This article is for: employees and approvers.
An expense has two amounts: what the receipt says, and what you're paid back. Getting them right avoids expenses being sent back, wrong VAT in the books, and people being paid the wrong amount.
Document amount and reimbursable amount
Overview
- Document total amount (mobile: Document amount): the total on the receipt or invoice, taxes included, in the receipt's currency. It must match the receipt.
- Reimbursable amount: what the company pays back to you. It can be lower than the receipt, but not higher. (For a receipt in another currency there's a small allowance: see below.)
Examples:
- A £120.00 business meal where £30.00 was your guest's: document £120.00, reimbursable £90.00.
- A £300.00 hotel invoice with a £50.00 minibar you pay yourself: document £300.00, reimbursable £250.00.
How to use
- Open the draft and check Document total amount against the receipt.
- If you're claiming less, change Reimbursable amount and say why in Description.
- If nothing is owed to you (for example, you paid with a company card), turn off This expense is reimbursable.
- Click Send for approval.
Receipts in another currency
Enter the Document total amount and Document currency exactly as on the receipt. Factorial converts it into the Reimbursable currency at the exchange rate of the receipt date and shows the rate it used. You can raise the reimbursable amount to what your bank charged, up to 5% above the converted amount. Full details: Expenses in another currency.
Taxes
The tax breakdown (taxable amount + tax amount, for each VAT rate) should add up to the document total.
- If it doesn't, depending on your company's setup you'll see "Tax breakdown is [amount] above the document total" (or below). Correct the lines to match the receipt.
- If you change the total after the taxes were filled in, click Recalculate taxes to recalculate them at the same rates, or close the notice to keep them (for example, after adding a tip without tax).
- Need more than one VAT rate? Click Add tax breakdown.
- A tax line that can't be right stops you sending: for example a taxable amount above the document total, a tax amount above its taxable amount, or a percentage above 100%. Correct the line.
Tips and Best Practices
- Never change the document total to the amount you want back. Change the reimbursable amount instead, so the books match the receipt.
- Explain any difference in the description, so your approver doesn't have to ask.
- Related: How do I create an expense? · Why won't my receipt upload, or why was it read wrong? · Expenses in another currency
Troubleshooting and FAQ
Troubleshooting
"Reimbursable amount can't exceed the receipt amount".
You're claiming more than the receipt (the receipt amount is the Document total amount). In the same currency, the reimbursable amount can be at most the document total. In another currency, it can be at most 5% above the converted amount. Check both amounts and the currencies.
"We couldn't get an exchange rate to convert to [currency]".
Enter the reimbursable amount by hand before saving, using your bank statement.
"Reimbursable amount can't be zero".
Enter the amount to pay back, or turn off This expense is reimbursable if nothing is owed to you.
"Invalid tax amount, base amount or percentage".
One of the tax lines can't be right: a taxable amount above the document total, a tax amount above its taxable amount, or a percentage above 100%. Check the line against the receipt and correct it.
"The document date can't be more than 1 day in the future".
The document date is more than a day after today, usually a misread date or a typo (for example the wrong year). Check the receipt and correct the Document date, then send the expense again.
The taxes no longer add up after I changed the total.
Factorial shows a notice when the tax breakdown no longer matches the document total. Click Recalculate taxes to recalculate at the same rates, or close the notice to keep the taxes as they are.
FAQ
1. My bank charged me more than the converted amount. Why does it say "Reimbursable amount can't exceed the receipt amount"?
You can claim up to 5% above the amount converted at the receipt date's exchange rate. If your bank charged more than that, for example with a foreign transaction fee, you can't add the difference to this expense. Ask your finance team how they want bank fees reported.
2. Which exchange rate does Factorial use?
The rate of the receipt date. The expense shows the rate and its date. See Expenses in another currency.
3. Can my approver change the amount?
People with permission to edit pending expenses can, while the expense is pending. The same limits apply.
4. How much can I adjust a foreign-currency amount?
Up to 5% above the amount Factorial converted. Within that limit you can enter the amount on your bank statement.
5. Should I convert a foreign-currency receipt myself?
No. Enter the receipt as it is, with the amount and currency on the receipt, and let Factorial convert it.
6. How do I change the amount of an expense I already sent?
While it's Pending, click Reset to draft, change the amounts and send it again: see How do I edit or take back an expense?. Once it's approved you can't edit it: ask your admin or finance team. The amount of a Factorial card expense can't be changed in any status.