SMART Messages


MESSAGE 120710-01
DATE December 7, 2010
Subject Prepaid Travel Expenses
Message Text:

Prepaid Travel Expenses
HOW do I process a travel authorization/travel expense report when there are prepaid expenses (i.e. lodging, airfare, etc that are not paid to the employee but are later processed on a voucher) included on the expense document?
1. Expense Type – select an expense type that starts with PRPD. For example, if you have instate Lodging costs that will be paid to the Hotel you would select the expense type “PRPD LODGING IS” or “PRPD LODGING CONF IS” (for instate conference lodging). The prepaid selections will assign an account code of “140300” to designate that this is a Prepaid Expenses. Confirm that the Account for this line is “140300”. Do not change the Account to an Expense Account code.
2. Payment Type – select one of the PCard payment types For example, if for lodging, you would select “PCard – Lodging”. This selection will create the Prepaid offset line, using Account “140300”. A PCard payment type is used for prepaid travel expenses that are paid directly to the Vendor and not the traveler, either by PCard or an AP Voucher to the Vendor.
3. Billing Type – select “Non-Billable”. In addition, if you are using Project Costing chartfields and you do NOT want this prepaid row to come into the Project Costing tables you will need to remove the PC Business unit, Project, Activity, and remaining PC chartfields (if applicable) from the accounting detail line. This will keep the line from coming into the Project Costing table. If you elect to keep the PC Chartfields on the prepaid line then the transaction will come into Project Costing, however, the offset line that the system creates in #2 above will not come into Project Costing. You will then need to make sure you set your report filters to only include transactions that have Expense Account codes when you run reports from Data Warehouse.
WHY do I need to do this?
If you do not use one of the PRPD Expense Types then the system will create the accounting line using an Expense Account and it will not be offset. When you pay the vendor for the corresponding expense, you will also use an Expense Account. This will result in double booking of the expense, which will impact your budget balances and expenditure reporting.
WHAT about the Expense reports that I have already completed using the PCard Payment Type but did not use one of the PRPD Expense Types?
Accounts and Reports (A/R) will compile of listing of transactions for the period 7/1/2010 thorough 12/06/2010 that may need to be corrected. This listing will be sent to your agency’s Chief Fiscal Officer (CFO) later this week for their review and concurrence, after which A/R will take steps to make the corrections in SMART.




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