Expense Policies

Expense policies define spending rules, limits, and compliance requirements for business expenses. This guide covers policy configuration and management.

Overview

Expense policies enable you to:

• Define spending limits
• Set category rules
• Configure compliance checks
• Manage exceptions
• Enforce documentation
• Track policy violations

Accessing Policies

Navigate to Settings → Expenses → Policies to manage expense policies.

Understanding Policies

Policy Components

Component	Description
Rules	Spending guidelines
Limits	Maximum amounts
Categories	Expense types
Documentation	Required receipts
Approval	Routing rules
Exceptions	Special cases

Policy Types

Type	Description	Example
Global	Applies to all	Company-wide limits
Department	By department	Sales travel rules
Role	By job level	Executive limits
Project	By project	Client billing rules
Temporary	Time-limited	Conference policy

Policy Status

Status	Description
Active	Currently enforced
Draft	Being developed
Inactive	Not enforced
Archived	Historical reference

Policy Categories

Standard Categories

Category	Typical Limits
Airfare	Coach domestic, business international
Lodging	Per-night caps by city
Meals	Per diem or actuals
Ground Transport	Taxi, rideshare, rental
Mileage	IRS rate
Office Supplies	Per-item limit
Professional	Pre-approval required

How-To Guides

How to Configure Spending Limits

Setting Limits

1. Go to Settings → Expenses → Policies
2. Select or create policy
3. Navigate to Limits
4. Configure per category:

Category	Daily	Per Item	Monthly
Meals	$75	$50/person	$500
Lodging	$250	-	-
Transportation	$100	-	-

5. Save limits

Limit Types

Type	Description
Per Item	Maximum single expense
Daily	Max per day
Per Trip	Max per trip
Monthly	Max per month
Yearly	Annual limit

Tiered Limits

Different limits by level:

Role	Daily Meals	Lodging	Total Trip
Staff	$50	$150	$1,000
Manager	$75	$200	$2,500
Director	$100	$300	$5,000
Executive	$150	No limit	$10,000

How to Define Category Rules

Category Configuration

For each category define:

• GL account mapping
• Tax handling
• Receipt requirements
• Approval thresholds
• Documentation rules

Creating Category Rules

1. Go to Settings → Expenses → Categories
2. Select category
3. Configure rules:

Category: Client Entertainment

GL Account: 6350
Tax Code: Standard
Receipt Required: Yes
Minimum for Receipt: $0
Approval: Manager + Finance
Pre-Approval: Required >$200
Attendees: Required
Business Purpose: Required

How to Set Up Compliance Checks

Automatic Validation

System checks:

• Amount within limits
• Receipt attached
• Required fields complete
• Policy compliance
• Duplicate detection

Compliance Rules

Configure checks:

Check	Action
Over limit	Block or flag
Missing receipt	Block submission
Weekend expense	Flag for review
Duplicate	Block submission
Prohibited vendor	Block

Setting Up Checks

1. Go to Policies → Compliance
2. Enable/configure checks:

Rule	Setting	Action
Amount > Limit	Soft limit	Warn, allow submit
Amount > Limit + 20%	Hard limit	Block
Receipt missing >$25	Required	Block
Duplicate detected	Check	Block

How to Handle Policy Exceptions

Exception Types

Type	Description	Example
Pre-Approved	Approved before expense	Client dinner
One-Time	Special circumstance	Emergency travel
Category	Type exception	Premium airfare
Limit	Amount exception	Conference city rates

Requesting Exception

1. Create expense as normal
2. Mark as exception request
3. Enter justification
4. Attach supporting docs
5. Submit for exception approval

Exception Approval

Separate workflow:

• Higher approval level
• Finance review
• Documented reason
• Audit trail maintained

How to Configure Travel Policies

Travel Policy Elements

Element	Configuration
Booking	Approved channels
Class	Economy vs business
Hotels	Preferred vendors
Advance Booking	Lead time rules
Changes	Fee coverage

Travel Class Rules

Domestic Travel:
- Flight <3 hours: Economy only
- Flight 3-6 hours: Economy, premium economy allowed
- Flight >6 hours: Business class allowed

International Travel:
- Flight <6 hours: Economy, premium allowed
- Flight >6 hours: Business class standard

Per Diem Configuration

Daily allowances:

1. Go to Policies → Per Diem
2. Configure rates:

Location	Meals	Incidentals	Lodging
NYC	$79	$20	$282
Chicago	$74	$19	$216
LA	$74	$19	$199
Other US	$59	$15	$150

3. Set reduction rules
4. Configure partial day rules

How to Manage Receipt Requirements

Receipt Rules

Configure requirements:

Expense Type	Amount	Receipt
All categories	>$25	Required
Meals	>$0 if client	Required
Lodging	Always	Required
Transportation	>$25	Required
Per Diem	N/A	Not required

Receipt Configuration

1. Go to Policies → Documentation
2. Set requirements:
   • Minimum amount for receipt
   • By category overrides
   • Exception handling
   • Missing receipt process

Missing Receipt Process

When receipt unavailable:

1. Complete Missing Receipt Form
2. Manager attestation
3. Reason documented
4. Limited occurrences allowed
5. Track frequency

How to Set Approval Thresholds

Threshold Configuration

Route based on amount:

Amount	Approval Path
<$100	Auto-approve
$100-$500	Manager
$500-$2,000	Manager + Finance
>$2,000	Manager + Finance + Director

Configuring Thresholds

1. Go to Policies → Approvals
2. Set thresholds:
   • Amount ranges
   • Approver roles
   • Sequential/parallel
3. Link to workflow
4. Save configuration

How to Handle Prohibited Expenses

Blocked Categories

Expenses never allowed:

• Personal items
• Fines and penalties
• Entertainment exclusions
• Specific vendors

Configuration

1. Go to Policies → Prohibited
2. Define blocked items:
   • Category exclusions
   • Vendor blacklist
   • Keyword triggers
3. Set enforcement:
   • Block at entry
   • Block at submission
   • Flag for review

Advanced Features

Policy Versioning

Track policy changes:

• Version history
• Effective dates
• Change log
• Rollback capability

Policy Groups

Combine policies:

• Multiple policy inheritance
• Override rules
• Priority order
• Exception handling

Geo-Based Rules

Location-specific:

• City-based lodging limits
• Country-specific rules
• Currency handling
• Local compliance

Integration Rules

Connect with:

• Corporate card limits
• Booking tool restrictions
• Budget monitoring
• Project billing

Best Practices

📋 Design

• Clear rules
• Reasonable limits
• Easy to understand
• Regularly updated

💰 Limits

• Market-based
• Role-appropriate
• Exception process
• Annual review

✓ Compliance

• Automatic checking
• Clear feedback
• Consistent enforcement
• Training provided

📊 Monitoring

• Policy effectiveness
• Violation tracking
• Cost impact
• Employee feedback

Configuration

Policy Settings

Navigate to Settings → Expenses → Policies:

• Global Policies - Company-wide rules
• Department Policies - Team-specific
• Role Policies - Level-based
• Temporary Policies - Time-limited

Limit Settings

• Category Limits - By expense type
• Period Limits - Time-based
• Role Limits - By employee level
• Project Limits - By project

Compliance Settings

• Validation Rules - Automatic checks
• Block Rules - Hard stops
• Warning Rules - Soft limits
• Audit Rules - Review triggers

Troubleshooting

Common Issues

Expense blocked by policy

• Review policy limits
• Check category rules
• Request exception if valid
• Contact finance

Cannot find correct category

• Review available categories
• Check policy restrictions
• Use closest match
• Request category addition

Limit exceeded

• Check current limits
• Review expense history
• Request exception
• Wait for reset period

Policy not applying

• Verify policy active
• Check assignment
• Review effective dates
• Contact administrator

Next Steps

Learn about Expense Approvals to understand the approval process for expense reports.