Reimburse employee expenses using AP bills overview

You can reimburse employee expenses through Accounts Payable (AP). When an expense report is approved, Sage Intacct generates an AP bill that you can pay using your existing AP payment process.

The following workflow explains how to reimburse employee expenses using AP bills:

  1. Enable Reimburse employee expenses using AP bills

  2. Select an employee liability account for expense reimbursements

  3. Associate a vendor with an employee

  4. Submit an employee expense report

  5. Approve an expense report

  6. Pay an AP bill

Employee expense liability account

After you enable Reimburse employee expenses using AP pay bills, ensure that the correct employee expense liability account is selected. When an employee submits an expense report, Sage Intacct credits the employee expense liability account and debits the expense account. Verify that the employee expense liability account selected on Configure Expenses is used on generated AP bills.

For more information, go to Select an employee liability account for expense reimbursements.

Vendors

Before employees submit expense reports, ensure that a vendor is associated with each employee record so that approved expense reports create AP bills.

The following applies when vendors are associated with employees:

  • Banking and identity information is maintained on the employee record.

  • If you update an employee record, Intacct also updates the vendor record.

  • The vendor must not be associated with another employee or customer.

  • After an AP bill is generated, you cannot change the vendor associated with the employee.

For more information, go to View the Vendors list.

Expense reports

Expense reports can include unlimited line items, each of which can specify different expense types, departments, and locations. Employees can add notes in addition to the mandatory data, such as expense type and cost. They can also add attachments to their expense reports.

For more information, go to Create expense reports.

Approve or decline expense reports

Managers assigned the appropriate permissions can approve or decline employee expense reports. When an expense report is approved, Intacct generates an AP bill for employee reimbursement. If an expense report is declined, you or the employee can correct and resubmit it for approval.

For more information, go to Approve expense reports.

Bills

Pay AP bills to reimburse employee expenses. After a bill is paid, the status of the expense report changes to Paid. You can edit an AP bill, but updates are limited because the bill is generated from an expense report. Do not reverse an AP bill to correct an employee reimbursement. Reversing the bill does not reverse the associated expense report.

For more information, go to Pay bills.

VAT lines

When approved expense reports include VAT lines, the VAT details appear on generated AP bills. The VAT lines remain non-taxable on the AP bill to prevent duplicate tax calculations.

For more information, go to View bills.

Expense ledger report

Run the Expense ledger report to track and reconcile employee expense balances. The report displays reimbursement and payment information based on AP transactions created from approved expense reports. Use the report to monitor outstanding balances and verify that employee reimbursements have been paid.

For more information, go to Expense ledger report.