Travel and Expense policies manage how employees spend company money on travel and other relevant expenses. A good expense policy sets up the rules that need to be followed. The NetSuite 2020.2 New Release now provides you with the tools so that you can define and apply policies to limit the expenses your employee can enter. Let’s go through the steps of creating the policies.
To create an expense report policy in NetSuite, you need to do the following:
- Go to Setup>Accounting>Set up Tasks> Expense Report Policies>New
- Enter a Name for the policy
- Select the Start date the policy goes into effect
- Select the End date if the policy has an expiration date
- You can also select Subsidiary, Department, Location and Customer
- Select the Expense Category for this policy – it is a multi-select if necessary
- Select the Limit Type for the policy, it can be per day or per expense report
- Enter a Maximum dollar amount allowed for this expense report policy
- In the Action field select how you want the violations of the policy handled – Warn but allow expenses outside the limit or Do not allow outside of the limit
- Check Requires Memo box to require a memo for any expense affected by the policy
- Check Requires Receipt box to require a receipt for any expense affected by this policy
- Click Save
The policy above is for Business Meals/Entertainment. It has a $500 limit per day, and it will not allow the expense over the limit. What happens when an employee tries to submit an expense that goes over the limit? NetSuite will give them a message that says they have violated the expense policy and for more details please click the show policies button. The Line on the expense report will also be red.
After clicking the “Show Policies” button it will bring the person to the expense policy and will tell them what the violation is and that the expense report cannot be submitted.
If the policy had Warn but allow expenses outside of the limit for the action, the expense report would be able to be submitted. You also can have an email sent to the employee’s supervisor or anyone else that you select on the policy when an overage occurs.
There are limitations on the expense report policies in that they can only be by the expense report or the day. If you have a policy that is once a month like a phone allowance for example it will be able to handle the dollar amount but not the time element.
Optimize NetSuite and Business Processes With the Experts at MIBAR
As a leading NetSuite partner, we provide superior knowledge of NetSuite’s features and functionality, in order for your company to configure the application to your specific requirements. Through our expertise over the years, we’ve established a genuine methodology to help improve business processes and workflow in all areas of your operations to ensure NetSuite is meeting the business expectations it was intended for. Schedule a free consultation to learn more.