Expense Management Enhancement: Introduce "Paid by Payroll" Flag for Expense

Hi.  I found the followig information -

In IFS Cloud Expense Management, handling expense reports settled through Payroll versus those reimbursed directly via Employee Payments (Accounts Payable / Direct Deposit) is a common requirement.

Below is an overview of how IFS Cloud natively handles this distinction, best practices for implementing an explicit "Paid by Payroll" flag, and recommendations for reporting and financial reconciliation.

1. Standard IFS Cloud Architecture & Implementation Options

IFS Cloud provides two standard reimbursement channels for authorized expense sheets:

• Employee Payments Module (Direct Reimbursement): Used for out-of-pocket expenses paid directly to the employee outside the salary run (generating SEPA, ISO20022, BACS, or bank files).

• Payroll Interface (Payroll Settlement): Expense lines (mileage, per diems, taxable/non-taxable allowances) are exported to a third-party payroll engine (e.g., CloudPay, ADP, Sage) or internal payroll interface to be included on the employee's monthly payslip.

Options to Implement a "Paid by Payroll" Flag

1. Native Transfer Status (Standard Functionality):

   • When expense sheets are processed via Transfer to Payroll (or exported via the Payroll Interface), IFS Cloud automatically updates the transfer status on the expense sheet/rows (Transferred to Payroll).

   • Once transferred, these expenses are excluded from the Employee Payments — Payment in Full creation grid, preventing duplicate payout.

2. Custom Field / Attribute (Custom "Paid by Payroll" Flag):

   • If you need an explicit boolean flag or dropdown on the Expense Sheet Header or Expense Row (e.g., during expense entry or authorization):

     • IFS Page Designer & Custom Fields: Add an Entity/Projection Custom Attribute (e.g., cf_paid_by_payroll boolean or enumeration [Paid via Payroll, Direct Reimbursement]).

     • Basic Data / Rule Assignment: Default the flag automatically based on the Expense Rule or Expense Code selected (e.g., fixed allowances or mileage default to Payroll, while ad-hoc hotel/travel receipts default to Direct Reimbursement).

     • Validation Event/Action: Add an Event Rule blocking expense sheets with cf_paid_by_payroll = True from being fetched into the Create Employee Payment wizard.

2. Best Practices for Workflow Separation & Reporting

• Clear Basic Data Configuration:

  • Map Expense Codes strictly to their intended wage types / wage codes in Expense Basic Data.

  • Differentiate between taxable per diems (which must pass through payroll for tax withholding) and non-taxable expense reimbursements.

• Reporting & Visibility:

  • Lobby / Operational Views: Build an Expense Analysis Lobby or custom operational report with filters for Settlement Method (Payroll vs. Employee Payment).

  • Payroll Pre-Cutoff Audit: Run a pre-payroll cutoff audit report comparing authorized expense sheets marked for payroll against the payroll interface export file to catch un-transferred or rejected items before payroll locks.

• Closed-Loop Integration:

  • If using automated integrations (such as the CloudPay MCP / XML Interface), ensure acknowledgments from the payroll engine feed back into IFS Cloud to confirm the record was successfully accepted into the payroll run.

3. Best Practices for Financial Reconciliation & Accounting

To maintain GL integrity and avoid double posting or manual journal entries, set up distinct posting controls:

• Reconciliation Rule: Never route payroll-settled expenses through the standard AP/Employee Payment liability account. Keeping a dedicated Payroll Expense Clearing Account ensures Finance can easily reconcile:
  $$\text{Exported Expense Total} - \text{Payroll GL Journal Credit} = 0$$

I hope this helps!  Jane

Additional information - 

Here is a step-by-step guide to creating a custom "Paid by Payroll" field on Expense Sheets in IFS Cloud using Entity Configurations, placing it on the user interface via Page Designer, and enforcing validation using Custom Events & Event Actions.

Part 1: Create and Publish the Custom Field

In IFS Cloud, custom fields are defined at the Entity level first so that the underlying projection and database views expose the new attribute.

1. Navigate to Custom Fields:

   • Go to Main Menu > Configuration > Custom Objects > Custom Fields.

2. Locate the Entity:

   • Search for and select the Expense Header entity (ExpenseHeader) or Expense Row entity (ExpenseRow), depending on whether the flag applies to the full sheet or individual lines.

3. Add the Custom Field:

   • Click New (+).

   • Attribute Name: PAID_BY_PAYROLL (IFS automatically creates the database column CF$_PAID_BY_PAYROLL).

   • Prompt / Label: Paid by Payroll

   • Data Type: Boolean (displays as a toggle or checkbox).

   • Default Value: FALSE (or TRUE if most expenses are payroll-settled).

   • Editable: Check True.

4. Approve and Publish:

   • Select the newly created attribute and click Approve.

   • Click Publish Custom Attributes on the header bar to generate the database objects and project extensions.

Part 2: Expose the Field using Page Designer

1. Navigate to the Target Page:

   • Open the Expense Sheet page in Aurena/IFS Cloud.

2. Launch Page Designer:

   • Click the User / Configuration Icon (top right) and select Page Designer.

3. Locate the Target Group:

   • In the left-hand navigation pane, expand Pages > Expense Sheet > Content.

   • Locate the Header Information Group or General Section where you want the toggle to appear.

4. Add the Field to the Layout:

   • In the Unused Fields list under the ExpenseHeader entity, find cf$_PaidByPayroll.

   • Drag and drop cf$_PaidByPayroll into your chosen section/group.

   • Under Properties, ensure:

     • Label: Paid by Payroll

     • Control Type: Toggle or Checkbox

     • Editable: Inherit or True

5. Save and Publish Configuration:

   • Click Save in the top bar.

   • Click Publish to publish the layout globally or for the designated context/role.

Part 3: Create Event Rule for Validation / Safeguards

To prevent expenses marked as "Paid by Payroll" from accidentally being picked up by standard AP/Employee Payment runs, set up a Custom Event and Event Action.

Step A: Define the Custom Event

1. Navigate to Configuration > Event Management > Custom Events.

2. Click New Event:

   • Event ID: EXPENSE_PAID_BY_PAYROLL_CHK

   • LU Name: ExpenseHeader

   • Event Type: Custom

   • Table / Event Details: Execute on BEFORE UPDATE or BEFORE INSERT.

3. Select the attributes to monitor: CF$_PAID_BY_PAYROLL, ROWSTATE, etc.

4. Save and set to Approved.

Step B: Define the Event Action

1. On the newly created event, go to the Event Actions tab and click New Event Action.

2. Action Type: Select Error Message (or Execute PL/SQL Block for conditional checks).

3. Action Details & Logic:

   • Condition: &NEW:CF$_PAID_BY_PAYROLL = 'TRUE' AND &NEW:ROWSTATE = 'Approved' (or when attempting to trigger AP payment).

   • Message Text: "This expense sheet is flagged as Paid by Payroll and cannot be processed via direct Employee Payment reimbursement."

4. Enable Action: Toggle the status to Active and save.

Hi 

Or if you want to use standard functionality you could use the status of ‘transferred’ to indiucate that this is a payroll paid expense. This exists to show if an expense is paid by payroll. It involves using the transfer to payroll standard functionality

Kind Regards

Rachel