Expense Management Using Policies in Microsoft Dynamics AX 2012
Posted on: July 8, 2015 | By: Jarrod Kraemer | Microsoft Dynamics AX/365
Chances are that your organization has employee expenses that need to be closely managed. Whether you have employees needing to book travel expenses on a daily basis or just for the occasional business dinner, it is important to have tight control over how each employee’s expenses are submitted and approved. Microsoft Dynamics AX has powerful expense management tools to allow your employees to submit expense reports while ensuring that business rules are followed and all relevant information and documents are included. This blog will go over the setup and functionality of expense policies.
In Microsoft Dynamics AX, expense reports are entered through the Enterprise Portal, a web interface that allows the AX user to perform certain tasks in the system through a web browser. A blank expense report is pictured below.
When entering an expense report line, at the bare minimum, expense category, transaction date, payment method, and transaction amount are mandatory – users will not be able to submit the report without entering all of this information. This basic setup ensures that your organization at least gets this necessary information from the expense report. If your organization has more strict requirements and rules for expense report entry you may want to define policies that your employees must follow when entering and submitting expense reports.
Expense policies in Dynamics AX are a set of rules that an employee must adhere to before being allowed to submit an expense report. This will allow your organization manage expenses more efficiently and effectively. The system will ensure that an expense report follows all defined business rules before being pushed to the approver.
The following are a couple of examples where an expense policy may be used:
· Your company has a policy that travel meal expenses cannot exceed the amount of $25/meal.
· Your company has a policy that an expense report line exceeding $20 must include a receipt.
For the above examples, and many other situations, expense policies can be configured to give the user a warning, an error, or require a justification. If the user is given a warning the system allows the worker to submit an expense report, but the expense will be marked for all approvers and future reporting. If the user is given an error the system requires the worker to revise the expense to comply with the policy before submitting the expense report. If the entry requires justification the worker must enter a justification for exceeding the policy amount before submitting the expense report.
To set up an expense policy:
1) Navigate to: Travel and Expense > Setup > Policies > Expense Report
2) Select New > Policy
3) Enter a name and description for the policy
4) Choose what legal entities the policy will apply to
5) Expand the policy rule tab and select the type of policy rule that you would like to create, for example: Receipts Required
6) Click on Create policy rule
7) Choose an effective date and expiration date
8) Choose a condition, for example: If expense line amount is > $20
9) Choose a do the following, for example: Do not allow user to submit or approve and display error message
10) Enter an error message by clicking on the symbol just below the message box.
11) Click OK and your expense policy will be created.
Once you have your expense policies configured you can rely on the system to prevent expenses that are outside of business policies to be approved. Hopefully this will help you to get started implementing expense policies for your organization. For additional information please feel free to reach out to us at firstname.lastname@example.org or (312) 345-8817.
All the best!
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