## Understanding JD Edwards EnterpriseOne Expense Management Functionality That Supports PGCA

This chapter discusses JD Edwards EnterpriseOne Expense Management functionality that supports project and government contract accounting (PGCA).

### JD Edwards EnterpriseOne Expense Management Functionality That Supports PGCA

The JD Edwards EnterpriseOne Expense Management system provides detailed visibility into the expenses incurred by company employees as a result of their work on project and government contracts. You can set up expense categories and expense policies that define the types and amounts of expenses that employees can enter and be reimbursed for. For each employee, you set up an employee profile that defines expense approval mechanisms for the employee as well as reimbursement methods.

You can set up the system to require management approval for expenses. If you define limits for different types of expenses, you can set up the system to require an auditor's review and approval of any expense that exceeds the limit.

As for any other business activity, you set up accounts for expense entry and reimbursement to enable the company to have an accurate record of employee expenses that were incurred in the context of a PGCA contract.

This table describes additional JD Edwards Expense Management functionality that supports PGCA:

Functionality | Description
Allowable and unallowable amounts | Every year, the United States federal government issues the Federal Travel Regulations Travel Bulletin (FTR). This bulletin specifies domestic per diem rates that can be reimbursed to companies working on government contracts. Based on the reimbursement limits set by the FTR, a government contractor can set up expense policies in the JD Edwards EnterpriseOne Expense Management system to define expense amounts in different expense categories as billable or nonbillable. If you define an amount as nonbillable, you cannot bill the government for this expense. To set up billable and nonbillable expenses, you have two options. You can either set up an entire expense category as billable or nonbillable, or define a portion of an expense as nonbillable or unallowable. To define a portion of an expense as nonbillable, you set a daily allowance and then activate the Allowable/Unallowable rule for the expense category. The system tracks the portion of the expense that you have defined as unallowable in a separate account from the one that is set up for allowable expenses in the expense category. The FTR differentiates per diem allowances by geographical location and season. For example, the hotel reimbursement rate for Phoenix, Arizona, is higher in the winter months than during the summer. You can set up expense policies to reflect the FTR by setting up the policies for expense categories by location. See Setting Up Expense Management Policies.
Approval workflow | JD Edwards EnterpriseOne Expense Management provides a flexible expense approval workflow. For each employee who incurs expenses, you can either set up a single manager as the primary approver for an expense report, or associate the employee with a hierarchy of approving managers. This hierarchy supports a flexible and efficient approval process. For example, you can set up the hierarchy so that the approval request is sent to more than one manager on the same level. You can also set up different approval limits. If an expense amount exceeds certain limits, the expense report must be approved by multiple managers on different levels. You can also set up time escalations so that approvals are not held up when a manager is not available. When the time limit expires, workflow automatically forwards the approval request to another manager. To set up a flexible expense approval process, you use a distribution list and workflow. In the distribution list, you set up the employee requiring expense approvals as well as the hierarchy of managers who have approval authority. You use the employee profile to associate a distribution list with an employee based on the structure type of the distribution list. For each level in the distribution list hierarchy, you can set up amount and time limits. To support expense approval workflow, you associate each manager with the workflow that is set up for expense report approvals: EXPROUTING. Workflow sends approval requests to the appropriate managers, deletes expired requests, and forwards requests where necessary. See Setting Up Workflow Processing for Expense Management.