During implementation of Internet Expenses, a company have to make a decision as to how the payment towards credit card expenses will be made. Oracle as product has three standard offering which is based out of 3 model in which they can choose any one of them , as described below:
A. Individual Pay
This is the easiest option, majority of company (specailly midsize). The user (employee) pays the credit card provider for all transactions. When the employee creates the expense report, only those transactions elated to business expenses are reported. The employee is then reimbursed by the employer for the credit card business expenses.Below are the process flow diagrams for your reference:
B. Both Pay
With this option, employer pays the credit card provider for expenses that are categorizes as business expenses. Employees need to pay the credit card provider for all personal expenses. An invoice cannot be created for the credit card provider until the expense report is imported into Oracle Payables as an Invoice.Below are the process flow diagrams for your reference:
if you are using this then everytime you need to run two programs after the expense report is reviewed and approved.One for the invoice due to employee as described in Individual Pay. The other one is for invoice due to the Credit Card provider.
C. Company Pay
Employer pays for all credit card transactions incurred by their employees. Employees are reimbursed for cash and other business expenses. Credit card transactions reported as business expenses will not impact the amount reimbursed to the employee. However,if the employee reports any transactions as personal expenses, these transactions are offset against any cash and other expenses reported on the expense report. In short, the amount reimbursable to the employee will be reduced by the amount of credit card personal expenses.Below are the process flow diagrams for your reference.
To import the invoice of the credit card provider into Payables, you need to run the Payables Open Interface Import program with ‘Credit Card’ as source , you need to make sure create Credit Card Invoice Interface program is alreadt run into Payable.