Overview
Knowlix Expense Management handles employee expenditure tracking from submission through reimbursement. Employees log business expenses, attach receipts, and submit reports for approval. Managers review and approve expense claims, while accounting teams process payments and post entries to financial records. The expense workflow supports individual expense entry, bulk imports from credit cards or receipts, automatic categorization, multi-level approval routing, and integration with accounting and payroll systems. Expenses can be personal (requiring reimbursement) or company-paid (credit card transactions), with automatic matching to bank statements. Track per-project expenses and automatically invoice clients for billable costs. Configure expense categories with accounting rules, approval thresholds, and invoice pricing. Generate expense reports that roll up individual expenses into approval packages, maintaining full audit trails from receipt to payment. Key capabilities:- Mobile and desktop expense logging with receipt attachments
- Automated expense categorization and approval routing
- Multi-currency support with automatic exchange rate conversion
- Integration with accounting journals and customer invoicing
- Expense analytics and reporting by employee, project, or category
- Reimbursement processing through payroll or direct payment
Important: Expense policies and approval workflows should align with your company’s financial controls and tax compliance requirements. Configure categories and approval thresholds according to internal policies.💡 Pro Tip: Ask Your Knowlix for expense operations: “Log a $45 lunch expense for the ABC Corp meeting” or “Show me pending expense reports awaiting my approval”
Expense Categories
Categories classify expenses for accounting, approval routing, and reporting purposes.Viewing Categories
To access expense categories: Navigate to Expenses → Configuration → Expense Categories The list displays all configured expense types available to employees when logging expenses.Category Configuration
To create or edit categories:- Navigate to Expenses → Configuration → Expense Categories
- Click New or select an existing category
- Configure the following fields:
- Category Name: Display name shown to employees (e.g., “Mileage,” “Meals,” “Hotel”)
- Internal Reference: Optional code for accounting integration
- Company: Owning company (multi-company databases only)
- Cost Type: How expense amounts are determined
- Employee-Defined: Employee enters actual amount spent
- Fixed Amount: Category has predetermined cost (e.g., $0.50 per mile)
- Unit of Measure: Quantity measurement (miles, nights, units, etc.)
- Default Amount: Pre-filled amount for fixed-cost categories
- Expense Account: General ledger account for posting expense debits
- Analytic Accounting: Distribute expenses to cost centers, projects, or departments
- Analytic Distribution Model: Apply standard distribution rules
- Analytic Tags: Tag expenses for multi-dimensional reporting
- Re-Invoice Expenses: Allow charging expenses back to customers
- At Cost: Invoice exact expense amount
- Sales Price: Invoice using configured sales rate (e.g., mileage at 0.50)
- Invoicing Policy: Control when expenses appear on customer invoices
- Ordered Quantities: Invoice approved expense amount
- Delivered Quantities: Invoice based on delivered quantities (rarely used for expenses)
Logging Expenses
Employees record business expenses through multiple input methods.Creating Individual Expenses
To log a single expense:- Navigate to Expenses → My Expenses → My Expenses
- Click New
- Complete expense details:
- Description: Brief explanation of the expense (e.g., “Client dinner at Riverside Steakhouse”)
- Category: Select appropriate expense type
- Total: Amount spent (or quantity for fixed-cost categories)
- Included Taxes: Tax amounts paid (if applicable)
- Employee: Defaults to current user, can be changed by managers
- Paid By: Who covered the expense
- Employee (to reimburse): Employee paid with personal funds
- Company: Paid with corporate credit card
- Bill Reference: Vendor invoice number or receipt identifier
- Expense Date: Transaction date
- Account: General ledger account (if different from category default)
- Customer: Client to invoice (for billable expenses)
- Analytic Distribution: Project or cost center allocation
- Company: Owning company (multi-company environments)
- Click the Attach Receipt button or drag receipt images to the form
- Click Save
- To Report: Individual expense not yet added to report
- To Submit: Included in draft report not yet submitted
- Submitted: Report sent for approval
- Approved: Manager authorized the expense
- Posted: Accounting entry created
- Done: Reimbursement processed
- Refused: Manager rejected the expense
Bulk Expense Import
Creating multiple expenses from receipts:- Navigate to Expenses → My Expenses → My Expenses
- Click Upload (cloud icon in toolbar)
- Select multiple receipt images or PDFs
- Knowlix creates individual expense records from each file
- Review and complete any missing information
- Attach to expense reports as needed
Mobile Expense Entry
Employees can log expenses directly from mobile devices through the Knowlix mobile application. Capture receipt photos immediately after purchase, reducing lost receipts and improving data accuracy. Mobile workflow:- Open Knowlix mobile app
- Navigate to Expenses module
- Tap Create Expense
- Take photo of receipt or select from gallery
- Fill in expense details
- Submit for inclusion in next expense report
Expense Reports
Reports group related expenses into submission packages for approval and payment.Creating Reports
To create an expense report:- Navigate to Expenses → My Expenses → My Reports
- Click New
- Enter Report Name (e.g., “March 2026 Business Travel”)
- Select Manager who will approve (defaults to your assigned manager)
- Click Save
- Click Add a line in the expense list
- Select expenses to include (only “To Report” status expenses appear)
- Click Select
- Review total amount and expense details
- Click Submit to Manager when ready for approval
- Total: Sum of all expenses before taxes
- Taxes: Total tax amounts
- Grand Total: Complete amount including taxes
Editing Reports
Before submission:- Add or remove expenses by clicking Add a line or using the delete icon
- Edit individual expense details by clicking the expense record
- Attach additional documentation to the report itself
Report Notes and Justification
Add context or explanations in the internal notes section at the bottom of reports. Document unusual circumstances, policy exceptions, or approval justifications. 💡 Report Organization: Submit expense reports regularly (weekly or monthly) rather than accumulating large numbers of expenses. Smaller, frequent reports process faster and simplify manager review.Approval Workflow
Managers review submitted reports and authorize payment.Manager Approval Process
To review expense reports:- Navigate to Expenses → Expense Reports
- Use filters to show Submitted reports awaiting approval
- Open a report to review
- Examine each expense:
- Verify receipts are attached
- Check amounts match receipts
- Confirm expenses comply with company policy
- Review category assignments
- Take action:
- Approve: Authorize payment and accounting entry
- Refuse: Reject the entire report (requires explanation)
- Reset to Draft: Send back to employee for corrections
- Open the expense report
- Click into the individual expense you want to refuse
- Click Refuse
- Add refusal reason
- Return to the report and approve remaining expenses
Approval Authority
Manager assignment: Employees have assigned managers configured in their employee records. By default, expense reports route to this manager for approval. Delegation: Managers can delegate approval authority to other users during absence. Configure delegation in user preferences or through the absence management system. Multi-level approval: For high-value expenses, configure approval thresholds that route reports to senior managers or financial controllers when amounts exceed limits. 💡 Your Knowlix: “Show me expense reports over $500 pending approval” or “Approve Sarah’s March expense report”Posting to Accounting
Convert approved expenses into accounting journal entries.Journal Entry Creation
To post expenses:- Navigate to Expenses → Expense Reports
- Filter for Approved reports
- Select one or more reports
- Click Post Journal Entries
Journal Configuration
Configure expense journals for proper accounting treatment:- Navigate to Accounting → Configuration → Journals
- Select or create an Expense journal type
- Configure:
- Default Expense Account: Fallback account if category lacks specification
- Bank Account: For direct reimbursement processing
- Company: Owning company
- Save
Reviewing Posted Entries
To view accounting entries:- Open the expense report
- Click the Journal Entries smart button
- Review debit and credit lines
- Verify account assignments and amounts
Employee Reimbursement
Process payments to employees for personal expenses.Payment Methods
Integrated with payroll: Include expense reimbursements in regular payroll processing. The system marks expenses as paid when payroll runs are confirmed. Direct payment: Issue separate reimbursement payments outside payroll:- Open the posted expense report
- Click Register Payment
- Configure payment details:
- Payment Date: Transaction date
- Amount: Reimbursement total (pre-filled)
- Payment Method: Check, wire transfer, etc.
- Destination Account: Employee receivable account
- Click Create Payment
- Navigate to Expenses → Expense Reports
- Filter for Posted status
- Select multiple reports
- Click Register Payment action
- Configure batch payment settings
- Confirm
Payment Tracking
Report payment status:- Paid: Reimbursement processed through payroll or direct payment
- In Payment: Payment registered but not yet cleared (checks not cashed, etc.)
- Navigate to Expenses → Reporting → Expenses Analysis
- Group by Employee
- Filter for reimbursed expenses
- Analyze payment timing and amounts
Re-invoicing Expenses to Customers
Automatically bill clients for project-related expenses.Billable Expense Configuration
Category setup:- Navigate to Expenses → Configuration → Expense Categories
- Open the category you want to make billable
- Enable Re-Invoice Expenses
- Select invoicing rate:
- At Cost: Bill exact expense amount
- Sales Price: Bill using markup (configure sales price on form)
- Save
- Cost (actual expense): $50
- Sales Price (invoice amount): $75
- Markup: $25 profit per expense
Linking Expenses to Sales Orders
Automatic linking: When creating an expense, select the Customer field. The system finds matching sales orders for that customer and links the expense automatically. Manual linking:- Open the expense record
- Click the Sales Orders smart button
- Add or modify sales order linkage
- Save
Invoice Generation
Including expenses on customer invoices:- Navigate to the sales order
- Click Create Invoice
- Select invoice timeframe (automatically includes approved expenses)
- Review invoice lines (expenses appear as separate line items)
- Post the invoice
- Expense category name as product
- Expense description as line description
- Invoiced amount (cost or sales price based on category configuration)
Expense Analytics and Reporting
Analyze expense patterns, spending trends, and budget performance.Expenses Analysis Report
To access analytics: Navigate to Expenses → Reporting → Expenses Analysis Available metrics:- Total Expenses: Aggregate spending across selected filters
- Count: Number of individual expense records
- Average: Mean expense amount
- Untaxed Amount: Expense totals before taxes
- Tax Amount: Total taxes paid
- Employee: See per-person spending
- Category: Analyze expense types
- Department: Track departmental costs
- Project/Analytic Account: Monitor project expenses
- Expense Date: View trends over time (by month, quarter, year)
- Date ranges: Current month, last quarter, fiscal year
- Status: Approved only, posted, paid
- Company: Multi-company filtering
- Employee or department: Focus on specific teams
Manager Expense Reports
Managers access team expense summaries showing pending approvals, approved amounts, and payment status. Manager dashboard widgets:- Expenses to Approve: Count of reports awaiting action
- Average Approval Time: Review cycle metrics
- Top Expense Categories: Where team spends most
- Policy Violations: Flagged expenses exceeding thresholds
Financial Reporting Integration
Posted expenses flow into standard financial reports:- Profit & Loss: Expense categories appear as operating expenses
- Cash Flow: Reimbursements show in cash outflows
- Balance Sheet: Outstanding reimbursements appear in employee payables
- Budget vs. Actual: Compare expense spending to budgeted amounts
Expense Management Best Practices
Submit Expenses Promptly
Log expenses within days of purchase while details are fresh. Delayed submissions create payment delays and make receipt verification difficult.Attach Clear Receipt Images
Photograph receipts immediately after purchase. Ensure images are clear, legible, and include full receipt details (vendor name, date, amount, line items). Accounting may reject expenses with poor receipt quality.Use Specific Expense Descriptions
Write meaningful descriptions beyond category names. “Client dinner with ABC Corp CFO to discuss Q2 contract” is more useful than “dinner.”Follow Company Expense Policies
Understand per-diem limits, approved vendor lists, advance approval requirements, and category restrictions. Policy violations delay approvals and may result in reimbursement denials.Separate Personal and Business Expenses
Never include personal charges on business expense reports. If personal items appear on shared receipts (like hotel bills), document clearly and deduct from expense amount.Review Reports Before Submission
Check that all receipts are attached, amounts are correct, categories are appropriate, and required fields are complete. Incomplete reports get returned for revision, delaying payment.Managers: Approve or Refuse Within SLA
Establish service level agreements for expense approval (e.g., 3 business days). Delays frustrate employees and disrupt cash flow planning.Configure Meaningful Categories
Create expense categories that align with your chart of accounts and management reporting needs. Too few categories lose detail; too many create confusion.Set Appropriate Approval Thresholds
High-value expenses warrant additional scrutiny. Configure multi-level approvals for amounts exceeding business thresholds (e.g., $1000+ requires director approval).Reconcile Company Credit Cards
Match company-paid expenses to bank statement transactions regularly. Investigate discrepancies promptly to prevent fraud and ensure accounting accuracy.Monitor Expense Trends
Review expense analytics monthly. Identify unusual spikes, policy violations, or budget overruns early so management can take corrective action.Archive Receipts According to Tax Law
Many jurisdictions require maintaining receipt images for 3-7 years. Ensure your document retention policies comply with tax authority requirements.Troubleshooting Common Issues
Expense Won’t Submit to Report
Possible causes:- Expense already belongs to another report (check status)
- Expense is refused or posted (can’t be added to new reports)
- Required fields are missing (description, category, amount)
Manager Can’t See Submitted Report
Possible causes:- Report submitted to wrong manager (check manager assignment)
- Manager lacks Expenses module access rights
- Report filter excluding submitted status
Posted Expense Has Wrong Account
Possible causes:- Expense category configured with incorrect expense account
- Manual account override on individual expense
- Missing account in category configuration (uses journal default)
Billable Expense Not Appearing on Invoice
Possible causes:- Expense not approved (only approved expenses invoice)
- Sales order already fully invoiced (no new invoices generated)
- Expense not linked to correct customer or sales order
- Re-invoice option disabled on expense category
Reimbursement Amount Doesn’t Match Expense Total
Possible causes:- Some expenses marked as company-paid instead of employee reimbursement
- Individual expenses were refused during approval
- Taxes excluded from reimbursement calculation (configuration setting)
Related Documentation
- Accounting - Journal configuration and financial integration
- Projects - Project expense tracking
- Timesheets - Time and expense management
- Payroll - Expense reimbursement through payroll
Need Help?
Ask Your Knowlix:- “Log a $75 taxi expense for the airport transfer”
- “Show me all my expenses from last month”
- “Submit my expense report to my manager”
- “What’s the total pending for reimbursement?”
- “Create a mileage expense: 120 miles”
- “Show expense reports I need to approve”