Use of Corporate Cards in Expense Receipts

MYOB Advanced supports the use of corporate credit cards on the Expense Claim (EP301000) and Expense Receipt (EP301020) forms. This helps employees to categorize and track the expenses, including the expenses related to a project. For example, while in the field, the workers of a construction company or professional service provider can buy something that they want to charge on a project and pay for it with a corporate card. Employees can still have out-of-pocket expenses that are reimbursed through the standard process.

The corporate card functionality provides the following advantages:

• Administrative users can manage corporate cards.
• Corporate cards support foreign currencies.
• Expense receipts in a foreign currency can be paid with a corporate card.
• A single expense claim can be created for all corporate card expenses, as long as they have the same card currency.
• Bank transaction matching and reconciliation process support corporate card statements so that card statement records can be matched to expense receipts.

To start using the functionality of expense claims and expense receipts, which includes the corporate card functionality, on the Enable/Disable Features (CS100000) form, an administrative user enables the Expense Management feature.

Configuring 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. Multiple employees can use a single corporate card; these employees are listed in the table on the form.

In order to create corporate cards on the Corporate Cards form, GL accounts, cash accounts, payment methods, and employees must be configured 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.)

Paying 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 select how the expense receipt has been paid. The following options are available:

• Personal Account: The company's expenses that the employee paid with his or her own funds and the company will need to reimburse this amount to the employee. This is the default option if the employee 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 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 his or her corporate card. This box is unavailable on the form if Personal Account was selected in the Paid With box. The default corporate card, if any, is selected as follows:

• The corporate card used in the employee's most recent expense receipt is selected, if it is available. 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 not assigned to the employee—the employee's only active card or the first active card the system 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.

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 that usually matches the number of the original receipt, must be filled in if the Require Ref. Nbr. in Expense Receipts check box in selected on the General Settings tab of the Time and Expenses Preferences (EP101000) form.

Processing Expense Claims for Expense Receipts Paid with Corporate Cards

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

• Personal Account: A single AP bill is created on the Bills and Adjustments (AP301000) form for all the expense claim lines with positive amounts and a single AP debit adjustment is created on the same form for all the expense claim lines with negative amounts.
• Corporate Card, Company Expense: An AP quick check is created on the Cash Purchases (AP304000) form for each expense claim line, if the Post Summarized Corporate Card Company Expenses check box is cleared on the General Settings tab of the Time and Expenses Preferences (EP101000) form.

  If the Post Summarized Corporate Card Company Expenses check box in selected, the system creates a separate AP quick check for each group of the expense claim lines with the same date, corporate card, and reference number.

  On release of this AP quick check, 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.

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

Bank Transactions Matching and Reconciliation

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 in text format, 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 bank 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 as well as create a cash transaction if such a transaction has not 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 text format 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 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 to the logic of bank transaction matching for regular bank accounts. The Amount Difference Threshold (%) is not applied for matching of payments and invoices and applied for matching of expense receipts that are recorded with the expense currency that differs from the card currency and therefore a difference between the amount of a bank transaction and the amount of an expense receipt may take place.

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 bank transaction on the Create Payment tab. 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 equal to or greater than 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 equal to or greater than 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

There are the following limitations of the matching process:

• 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.