Employee Advances Tracking in Expense Reports

[Padmanaban]

The objective of the blog post is to explain the process of Employee advance handling through the Travel and Expenses Management process in SAP Business ByDesign.

As per the standard process, we can post the Employee advance as an “On account payment” in the employee account and then we will submit our actual expenses through the Expense report. Manual clearing is required to clear the “On account payment” and Expense report. In this process, there is no link between Employee advance and Expense reports.

This blog explains how to track Employee advances through the Expense report process in SAP Business ByDesign. We will use the Employee advance and actual Expenses in the same Expense report. This process will eliminate the manual clearing step as well. This article will also help in the reports, where we can see the Advance amount and Actual expenses amount in the same expenses report.

 

Prerequisites

• You have already included Travel & Expense Reimbursement in your solution scope.

 

Process:

1. Configure Employee Advances Expenses Type


2. Extension Field Creation


3. Employee Advance Creation


4. Actual Expenses Submission


5. Report Creation and Analysis

 

 1. Configure Employee Advances Expenses Type

You have to create the new Employee Advances Expense type which is linked with Employee Advance Other assets GL account and Account determination group (ADG).

Configure Employee Advances Expenses Type

Configure Employee Advances Expenses Type and ADG

 

2. Extension Field Creation

Create the Employee Advances Extension field by using the Adaptation mode and then extends to reports by using further usage.

Extension Field Creation

 

3. Employee Advance Creation

First, we need to create the Employee advance amount of 1000 USD in the expense report. Select the Employee Advances expense type so our posting will go to the correct Employee advances GL account. You should enter the same Advances amount in the Extension field which we created to track the amount of the advance.

Employee Advance Creation

 

Employee Advance Submission

 

We can see this posted amount in the Employee account. Now we can process the payment against the employee advances expense amount.

Employee Account Monitor

 

4. Actual Expenses Submission

Now, we need to submit our actual expenses amount through the same expense report we posted already. Open the expense report and change the relevant expense type and actual expense amount. Make sure that the Advance amount is maintained in the expense report and submit the expense reimbursement. The moment we post the expense report with the actual amount and the system will change our actual expense amount.

Actual Expenses Submission

 

Actual Expenses Amount

In our example – The initial Employee Advance amount is 1000 USD.

Actual expenses amount = 750 USD

The Employee’s excess amount (We need to receive the amount from the employee) = 250 USD

The moment we post the actual expense amount the difference amount will be posted as the receivable amount in the employee account.

Employee Account

 

The visibility to track the Advance amount of 1000 USD, Actual Expenses Amount of 750 USD and the remaining Receivable Amount of 250 USD is not possible in the standard report.

 

5. Report Creation and Analysis

We have to create the Custom report and Receivable amount calculative Key figure in the Business analytics. Once the report is created we can see the following report, which has all the details like Advance, Expenses and Receivable amounts in a single report.

Report Creation and Checking

Benefits

We post the Employee advance and Actual Expenses in the same Expense report. This process eliminated the manual clearing step. The report will show all the details like the Advance amount, Actual expenses amount and Receivables/Payables amount in the same expenses report.

 

I hope it would be helpful for those who want to understand the Employee advance and Expense report process in SAP Business ByDesign.

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Regards,

Padmanaban M