Should Accounts Payable be allowed to reduce claimed expense amounts?

This is a conundrum faced by many organisations. An employee submits an expense report of USD 450. A/P feels that USD 390 is the justified amount which can be reimbursed. In some companies A/P edits (reduces) the amount and reimburses. This however has the drawback that employees learn to pad up expenses since they know that A/P is possibly going to reduce the expense amount.

In other companies, A/P sends back the expense report with a suggestion of what can be claimed and hence what the employee can edit and resubmit. This is the better way of handling this situation. From now on, the submitter understands the expectation of A/P better and takes care to comply. Expenzing has a neat feature in its Employee Expense Management Software ¬†called “Send Back” which A/P can use with their suggestion, and a neat feature called “Edit and Resubmit” which the submitter can use.

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About Ila Imani, CEO @Expenzing

Ila has over 25 years of experience in the industry, working in the field of business process and automation enhancement. Prior to founding Nexstep Infotech, she has worked with 3 organizations in the area of system analysis and design. She overlooks the product direction at Expenzing and takes a keen interest in changing technology trends and business requirements of clients. Ila is an IIM-C alumni with a specialization in Systems. She is deeply involved in several social causes, loves to travel and read.

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