Configuration of Expense Management to process Expense Report in D365 F&O Part 1

 Overview

The Expense management module in Microsoft Dynamics 365 Finance and Operations allows organizations to track and manage employee expenses. Below is the mandatory setup required to create and post expense report.

In this blog we will learn the basic and mandatory setup required to process the expense report.

Mandatory Setup:

1. Payment Method: Method of payment is to set first.

Note: e,g.  if company pays employees expenses to credit card company then one should choose offset account type as vendor and before that he has to create new vendor for that particular credit card company.

2. Shared Category or Category ID: Category ID will be created based on the expense type given in the global category form. And here usage of these expense type is to be selected (like this category ID is used for Project, Production or Expense.)

Moreover, Subcategories can also be created  here for the purpose of itemization.

3. Expense Category: Based on category ID expense category is created. Here ledger account for expense is added which will be debited after posting expense report. Method of Payment must be added and Itemization mandatory can be checked YES if required.

4. Workflow Setup: Create workflow for Expense Report as per business requirement.

5. Employee Mapping with User: Go to system admin > user > user and select particular user and select employee for that particular user 

Note: Employee is created in module Human Resource > Worker > Employee

6. Vendor Mapping with Employee: vendor mapping to employee is required since posted expense report transaction shows in that particular vendor transaction

   

 

7. Number Sequence: (Required while posting Expense report it will generate an invoice number based on the below number sequence setup)

 

Now, you are ready to create expense report (Expense Management > My Expense > Expense Reports)

Happy Learning!

Thank You