Creating a New Expense Type for Travel and Expense Entries

CONTENTS

• Create a new payroll item
• Basic data
• Accounting settings
• Linking the payroll item to the salary model
• Travel expense reimbursements deviating from the values confirmed by the tax authority
• Frequently asked questions

This guide provides instructions for adding new cost types to travel expense reports and defining them as salary types. Additionally, the guide describes the definition of postings and income type allocations, as well as linking the salary type to the salary model.

New cost types can be added to travel expense reports, which can be found in the travel expense report "Add other expense" menu. Accounting entries and necessary income type allocations can be defined for the cost type. A cost type means the same thing as a salary type.

Here is a link to the instructions for creating a new salary type for payroll processing: Create a new payroll item

Create a new payroll item

A new payroll item is created from Company-specific payroll items. All payroll items from the salary models in use can be found on the same page.

Payroll > Payroll processing > Salary model management > Company-specific payroll items > Add new payroll item

Basic data

1. Leave Payroll item number blank (only needed for integration).
2. Fill in Language translations if desired (optional).
3. Select Group as "Tax-exempt allowances for expenses".
4. Select Payroll list group as "Not considered" or "tax-exempt allowances".
5. Select Source as "Travel expense report - expense row".
6. Define Income type according to the income register instructions if necessary.

Accounting settings

1. Add Postings (the image shows only examples).
   • Posting override allows the expense row posting to be done only during the travel expense report creation phase. Below is an image example of posting override when the expense row is added to the travel expense report.
2. Leave Unit name blank (not necessary).
3. Define Default VAT percentage if necessary.
4. Select Save.

Linking the payroll item to the salary model

Once the payroll item is created in company-specific payroll items, it must be linked to the salary models where it is intended to be used. The payroll item must be linked separately to each salary model according to the instructions below if the payroll item is used in multiple different salary models. The payroll item is linked to the salary model from the salary model formulas.

Payroll > Payroll processing > Salary model management > Monthly salaried employees (basic model) > Formulas

Since the travel expense report cost type is a tax-exempt allowance for expenses and no withholding tax or other deductions are made from it, it is linked to the payroll item in the "To be paid" formula.

The To be paid formula is first shown in its entirety after the equals sign. Below this, the same formula is listed, and new payroll items can be added to it.

1. Find the green plus sign at the bottom of the page. Clicking the sign opens a new row to be processed below.
2. Click the green plus twice to get two rows to be processed.
3. Change the last row to "Salary type" and replace Gross salary with the created payroll item (e.g., "Computer equipment").

4. Select "Save". After this, the payroll item is available in travel and expense entries in the "Add other expense" section.

Here is a link to the instructions for Creating a new travel and account of expenses.

Travel expense reimbursements deviating from the values confirmed by the tax authority

If a company pays travel expense reimbursements that deviate from the values confirmed by the tax authority, there is no need to create new payroll items or formulas in the program for these. In the view Travel > Travel and account of expenses > Travel reimbursement settings you can provide values that deviate from the defaults, which are used as unit prices for travel expense reports. When a user sets their own price for an expense reimbursement, this setting overrides the tax authority's value.

Frequently asked questions

What is the difference between a cost type and a salary type?

Cost type and salary type mean the same thing and are created from the same place. Cost types are only discussed in the context of creating travel and account of expenses because "expenses" are added to the travel expense report.

How can I make a new cost type visible on the travel expense report?

Select "Travel expense report - expense row" as the source for the salary type, then the cost type can be selected for the travel expense report from the "Add other expense" menu.

Can new cost types be automatically assigned a unit price/value?

Unfortunately, no, the unit price/value must always be manually entered for the new cost type on the travel expense report expense row. Automatic unit prices/values are only available for tax-exempt allowances for expenses that are predefined in Netvisor and defined by the tax authority. In the travel reimbursement settings, it is possible to define the prices or values for travel expense reimbursements used in the company if they differ from the tax authority's default values.

What cost types are needed for handling hotel stays and hotel breakfasts?

Separate salary types can be created for hotel stays and hotel breakfasts. When the source of the salary types is "travel expense report - expense rows," the salary types will appear as cost types in the Travel section. A default VAT percentage of 0 can be set for the hotel breakfast salary type.

Keywords: Salary type, Cost type, Travel expense report, Salary model, Accounting settings, Travel reimbursement settings, Posting

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