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Step-by-Step Solution: Configuring Expense Policies by Expense Category in Oracle Financials Cloud

To implement the expense policy for meals in Oracle Financials Cloud, follow these steps:

Step 1: Navigate to the Expense Policies Setup

Log in to Oracle Financials Cloud with the appropriate Expense Manager or Financial Administrator role.

Go to the Setup and Maintenance work area.

Select Manage Policies by Expense Category (Task Name: Manage Expense Policies by Expense Category).

Select the US1 Business Unit to ensure the policy applies to the correct entity.

Step 2: Create or Update the Meal Expense Category

Under Manage Policies by Expense Category, locate or create the Meals Expense Category.

If the Meals category does not exist:

Click Create Expense Category.

Enter Category Name: "Meals".

Category Type: "Meals and Entertainment".

Save the entry.

Step 3: Define Expense Limits for Evening Meals

Select the Meals Expense Category and click Edit.

Navigate to the Policies and Limits tab.

Under Amount Limits, click Add New Rule.

Description: "Evening Meal Limit".

Limit Type: "Maximum Allowed Amount".

Limit Amount: Enter 30 USD.

Per: Select Day.

Apply to All Employees (since this applies regardless of role and location).

Location-Based Rules: Leave blank since it applies universally.

Click Save and Close.

Step 4: Enable and Activate the Policy

Ensure the policy is enabled by selecting the checkbox for Active.

Click Submit to finalize the configuration.

Run the "Validate and Deploy Expense Policies" process to apply changes.

Step 5: Testing the Policy

Simulate an Expense Report Submission:

Have an employee create a new expense report.

Select Meals as the expense category.

Enter an evening meal expense of 35 USD (which exceeds the policy limit).

Verify if a policy violation warning appears, restricting the claim to 30 USD.

Submit an expense of 30 USD and ensure no policy violation occurs.

Expected Outcome:

Employees can claim up to 30 USD per day for an evening meal.

Any claim above 30 USD triggers a policy violation warning.

The rule applies to all employees regardless of role and location.

Conclusion

By following the above steps, you successfully configure an expense policy for meals that limits evening meal claims to 30 USD per day. This ensures compliance with the company's expense management guidelines while streamlining the expense approval process in Oracle Financials Cloud.

TASK 2: CREATE EXPENSE ITEMS

We need to create expense items with the following requirements:

✔ Effective Start Date: Set to current date.✔ No tax implications.✔ Projects are not used.✔ Receipt and expense fields should match those from the expense report template created earlier.✔ Dinner expense item must be linked to the Meal policy created in the previous task.

Step-by-Step Solution: Configuring Expense Items in Oracle Financials Cloud

Step 1: Navigate to the Expense Items Setup

Log in to Oracle Financials Cloud as an Expense Manager or Financial Administrator.

Navigate to Setup and Maintenance.

In the Search Bar, type "Manage Expense Items".

Click on Manage Expense Items.

Step 2: Create Expense Items

Click Create New Expense Item.

Enter the following details:

Expense Item: Internet

Name: "Internet"

Expense Category: "Meals and Entertainment"

Effective Start Date: Current Date

Tax Classification Code: None (No tax implications)

Projects Used? No (Uncheck "Enable for Projects")

Receipt Required? Follow Template Policy

Expense Fields? Set as Optional

✔ Click Save and Close.

Expense Item: Room Rate

Click Create New Expense Item again.

Enter the following details:

Name: "Room Rate"

Expense Category: "Lodging"

Effective Start Date: Current Date

Tax Classification Code: None

Projects Used? No

Receipt Required? Follow Template Policy

Expense Fields? Set as Optional

✔ Click Save and Close.

Expense Item: Dinner (Linked to Meal Policy)

Click Create New Expense Item again.

Enter the following details:

Name: "Dinner"

Expense Category: "Meals and Entertainment"

Effective Start Date: Current Date

Tax Classification Code: None

Projects Used? No

Receipt Required? Follow Template Policy

Expense Fields? Set as Optional

Link to the Meal Policy Created Earlier:

Navigate to Expense Policies.

Select the previously created Meal Policy.

Ensure that Dinner Expense Item is associated with this policy.

Set Limit Type: Warning Only (if applicable).

✔ Click Save and Close.

Step 3: Validate and Confirm the Expense Items

Review the created expense items.

Ensure that:

No tax classification codes are applied.

Projects are disabled.

Receipt and expense fields match those in the Expense Report Template.

Dinner Expense Item is correctly linked to the Meal Policy.

✔ Click Submit and Activate.

Step 4: Test the Expense Items

Simulate an Expense Report Submission:

Select Internet, Room Rate, and Dinner as expense types.

Enter sample amounts.

Ensure that:

No tax implications appear.

Projects field is disabled.

Receipt rules match the Expense Report Template.

A warning is displayed if the Dinner Expense exceeds the Meal Policy limit.

Expected Outcome:

✔ Expense items are successfully created.✔ No tax implications are applied.✔ Projects are not enabled.✔ Receipts and expense fields match the template.✔ Dinner expense item is linked to the Meal Policy and displays a warning if the limit is exceeded.

Conclusion

By following these steps, we have successfully created expense items that comply with all business requirements.

Step-by-Step Solution: Configuring an Expense Policy in Oracle Financials Cloud

To configure this expense policy in Oracle Financials Cloud, follow these steps:

Step 1: Access the Expense Policies Setup Page

Log in to Oracle Financials Cloud with the appropriate Expense Manager or Financial Administrator role.

Navigate to Setup and Maintenance.

Select the Task: Manage Policies by Expense Category.

Step 2: Create or Locate the Meal Expense Category

Search for the Meals expense category.

If the Meals category does not exist:

Click Create Expense Category.

Category Name: "Meals".

Category Type: "Meals and Entertainment".

Save the entry.

Step 3: Define a Policy Rule for Raising a Warning

Select the Meals Expense Category and click Edit.

Navigate to the Policies and Limits tab.

Under Amount Limits, click Add New Rule.

Configure the Expense Policy Rule:

Description: "Meal Expense Warning Policy".

Limit Type: "Warning Only".

Limit Amount: Enter the prescribed limit (e.g., 50 USD).

Per: Select Day (or another relevant time frame).

Applies To: Select All Employees.

Location-Based Rules: Leave blank if not location-specific.

Set Warning Behavior:

Select Raise a Warning if the expense exceeds the prescribed limit.

Ensure the policy does not block submission or approval.

Click Save and Close.

Step 4: Associate the Policy with an Expense Report Template

Navigate to Setup and Maintenance > Manage Expense Report Templates.

Search for the Expense Report Template where the Meals category should be included.

Click Edit and go to the Expense Types section.

Add the Meals Expense Type and associate it with the newly created Meals Expense Warning Policy.

Click Save and Close.

Step 5: Enable and Validate the Policy

Ensure the policy is marked as Active.

Click Submit to finalize the policy configuration.

Run the Validate and Deploy Expense Policies process.

Step 6: Testing the Policy

Simulate an Expense Report Submission:

Create a new expense report and select Meals as the expense type.

Enter an expense amount exceeding the limit (e.g., 55 USD).

Verify that a warning message appears, but the expense is still allowed to proceed.

Submit an expense below the limit (e.g., 45 USD) and ensure no warning appears.

Expected Outcome:

If the meal expense exceeds the limit, the system raises a warning but does not block the expense submission.

If the meal expense is within the limit, the system processes it without warnings.

The policy is successfully associated with an expense type in an expense report template.

Conclusion

By following these steps, you successfully configure an expense policy that raises a warning for meals exceeding a specified limit without blocking submission or processing. This ensures that employees are notified about policy violations while allowing flexibility in expense approvals.

Task 1: Create an Expense Report Template for the US1 Business Unit

The following configurations need to be implemented:

✔ Effective Start Date: The current date.✔ Hotel Expense Type: Requires itemization with Internet, Room Rate, and Dinner.✔ Expense Type: Associated with the respective GL account.✔ Card Expense Type Mapping: Not enabled.✔ Receipts Policy: Users can indicate missing receipts, and a warning should be displayed.✔ Expense Fields: All fields should be optional.

Step-by-Step Solution

Step 1: Navigate to Expense Report Templates

Log in to Oracle Financials Cloud with the Expense Manager or Financial Administrator role.

Navigate to Setup and Maintenance.

In the Search Bar, type "Manage Expense Report Templates".

Click on Manage Expense Report Templates.

Step 2: Create a New Expense Report Template

Click Create New Template.

Enter the following details:

Name: "US1 Business Unit Expense Report"

Business Unit: US1 Business Unit

Effective Start Date: (Set to current date)

Enable for Use: ✔ (Check this box)

Click Save.

Step 3: Define the Expense Type – Hotel with Itemization

Navigate to the Expense Types tab.

Click Add Expense Type.

Enter the following details:

Expense Type Name: "Hotel"

Expense Category: "Lodging"

Requires Itemization: ✔ (Check this box)

Under Itemization, click Add Itemization Categories:

Internet

Room Rate

Dinner

Click Save.

Step 4: Associate Expense Types with GL Accounts

Click on Edit Expense Type "Hotel".

Go to the Accounting section.

Select the appropriate GL Account for lodging expenses.

Repeat this process for other required expense types.

Click Save and Close.

Step 5: Disable Card Expense Type Mapping

Navigate to the Corporate Card Expense Mapping tab.

Ensure the "Enable Corporate Card Mapping" checkbox is unchecked.

Click Save.

Step 6: Configure Receipts Policy

Navigate to the Receipts tab.

Under Receipt Handling, set:

Company Policy: Employees must provide receipts.

Allow users to indicate missing receipts? ✔ (Check this box).

Action for Missing Receipts: Raise a Warning (so that expense submission is not blocked).

Click Save.

Step 7: Set Expense Fields as Optional

Navigate to the Fields Setup tab.

Ensure all Expense Fields are set to Optional.

Click Save and Close.

Step 8: Validate and Activate the Template

Review all configurations.

Click Submit and Activate.

Run the Validate and Deploy Expense Templates process to ensure all settings are applied.

Step 9: Testing the Expense Report Template

Simulate an Expense Report Submission:

Select Hotel Expense and enter details.

Verify if the system requires itemization (Internet, Room Rate, Dinner).

Submit without a receipt to check if a warning is displayed.

Ensure all fields remain optional.

Verify no corporate card expense mapping applies.

Expected Outcome:

✔ The Expense Report Template is successfully created for US1 Business Unit.✔ Hotel expenses require itemization into Internet, Room Rate, and Dinner.✔ Receipts are required, and a warning is displayed for missing receipts.✔ GL Account mapping is correctly applied to each expense type.✔ Card Expense Type Mapping is disabled.✔ All fields are optional, allowing flexible data entry.

Conclusion

By following these steps, we have successfully created and configured an Expense Report Template that meets all business requirements for the US1 Business Unit.

Comprehensive and Detailed In-Depth Explanation:

In Oracle Fusion Applications, reference data sharing (also known as SetID) enables organizations to share common configuration data across various organizational units, such as business units, without unnecessary duplication. This approach streamlines maintenance and ensures consistency of reference data across the enterprise.

Payment Terms in Oracle Payables define the conditions under which a company pays its suppliers. These terms can vary between business units based on factors like regional practices or supplier agreements. To accommodate this variability, Oracle Payables employs a specific reference data sharing method for Payment Terms.

Reference Data Sharing Methods:

Assignment to One Set Only; No Common Values Allowed:

Each reference data object instance is assigned to a single set exclusively.

No sharing of values across multiple sets.

Example: Asset Prorate Conventions are defined and assigned to only one reference data set.

Assignment to One Set Only, with Common Values:

Reference data objects can be assigned to one set, but there's a common set whose values are accessible to all business units.

Example: Receivables Transaction Types are assigned to a common set that's available to all business units.

Assignment to Multiple Sets; No Common Values Allowed:

A reference data object instance can be assigned to multiple sets.

There's no common set; each set operates independently.

Example: Payables Payment Terms use this method, allowing each payment term to be assigned to one or more sets.

For Payables Payment Terms, the applicable method is "Assignment to multiple sets; no common values allowed." This means that each payment term can be associated with one or more reference data sets, but there's no overarching common set that includes all payment terms. This flexibility allows organizations to define payment terms specific to certain business units while also sharing others across multiple units as needed.

Practical Application:

Shared Payment Terms: If multiple business units operate under similar payment conditions, a single payment term (e.g., "Net 30") can be assigned to multiple reference data sets corresponding to those units.

Specific Payment Terms: For unique business units with distinct payment agreements, specific payment terms (e.g., "Net 15") can be created and assigned exclusively to the relevant reference data set.

This approach ensures that each business unit has access to the payment terms relevant to its operations without unnecessary proliferation of identical terms across the system.

References:

Reference Data Sets and Sharing Methods

Payment Terms

Comprehensive and Detailed In-Depth Explanation:

In Oracle Expenses, the profile option EXM_DFLT_FROM_PREV_EXPENSE determines whether certain fields on the Create Expense Item page are automatically populated with values from the previously entered expense item.

By default, when this profile option is set to ‘Y’ (Yes), the application carries over several fields from the last entered expense item to streamline data entry. These fields include:

Date

Template

Expense Location

Currency (both ledger and reimbursement currency)

Company and Department

Project Number and Task Number

However, when the profile option is set to ‘N’ (No) at the user level, the system stops carrying over certain fields from the previous expense item.

Fields That Will No Longer Auto-Populate:

Expense Location – Users must manually enter the expense location for each new entry.

Template – Expense templates (if used) will not be pre-filled from the previous expense item.

Project and Task Number – Users must reselect the project and task number for each new expense entry.

Fields That Will Still Populate With Defaults:

Currency – Defaults to the ledger currency as configured in Human Capital Management (HCM).

Company and Department – These values will be retrieved from the user’s default expense account setup in HCM.

Thus, the correct answer is: A, B, D because the Expense Location, Template, and Project & Task Number will no longer populate from a previous expense item when a user enters a new one.

References:

Oracle Financials Cloud: Implementing Expenses