Reimburse employee expenses directly without actually creating the employee as a vendor in D365

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I have a scenario wherein the employee in an organization records him expenses by means of importing the credit card transactions in D365. However, I would like to know if there is a way to reimburse the expenses incurred by the employee directly from Ledger or Bank account?

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ZvikaR 184 on at

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Can you clarify what you mean by "directly"?

If the expenses are recorded through the expense module, once the expenses are approved, an invoice is created that can be paid directly by recording a withdrawal from a bank account or from a ledger account (representing a source of funds such as an account or petty cash)

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Community Member on at

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Yes.

I do not want to generate a vendor payment to reimburse the employee expenses.

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Ludwig Reinhard Microsoft Employee on at

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Hi,

You can just post a manual transaction for example in a GL journal to record the payment.

Doing this is, however, not best practice as it opens the door for people to cheat and make payments without going through a rigorous payment control and transfer process.

Best regards

Ludwig

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ZvikaR 184 on at

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Can you explain what you are trying exactly to do? what kind of posting are you expecting?

you said you wanted to record expenses (so that's where the debits are going to go)

then you say you do not want to re-reimburse anyone for the expenses, meaning the credits just need to go to a ledger account?

That's easy to do through configuration in the Expense Management module.

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ZvikaR 184 on at

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To be more specific, in the expense management module you create a Payment Method, where the offset account is NOT worker (so probably ledger).

When the expenses are recorded you flag them to this Payment Method.

When the expense report is posted, the offset will not go to the employee.

You can also set the payment method to post directly into the company credit card's - if the employee was using the company's credit card.

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ZvikaR 184 on at

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Is that the information you were looking for? if so, please mark the thread as closed.

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Community Member on at

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Thank you Ludwig for the response.

I presume we can customize the journal posting here upon expense report approval. Any challenges?

if not, do we have any other alternative way to reimburse employee without creating him as a vendor in D365?

Thoughts ~

Thank you!

Gowrisankar CH

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ZvikaR 184 on at

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It should be possible to configure the Expense Module to generate these journals without having to do any customization.

See for example the below article, the section about Payment Methods

docs.microsoft.com/.../plan-expense-management

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Ludwig Reinhard Microsoft Employee on at

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Hi Gowrisankar CH,

You can of course make use of GL journals to post those payments.

The journal / posting restriction functionalities might help you with that.

See e.g. dynamicsax-fico.com/.../journal-restrictions

Also the GL workflow features might help here to avoid fraud.

Before implementing that in a live environment carefully test this process to ensure that nobody will be able to circument your process. Probably ask some of your accountants trying to 'break' the process in order to find out whether there are some gaps in the process that allows them paying the money to somebody else and thereby cheating the company.

Best regards,

Ludwig

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