With Fyle, you can create custom Expense Policies for your employees and any policy violation will be detected in real-time while creating expenses.
Policies can be created by the Admin in the Settings page. To create an Expense Policy, go to the Policies section in the Settings page and click on Expense. Now, click on the New Policy button.
You will land on another page where you create a new policy rule. In this page, there are 4 sections:
- Policy Description - Here, you enter a description for the policy which will be displayed to the user upon the violation of this policy.
- Policy Timeline - Here, you select the time duration between which this policy will be effective.
- Policy Conditions - Here, you define the conditions which when satisfied triggers the policy to be violated. Under the Policy Conditions, there are various subcategories. Note that, for a policy violation to be triggered, all of the selected conditions must be satisfied while creating an Expense.
- Policy Actions - Here, you define the set of actions to be taken when this policy is violated.
Note that, none of the fields while creating a policy rule is mandatory. However, for a policy violation to be triggered, all of the selected conditions must be satisfied while creating the expense.
Policy Conditions is the set of all conditions that must be satisfied on an Expense for the policy violation to be triggered. There are many subcategories under this. Let’s look at each one of them.
The Policy is violated if an expense:
- Is made after a selected date or/and before a selected date
- Is older than the number of days mentioned in ‘Expenses age (days)’. Expense age is the number of days elapsed between the date of spend and the date on which the corresponding expense is created in Fyle.
The policy is violated if the user creating the expense is:
- Of one of the selected Departments
- Of one of the selected Levels
- Of one of the selected Titles
- One of the selected Specific People
The policy is violated if the expense is:
- Of one of the selected Categories
- Of one of the selected Cost Centers
- Of one of the selected Projects
- The policy is violated if the ‘Mark receipt as Mandatory’ checkbox is selected and a receipt is not attached for the Expense.
- The policy is violated if the location of the expense is the one mentioned in the above field.
- The above fields can be filled if the Expense category selected in the Expense section is Mileage.
The policy is violated if:
- The percentage change between the pre-calculated mileage distance and the user-specified mileage distance is more than the allowed change percentage. Example:- If the calculated mileage distance in the app is 5 miles, the user entered mileage distance is 10 miles, and the allowed change percentage is 50%, then this will violate the policy because the percentage change is 100%. But if the allowed change percentage is 200%, then the policy will not be violated.
- The distance for the mileage expense is more than the Maximum Distance Limit set in the policy rule. The Maximum Distance limit can be set for an individual expense or for a whole month
- The above dropdown can be selected if the Expense category in the Expense section is Flight.
- The policy is violated if the Travel class for the Flight Expense is one of the selected classes in the above dropdown.
- The above dropdown can be selected if the Expense category in the Expense section is Train.
- The policy is violated if the Travel class for the Train Expense is one of the selected classes in the above dropdown.
- Amount Limit type is determining whether the Amount condition holds for an Individual Expense or for the set of all expenses in the day/week/month/year, etc.
The policy is violated if :
- The currency of the Expense is the one selected in the policy rule and the Expense amount is more than the specified Amount Limit.
- The percentage change between the Exchange Rate suggested by the app and the Exchange Rate specified by the user is more than the allowed percentage change.
If the ‘Convert to other currencies’ is checked, then the Expense amount is converted to the selected currency when the Expense currency is a different currency. For example, let’s say a policy is set to be violated when an expense is more than $10 USD. Now, if the expense is ₹800 (INR), the policy will not be violated if ‘Convert to other currencies’ is not checked even though ₹800 is greater than $10 USD. But if ‘Convert to other currencies’ is checked, then it’ll convert ₹800 to its USD equivalent before comparing it with $10 USD, and trigger the policy violation as ₹800 ($11.2 USD) is greater than $10 USD.
Policy Actions is the set of actions that must be taken when the policy is violated. Let’s look at each of the actions.
The Expense will be flagged if the policy is violated
Cap to amount limit
The Expense amount will be capped to the specified Amount limit if the Expense amount is more than the approved limit.
Popup on violation
The detected violation pops up while creating the expense.
Critical policy violation
If this is selected, then the expense violating the policy cannot be reported.
Disable System Approver
If this is selected, then the primary approver for the employee will be disabled when the policy is violated. If you select this option, then it is mandatory to set another approver from the dropdown below the option. The dropdown lets you set either the Secondary Approver 1 or the Secondary Approver 2 of the employee. Alternatively, there is also an option - ‘Add Approver IDs’ - which allows you to add approvers from the dropdown list that appears when you select this option.
The dropdown ‘Add Project Approvers’ is displayed only if a project was selected from the Projects dropdown in (3). This dropdown lets you add the Project Approver(s) if the policy is violated.
After selecting the policy actions, Click on Save to save this policy rule. You can also click on Save and Clone if you wish to clone this policy rule and make some changes to it before saving it as another Policy rule.
This section demonstrates an example on how to set up an expense policy with the help of a use case to show how to create a policy rule.
Policy violation must be triggered if a Mileage expense of more than $20 was created after 2019, by an employee of Level L2 in the city of Oregon. Upon Policy Violation, the expense must be flagged and the amount must be capped to the amount limit of $20. This policy is effective from January 1, 2020.
For the above use case, these are the fields to be selected to create the policy rule.