Sunday, October 30, 2016

Walkthrough: Travel & Expenses Cash Advances


This post illustrate how employees can request cash advances and how AX automatically apply the cash advances to an expense report.
this functionality give the employees the ability to request Cash Advances to cover business expenses.
For example business trip Ticket, meals on a business trip,Taxi, Meal,Car rental etc..

in order to use the cash advances functionality we need to setup the following main pre-requisites:

Cash Advance Account
Payment Methods
Expense Categories
Expense report Workflow,
Cash Advance Workflow




To setup and process Cash Advance request please follow the steps:

1- Go to Human resource -> Common -> Employee -> Create new employee


2- Go to General ledger -> Common -> main account -> create account payable for employees.


3-  Create new account for Cash Advance


4- create new account for the expense in my case car rental expenses.


5- Go to Accounts payable -> Setup -> Vendor -> Vendor Group -> Create new vendor groups for the employees i my example group 90


6- Go to Accounts payable -> Setup -> vendor posting profile -> add the employee group to the default posting profile and map the account payable - Employees account that we create in step 2 to the summary field.


7-Go to Accounts payable -> Common-> Vendor -> All vendors -> Create new vendor account for the employee select person in the type fill the name 
and make sure to select the employee group which created in step 5.


8- Go back to HR module select the employee which created in step 1 -> Expense management Tab -> Select vendor -> and select the employee account in the account filed.


9- Go to organisation administration -> Common -> number sequence - > Create new number sequence  for cash advance request as illustrated in the following screenshot.

10- Create new number sequence for the cash advance Voucher as illustrated in the following screenshot.

11- Create new number sequence for Expense report number as illustrated in the following screenshot.

12- Create new number sequence for Expense report Voucher as illustrated in the following screenshot.

13- Go to General ledger -> setup -> Journal Name -> Crete new journal for Cash Advances as illustrated in the following screenshot.

14- Go to Travel and Expense -> setup -> Expense and travel parameters -> General tab -> set the display options to never show.

15- Go to financial tab -> select the cash advance journal and unchecked the "post cash advances immediately" if you wish to check the voucher before posting.

16- Go to Travel and Expense -> setup -> Cash advance account -> Cash advance account -> select the currency and chose the cash advance account (step 3)

17- Go to Travel and Expense -> setup -> Travel and expense entry -> Payment Methods -> create cash advance method. Make sure to select Worker in the offset account type.

18- Go to Travel and Expense -> setup -> Travel and expense entry -> shared category -> Create new shared category as illustrated in the following screenshot.

19- Go to Travel and Expense -> setup -> Travel and expense entry -> Expense category -> Create new shared category as illustrated in the following screenshot.

20- Go to Travel and Expense -> setup -> Travel and Expense workflow -> Create workflow for cash advance request.(for the sake of this demo i set up the workflow to be automatically approved)

21- Go to Travel and Expense -> setup -> Travel and Expense workflow -> Create workflow for Expense report.

22- open the worker portal -> select Cash Advance request -> Create new cash advance request.

23- fill cash advance request details then click save and close

24- note that the "paid date" and the "balance" is empty, Submit the request to the workflow .

25. Go to Travel and Expense -> Common -> Cash advances -> Confirm Cash Advances -> select the request then click "Pay and Transfer"

26. Check the posting details then click OK.

27- new journal created

28- to check the voucher go to the GL -> journal -> general journal -> select the cash advance journal -> Lines.

29. The system automatically debit the cash advances and credit the employee account. When the cash advance is applied to an expense report, the cash advance account
will be credited to reduce the amount outstanding.

30- Any cash advances to the employee will automatically be allocated as a transaction in the associated vendor account. A payment journal can then be used to pay
the employee. in my case i prefer to change the employee account and select the bank directly.


31- Go back to the employee portal note that note that the "paid date" and the "balance" was populated.

32- in employee worker go to Expense report -> Create new expense report

33- select the expense category.

34- fill the expense line.make sure to select payment method that have worker in the offset account (step 17)

35- submit to the workflow.

36- Go to Travel and Expense -> Common -> Expense reports -> expense report in review -> select the expense report

37- approve the Expense report

38- the system automatically create the expense voucher.

39- copy the voucher number the go to the GL -> inquiries -> Voucher transactions -> past the voucher number and click ok.

40- Note that the system automatically credit the cash advances account.

41- Go back to the worker portal and check the request balance. note that the balance was reduced.

42- now lets go back to the expense report and create new expenses that cost more than the reaming advance balance.

43- submit to the workflow

44- Go to Travel and Expense -> Common -> Expense reports -> expense report in review -> select the expense report

45- approve the Expense report.

46- copy the voucher number the go to the GL -> inquiries -> Voucher transactions -> past the voucher number and click ok.

47- Note that the system automatically calculates the balance. If the cash advance is less than the expense the employee is reimbursed for the balance.

48-  Go back to the worker portal and check the request balance. note that the balance was reduced to zero.

49- go to the employee account in the vendor list and click transactions.

50- note that new invoice was registered to cover the expense was paid by employee own money.


that's all for today  :)