Expense Management Module Configuration - Part 1

Hello Everyone, Welcome to another series of Module learning of the D365 Functional area. In this series, we will cover the basic setups as well as the general process of the expense management module.

Let's start this.

Introduction

Expense Management allows you to store various types of information, such as payment methods, travel requisitions, expense reports, and policies. When planning to configure Expense Management, there are important considerations and decisions to be made. These decisions often depend on your organization's hierarchy and financial structure, so it's essential to refer to planning documents related to these areas.

In essence, before setting up Expense Management, take the time to think about how your organization is structured and how finances are managed. This information will guide your decisions and ensure that Expense Management is configured in a way that aligns with your organization's specific needs and processes.

1- Expense Categories

• The first step is to create Expense categories.
• To do this, Navigate to Expense Management > Setup > General > Expense categories.

• Here, we will enter the Category ID, and Category Name.

• Under the usage tab, we will enable the Use in Project toggle if we want to use this category in the project management module.

• Under the Expense tab, Select the Expense type, Default payment method, and Main Account

• We will enable the toggle itemization mandatory if we want it in a detail way.
• Also, if we want to inactive the category, we can enable the toggle of Inactive.

2- Policies

• Expense policy is the next step that needs to be set up. In this blog, we are covering expense reports so we will setup an expense report policy.
• Navigate to Expense management > Setup > Policies > Expense report.

• Here, Click on New, Enter Policy Name and Policy Description

• Then under the policy organization tab, select the organization in which this policy is going to be effective.

• Then under the policy rules tab, Select the policy rule type and enter the values
• Here, we will enter the Effective Date, and legal entity from which values are to be fetched.

• We will enter the conditions as per the organization's policy.
• Then we will select the actions against which we need to bring the error message on step
• Then a message will be entered which needs to appear at the time of error.

3- Method of Payments

• After this, we will create Payment methods.
• To do this, Navigate to Expense Management > Setup > General > Payment Methods
• Here, Enter Payment method ID, Description, Expense Owner

4- Purpose of Expense Report

• This is one of the optional setups in the expense management module
• To do this, Expense management > Setup > Optional setup > Purpose of expense report
• Here, we will create the purpose of the expense report.

5- Workflow for Expense Report

• A workflow is created to perform the Cash advance process.
• Expense management workflows are created on Expense management > Setup > General > Expense management workflows.
• Here we have created a workflow for cash advance request flow.

6- Employee Mapping with Vendor and User

• After this, we will map the Employee with the vendor, and it will be connected to the user as well.
• The user and employee links are created when an employee is connected to the User ID.

• Then, the employee relates to the vendor on the employee form.

7- Parameters

• For this series, we are going to set up some parameters as we progress.
• In the expense management parameter, under the general tab, we will select personal expenses paid by as “Paid by the employee” since in our case expenses are incurred and paid by the employee.

• Then under the financial tab, we will select the default Ledger daily journal name for the postings and mark the Tax included check as “Yes”.

That's all for the day.

If you have any feedback feel free to share

Regards

Ammad Jawed

D365 Finance Functional Consultant

Contact # +92 3352278881

Email # ammad.jawed95@gmail.com