Set up and configure payment types for credit card expenses
- 6 min.
Payment types in Expense Management offer a convenient way to categorize and track various types of expenses while being simple to configure and assign to users.
Scenario
Ester needs to configure a new payment type in line with her company's set up. She needs to complete the following tasks
- Create and sets up a new payment type
- Apply a Posting Account
- Configure how expenses will be matched
- Assign users to a payment type
Create payment types
To create a payment type, follow these steps:
- Search for Payment Types and select New.
- Configure the settings in the General FastTab to suit your business processes.
See below the list of options further explained.
| Setting | Description |
|---|---|
| Code | Recommended to use the card type, for example Visa or Mastercard |
| Description | Use this additional field to add more details about the card, for example provider name or series of cards. |
| Selectable | These settings control whether expense users can choose the payment type when submitting expenses. If you want users to wait for credit card transactions to import before creating an expense, set Selectable to No. |
| Submit Expenses in LCY | Expense users submit with their own bank's exchange rate. By default this is not enabled, and users submit with the exchange rate set by Business Central. |
Set up a posting account
Staying within Payment Types, select and open the Posting FastTab and select account and posting method. You have the following options:
Posting method: For company credit cards, the most common method is Post on Business Account. For employee credit cards, select Post on Expense User’s Account. This lets you import credit card transactions without posting them to a Business Account.
Posting account: Bank account is recommended for easy monthly reconciliation. Using Vendor requires an additional step under to post as a purchase invoice and the last option adding a G/L can complicate expenses for later reconciliation.
Match to expense settings
There are two ways automatic banks transactions and expenses can be matched.
Keeping within Payment Types go to the Bank Transactions/Credit Card Fastab. More options become available once Match to Expense is selected.
Select your matching preference.
• Never Required: Use when automatic transaction import isn’t possible, but you still want to manage payments manually.
• Always Required: Starts matching submitted expenses with imported transactions.
• Required from Date: Applies Always Required from a specified future date.
If you choose Create Expense from Transaction or Required from Date, you’ll need to configure additional fields:
• Create Expense from Transaction: Automatically creates an expense when an imported transaction matches this payment type.
• Matching Tolerance: Define acceptable differences for amount and date, (it is recommended to have a 2 % tolerance to ease the automatic matching.
• Intermediate Posting Account: This is the account where the transactions will be temporarily assigned and will be balanced out once the expenses is posted.
• Enable Multiple Users per Card: Disabled by default but when toggled can be mapped.
Assigning payment types to users or user groups
It's a few simple steps to assign the new payment type to a user or a user group.
- Go to Payment Types.
- Select the line for the appropriate payment type, and on the action bar select Actions > Other > Effective users
- From here you have the options to add users, edit users assignment or Edit Group assignment.
Tip
If you use User Groups, all users in the selected expense group inherit this setting. This can greatly speed up your setup tasks.