View source for Frappe HRMS - Ch05 Expense Claims

= Frappe HRMS – Chapter 5: Expense Claims =

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Part of the [[Frappe HRMS]] documentation series. &nbsp;|&nbsp; Upstream: [https://github.com/frappe/hrms github.com/frappe/hrms]
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The Expense Claims module handles employee reimbursements, cash advances, travel requests, and vehicle logs. It is fully integrated with ERPNext accounting — approved claims post directly to the general ledger via Journal Entry or Payment Entry.

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== 1. Expense Claim Type ==

=== Purpose ===
Defines categories of expenses (e.g., Transportation, Meals, Accommodation, Tools & Supplies). Each type maps to a specific expense account and optionally sets a per-claim maximum limit.

=== Steps ===
# Go to '''HR → Expenses → Expense Claim Type → New'''.
# Enter '''Expense Claim Type Name'''.
# Under '''Accounts''', add the expense account per Company (e.g., 5400-000 – Employee Expenses).
# Optionally set '''Maximum Claim Amount Per Employee''' if a cap applies.
# Save.

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== 2. Expense Claim ==

=== Purpose ===
The primary document for an employee's reimbursement request. Lists individual expense items with receipts, maps to expense accounts, and routes through a configurable approval workflow before disbursement.

=== Prerequisites ===
* Expense Claim Types configured with accounts
* Approver assigned to the employee (via '''Department Approver''' or '''HR Settings''')
* Original receipts / supporting documents

=== Steps ===
# Go to '''HR → Expenses → Expense Claim → New'''.
# Select the '''Employee'''.
# '''Approver''' auto-fills from the department approver setup (can be changed).
# Under the '''Expenses''' table, add each expense line:
#* Expense Date
#* Expense Claim Type
#* Description
#* Amount
#* Attach receipt (file upload)
# Add '''Taxes and Charges''' if VAT or withholding tax applies.
# Under '''Advance Payments''', link any outstanding '''Employee Advance''' to offset against this claim.
# Save → Submit → Approver receives notification.

=== Approval Workflow ===
* Approver reviews and either '''Approves''' or '''Rejects''' the claim.
* If approved, HR processes payment via '''Payment Entry''' or '''Journal Entry'''.
* On payment, the claim status updates to '''Paid'''.

=== Accounting Impact ===
Upon submission and approval:
* Debit: Expense account (per Expense Claim Type)
* Credit: Accounts Payable – Employees (or the configured default payable account)

On payment:
* Debit: Accounts Payable – Employees
* Credit: Cash / Bank

=== Next Step ===
* Process reimbursement via '''Payment Entry''' linked to the claim.

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== 3. Employee Advance ==

=== Purpose ===
Issues a cash advance to an employee before they incur expenses — common for travel or project assignments. The advance is later reconciled against an Expense Claim or returned if unused.

=== Prerequisites ===
* Approved advance request from the department head
* Available budget in the employee expenses account

=== Steps ===
# Go to '''HR → Expenses → Employee Advance → New'''.
# Select '''Employee'''.
# Enter '''Purpose''', '''Advance Amount''', and '''Currency'''.
# Set '''Advance Account''' (the clearing account used for advances).
# Submit.
# Process disbursement via '''Payment Entry''' → the advance status moves to '''Paid'''.

=== Reconciliation ===
When the employee submits an Expense Claim after using the advance:
# Open the Expense Claim.
# Under '''Advance Payments''', link the related Employee Advance.
# If claim amount > advance: employee is reimbursed the difference.
# If advance > claim amount: employee returns the unused balance.
# System marks the advance as '''Returned''' or '''Claimed''' accordingly.

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== 4. Travel Request ==

=== Purpose ===
Pre-approval document for business travel. Captures travel itinerary, purpose, cost estimate, and routing for approval before any costs are incurred.

=== Steps ===
# Go to '''HR → Expenses → Travel Request → New'''.
# Select '''Employee''' and '''Purpose of Travel'''.
# Enter trip dates and destination.
# Under '''Travel Itinerary''', add each leg (from/to, mode of transport, estimated cost).
# Under '''Travel Costing''', add cost estimates per category (airfare, hotel, per diem).
# Submit for manager approval.

=== Next Step ===
* After travel, employee submits an '''Expense Claim''' referencing the Travel Request.

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== 5. Purpose of Travel ==

=== Purpose ===
A master list of valid travel categories (e.g., Client Visit, Training, Site Survey, Conference). Used as a field in Travel Requests for classification and reporting.

=== Steps ===
HR → Expenses → Purpose of Travel → New → Enter name → Save.

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== 6. Vehicle Log ==

=== Purpose ===
Tracks company vehicle usage, mileage, and fuel costs per trip. Used for vehicle expense reporting and fleet management.

=== Steps ===
# Go to '''HR → Expenses → Vehicle Log → New'''.
# Select the '''Vehicle''' (license plate).
# Enter '''Employee''' (driver), trip date, odometer readings (last and current), and purpose.
# Record fuel quantity and cost if a fill-up occurred.
# Save and submit.

=== Reports ===
* '''Vehicle Expenses''' report: summarizes all costs per vehicle for a selected period.

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== Reports ==

* '''Employee Advance Summary''' — outstanding advance balances per employee
* '''Unpaid Expense Claim''' — approved claims pending payment disbursement
* '''Vehicle Expenses''' — total fuel and service costs per vehicle

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== Related Chapters ==

* [[Frappe HRMS]] — main index
* [[Frappe HRMS - Ch07 Payroll]] — advances can also be recovered via salary deduction (Additional Salary component)
* [[Frappe HRMS - Ch09 Philippine Localization]] — VAT and withholding tax on reimbursable expenses

[[Category:ERPNext]]
[[Category:Frappe HR]]
[[Category:Human Resources]]
[[Category:Expense Claims]]
[[Category:Comfac]]