Employees must assign their expenses to predefined categories when they are working with expense reports. You can create two types of expense categories:
- Categories for use by a single company – This type of category includes information about payment methods, expense types, cost splitting, and subcategories. These expense types can be used only for expenses that are charged to the company that they are created in. For example, if you create an expense category for car rental in company 1, you cannot use the same category when creating an expense report for company 2. A separate car rental expense category needs to be created for company 2.
- Shared categories – Shared expense categories can be used in any company in your enterprise. Shared categories let an employee incur an expense on behalf of a company he or she does not work for. For example, if an employee works for company 1 but incurs an expense attending a company 2 conference, company 2 pays company 1 for the expense.
The expenses form is configured during implementation including setting the payments methods allowed against the expense category and the financial posting to be applied.