Expense Requests: user guide

Asking for money before you spend it in Sempya CloudERP: approvals, payment vouchers, advances and settling them, and when spending is recorded in the books.

How to ask for money before you spend it, what happens after approval, and when it is recorded in the books.

This is the user guide for the Expense Request app in Sempya CloudERP. Inside the system the same guide is at Expense Requests → User Guide, where it also shows your company's current rules. Budgets and the monthly spending limit are covered in the Budgets and spending user guide.

Switching Expense Requests on

Expense Requests stay off for a company until it switches them on. Until then nobody can save or approve a request, and expense claims and supplier payments work as before. An Accounts Manager or System Manager does these steps, in this order.

People. Everyone who will raise requests needs an active Employee record with their user in the User ID field, and the Employee role. Give approvers the Expense Approver role, and Accounts staff Accounts User or Accounts Manager.
- Approvers and Accounts staff can open everyone's Expense Requests even when their user is limited to their own Employee record. Employee advances and expense claims are different: an Accounts user who pays them for other people must not be limited that way. On their Employee record untick Create User Permission, and delete the Employee entry for their user under User Permissions.
Accounts the requests use.
- Every Expense Claim Type staff will use needs a default expense account for your company.
- On the company, set the Default Employee Advance Account and the Default Expense Claim Payable Account.
- Every Mode of Payment you pay with (cash, bank transfer, mobile money) needs its cash or bank account for your company.
- If you use the Budgets app, set up budgets first (see the Budgets and spending user guide), so approved requests count against the month's budget.
Open Expense Request Settings and click New. Choose the company and fill in:
- days to settle an advance, and whether a new advance is blocked while one is unsettled;
- receipt required from, and the ordinary claim ceiling (0 means no rule);
- the employee advance account, default mode of payment, and default warehouse for Company purchase requests;
- cash suppliers, one per currency, if you pay unregistered payees;
- supplier payment approval limits, if you want them. Leave the table empty for no check;
- the VAT evidence check and its override role, if you want it (see VAT on supplier invoices). Leave Switched On unticked for now, and save.
Approval. A System Manager clicks Create Approval Workflow on the settings: staff submit for approval, and an approver approves or rejects. If approval depends on the amount, adjust the workflow afterwards.
Accounts Settings (recommended). Tick Check Supplier Invoice Number Uniqueness.
Switch on. Tick Switched On in Expense Request Settings and save.
Try it, then tell staff. Take one small request of each kind you use through approval and payment. Then tell staff where this guide is: Expense Requests → User Guide.

To switch off again, untick Switched On. Requests can no longer be saved or approved; requests already approved can still be paid, settled or closed.

Request or claim?

Use an Expense Request when	Use an ordinary expense claim when
You need money before spending (an advance)	You have already paid, out of your own pocket
A supplier, contractor or haulier has to be paid	For small items: local travel, meals, tolls, airtime, small stationery, medical
Goods or an asset have to be bought	And you have the receipt
The amount is above the ordinary claim ceiling

The settings (Expense Request Settings)

Setting	Meaning
Days to settle an advance	Receipts are due this many days after the needed-by date
Block new advance while one is unsettled	You can't ask for another advance until the open one is settled
Receipt required from	Claims of this amount or more need a receipt attached
Ordinary claim ceiling	An ordinary claim above this can't be submitted; start with an Expense Request
Cash suppliers	Unregistered payees can be paid through a cash supplier in these currencies
Approval workflow	Submit for approval; an approver approves or rejects
VAT evidence check	Off, or Refuse, with override: a supplier invoice carrying VAT is submitted only with the supplier's TPIN, invoice number and attached tax invoice. Choose the override role (required) and, if needed, the input VAT accounts to check
Supplier payment approval limits	Supplier payments (payments against invoices, invoices marked paid on the spot, journal entries paying a supplier) are submitted only by someone whose role is allowed for the amount. Pay supplier and Pay recorded invoice requests are approved within the same limits, so their vouchers and payments are not checked again. A role allowed for a larger amount can approve a smaller one. Each payment is checked on its own, and every payment shows on the supplier's account. An empty table means no check

Raising a request

Open Expense Request and click New. Your employee record, company and cost centre fill in.
Write the purpose, the date it is needed by, and choose Pay how.
Add lines. For a service or expense choose an expense type; for goods or an asset choose an item. Enter quantity and rate.
For a payment in another currency (Pay supplier only), choose the currency; the exchange rate fills in from the system.
Save, then submit it for approval. You may see a warning if it would take a month over budget.

Staff can read every request of their own company, to see the overall picture, but can change only their own, and only the request's employee, approvers, Accounts or purchasing can create documents from it.

You can only raise a request for yourself (approvers and accounts staff can raise one for someone else), and the request date can't be in the past, because it decides which month's budget the request counts against.

The ways to pay

Pay how	Use it for	After approval
Advance to me	Money you spend yourself, e.g. a site visit. Expense types only, company currency	Accounts creates an employee advance and pays it. You settle it later with receipts
Pay supplier	Paying a supplier, contractor or haulier directly, in any currency	Accounts creates a payment voucher (a supplier invoice) and pays. If the supplier gives credit, the invoice is recorded when it arrives and paid later
Company purchase	Stock, equipment or assets bought through purchasing. Items on every line	A material request is created and purchasing orders the goods
Pay recorded invoice	A supplier invoice that is already recorded and not fully paid. Choose the invoice; no lines	Accounts creates a payment against that invoice and pays. Nothing is recorded twice and nothing more counts against the budget
Pay supplier deposit	A supplier who is paid before invoicing, common on imports. Choose the supplier and the amount; no lines	Accounts pays the deposit to the supplier. It sits on the supplier's account until their invoice is recorded and uses it up

Assets (laptops, furniture, vehicles, equipment) are never paid as an advance. Use an asset item with Pay supplier or Company purchase, so they go on the asset register.

Invoices already recorded

Never use Pay supplier for a supplier invoice that is already recorded. A payment voucher would record the invoice a second time, so the expense, the budget and any VAT would be counted twice. Use Pay recorded invoice instead.

Check first. When you choose a supplier on a Pay supplier request, any unpaid invoices of that supplier are listed. If you are paying one of them, change Pay how to Pay recorded invoice.
Pay recorded invoice: choose the invoice. The supplier, currency and the amount still owing fill in; you can pay less than the full amount. Once the request is approved, Accounts clicks Create → Payment, which opens a payment against that invoice, for that invoice only. Only one approved request at a time can pay an invoice. If the invoice is paid or credited another way, the request closes itself.
Accounts can also pay a recorded invoice directly. Where supplier payment approval limits are set, that payment is submitted by someone allowed for the amount. A request that pays a supplier is approved within the same limits, so the payment made from it is not checked again.
One purchase, one invoice record. If the supplier's invoice arrives after a payment voucher, attach it to the voucher. Don't record it again.
The budget is already right. A recorded invoice was counted when it was recorded; paying it changes nothing.

For Accounts:

A payment voucher is refused while the supplier has unpaid invoices, until you tick This is a different purchase. Your confirmation is recorded on the request. Staff raising a request see only how many unpaid invoices the supplier has.
A voucher with the number of a supplier invoice already recorded is always refused. A number that matches only in its digits (for example INV-0042 and 42) needs the same confirmation.
Also turn on Check Supplier Invoice Number Uniqueness in Accounts Settings, so no invoice can be recorded twice.

Stock and goods: order first

Stock, spare parts and goods for resale are bought through purchasing, not paid through an Expense Request. Raise a material request (or a request with Pay how Company purchase), purchasing turns it into an approved purchase order, the goods are received against the order, and the supplier's invoice is made from it.

Why order first: the order is approved before the supplier ships, the budget counts it as committed straight away, and the supplier's invoice is matched to what was ordered and received.
Services don't need a purchase order. Freight, clearing, contractors and repairs go through an Expense Request with Pay supplier, or Pay recorded invoice when their invoice is already recorded.
Leave Sempya CloudERP's "Purchase Order Required" setting off (Buying Settings). When it is on, Sempya CloudERP refuses every supplier invoice line that has no purchase order, services included, which also blocks the payment vouchers Expense Requests make. Goods receipts are refused too, with no exception for any supplier and not even for returns.

When the books move

An approved request records nothing in the books. It shows as committed in the budget and on the Open Expense Requests report.
Paid now: the payment voucher records the expense and the bank or cash movement together, on the payment date.
Credit supplier: the supplier's invoice is recorded when it arrives; the payment when it is paid.
Advance: paying it moves money to Employee Advances (still the company's money). The expense is recorded when you settle with receipts.
Recorded invoice: the expense was recorded, and counted in the budget, when the invoice was recorded. The payment only moves money from the bank to the supplier.
Supplier deposit: paying it buys nothing yet; the money sits on the supplier's account. The expense and the budget move when the supplier's invoice is recorded and the deposit is applied to it.

Deposits to suppliers

Suppliers abroad are often paid before they ship. Raise a request with Pay how Pay supplier deposit, choose the supplier and the amount in the currency they are paid in, and get it approved. Accounts then clicks Create → Deposit Payment, which opens a payment to the supplier with nothing allocated.

The deposit shows on the supplier's account as money paid in advance.
Nothing is expensed or budgeted yet: that happens when the supplier's invoice is recorded and the deposit is applied to it (on the invoice, under Advances).
The request follows the money: Approved, then Advance Paid, then Settled as the invoice uses part of it, and Closed once it is fully used.
A request can't be closed while the deposit is still sitting with the supplier.

VAT on supplier invoices

Input VAT can only be claimed with the supplier's tax invoice. Where your company has switched on the VAT evidence check, any supplier invoice or payment voucher that carries VAT can be submitted only when:

the supplier has its TPIN in Tax ID;
the supplier's invoice number is entered;
the supplier's tax invoice is attached; and
the supplier is not a cash supplier (unregistered payees don't issue tax invoices).

If something is missing, you see it when you save the draft (attach the tax invoice after the first save). Fix it, or remove the VAT so the full amount is the cost. Someone with the VAT override role can still submit the invoice; the override is recorded on it, so it can be reviewed before the VAT return. Invoices without VAT are not affected.

For a payment voucher, a tax invoice attached to its Expense Request counts.
For imported goods, enter the Customs Entry No on the invoice and attach the assessment. That is the evidence for import VAT, in place of the supplier's TPIN and invoice number, because a foreign supplier has neither.
Only the Input VAT Accounts listed in the settings are checked. If none are listed, every account of type Tax is treated as VAT, so list them when you also post levies or duties on Tax accounts.

Advances and settling

After the advance is paid, open your request and click Create → Settlement Claim. It is filled in from your request and linked to the advance.
Change each amount to what you actually spent and attach the receipts.
It goes for approval like any claim. On submit, the expense is recorded and the advance is used up.
Spent less than the advance: return the balance. Accounts records it with Create → Return Unspent Advance.
Spent more: the difference is owed to you and paid like any claim.

Settle by the settle-by date on your request. After it, the request shows Overdue and you get a reminder.

Statuses

Status	Meaning
Draft	Not yet approved
Rejected	Sent back by the approver; reopen it to correct and resubmit
Approved	Approved, nothing paid or ordered yet
Ordered	A material request has been made for a Company purchase
Invoiced	A credit supplier's invoice is recorded but not yet paid
Partly Paid / Paid	The supplier has been paid for part or all of the request
Advance Paid	Your advance is paid; settle it with receipts
Overdue	The advance was not settled by the settle-by date
Settled	The settlement claim is submitted; a balance may still be returned or paid
Closed	Finished, or closed early by an approver; nothing is left committed

Report and payment voucher

Open Expense Requests lists everything approved but not yet paid or settled, with how much is still open and how many days an advance is overdue.
Print a request with the Payment Voucher format. It shows the requester, lines, amount in words, payment records, the approval trail and signature lines.

Questions

Why can't I ask for another advance? You still have one to settle. Submit its settlement claim with receipts first.

My claim won't submit. Check that the receipt is attached if your company requires one at that amount, and that an ordinary claim is not above the ceiling. For more, start with an Expense Request.

The invoice came in lower than the request. Once it is paid, the request shows Paid and nothing more counts against the budget. For a request that will not be used, an approver can Close it, which releases it from the budget. A request can't be closed while its advance still has money out.

The supplier's invoice is already recorded. How is it paid? Raise an Expense Request with Pay how Pay recorded invoice and choose the invoice. Once it is approved, Accounts pays it against the invoice. Don't use Pay supplier: it would record the invoice twice. See Invoices already recorded.

Can an advance be in rand or dollars? No. Advances are in company currency. Pay foreign suppliers directly with Pay supplier.