Hi Fellow ByD-ers.
Many customers and partners ask me for a process to allow employees to use the standard Travel and Expense Management process when using a company-funded credit card.
I have a process that I designed when I was using ByD as a customer!
There are some Data Prerequisites.
- Employee is and Employee within the ByDesign Organisation.
- Expense arrangement for employee is active with appropriate expense/receipt types is set up and functional.
- Credit Card is issued to employee for their EXCLUSIVE use. (not shared credit cards!)
- A bank account is created inside ByDesign for each employee’s credit card
- Expenses are reimbursed monthly to the employee.
Once this data is set up, this it the process that should be followed.
- Employee reports all of their out-of-pocket expenses incurred into an Employee Expense report – whether paid by employee or by using their company issued credit card. The employee can do weekly or monthly expense reports.
- At receipt of the company credit card bank statement an outgoing payment is made from the Credit Card Bank account in ByD to the employee payables account.
- This will leave a balance in the employee’s payable account which is then cleared by a cash payment to the employee.
- The credit card is paid by transfer from the main company account to the credit card account which then clears the credit card to zero for the next month.
Let’s see this in ByDesign
- Create a Credit Card account in ByDesign for the employee’s card.Ensure the overdraftlimit is set as the credit card limit.
- Mark Davies (Sales01p) reports all of his March 2020 expenses into a report and submits it as normal. This report has all the expenses, both CC and other payment method.
- When the finance team are in receipt of the credit card statement, they transfer the outstanding amount from the credit card account in ByD to the employee’s payable account.
- Here is Mark’s payable accountWe take this month’s credit card bill (amount £174.99) and transfer it to the payable accountThis leaves a balance outstanding on the employee’s payable account to be reimbursed in the normal way.The credit card bill is then settled by a transfer from the main account to credit card account, so that it nets to zero for the next month, the payment is visible in the main account for audit purposes.
Of course this can be extended by asking the employee to create 2 reports, one for personal reimbursement and one for CC based travel expenses. Knowing employees as i do though, they may struggle to create ONE report!
Hope this helps and provides some inspiration on how this can be supported in ByDesign.