Initial Exercises—Expense Administration 1

Initial Exercises

Purpose: The purpose of these initial exercises is to introduce you to the basic functionality in Expense Administration, which entails:

IMPORTANT !
These Initial Exercises are intended for instructor use.

 

If you are a student, it is extremely important that you set up and work within your own company to maintain your data integrity. If you work within any other company, you will compromise your own exercise data as well as the data of other students.  Predictable exercise results require that your data be isolated in your own company. 

Request Advances

Purpose: Imagine that you are going on a business trip and need an advance payment before you travel. Therefore the purpose of this exercise is to show you how to register a request for an advance payment and authorize it.

Windows:
Acknowledge Payments

Steps: To complete this exercise, perform the following steps.

  1. Create a request for travel advances by entering a new row for your employee number (F5).
  2. Select USD from the List of Values for the Currency Code field, and enter 125 in the Currency Amount field.
  3. Select CASH from the List of Values for the Method Id field. Save your changes.
  4. Check the Emp Payment Status field. It should be Requested.
  5. Select the request you just entered and authorize it by right-clicking and then clicking Authorize Payment.
  6. Check the Emp Payment Status field again. Now it should be Authorized.

Employee Payment

Purpose: The purpose of this exercise is to show you how to pay the authorized advance.

Windows:
Acknowledge Payments
Voucher Analysis

  1. Select the advance request you just entered in the Acknowledge Payments window.
  2. Right-click and then click Payment in Cash. If necessary, update the values displayed as follows:
  3. User Group field should be AC.
  4. Voucher Type field should be S.
  5. Payment Method field should be CASH.
  6. Payment Date field should be today’s date.
  7. Click OK to pay the authorized advance and create a voucher. Make a note of the voucher number displayed.
  8. Check the value in the Emp Payment Status field. The value should be Paid.
  9. Query for your voucher in the Voucher Analysis window. Is the voucher correct?

    Register Travel Expense

    Purpose: The purpose of this exercise is to familiarize you with the basic functionality of Travel Expense and to show you how to connect an advance payment to your expense sheet.

    Windows:
    Expense Sheet

    Register Travel Expense

    1. Populate the window (F2). Do you or your employees have any expense sheets?
    2. Imagine you went to meet a customer on a two day domestic trip. Create a new entry to enter your travel details (F5).
      1. Enter the same employee number that you used in the previous two exercises (i.e. Request Advances and Employee Payment) in the Emp No field, in the header portion of the window.
      2. Enter the purpose of the travel, e.g., Customer Meeting, in the Purpose field.
      3. Enter the travel start date and time. Enter 07:30 in the Start Time field and a suitable date in the Start Date field.
      4. Enter the travel end date and time. The travel should end two days after it started at 21:30.
      5. Enter the name of the city you traveled to in the Expense Information field.
      6. If you want the expense to be forwarded to a project, enter a project activity in the Project Activity field in the header.
    3. Save your changes (F12).
    4. Check the value in the Status field. The status of the expense sheet should be Preliminary.
    5. If Travel Allowance is installed, the program automatically calculates the allowance and displays it in the Gross and Balance Amounts fields in the header portion of the window. Click the Compensations tab and look at the calculated compensation. Does it look correct?
    6. Click the Expenses tab, and create a new row (F5).
      1. On your trip to visit the customer, you spent one or more nights at a hotel. Choose the expense code for hotel.
      2. Enter the hotel cost in the Gross Amount field. This is the total amount that you paid.
      3. The program calculates the VAT (sales tax) amount automatically and displays it in the Tax Amount field. Accept this amount, or enter a different one. The amount you enter should match the VAT amount that is included on the hotel bill.
    7. Save your changes (F12).
    8. Click the Mileage tab, and create a new row (F5).
      1. Assume that you drove your car to the customer meeting, and you want compensation for it. Choose the appropriate expense code for mileage. Enter the number of miles driven in the Quantity field.
    9. Save your changes (F12).
    10. Click the Entertainment tab and then click the Guest Details sub tab.
      1. On your trip to visit the customer you took him/her out for dinner. Create a new guest list (F5).
      2. Enter a suitable value in the Guest List Id field.
      3. Create a new row in the table below the Guest List Id field to enter the name of  your customer and the organization he/she belongs to (F5).
      4. Enter the name of  your customer and the organization he/she belongs to in the Guest Name and Organization field.
      5. Save your changes (F12).
      6. The program displays 1 in the Number of Guests field because you have entered the name of your customer.
      7. Now click the Entertainment Expense sub tab and create a new row (F5).
      8. Enter a date within your entered travel dates in the Expense Date field.
      9. Select the expense code for meal from the List of Values for the Expense Code field.
      10. Enter an expense description, e.g., Business Dinner, in the Expense Reference field.
      11. Select the expense category for dinner from the List of Values for the Expense Category field.
      12. The program automatically populates the Guests Total and Guest List Id fields with the information you provided when creating the guest list.
      13. Enter 150 in the Gross Amount field.
    11. Save your changes (F12).
    12. The program recalculates the values in the Gross and Balance amount fields in the header section of the window. Are these amounts correct?

    Connect Advance Payment to Expense Sheet

    1. Click the Payments tab. Usually this tab will be empty, but as we have created an advance the program displays it in the lower part of the window. The value in the Emp Payment Status field is Paid.
      1. Select the displayed advance, right-click and then click Connect to Expense Sheet.
      2. Enter 125 in the Connect Amount field displayed in the dialog box and click OK. The program connects the advance to your expense sheet.
    2. The program displays the connected advance amount in the Advance field in the header portion of the window and adjusts the Balance field accordingly.
    3. Verify that the amounts are correct. Right-click the main expense sheet window and then click Confirm to confirm the entered expenses.
    4. Check the status of the expense sheet. The status should be Confirmed.

    Authorize Travel Expense

    Purpose: The purpose of this exercise is to familiarize you with the authorization process of an expense sheet.

    Windows:
    Expense Sheet
    Voucher Analysis
    Project Transactions
    Expense Sheets

    Approve Travel Expense

    1. Use the same expense sheet as above. Right-click the main expense sheet window and then click Approve.
    2. The status of the expense sheet should be Approved.
    3. Right-click the main expense sheet window again and then click Create Posting. Click the Postings tab for a preview of the postings that will be created when authorization is made.
    4. Try to change the amount of the expense that you entered in the previous exercise and save your changes. What happens?
    5. Right-click the main expense sheet window and then click Remove Approval. The status changes back to Confirmed. Make some changes to the expense amounts. Save your changes (F12).
    6. Check the status. The status has now changed back to Preliminary.
    7. Right-click the main expense sheet window and then click Confirm.
    8. Right-click the main expense sheet window again and click Approve.

    Note: An expense sheet does not have to be approved in order for it to be authorized. So this step can be actually left out in the authorization process.

    Authorize Travel Expense

    1. Use the same expense sheet as above. Authorize the expense by right-clicking and then clicking Authorize.
    2. Check the status of the expense sheet. The status should be Authorized.
    3. Click the General tab to find the voucher number. 
    4. Open the Voucher Analysis window and query for your voucher. You can view your voucher details if you select the voucher, right-click, and then click Voucher Details.
    5. If you connected your expense to a project activity, you can open the Project Transactions window and verify that your expense has been correctly transferred to the project.
    6. Open the Expense Sheets window. Select any other expense sheets that you may have created, right-click and then click Authorize to authorize them. Be sure to check the status of the expense sheets. The expense sheets must be confirmed before they can be authorized.

    Note: An authorized expense sheet cannot be modified or deleted.

    Payment in Full

    Purpose: After the expense sheet has been authorized, you should be compensated for expenses not covered by the advance payment. Therefore this exercise shows you how to obtain full payment for your expenses.
     

    1. Open the Payments in Full dialog box. If necessary, update the values displayed as follows:
    2. Payment Method field should be BANK
    3. Company ID field should be the company in which you are working.
    4. Until Date field (This field is used to exclude the payment of expenses registered after a specified date.) should be today's date.
    5. Voucher Date field should be today’s date.
    6. User Group field should be AC.
    7. Voucher Type field should be S.
    8. Click OK.
    9. A voucher is created for your travel expenses. Note the number of the created voucher.
    10. Query for your voucher in the Voucher Analysis window. Is the voucher correct?
    11. Return to the Expense Sheet window and reload the same expense sheet as above.
    12. Look at the Balance field in the header portion of the window. It should be 0.0.
    13. Click the Payments tab. The program creates a new row with the balance amount paid to you. The Emp Payment Status field of this row should be Authorized and the Emp Payment Type field should be Payment in Full.