Expense Management

Expense management in AI-native ERP covers the complete lifecycle from employee submission through approval, GL posting, and reimbursement. Employees can submit expenses through chat, email, or the admin dashboard -- and the system handles the approval routing, accounting entries, and payment processing automatically.

Three Expense Line Types#

Each expense report can contain three types of lines. Reimbursement lines cover out-of-pocket expenses where the employee paid and needs to be repaid -- you provide the amount, merchant name, date, and category. Per diem lines calculate travel daily allowances based on configured rates for the destination country and city, accounting for meals provided by the event or employer. Mileage lines calculate reimbursement based on distance traveled, vehicle type, and configured per-mile rates.

You can mix all three types in a single expense report. A business trip might include mileage to the airport, per diem for three days of travel, and reimbursement for a client dinner that exceeded the per diem rate.

Risk-Based Approval#

Expense reports flow through approval workflows calibrated to their total amount. Reports under $500 are auto-approved and posted immediately, removing friction for routine business expenses. Reports between $500 and $5,000 require manager approval. Reports over $5,000 require multi-level authorization. These thresholds are configurable per organization.

When an expense report is approved, the system creates a GL transaction that debits the appropriate expense accounts (based on each line's category and account assignment) and credits the employee payable account. This creates a clean obligation in your accounts payable that flows into the payment cycle.

Reimbursement Flow#

Once an expense report is approved and posted, the employee has a payable balance in the system. The payment proposal agent picks up these balances and includes them in payment batch suggestions. When the payment batch is approved and transmitted to the bank, the employee receives their reimbursement via direct deposit.

The final step in the cycle is bank confirmation. When the bank statement shows the payment was sent, the system posts a reimbursement payout transaction that clears the employee payable -- debiting the payable account and crediting the bank account. This closes the loop and removes the obligation from your balance sheet.

Receipt Management#

Every expense line can include a receipt attachment. Receipts are validated against the reported amounts, and you can track which expenses have receipts attached and which are missing documentation. For organizations that require receipts above certain thresholds, the system flags expenses that need supporting documentation before they can be approved.