Expenses

Updates to Expenses when you reimburse expenses through Accounts Payable or payroll

This release includes the following updates to improve your Expenses experience.

Select a journal for cash and accrual posting

Assign a journal for cash and accrual posting when your company reimburses employee expenses using Accounts Payable or remit through payroll. When expense reports are approved, expense entries will post to both cash and accrual books. This update helps ensure accurate financial reporting for employee expense transactions.

Key benefits

• Improve reporting accuracy: Supports accurate financial reporting for organizations that use both cash and accrual accounting methods.

• Maintain accurate journal records: Ensure that employee expense transactions are recorded in the appropriate cash and accrual journals.

• Consistent reimbursement processing: Provides consistent accounting treatment for expense reimbursements processed through Accounts Payable or payroll.

How it works

1. Open the Configure Expenses page.

2. Enable employee expense reimbursement options.

3. Select one of the following options:

   • Remit employee expenses through external payroll

   • Reimburse employee expenses using AP bills.

4. Select a journal for cash and accrual posting.

When this matters

Use this feature if your company:

• Uses Accrual and cash accounting.

• Reimburses employee expenses through Accounts Payable or remit through payroll.

• Requires employee expense transactions to post to a designated cash and accrual journal for financial reporting.

What's changed

We've added the Journal for cash and accrual posting field on the Configure Expenses page.

VAT lines now appear on bills created from employee expenses

When your company reimburses expenses using Accounts Payable, expense adjustments and approved expense reports that include VAT lines generate bills with those VAT details. This update ensures that VAT information from employee expense transactions is reflected on the corresponding bill while remaining non-taxable to prevent duplicate tax calculations.

Key benefits

• Tax visibility: Improved visibility of tax information on bills generated from employee expenses.

• Reporting consistency: Greater consistency between Expenses and Accounts Payable reports.

• Financial accuracy: More accurate financial reporting and reconciliation by making tax amounts available directly on reimbursement bills.

How it works

1. Enable Reimburse employee expenses using AP bills.

   For more information, go to Reimburse employee expenses using AP bills overview.

2. Do one of the following:

   • Submit an employee expense report for approval.

   • Create an expense adjustment to increase or decrease the reimbursable amount owed.

   Sage Intacct automatically generates a corresponding bill.

3. Open the bill to view VAT information.

Why the change

VAT lines are now displayed on bills in Accounts Payable to help maintain alignment between the original employee expense and the bill generated for reimbursement. This provides more complete tax information on transactions and supports accurate accounting and reporting.

Good to know

• Approved expense reports generate bills in Accounts Payable automatically.

• Expense adjustments create separate bills in Accounts Payable.

Updates to the Expense ledger report

The Expense ledger report has been updated to support the new employee reimbursement options in Expenses. When employee expenses are reimbursed through Accounts Payable bills or remitted through payroll, the report now displays payment information from the reimbursement transaction created in Accounts Payable or payroll.

This enhancement provides greater visibility into the reimbursement lifecycle and helps ensure that payment activity is accurately reflected in expense reporting.

Key benefits

• Track reimbursements clearly: Improved visibility into employee reimbursements processed through AP or payroll.

• Gain reporting accuracy: More accurate reporting of payment status and reimbursement activity.

• Align reporting and processing: Better alignment between expense reporting and reimbursement processing.

How it works

Reimburse expenses using Accounts Payable

1. Enable Reimburse employee expenses using AP bills.

   For more information, go to Reimburse employee expenses using AP bills overview.

2. Do one of the following:

   • Submit an employee expense report for approval.

   • Create an expense adjustment to increase or decrease the reimbursable amount owed.

   Sage Intacct automatically generates a corresponding bill in Accounts Payable.

3. Pay the AP bill to reimburse the employee.

4. Run the Expense ledger report to track employee expense balances.

Remit expenses through payroll

1. Enable Remit employee expenses through payroll.

   For more information, go to Remit employee expenses through payroll overview

2. Do one of the following:

   • Submit an employee expense report for approval.

   • Create an expense adjustment to increase or decrease the reimbursable amount owed.

   Approved expense reports are reimbursed along with employee wages.

3. Remit employee expense reimbursements through payroll.

4. Run the Expense ledger report to track employee expense balances.

What's changed

• Removed the Check no. field.

• Added Remitted as a status option when employee expenses are remitted through payroll.

Removed Employee aging report and graph

When you reimburse employee expenses using Accounts Payable or remit through payroll, the Employee aging report and Employee aging graph are no longer available. Instead, run the Vendor aging report to track employee reimbursements processed through Accounts Payable, or verify reimbursement status through your payroll process when remitting expenses through payroll.

Key benefits

• Relevant reporting: More accurate reporting for Accounts Payable bill or payroll reimbursement methods.

• Reduced confusion: Removes reports that no longer apply to the selected reimbursement method.

• Better alignment: Aligns reporting with the reimbursement process being used.

How it works

Reimburse expenses using Accounts Payable

1. Enable Reimburse employee expenses using AP bills.

   For more information, go to Reimburse employee expenses using AP bills overview.

2. Do one of the following:

   • Submit an employee expense report for approval.

   • Create an expense adjustment to increase or decrease the reimbursable amount owed.

   Sage Intacct automatically generates a corresponding bill in Accounts Payable.

3. Pay the AP bill to reimburse the employee.

4. Run the Vendor aging report to track outstanding vendor balances and manage cash flow.

Remit expenses through payroll

1. Enable Remit employee expenses through payroll.

   For more information, go to Remit employee expenses through payroll overview

2. Do one of the following:

   • Submit an employee expense report for approval.

   • Create an expense adjustment to increase or decrease the reimbursable amount owed.

   Approved expense reports are reimbursed along with employee wages.

3. Remit employee expense reimbursements through payroll.

4. Verify reimbursement status through your payroll process.

Good to know

If you previously added an Employee aging report or graph to a dashboard, replace it with a Vendor aging report or another report that aligns with your reimbursement method.