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Occasional Member - Level 2

Personal Charges on a Corporate Credit Card

We have been using Concur for Expense Management for about 6 months and having some difficulty in handling employee personal items which are charged to a corporate card.  

We have set-up a checkbox to allow users to identify personal charges and are posting them to a clearing General Ledger account in our SAP system, however, we are not able to chargeback the employees bank account to recover the amount of the personal charge.  

The solution which was provided is to hold these personal charges until the employee eventually submits an expense report with out-of-pocket expenses.  At that time, the OOP reimbursement is reduced by the total amount of outstanding personal charges.  

Not a great solution for us as we are finding that we have personal charges outstanding for a long period of time. 

Anybody found a great solution for this in Concur?

2 Solutions

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Solution
Occasional Member - Level 2

Re: Personal Charges on a Corporate Credit Card

We have a weekly report of Personal Charges set up to be sent to our Payroll team. They then manually take the amount out of the employee's next pay.

Robbin

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Occasional Member - Level 2

Re: Personal Charges on a Corporate Credit Card

Hello,

 

We have a company billed, company paid credit card. We created another checkbox next to Personal expense which says "Allow for Payroll Deduction" and we have some audit rules built around it. If the employee marks it as "Personal" and Opts in for Payroll Deduction, we send the list every 2 weeks to our payroll department to deduct the employees. For the ones who did not opt in, we have to manually follow up with them and tell them to send us a check or confirm if we can payroll deduct.

 

Thanks,


Adam

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6 Replies
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SAP Concur Employee
SAP Concur Employee

Re: Personal Charges on a Corporate Credit Card

@kgroschopp the solution mentioned is really one of the only options you have. However, I can offer what I've seen some of our customers do. 

First, you can create an audit rule that flags any expense marked as personal that was paid for on the corporate card. The rule can remind the user that they need to submit payment to the company for the amount of the personal expenses. 

Second, if you find you have employees that are repeat offenders or have outstanding personal charges you can let them know that if the behavior persists, their card will be shut off until they have "paid up" and no longer owe the company money. 

Third, if they user doesn't catch up on the amount owed to the company, suspend their card. This will force them to use their personal credit card while their corp card is suspended, which a lot of people don't want to do. 

 

Now, for the second and third things I mentioned, you do need to discuss this internally and write up an official company policy. If you don't have anything written up as official, you cannot really enforce it. 

 

Oh, I almost forgot. One other solution I've seen companies do is setup their corporate credit card as Individual Billed, Company Paid. What this does is makes it so the user's credit card account is tied to their name and that they do not receive reimbursement for expenses until they submit their expense reports. This also means if they have any personal charges on their corporate card, they are responsible to make payment and the outstanding balance on their corporate card is tied to them. 

 

From your description, it sounds like your company is receiving the total bill/statement from the credit card issuer and sending a lump sum payment to the card issuer to settle up all the accounts. This is what we call a Company Billed/Company Paid credit card. 

 

Anyway, these are some things I've seen done at other companies. I hope it helps. 


Thanks,
Kevin Dorsey
SAP Concur Sr. Training Consultant

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Routine Member - Level 2

Re: Personal Charges on a Corporate Credit Card

"One other solution I've seen companies do is setup their corporate credit card as Individual Billed, Company Paid"

 

We chose this solution and implemented it. Our employees are responsible for paying the credit card company for their personal expenses, and any late fees associated with paying on time. Generally, it works quite well for us, but is not suitable for all of our groups so we have some special circumstances as well.

Jessica Lynch
Associate Accountant & Travel Manager
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Solution
Occasional Member - Level 2

Re: Personal Charges on a Corporate Credit Card

We have a weekly report of Personal Charges set up to be sent to our Payroll team. They then manually take the amount out of the employee's next pay.

Robbin

View solution in original post

Highlighted
Solution
Occasional Member - Level 2

Re: Personal Charges on a Corporate Credit Card

Hello,

 

We have a company billed, company paid credit card. We created another checkbox next to Personal expense which says "Allow for Payroll Deduction" and we have some audit rules built around it. If the employee marks it as "Personal" and Opts in for Payroll Deduction, we send the list every 2 weeks to our payroll department to deduct the employees. For the ones who did not opt in, we have to manually follow up with them and tell them to send us a check or confirm if we can payroll deduct.

 

Thanks,


Adam

View solution in original post

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Occasional Member - Level 2

Re: Personal Charges on a Corporate Credit Card

I believe that the idea of a payroll deduction approval may have been mentioned earlier as well - - This seems like a great way to avoid any ensure that the employee acknowledges the deduction from their bank account through a payroll deduction.

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Occasional Member - Level 2

Re: Personal Charges on a Corporate Credit Card

I wanted to get an update on this thread for any companies that are looking to solve the same issue.  

We are going to go with the direction to handle these reimbursements as a payroll deduction, but have decided to use a different option for the 'Authorization' that is required by the employee.

We worked with Concur to add a check-box on the user profile expense settings which will authorize our company to use the payroll deduction for any personal charges that hit the corporate card.  By putting this on the user-profile, we can avoid the additional step of requiring the user to check the box on each individual report-line that contains personal charges. 

Concur also added an audit rule that will warn users that have Personal Charges on a report and have not yet made the setting on their profile - The warning instructs users to remit reimbursement to the accounting team, since they have not authorized the payroll deduction.

Overall, a bit disappointing that Concur is not able to debit employees bank accts directly for these types of charges, but this solution is at least workable, without creating much additional work for payroll and accounting.  

Thanks for all the great feedback, and kudos to the Concur admin team for amazing turnaround time on this enhancement request for our company!