, payment methods, and employees must be configured properly in the system, as described below.

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 Info tab (Employee Settings section) of the Employees (EP203000) form. (The Currency ID box, where the employee currency is specified, can also be found in this section of the form.)

Payment of Expense Receipts with Corporate Cards

On the Expense Receipt (EP301020) form, in the Paid With box (in the Expense Details section of the Details tab), a user can specify how the expense receipt has been paid. The following options are available:

• Personal Account: Company expenses that the employee has paid with his or her own funds and that the company needs to reimburse to the employee. This is the default option if the employee has no active corporate card assigned on the Corporate Cards tab of the Employees (EP203000) form.
• Corporate Card, Company Expense: Company expenses that are paid with a corporate card. This is the default option if the employee has an active corporate card assigned.
• Corporate Card, Personal Expense: The employee's personal expenses that are paid with a corporate card.

In the Corporate Card box, the user selects the applicable corporate card. The system may populate this box with a default corporate card as follows:

• The corporate card used in the employee's most recent expense receipt is selected if it is active and is still 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, is inactive, deleted, or no longer assigned to the employee—the system inserts the first active card the system finds for the employee. The first corporate card is the first card in the employee's card list, which is sorted alphabetically by name.

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 zero.

The Ref. Nbr. box, where a user can enter the reference number of the original receipt, must be filled in if the Require Ref. Nbr. in Expense Receipts check box in selected on the General tab of the Time and Expenses Preferences (EP101000) form.

Expense Claims for Expense Receipts Paid with Corporate Cards

On the Expense Claim (EP301000) form, an expense claim can contain all the specified employee's expense receipts that have been paid with corporate cards as long as they have the same card currency. Each expense claim line contains a link to an expense receipt. On release of the expense claim, the system creates documents as follows for the expense claim lines, depending on the value in the Paid With column for each line:

• Personal Account: A single AP bill is created on the Bills and Adjustments (AP301000) form for all the expense claim lines that have this option value and a positive amount, and a single AP debit adjustment is created on the same form for all the expense claim lines that have this value and a negative amount.
• Corporate Card, Company Expense: A cash purchase is created on the Cash Purchases (AP304000) form for each expense claim line with this value if the Post Summarized Corporate Card Company Expenses check box is cleared on the General tab of the Time and Expenses Preferences (EP101000) form. If the Post Summarized Corporate Card Company Expenses check box is selected, the system creates a separate cash purchase for each group of the expense claim lines with the same date, corporate card, and reference number.

  On release of each cash purchase, the system credits the card liability account and debits the expense account of the expense item specified in the expense receipt.

• Corporate Card, Personal Expense: A single AP debit adjustment is created on the Bills and Adjustments form for all the expense claim lines that contain this value.

  On release of this AP debit adjustment, the system credits the card liability account and debits the employee's AP account.

Matching and Reconciliation of Card Issuer Transactions

On the Import Bank Transactions (CA306500) form, an accountant can upload bank statement records for the liability cash account of a corporate card. If a bank statement record contains the corporate card number, this number is shown in the Card Number column on the form. A single bank statement may contain transactions of all the corporate cards associated with the same cash account. For more information about importing card issuer transactions, see Importing Transactions.

On the Process Bank Transactions (CA306000) form, for the liability cash account of a corporate card, the accountant can match an uploaded bank statement record to an existing payment, AP bill, or expense receipt; the accountant can also create a cash transaction if the matching transaction has not been found in the system. For details about matching bank transactions, see Processing Imported Transactions.

In the left pane of the Process Bank Transactions form, where the system shows the list of bank statement records, imported bank transactions contain the corporate card number in the Card Number column.

The system uses the available information about imported transactions for searching for matching documents and for calculating the relevance rate, which is a measure of how closely a document matches the selected transaction.

The system uses the settings in the Weights for Relevance Calculation section of the Transaction Match Settings dialog box—Ref. Nbr. Weight, Doc. Date Weight, and Doc. Payee Weight—for searching for payments and invoices as matching candidates. For more information about the matching process and the relevance calculation, see Transaction Matching Settings.

If no payment or invoice is found, the system uses certain settings in the Weights for Relevance Calculation and Expense Receipt Matching sections of the Transaction Match Settings dialog box—Ref. Nbr. Weight, Doc. Date Weight, and Amount Weight—for searching expense receipts for matching candidates.

Unlike the relevance calculation for payments and invoices, for calculating the relevance rate for expense receipts, the system includes in the calculation the amount weight instead of the payee weight, using the following formula:

AmountDistance() = NORMDIST(x, 0, DifferenceAmount, probability mass function) / NORMDIST(0, 0, DifferenceAmount, probability mass function)

x = ABS(BankTransactionAmount - ExpenseCardCurrencyAmount)

DifferenceAmount = Amount Difference Threshold (%) * BankTransactionAmount / 100

Payments and invoices are selected as matching candidates by the exact amount of a bank transaction, which is consistent with the logic of bank transaction matching for regular bank accounts. The Amount Difference Threshold (%) is not applied for the matching of payments and invoices, and is applied for the matching of expense receipts that are recorded with an expense currency that differs from the card currency. Therefore, there may be a difference between the amount of the bank transaction and the amount of the expense receipt.

The AmountDistance() formula returns a floating number that ranges in value from 0 to 1.

The system calculates the relevance rate for an expense receipt by using the following formula:

Match Relevance = DocDateWeight*DateDistance() + RefNbrWeight*RefNbrDistance() + AmountWeight*AmountDistance()

If the user selects an imported bank transaction in the left pane of the Process Bank Transactions form, in the right pane, the system shows the list of matching documents it has found. Payments are shown on the Match to Payments tab, AP documents are shown on the Match to Invoices tab; a cash transaction can be created for the card issuer transaction on the Create Payment tab. Also, expense receipts are shown on the Match to Expense Receipts tab, which is displayed on the form only for cash accounts that are used for corporate cards—that is, cash accounts for which the Use for Corporate Cards check box selected on the Cash Accounts (CA202000) form.

When a user auto-matches bank transactions, for each bank transaction, in the right pane, the system selects the Matched check box for the best candidate among all the found candidates by using the following rules:

1. The best match is the document with the highest match relevance that is greater than 0.75.
2. If multiple documents have the same highest match relevance, the system selects the first found document with the following priority: a payment, an AP document, and an expense receipt.
3. If no documents have a match relevance greater than 0.75, the best match is a document that has a match relevance is greater than or equal to 0.2.

   For example, if the match relevance of one document is 0.25 and the match relevance of another document is 0.5, the system selects the document with the match relevance of 0.5.

   If more than one document satisfies this condition, the system selects the first found document with the following priority: a payment, an AP document, and an expense receipt.

4. If only one document is found, it is the best match if its match relevance is greater than or equal to 0.2.

If none of the conditions above has been met, there is no best match for the transaction of the bank statement.

Once an expense receipt and its corresponding bank statement record have been matched and processed on the Process Bank Transactions form, they are no longer displayed on the form.

Notes on the Matching Process

The matching process has the following limitations:

• If a user matches a bank transaction to an expense receipt in a different currency with the amount within the amount difference threshold, releases the corresponding claim, and the cash transaction is posted, and then the user unmatches the bank transaction from the expense receipt, the cash transaction will not appear as a candidate for matching on the Process Bank Transactions (CA306000) form because the amounts differ.
• If a cash transaction originates from an expense claim, the cash transaction date in the system equals the expense claim date. There can be a significant delay between the date of the bank statement transaction and the date of the cash transaction in the system, which should be considered in the filter of dates in the Transaction Match Settings dialog box on the Process Bank Transactions (CA306000) form.