Module 1: EXPENSE REPORT OVERVIEW AND BASIC SETUP

Table of Contents Introduction Microsoft Dynamics Courseware Overview...0-2 Student Objectives.0-3 Module 1: EXPENSE REPORT OVERVIEW AND BASIC SETUP Lesson 1: Introduction to Travel and Expense Management... 1-2 Lesson 2: Travel and Expense Management Process Flow... 1-3 Lesson 3: Report Header Setup... 1-5 Lesson 4: Report Lines Setup... 1-8 Lab 1.1: Create an Expense Category... 1-19 Lesson 5: General Setup... 1-21 Lab 1.2: Set Up Delegates... 1-36 Lesson 6: Module Review... 1-37 Module 2: PAYMENT METHODS Lesson 1: Defining Payment Methods... 2-2 Lesson 2: Setting Up Reimbursements... 2-5 Lesson 3: Importing Credit Cards... 2-9 Lab 2.1: Credit Card Import... 2-15 Lesson 4: Credit Card Dispute Management... 2-17 Lesson 5: Module Review... 2-20 1

Travel and Expense Management in Microsoft Dynamics AX 2012 Module 3: WORKING WITH EXPENSE REPORTS Lesson 1: Optional Practices... 3-2 Lab 3.1: Creating a Travel Requisition... 3-8 Lesson 2: Create Expense Reports... 3-11 Lesson 3: Posting Expense Reports... 3-26 Lab 3.2: Create and Submit an Expense Report... 3-29 Lesson 4: Budgetary Control... 3-31 Lesson 5: Module Review... 3-34 Module 4: WORKFLOW MANAGEMENT Lesson 1: Workflow Overview... 4-2 Lesson 2: Workflow Terminology... 4-12 Lesson 3: Travel and Expense Workflow Types... 4-12 Lesson 4: Working with Travel and Expense Workflows... 4-16 Lab 4.1: Creating an Expense Report Workflow... 4-24 Lab 4.2: Submitting an Expense Reports by Using Workflow... 4-28 Lesson 5: Module Review... 4-30 2

Table of Contents Module 5: EXPENSE POLICIES Lesson 1: Travel and Expense Policies... 5-2 Lab 5.1: Create an Expense Policy... 5-12 Lesson 2: Audit Policies... 5-15 Lab 5.2: Create an Audit Policy... 5-20 Lesson 3: Project Expenses... 5-22 Lesson 4: Module Review... 5-31 Module 6: PER DIEMS Lesson 1: Set up Per Diems... 6-2 Lesson 2: Request Per Diems on an Expense Report... 6-8 Lab 6.1: Create Per Diems Rules and Enter in an Expense Report... 6-11 Lesson 3: Module Review... 6-14 Module 7: CASH ADVANCES Lesson 1: Cash Advances Process Flow... 7-3 Lesson 2: Set up Cash Advances... 7-3 Lesson 3: Create a Cash Advance Request... 7-6 Lab 7.1: Create a Cash Advance Request... 7-9 3

Travel and Expense Management in Microsoft Dynamics AX 2012 Lesson 4: Approve a Cash Advance Request... 7-10 Lesson 5: Post a Cash Advance Request... 7-11 Lesson 6: Apply a Cash Advance to a Expense Report... 7-14 Lab 7.2: Return Unused Cash Advance... 7-18 Lesson 7: Module Review... 7-19 Appendix A: PREREQUISITE FOR SAMPLE CREDIT CARD IMPORT Lesson 1: Introduction... A-1 Lesson 2: Configuring Dynamics AX 2012 for Credit Card Import... A-1 Lesson 3: Sample Code... A-2 Lesson 4: Summary... A-3 4

MODULE 1: EXPENSE REPORT OVERVIEW AND BASIC SETUP Module Overview Travel and Expense Management uses the Enterprise Portal and the Microsoft Dynamics AX client. Most administration and configuration is performed in the Microsoft Dynamics AX client while most users will access Travel and Expense Management functionality from the Enterprise Portal to enter expense reports and cash advance requests. This chapter covers the overview and basic setup of Travel and Expense Management in Microsoft Dynamics AX 2012. Objectives The objectives are: Describe the purpose and benefits of using Travel and Expense Management module in Dynamics AX 2012 Describe the workflow for creating and approving expense reports Setup basic data required to use the Travel and Expense Management module 1-1

Travel and Expense Management in Microsoft Dynamics AX 2012 Introduction to Travel and Expense Management Use Travel and Expense Management to create an integrated workflow where you can store payment method information, import credit card transactions, and track the money that employees are spending when they incur expenses for your business. You can also define expense policies and automate the reimbursement of travel expenses. Purpose and Integration In Microsoft Dynamics AX 2012, the Travel and Expense Management module with integrated workflow capabilities helps manage, track, and reimburse travel and entertainment expenses. Travel and Expense Management has a strong value proposition for organizations with discretionary spending. Travel and entertainment expenses are a significant part of a company's controllable expense. To help curb these costs, Travel Expense Management provides a mechanism to define and apply expense policies, in addition to flagging and reporting on abusers of the policies. Additionally, automating the entry and reimbursement of travel and entertainment expenses reduces processing costs versus manual entry. Travel and Expense Management has tight integration with other Microsoft Dynamics AX modules of Accounts payable, General ledger and Project accounting. 1-2

Module 1: Expense Report Overview and Basic Setup Travel and Expense Management Process Flow In this lesson, Travel and expense process flows are explained. The process flow described is an overview and details of specific processes and workflows will be discussed later in this course. Use this diagram to follow Travel and Expense process flows. FIGURE 1.1: TRAVEL AND EXPENSE PROCESS FLOW Credit Card Import Prior to creating an expense report, it is possible to for the employee to import credit card transactions from a bank statement into AX. These transactions are then available in the expense report to be classified and added to an expense report. This makes entering expense reports easier for users by reducing data entry. This is typically used where an employee has a company credit card. Note: For more information on credit card importing, refer to Appendix C of this training content. 1-3

Travel and Expense Management in Microsoft Dynamics AX 2012 Cash Advances You can use the Cash Advance Request page to request a cash advance from your employer. You might request a cash advance for several reasons, such as to pay for parking at a sales meeting or if you plan to have lunch with a customer. Value Added Tax (VAT) on purchases that are made with a cash advance is not eligible for recovery. Cash Advance Requests are entered in Enterprise Portal. Travel Requisitions Before you travel for business and incur expenses that you charge to your organization, you may be required to create and submit a travel requisition. The travel requisition contains information about the projected costs of your travel. The expense costs that you enter in a travel requisition do not have to be exact. You only have to enter an estimate of the expense costs that you may incur. Travel Requisitions are entered in Enterprise Portal. Expense Entry Flow Expense reports are entered through the Enterprise Portal. They cannot be entered through the rich client. The expense report is in a typical header and lines format. The expense report header contains basic information about the report such as the employee, the location and the date. The lines contain the detail of the expense transactions. Submit Expenses After you have entered all of the information in your expense report that is required by your organization and attached any required expense receipts, the next step is to submit the expense report for approval. Expense reports are submitted through the Enterprise Portal. Workflow Approvals The Dynamics AX workflow module routes the expense reports for approval. Approval actions can be completed in the enterprise portal or in the rich client. Specific workflow for Expense reports are addressed later in this course. 1-4

Module 1: Expense Report Overview and Basic Setup Reimbursements and Payments The approved expense report is posted through a ledger journal. This is posted by an administration person in the rich client. The employee can be associated with a vendor or ledger account. Any reimbursements, per diems or cash advances owing to the employee will automatically be allocated as a transaction on the associated vendor or ledger account. A payment journal can then be used to pay the employee. Credit Card Disputes Report Header Setup There may be times when you incur a credit card expense, and the transaction that appears on the credit card statement is incorrect. If this scenario occurs, first contact the merchant where the expense was incurred. However, if you cannot resolve the issue by contacting the merchant, you can create a credit card expense dispute. This dispute is then sent to the credit card institution. You can assign another worker as a delegate to submit a credit card expense dispute on your behalf. Adding delegates are discussed later in this course. Credit card disputes are entered in Enterprise Portal. Before entering data on an expense report in Enterprise Portal, you can setup header information that may be used on the expense report. Travel Locations Use the Travel Locations form to enter standard locations of travel. This field can be entered on the expense report header and is optional. This field is used to specify where the travel occurred. It can also be used as a condition in the workflow configuration and/or expense policy rules. To set up the travel locations, follow these steps: 1. Click Travel and expense > Setup > Optional setup > Travel locations. 2. Click New to create a new location. 3. Type an identifier in the Location field. 1-5

Travel and Expense Management in Microsoft Dynamics AX 2012 4. Type an appropriate name in the Description field. FIGURE 1.2: TRAVEL LOCATIONS FORM Dispute Reason Codes If an employee discovers an erroneous transaction on their expense report, they can file a transaction dispute. Because a transaction dispute can occur for different reasons, you can create reason codes that include information and instructions specific to a type of dispute. To create dispute reason codes, follow these steps: 1. Click Travel and expense > Setup > Disputes > Dispute reason codes. 2. Click New to create a new location. 3. Select the Credit card type and Dispute type for the code. 1-6

Module 1: Expense Report Overview and Basic Setup 4. Enter a name for the dispute code and a reason for the dispute that explains the dispute type that you selected in step 3. FIGURE 1.3: DISPUTE REASON CODES FORM Expense Purpose Use the Expense purpose form to create a standard list of expense purposes, such as trade show, conference, or training. The expense purpose is optional and can be entered on the expense header. Users can enter any description on the expense header; they are not limited to these options. Entering common purposes in this form will make data entry easier for user. This information can be used for reporting and analysis To create a expense purpose, follow these steps: 1. Click Travel and expense > Setup > Optional setup > Expense purposes. 2. Click New to create a new purpose. 1-7

Travel and Expense Management in Microsoft Dynamics AX 2012 3. Enter an Expense report name for the purpose. Report Lines Setup FIGURE 1.4: EXPENSE PURPOSES FORM Report lines setup describes the forms used to set up line items when entering information on travel and expense reports. Payment Methods Use the Payment Methods form to set up different forms of payment for travel and entertainment expenses. Users must indicate the method of payment which they used for each expense line on the report. 1-8

Module 1: Expense Report Overview and Basic Setup To open the Payment methods form click Travel and expense > Setup > Travel and expense entry > Payment methods. The Payment method form uses the following fields to define each payment method used in Travel and Expense Management. Field Payment Method and Description Expense Owner Credit Card Employee Example Offset Account Type and Offset Account Bank Account, 1103 Note: For more information on Payment method setup and accounts, refer to the Payment Methods chapter of this course. FIGURE 1.5: PAYMENT METHODS FORM 1-9

Travel and Expense Management in Microsoft Dynamics AX 2012 Expense Categories Use the Expense categories form to setup the type of expense transactions that the company would like to track. There are various standard expense types which affect what type of information can be recorded about the expense. To set up expense categories follow these steps: 1. Click Travel and expense > Setup > Travel and expense entry > Expense categories. 2. Click New to create a new expense category and then type in the Category ID. 3. Select the Use in Project check box if the expense category will be used to track expenses in the Project module. If you select this check box, the Project, Cost accounts, and Revenue accounts Fasttabs become available in this form. FIGURE 1.6: EXPENSE CATEGORIES FORM Click on one of the following Fasttabs to enter appropriate information for the expense category: 1-10

Module 1: Expense Report Overview and Basic Setup Note: For a complete list of fields associated with the Fasttabs use the Help files in Microsoft Dynamics AX 2012. Project FastTab Description View project category information. This FastTab is available only if you select the Use in Project check box. The following fields are available if the expense category is linked to a project: Select a Category Group associated with the expense. Use the Items sales Tax to select the item sales tax group for the expense category. Use the Worker to select whether the employee identification should be displayed on the expense transactions. Use the Estimate and Subscription check boxes to identify if the expense category can be used in estimates and subscriptions. Use the Active in Journals check box if this expense category is available for posting in journals. Use the Default to select the Default line property that the expense transaction is attached to. Cost accounts Revenue accounts View or select a cost price account to apply the expense category to. This FastTab is available only if you select the Use in Project check box. View or select sales price account to apply the expense category to. This FastTab is available only if you select the Use in Project check box. 1-11

Travel and Expense Management in Microsoft Dynamics AX 2012 Expense FastTab Description View or edit information about the selected expense category. Expense Type: The expense type contains a predefined list of transaction types. Each type has different fields available during data entry. For example, if the user enters an expense category which is expense type of Meals, then they may enter a list of guests. Default payment method: This is the payment method most commonly used for the expense category. It will default on the expense report to make data entry easier for the users. Main account: This is the ledger account that the expense will be posted to. When the expense report is posted through a ledger journal, the debit entry will be to this account and the credit entry will be dependent on the expense line method of payment. Sales tax group: This is a default item sales tax group for this expense category. This will default on the expense line to make data entry easier for users. Statistics group: This is used for grouping expense categories for reporting purposes 1-12

Module 1: Expense Report Overview and Basic Setup FastTab Allowed payment methods Description View the payment methods that are enabled for the selected expense category. To add new payment method, click the Add button. To remove a payment method from the expense category, highlight the payment method and click the Remove button. You can set a default payment method by selecting the Is Default check box. Subcategories Create subcategories for the selected expense category. When you add subcategories, employees are required to enter more detailed information about expense reports. Enter the name of the expense subcategory. This name should correlate with the expense category that it is attached to. For example, if the main category is Car rental, the subcategory name could be Fuel charge. Depending on how your organization uses expense categories, there are many options to further define expense categories. Use the buttons on the top of the Expense Category form to further define how the categories are used. The following table describes the available buttons. Transactions Button Description View the transactions that are related to the selected category. Note: This button is available only if the expense category is linked to a project. 1-13

Travel and Expense Management in Microsoft Dynamics AX 2012 Setup Button Description After clicking the Setup button the following submenu items are available: Note: This button is available only if the expense category is linked to a project. Workers: Maintain a list of employees who are authorized to use the category. Projects: Maintain a list of projects that are available for the category. Cost price - hour, Cost price expense: Set up a cost price for hour and expense categories. Sales price - hour, Sales price - expenses, Sales price - fee, Sales price subscription: Set up a sales price for hour, expense, fee, and subscription categories. Service subscriptions: Set up subscriptions that are attached to the selected subscription category. Line property setup: Set up a line property for the category. Note: You cannot attach a line property to a subscription category because line properties are not used for subscription transactions. Ledger posting: Set up ledger posting by category. 1-14

Module 1: Expense Report Overview and Basic Setup Function Button Description After clicking the Function button the following submenu items are available: Note: This button is available only if the expense category is linked to a project. Create subscription fee: Create subscription transactions for the selected subscription category. Index subscription: Update the index/base price for subscriptions that have the selected fee category attached to them. Accrue subscription: Accrue revenue for subscription transactions that are attached to the selected expense category. Committed costs Opens the Committed cost form. Note: This button is available only if the expense category is linked to a project. Forecast Select all rows in a forecast that include the specified category and copy or delete those rows, or transfer them to the general ledger. Note: This button is available only if you select the Use in Project check box 1-15

Travel and Expense Management in Microsoft Dynamics AX 2012 Project control Button Description View the project control forms to gather and export data to a Microsoft Excel worksheet. Note: This button is available only if the expense category is linked to a project Mileage rate tiers Opens the Mileage rate tiers form. Note: This button is available only when the selected category has a mileage expense type. Shared Categories Shared expense categories that can be used across all of the legal entities in your organization. For example, if you create a shared expense category for Meal expenses, the Meals category name and description will be used by all of your legal entities. To set up the shared categories, follow these steps: 1. Click Travel and expense > Setup > Travel and expense entry > Shared categories. 2. Click New to create a shared category. 3. Type an identifier in the Category ID field and a Category name. 4. Select the Can be used in Expense check box to allow this category to be used in Travel and Expense Management. 1-16

Module 1: Expense Report Overview and Basic Setup 5. Select an Expense type. 6. Add any Subcategories your organization may need for further clarification. FIGURE 1.7: SHARED CATEGORIES FORM 1-17

Travel and Expense Management in Microsoft Dynamics AX 2012 Merchants Merchants are specified for various expense categories. Common merchants can be setup to make data entry easier for users. Users must select from this list during expense entry if they want to indicate the merchant Use the Merchant form to create a list of merchants that workers can select from when entering line item expenses in an expense report. To create a merchant follow these steps: 1. Click Travel and expense > Setup > Optional setup > Merchants. 2. Click New and enter the name of the Merchant or organization. 3. Select the Expense type that this merchant might be associated with. 4. Select the Preferred check box if the merchant is preferred by your organization. For example, a merchant might be preferred if it is a hotel that offers a 5% discount to employees of your organization. FIGURE 1.8: MERCHANTS FORM 1-18

Module 1: Expense Report Overview and Basic Setup Lab 1.1: Create an Expense Category Scenario Contoso has decided to track Expenses for internet and phone use. To do this they have decided to create a category called Internet and Phone and will be tracked as a miscellaneous expense type with a default method of payment of Company Credit Card. These expenses should be posted to the account 601500, Travel expenses. This Expense is a shared category and can be used in Project and Expense. High Level Steps 1. Create a shared expense category called Internet and Phone and assign Miscellaneous as the expense type. 2. Select Gen Exp as the Project category for this expense category and set up this category to post to the Main account 601500. Detailed Steps 1. Create a shared expense category called Internet and Phone and assign Miscellaneous as the expense type. a. Click Travel and expense > Setup > Travel and expense entry > shared categories. b. Click New to create a new expense category and then type Internet and Phone as the Category ID and Category name. c. Select the Can be used in Project and Can be used in Expense check boxes. d. Select Miscellaneous as the Expense Type and click Close. e. Click Expense categories on the left hand navigation pane. f. Click New and then select Internet and Phone as the Category ID. 1-19

Travel and Expense Management in Microsoft Dynamics AX 2012 2. Select Gen Exp as the Project category for this expense category and set up this category to post to the Main account 601500. a. On the Project FastTab, select Gen Exp as the Project Category group. b. On the Expense FastTab, select COMPANYCC as the Default payment method. c. Type 601500 in the Main account field. 1-20

Module 1: Expense Report Overview and Basic Setup General Setup This lesson provides general setup needed to streamline processes and improve productivity when using travel and expense procedures. This includes the following: Delegates Setting up delegates Specify display field Create statistic groups Define expense policies Define general parameters Use the Delegate setup form to define one or more users who can enter, update, delete or view expense reports on another's behalf for a specified date range. The Delegate is the user who can see or enter expense reports for the Employee. To define delegates follow these steps: 1. Click Travel and expense > Setup > Travel and expense entry > Delegates. 2. Click New and then select a Worker. 3. Select a Delegate. 4. Enter the Start date for the period that the delegate will be active. 5. Enter the ending date for the period that the delegate will be active. Note: It is also possible for the employee to set up Delegates for themselves in Employee Self-Service Portal (EES). If a user accesses this from the portal, they can only enter delegates who can enter report on behalf of themselves. Note: Delegates can also enter travel requisitions and manage credit card disputes. 1-21

Travel and Expense Management in Microsoft Dynamics AX 2012 Display Fields Use the Display fields form to specify which fields should be visible on the enterprise portal. This allows you to customize the fields shown on the enterprise portal without needing to access the development environment. These changes will affect all workers entering expense reports. This is a global setting and any changes to this table will be applied to all companies running the application. All available fields on the expense report header are listed on the Header fields tab. All fields in the expandable section on the expense report lines are listed on the Transaction fields. The Visibility options are Display, Do not display or Readonly. To specify display field follow these steps: 1. Click Travel and expense > Setup > Travel and expense entry > Display fields. 2. Select the Labels you would like to edit and then select the appropriate Visibility option for that Label. 1-22

Module 1: Expense Report Overview and Basic Setup 3. Use the Copy settings button to apply the selections that you make in this form to other legal entities. FIGURE 1.9: DISPLAY FIELDS FORM 1-23

Travel and Expense Management in Microsoft Dynamics AX 2012 Statistic Groups Use the Statistics Groups form to setup expense reporting groups. The expense categories can be placed into a statistics group on the Expense categories form. These groups are used in the Statistics on cost groups report (Travel and expense > Reports > Statistics > Statistics on cost groups). To define statistic groups click Travel and expense > Setup > Statistics > Statistic groups, then click New, and enter a Statistics group name and Description. FIGURE 1.10: STATISTICS GROUP FORM Policies Organizations have different ways to exercise control over any travel and expense costs. Travel and Expense policy is usually formulated on an enterprise basis, with some provision for adaption at the legal entity level, operational unit level, or even a more granular level to accommodate various conditions. The policy violations framework allows you to setup rules that workers must follow when entering, submitting, or approving expense reports. Implementing expense policies can help manage expenses effectively. 1-24

Module 1: Expense Report Overview and Basic Setup Scenario: Expense Policy Setup April, the Accounts Payable Administrator, is responsible for setting up expense policies for Contoso. This process involves several steps: 1. Plan how the policies should be organized 2. Create expense policies 3. Create travel policies 4. Begin the travel and expense reporting process Procedure: Policies Scenario: Expense Policy Setup April, the Accounts Payable Administrator, is responsible for setting up expense policies for Contoso. This process involves several steps: 1. Plan how the policies should be organized 2. Create expense policies 3. Create travel policies 4. Begin the travel and expense reporting process Procedure: Setup Expense Policies To setup an expense policy, follow these steps: 1. Open Travel and Expense > Setup > Policies > Expense. 2. Click Policy in the New group of the Action pane. 3. Enter a Name for the policy, and optionally enter a detailed Description. 4. In the Policy organization tab, choose the Select Organization hierarchy. 5. Select the desired organization entity from the Available organizations node, and then click Add >>; the entity will move to the Selected organizations node. 6. Click Create policy rule in the Policy rules tab. 1-25

Travel and Expense Management in Microsoft Dynamics AX 2012 7. Use the Condition editor to create the rule. 8. Select an action in the Do the following field. Available options are: o Allow users to submit and approve but display a warning message o o o o Do not allow users to submit or approve and display a warning message Do not allow users to submit until they enter a justification Do not allow users to approve until they enter a justification Do not allow user to submit or approve until they enter a justification FIGURE 1.11: EXPENSE MEALS RULE DETAILS 1-26

Module 1: Expense Report Overview and Basic Setup Travel and Expense Parameters The Travel and expense parameters form is used this to set up default information, rates, and calculations for Travel and expense. To open this form click Travel and expense >Setup > Travel and expense parameters. This form is divided into the following Links: General Financial Link Description Set parameters for mileage rates, personal expenses, travel requisitions, distributions, expense policies, and project drillback. You can also configure display options. Set parameters for ledgers, ledger journals, and taxes. You can also select default parameters for encumbrances, and for travel requisitions and expense reports that are over budget. Corporate Card Per diem Fax Cover pages Set the default account for credit card disputes. You can also add links to your organization's process for handling credit card disputes and links to related information Set parameters for per diem expenses If receipts that are related to expense reports are sent by fax, enter the instructions and default information that are included on the cover pages of the faxes. 1-27

Travel and Expense Management in Microsoft Dynamics AX 2012 General Parameters To open the General parameter link click Travel and expense >Setup > Travel and expense parameters > General link. Use the following fields to define general parameters throughout the Travel and Expense module. Field Standard rate of mileage Description Enter the company standard rate paid for mileage. This is expressed in the company currency and will be applied to the number of miles entered on the expense report for Mileage type expense categories. Note: Mileage rate tiers can be set on the expense category however if a value exists in this parameter it will override the values in the rate tiers Personal expenses paid by Display entire expense report on drillback This field determines whether personal expenses are Paid by the employee or whether the company will pay the expense (Paid by company) and then post as a transaction on the employee account. If this is set to employee then when the expense report is posted and a journal is created, personal expense lines will not appear in the journal. If this is set to company then personal expenses will be posted against the employee account as an amount owing to the company. Select this check box to display a whole expense report that contains projectrelated expense lines. If this check box is cleared, only the expense lines that are related to the project document are displayed. 1-28

Module 1: Expense Report Overview and Basic Setup Field Pre-authorization of travel is mandatory Allow editing of distributions before posting Evaluate travel and expense policies Intermediate page when creating expense report Description Select this check box to require that a travel request be submitted and approved before a worker can submit an expense report. Select this check box to allow the distributions on an expense report to be changed before the expense report is posted. Select when the system evaluates expenses to determine whether an expense policy has been violated. The system can check for violations when one of following events occurs: An expense entry is entered and saved. The expense report is submitted. Select when a list of the unreconciled expenses that are assigned to a worker is displayed when the worker creates a new expense report: Always show: The page is displayed even if the worker has no unreconciled expenses. Only show when unreconciled transactions exist: The page is displayed only when unreconciled transactions are assigned to the worker. Never show: The page is never displayed. 1-29

Travel and Expense Management in Microsoft Dynamics AX 2012 Financial Parameters To open the Financial parameter link click Travel and expense >Setup > Travel and expense parameters > Financial link. Use the following fields to define financial parameters throughout the Travel and Expense module. Field Ledger daily journal name Enable tax recovery from expenses Post cash advances immediately Tax included Release encumbrances on closing travel requisitions Allow travel requisition submit on budget over run for general ledger budget and project budget Allow expense report submit on budget over run for general ledger budget and project budget Allow expense report approval on budget over run for general ledger budget only Description Enter the journal name that should be used when creating the journal to post the expense report. Select this check box to recover taxes for eligible expenses. Select this check box to immediately post an expense report to the general ledger. If this check box cleared, a journal is created but not posted. Select this check box to indicate that sales tax is included in the worker's expense amount by default. Select this check box to release encumbered funds when an approved travel requisition is closed. Select this check box to allow workers to submit travel requisitions that exceed either the allowed budget that is set in the general ledger or the allowed budget for a project. Select this check box to allow workers to submit expense reports that exceed either the allowed budget that is set in the general ledger or the allowed budget for a project. Select this check box to allow managers to approve expense reports that exceed only the allowed budget that is set in the general ledger. 1-30

Module 1: Expense Report Overview and Basic Setup Corporate Card Parameters To open the Corporate card parameter link click Travel and expense >Setup > Travel and expense parameters > Corporate card link. Use the following fields to define Corporate card parameters throughout the Travel and Expense module. Field Dispute default account Link to dispute process Link to dispute-related FAQs Description Select the default account for disputes about credit card transactions. Enter the link to information about your organization's process for handling disputes about credit card transactions. Enter the link to frequently asked questions (FAQs) or related information about disputes about credit card transactions. Per Diem Parameters To open the Per Diem parameter link click Travel and expense >Setup > Travel and expense parameters > Per Diem link. Use the following fields to define Per Diem parameters throughout the Travel and Expense module. Field Minimum hours for per diem Meal percent Hotel percent Description Enter the minimum number of hours that a worker must work in a day to be eligible to receive a per diem. Enter the default percentage of the per diem for meals that is used on the first and last days. The work day on the first and last days may be shorter than a standard work day. Therefore, the amount of the per diem on these days may differ from the standard amount. Enter the default percentage of the per diem for hotel expenses that is used on the first and last days. The work day on the first and last days may be shorter than a standard work day. Therefore, the amount of the per diem on these days may differ from the standard amount. 1-31

Travel and Expense Management in Microsoft Dynamics AX 2012 Other percent Field Meal reduction fields (breakfast, lunch, dinner) Description Enter the default percentage of the per diem for miscellaneous expenses that is used on the first and last days. The work day on the first and last days may be shorter than a standard work day. Therefore, the amount of the per diem on these days may differ from the standard amount. Enter the amount that the per diem is reduced for breakfast, lunch and dinner. For example, if a worker receives a complimentary breakfast, you may want to reduce the amount of the per diem by 10 percent. Per diem rounding Base per diem calculation on Select the type of rounding that is used for per diems. If you select normal rounding, any expense that has an amount of 0.5 is rounded up to 1.00, and any expense that has an amount that is less than 0.5 is rounded down to 0.0. Select whether a per diem is based on a calendar day or a 24-hour period. Fax Cover Pages Parameters To open the Fax cover pages parameter link click Travel and expense > Setup > Travel and expense parameters > Fax cover pages link. Use the following fields to define Fax cover pages parameters throughout the Travel and Expense module. Instructions Field Description Enter the instructions that workers must follow when they create a cover page for a fax that is used to send receipts that are related to an expense report. Click Translations to select the language that is used for the instructions. Expense report overview Select this check box to include an overview of the expense report on the cover page of the fax. 1-32

Module 1: Expense Report Overview and Basic Setup User ID Bar code Field Description Select this check box to store a worker's unique Microsoft Dynamics AX identifier in the bar code that is used on the cover page of the fax. Select the bar code that is used on the cover page of the fax. 1-33

Travel and Expense Management in Microsoft Dynamics AX 2012 Lab 1.2: Set Up Delegates Scenario Julia Funderburk, worker code 000131, will be entering expense reports on behalf of Charlie Carson, worker code 1000. Setup Julia as a delegate for Charlie Carson. High Level Steps 1. Use the Delegate form to assign Julia Funderburk as a delegate. Detailed Steps 1. Use the Delegate form to assign Julia Funderburk as a delegate. a. Click Travel and expense > Setup > Travel and expense entry > Delegates. b. Click New to create a new delegate. c. Select Charlie Carson as the Worker and click Select. d. Select Julia Funderburk as the Delegate and click Select. e. Click Close. 1-34

Module 1: Expense Report Overview and Basic Setup Module Review This lesson provides an overview of the Travel and Expense functionality and describes how setting up parameters can enhance the functionality as well speed up data entry in Enterprise Portal. Test Your Knowledge Test your knowledge with the following questions. 1. What is the purpose of the Travel and Expense functionality? Sequencing Activity 2. Put the following steps in order for an Expense policy procedure by numbering each to indicate the correct order. Steps Plan how the policies should be organized. Create travel and expense policies. Begin the travel expense reporting process. Setup travel and expense policy parameters. 3. Is it possible to enter delegates through the Employee Self-Service Portal? ( ) True ( ) False 1-35

Travel and Expense Management in Microsoft Dynamics AX 2012 4. Are reimbursements, per diems or cash advances owed to the employee automatically allocated as a transaction on the associated vendor or ledger account. ( ) True ( ) False 1-36

Module 1: Expense Report Overview and Basic Setup Test Your Knowledge Solutions Module Review and Takeaways 1. What is the purpose of the Travel and Expense functionality? MODEL ANSWER: In Microsoft Dynamics AX 2012, the Travel and Expense Management module with integrated workflow capabilities helps manage, track, and reimburse travel and entertainment expenses. Travel and Expense Management has a strong value proposition for organizations with discretionary spending. Travel and entertainment expenses are a significant part of a company's controllable expense. To help curb these costs, Travel Expense Management provides a mechanism to define and apply expense policies, in addition to flagging and reporting on abusers of the policies. Additionally, automating the entry and reimbursement of travel and entertainment expenses reduces processing costs versus manual entry. Travel and Expense Management has tight integration with other Microsoft Dynamics AX modules of Accounts payable, General ledger and Project accounting. Sequencing Activity 2. Put the following steps in order for an Expense policy procedure by numbering each to indicate the correct order. Steps 1 Plan how the policies should be organized. 3 Create travel and expense policies. 4 Begin the travel expense reporting process. 2 Setup travel and expense policy parameters. 3. Is it possible to enter delegates through the Employee Self-Service Portal? ( ) True ( ) False 1-37

Travel and Expense Management in Microsoft Dynamics AX 2012 4. Are reimbursements, per diems or cash advances owed to the employee automatically allocated as a transaction on the associated vendor or ledger account. ( ) True ( ) False 1-38

MODULE 2: PAYMENT METHODS Module Overview Travel and Expense Management allows you to use multiple payment methods when you enter expenses. You can set up different payment methods. In addition, you should know how each payment method affects the reimbursement process. Objectives The objectives are: Define offset accounts for payment methods. Define the types of payment methods. Reimburse employees through the Accounts Payable module. Import credit card transactions to an expense report. 2-1

Travel and Expense Management in Microsoft Dynamics AX 2012 Defining Payment Methods You can define different payment methods. In addition, you can set up offset accounts and define the reimbursement process of the expenses. When an employee enters data in an expense report, he or she specifies the method by which they paid for an expense. Consider the following two scenarios that describe how an organization might use payment methods for travel and expense. Scenario 1: The organization does not use corporate credit cards, per diems, or cash advances. All expenses are prepaid by the employee. The organization chooses to set up one payment method for all travel expenses. Scenario 2: The organization issues a corporate credit card to its employees for travel expenses. Employees can use the corporate credit card for personal expenses (within company policy). However, they must itemize the expenses when they create the expense report. Employees also have the option to pay out-of-pocket. The organization has a need for three payment methods: one for the out-ofpocket expenses, one for the corporate card expenses, and one for the personal expenses incurred on the corporate card. Payment Methods Setup Use the Payment Methods form to set up different forms of payment for travel and entertainment expenses. Users must indicate the method of payment that they used for each expense line on the report. To set up payment methods, perform the following steps: 1. Click Travel and expense > Setup > Travel and expense entry > Payment methods. 2. Click New to create a new payment method. 3. In Payment method, type the payment method, such as cash or credit card, and in the Description, enter a brief description of the payment method. 4. In Expense owner, enter the name of the expense owner, that is, the employee or the organization who paid for the expense. 2-2

Module 2: Payment Methods 5. Select the Offset account type, Offset account, and Offset account name for the transaction. 6. Select the Import only check box to indicate that the payment method type is used only with imported transactions. Note: The Expense owner field is used to define the person or organization whose money is used to pay for the expense, and not necessarily the same person or organization who pays the expense. Note: The Expense owner is displayed on the Expense report detail form. FIGURE 2.1: PAYMENT METHODS FORM 2-3

Travel and Expense Management in Microsoft Dynamics AX 2012 Accounts Setup When the expense report is completed, it is posted through a ledger journal. The Offset account type and Offset account fields specified for the payment method in the Payment methods form are used as the offset in the final journal posting. The following table describes the possible offset account types. Offset Account Type None Worker Ledger Bank Description If the offset type is set to None, the offset account must be manually specified in the journal before posting. This puts the responsibility on the finance team to decide which account to use for the credit side or offset account of the journal. If the offset type is set to Worker, the offset account will be the account specified on the Worker form. This is used if the worker paid for the expense and he or she needs to be reimbursed. It is also used for cash advances, mileage, and per diems. The reimbursement feature will be covered in more detail later in this course. If the offset type is set to Ledger, you must specify the ledger account that you want to use as the offset. If the offset type is set to Bank, you must specify the bank account that you want to use as the offset. This is typically used for company credit cards that are paid by the company, and not by the employee. Purpose Used if a user is required to enter the offset manually, before posting the journal. Used if a worker is to be reimbursed for the expense. This may be used if the expense is paid by company credit card. However, the account is not set up as a vendor or bank account. Used if the expenses are paid on a company credit card that is set up as a bank account. 2-4

Offset Account Type Description Module 2: Payment Methods Purpose Vendor If the offset type is set to Vendor, you must specify the vendor account that you want to use as the offset. This is typically used if a third-party such as a customer or contract employee needs to be reimbursed for expenses. It can also be used if the company credit card is set up as a vendor account. Used if the expense is to be reimbursed to a thirdparty such as a customer, contract employee, or vendor. This can also be used for company credit cards if they are to be set up as a vendor, instead of as a bank account. Note: If you are using the vendor account type for a customer, the customer must be set up as a vendor to pay them by using the accounts payable functionality. Note: The offset account type on the expense method of payment determines the credit side of the entry when the expense report is posted. Setting Up Reimbursements Part of the payment methods setup involves setting up workers for reimbursement payments. If the employee is to be paid by check, you must set up the employee with an account to pay against. Generally, the employee is set up as a vendor and an Accounts Payable check is drawn, or a direct deposit is made for the employee. Note: You can also set up the employee as a ledger account and make the payment in another format, such as through integration to payroll. 2-5

Travel and Expense Management in Microsoft Dynamics AX 2012 Note: Workers and employees are set up in the Human Resource module. There are two worker types: Contractors and Employees. Reimbursements by Using Vendor Accounts You can reimburse an employee for an expense report by using the Vendor details form in Procurement and sourcing. However, before you can reimburse an employee, you must create a vendor group for employees and a vendor record for the employee whom you want to reimburse. To set up employee reimbursements by using vendor accounts, perform the following steps: 1. Set up an employee vendor group. 2. Create a vendor account for an employee. 3. Map a vendor account to an employee. Set Up an Employee Vendor Group To set up an employee as a vendor group, perform the following steps: 1. Click Accounts payable > Setup > Vendors > Vendor groups. 2. In the Vendor group field, enter a unique identifier for the vendor group. 3. Optional: In the Description field, enter a short description of the vendor group. 4. Optional: In the Terms of payment field, select the terms of payment that apply to the employees who are assigned to the vendor group. Although this field is not mandatory, terms of payment is part of managing all vendor accounts and is strongly recommended. 5. Optional: In the Settle period field, select the standard interval between the due date for payments to the employees in the vendor group, which is defined by the Terms of payment, and the date on which the payments are drawn from your bank account. Although this field is not mandatory, it is important for liquidity calculations that are based on the cash-flow forecast. 2-6

Module 2: Payment Methods 6. Select a tax group for the employee vendor group. FIGURE 2.2: VENDOR GROUPS FORM Create a Vendor Account for an Employee To create a vendor account for an employee, perform the following steps: 1. Click Accounts payable > Common > Vendors > All vendors. 2. Click Vendor in the New group to create a new vendor record. 3. In the Record type field, select Person. 4. In the Name field, select the name of the employee. Do not enter a new name. 5. In the Group field, select the vendor group that applies to the vendor. 6. Enter values in the other fields as appropriate. 7. If you will pay the employee by using checks, you can click Setup > Address and set up an alternative address that has an address type of Remit-to. 2-7

Travel and Expense Management in Microsoft Dynamics AX 2012 Note: Use the existing Party record that was created when the Employee record was created, rather than creating a new Party record. FIGURE 2.3: VENDORS FORM Map a Vendor Account to an Employee To map a vendor account to an employee, perform the following steps: 1. Click Human resources > Common > Workers > Employees. 2. Select the employee whom you want to add to a vendor account, and then, on the Travel and Expense management tab, click Map worker to vendor. 3. In the Account type field, select a Vendor account type. In the Account field, the vendor account number that you have created for the employee will appear automatically, by default. 2-8

Module 2: Payment Methods 4. Enter a Per diem amount for the employee if your company uses per diems. This is an optional field. Importing Credit Cards Map a Ledger Account to an Employee You can also map the employee to a ledger account and make the payment in another format, such as through integration to payroll. To map the employee to a ledger account, perform the following steps: 1. Click Human resources > Common > Workers > Employees. 2. Select the employee whom you want to map to a ledger account, and then, on the Travel and Expense management tab, click Map worker to vendor. 3. In the Account type field, select the Ledger account type, and then, in the Account field, select the ledger account number to which you want to post expenses reimbursable to employees. Imported credit card transactions are displayed in a separate list for a user to add them to an expense report. This makes data entry easier and ensures that data entered in the expense report is correct. Note: Importing credit card statements is optional. You can ask your employees to manually enter expenses incurred on a corporate credit card. Statement Import Importing a credit card statement requires that the format of the file is in alignment with the schema for credit card transactions. The process of taking a credit card file from a credit card institution and putting it into the correct format requires development skills and the use of transformations. This is covered in the AIF training course. 2-9