Audience: AdminsPurpose
Expense Category - This is selected within the creation of an expense line to document what category of expense was incurred. When mapped, this selection will automate the Account/PL/Nominal Code assignment.
As an example, selecting the expense category "Accommodation" would automate the assignment of the Hotel/Travel account code from your finance tool.
In this article, we will cover the two part process of managing default expense categories (settings and automation rules) and how to create new expense categories. We will also walk through confirming the field default automation rule is set, which is essential to ensure that the expense category selection automates selection of the account code and other applicable field values.
Overview
Manage expense category settings
Manage expense category automation rules
Confirm field default automation rules
Manage expense category settings
Once you have loaded your Chart of Accounts field (via integrated or manual load), you are now ready to map expense categories to those field values. The first step is to manage the primary expense category settings. This step is important if you wish to activate/deactivate, rename or recategorize the default expense categories. If you desire to rename an expense, please ensure that you use a name that closely aligns with the original name. If you don't see a default expense category that aligns with your needs, you can create a new one - see Create new expense categories.
If you don't need to make any changes, see Manage expense category automation rules for next steps.
Step 1: Click on Settings
Step 2: Click on Expense
Step 3: Click on Expense categories
Step 4: You will find a library of defaulted expense categories that are popular for most accounting setups.
You will manage category settings by clicking the Edit (pencil icon) to the far right of the desired expense category name.
This will open the expense category settings window.
Step 5: When you are done managing the expense category setting, click Confirm
Tip: To avoid confusion, be sure to deactivate any expense categories you are not using.
Manage expense category automation rules
Once your category settings are confirmed, you are ready to manage the expense category automation rules, which will allow you to map each category to expense field values.
While most categories don't have a recipient group set by default, categories like Group meals, Drinks (alcoholic), and Entertainment will, by default, include options to set coding for a singular category based on defaulted recipient groups.
Step 1: Click on Edit automation rules (pencil icon) to the far right of the recipient group line to Edit automation rules
Step 2: Within the expense automation rule window, you will have the option to complete the following:
- Select the recipient group that it is applicable (optional).
- Set the default tax code
- Assign default coding field(s)
- This is where you will find your loaded chart of accounts and default the appropriate account/PL/nominal code to align with your financial tool.
- Additional default field coding can be applied as applicable (i.e. you can assign a certain cost center or department as the default for this expense category. It can be changed by the submitting user, as necessary).
Step 3: When you are done managing the expense automation rules, click Confirm
As necessary, you can add a new automation rule to accommodate the needs of a different recipient group.
Create new expense categories
If you find that the default expense categories don't completely align with your needs, then you can create a new custom expense category (maximum of 50 custom categories permitted).
Step 1: Click on Create expense category
Step 2: Group category will be set as Custom and activated by default. Set the expense category name and click Confirm.
Step 3: Now that the new expense category is saved, you can manage the automation rule by clicking Add automation rule. See Manage expense category automation rules for details.
Confirm field default automation rules
After mapping your expense categories, you can ensure that this mapping is defaulted when an expense category is selected in a spend submission by revisiting your Chart of Accounts/Account Code field
Step 1: Click on Settings
Step 2: Click on Expense
Step 3: Click on Edit default automation rules
Step 4: Then select Expense category as a default coding source.
Step 5: Click on Confirm to save this change
Next Steps:
Setting Mileage Rates (optional)
Setting Spend Policy (optional)
Connecting Corporate Cards (if applicable)