Skip to main content
Version: Current

Understanding Expense Types

When submitting expenses in Zudello, you classify each item using an Expense Type. This helps categorise the expense, determine required information, apply policies, and ensure correct accounting treatment.

Common Expense Types:

While specific types are configured by your administrator, they generally fall into these categories:

  1. Expense with Receipt:

    • Use Case: Standard business expenses supported by a receipt or tax invoice (e.g., meals, taxis, flights, accommodation, supplies, software).
    • Process: Upload the receipt image/PDF. Zudello extracts data. You verify details and complete coding.
    • Requirements: Receipt attachment is usually mandatory. May require fields like Supplier Name, Date, Amount, Purpose, GL Code, Tax Rate.

  2. Expense without Receipt:

    • Use Case: Minor expenses where receipts aren't practical or were lost (e.g., tolls, parking meters, small cash purchases). Often subject to company policy limits.
    • Process: Manually create the expense record, entering all details.
    • Requirements: Receipt attachment is absent. Usually requires a mandatory Justification/Reason field explaining the lack of receipt. Amount limits often apply.

  3. Mileage Expense:

    • Use Case: Claiming reimbursement for using a personal vehicle for business travel.
    • Process: Manually create the expense record. Enter Start/End/Stop addresses. Zudello calculates distance via mapping service. Select applicable Mileage Rate.
    • Requirements: Route details (addresses or manual distance/odometer), Purpose of Travel, Mileage Rate selection. Usually tax-exempt.

  4. Allowance / Per Diem (Potential Future Feature):

    • Use Case: Claiming fixed daily amounts for travel expenses (meals, incidentals) instead of individual receipts, based on company policy.
    • Process: Manually create the expense record. Specify dates, location, and allowance type. Amount is often calculated based on configured rates.
    • Requirements: Travel Dates, Location, Allowance Type.

Why Expense Types Matter:

  • Determines Required Fields: Different types trigger different mandatory fields on the form (e.g., Mileage needs route details, No Receipt needs justification).
  • Applies Policies: Expense policies often target specific types (e.g., meal limits only apply to the "Meals" type).
  • Default Coding: Can be used to automatically apply default GL codes or tax rates.
  • Reporting & Analysis: Allows finance teams to analyse spending by category.

Selecting the correct Expense Type when creating or coding an expense is crucial for accurate processing and compliance.

See also: Expense Types (How-To)