This article is for: approvers.
Expenses reach you in two ways: from a payment with a Factorial card, or added by hand by an employee who paid with their own money (a manual, out-of-pocket expense). You approve both the same way, but you check different things, so you review faster and only pay back what you should.
Card expenses and out-of-pocket expenses
Overview
| Card expense | Out-of-pocket expense | |
|---|---|---|
| Who paid | The company, with a Factorial card | The employee, with their own money |
| How it's created | Automatically, as a draft, when the card is used. The employee adds the receipt and sends it. | The employee creates it on the web or the app. |
| Paid back to the employee? | No, there's nothing to pay back | Yes, once approved |
| Controls before the payment | The card's limits and restrictions apply when the employee pays | None: checks happen after the expense is sent |
| What you mainly check | The receipt is there and the purchase was for work | The receipt, the amount to pay back, the category and the policy |
Both follow your company's approval flow, and both are checked by Expense checks if your company uses them.
How to use
Reviewing a card expense
- Open the expense. Card expenses have a Transaction row: click View details to see the card payment they come from. Their total reimbursement is £0.00, because the company already paid.
- Check that the receipt is attached and readable, and that the purchase was for work.
- Approve, request changes, or reject it (see How do I approve, reject or send back an expense?). Once approved, there's nothing to pay back.
Reviewing an out-of-pocket expense
- Open the expense.
- Check the receipt, and that the Reimbursable amount (what will be paid back) is right. It can't be higher than the receipt amount.
- Check the category, project or cost center, and any alerts.
- Approve, request changes, or reject it. Once approved, your finance team pays it back through payroll, a SEPA transfer file, or by setting it as paid (see How do I pay back expenses through payroll?).
Tips and Best Practices
- Review card expenses quickly. The money is already spent, and a missing receipt is easier to get while the purchase is fresh.
- Spend more time on out-of-pocket expenses. They're the ones that turn into real payouts.
- Use "Request changes" for a missing receipt, not "Reject". The employee can add it and send the expense again.
- Employees who have draft expenses, including card expenses waiting for a receipt, get a reminder on Monday mornings.
Related articles: How do I find expenses waiting for my approval? · How do I approve, reject or send back an expense? · How do I check expenses against my expense policy? · Card expenses and manual expenses
Troubleshooting and FAQ
Troubleshooting
A card expense has no receipt.
Use Request changes and ask the employee to add it. They can then send it again.
I don't see "Reimburse" on an approved card expense.
That's expected: card expenses are paid by the company, so there's nothing to pay back to the employee.
FAQ
1. Do I need to review card expenses if the card already has limits?
Yes, but it's a lighter review. Card limits control where and how much the employee can spend, not whether each purchase was for work or has a valid receipt.
2. What happens if I reject a card expense?
The expense becomes Rejected, but the payment has already been made with company money. Factorial doesn't recover it automatically: agree with the employee how they'll pay it back.
3. Can an out-of-pocket expense be paid back for more than the receipt?
No. The Reimbursable amount can't be higher than the receipt amount. When the receipt is in another currency, the amount converted at the receipt (document) date sets the limit, with a margin of up to 5% for bank fees. See Expenses in another currency.