Concur Expense - Personal Charges on Credit Card Expense Reports

[kmorchid]

Hello,

our company has CBCP as payment type. We have a clearing account where personal charges on credit card reports are sent, I know we can't remove the clearing since we have CBCP as payment type. Yet, I wonder what is the back-end configuration that makes a charge marked as personal in an American Express expense report is extracted in both Cash and Corporate card Extracts. The reason behind my question is that accounting team do not want personal charges on credit card reports to end up on the clearing account because they want to start deducting personal charges from employees' payroll. Also, they don't want those personal charges to be offset against employees' cash expense reports.

Thank you in advance,

[KevinD · Accepted solution]

@kmorchid I can speak to the offset portion of your post. There are two settings for your payment type that you choose; 1. Offsets applied and 2. Offsets not applied. If you choose the Offsets not applied, then the personal charges will not be offset from any out of pocket expenses. 

Here is some other information I found:

In a reimbursement offset, the system offsets (reduces) employee reimbursements by the amount of any personal or unapproved expenses. In this way, the company avoids overpaying for reimbursements to the employee when the employee owes the company for non-reimbursed expenses.

Company Billed Company Paid Payment Type Expenses

• The offset selection for Company Billed/Company Paid will have no impact on the actual payments in the UI
• The offset selection for CBCP will only determine how the Standard Accounting Extract (SAE) presents data
• Using offsets will reduce the number of journal rows in the extract file to remove rows that cancel each other compared to not using offsets, which will send the full/verbose set of journal entries without any consolidation
  • The SAE, however, will look very different 
  • When using offsets, any cash expenses are reduced/cancelled by the amount of the personal CBCP expenses, and all records are posted to the expense type's GL code
  • Any remaining Personal Expenses not fully offset by the cash expenses will be listed by the amount remaining, followed by a corresponding negative(credit) line item showing how much the Employee still owes on that charge marked as personal
  • If however, a Personal Expense is fully offset by cash expenses, the Personal Expense itself will be removed from the Extract and not appear as a line item, leaving only non-Personal Expenses, Cash Line entries showing remaining Cash owed to the Employee and Cash being "paid" back to the card
  • Whereas, when offsets are not used, every expense is fully extracted, and personal CBCP expenses are posted twice to a clearing account (once as a debit to be payed to the card company, and other as a credit to be received from the employee) and all Cash owed to an Employee will be displayed in their full amounts in separate line items.
  • If in case there is no out-of-pocket to offset the amount for Company Billed/Company Paid (Offset Used), the system will not carry over the amount to the succeeding expense reports, and it is up to their financial system to handle the payment.

[kmorchid]

Thank you so much Kevin for your input. That make sense. I made configuration change to CBCP offset used and I am testing it.

[scarranza11]

We are using Offsets now, Expense Pay; we are considering removing the "offset" condition because it impacts our entities with GST/VAT. Are there any best practice recommendations when making the switch? Downstream impacts that we should consider? Does the change take into effect all CBCP transactions in flight? or only new transactions that load into the system after the change is made?