Expense Reimbursement Processing
Procedure for submitting, reviewing, approving, and reimbursing employee business expenses with proper documentation and controls.
Purpose
Process expense reimbursements accurately and promptly while maintaining proper documentation, approval controls, and policy compliance.
This is a PRO template — included with the Individual Pro plan.
Steps (5)
Submit Expense Report
Create an expense report within 30 days of the expense. For each line item, provide date, vendor, amount, business purpose, and GL category. Attach receipts for all expenses over $25.
Checklist
- Expense report created
- Each expense has date, vendor, amount, business purpose
- GL category selected
- Receipts attached for expenses over $25
- Expenses comply with company policy
- Report submitted within 30-day window
Expected Output
Expense report submitted with all receipts and documentation.
Manager Review & Approval
Manager reviews each expense for legitimate business purpose, reasonable amounts, correct GL categories, and policy compliance. Approve, reject, or return for correction within 5 business days.
Checklist
- Each expense line reviewed for business purpose
- Amounts checked for reasonableness
- GL categories verified
- Receipts reviewed for items over $25
- Policy compliance verified
- No personal expenses included
- Duplicate expenses checked
- Report approved / rejected / returned
Expected Output
Expense report approved by manager.
Finance/AP Review
Finance reviews for accounting accuracy: GL codes, department/project coding, tax implications, exchange rates, and duplicate submissions.
Checklist
- GL account codes verified
- Department and project codes verified
- Tax-relevant categories flagged
- Exchange rates verified for international expenses
- Duplicate check across reports
- Approval authority matrix checked
- Finance approval or return with corrections
Expected Output
Expense report verified by finance.
Process Reimbursement Payment
Process the reimbursement via payroll or direct AP payment. Verify the employee's bank account on file. Obtain additional approval for large reimbursements over the threshold.
Checklist
- Payment method determined
- Employee bank account verified
- Reimbursement amount matches approved total
- Large reimbursements have additional approval
- Payment scheduled for next payment cycle
- Employee notified of expected payment date
- GL entries created
Expected Output
Reimbursement payment processed and scheduled.
Record & Reconcile
Verify GL postings are correct. File the expense report with all receipts and approvals per retention policy. Update expense tracking for budget monitoring.
Checklist
- GL entries verified
- Payment amount matches approved total
- Expense report and documents filed/archived
- Document retention policy followed (7-year minimum)
- Department expense tracking updated
- Budget vs. actual reviewed
- Audit trail complete (submission → approval → payment)
Expected Output
Reimbursement recorded, reconciled, and archived.