Expense Requests System Help

Consider the following when deciding what type of new transaction to create.

Expense Reports are used to report business and travel expenses (including TCard and receipt-based expenses) for the purpose of expense approval, and the allocation of expenses to the appropriate Project, Task, Award, and Expenditure Type (PTAE). An expense report may also result in a reimbursement to the Payee for eligible out-of-pocket expenses.

Each expense report will fall into one of the categories listed below. When creating a new expense report for an SU Payee, begin on the General Information screen by choosing the correct category based on the descriptions below.

Additional Guidelines for Determining Domestic vs Foreign Transactions

Domestic Expense:

• Travel is completely within the U.S.
• If travel is not involved:
  • Expenses for goods purchased for use in the U.S.
  • Expenses for services provided or consumed in the U.S.

Foreign Expense:

1. First, determine if the expense is during foreign travel – that is, the origination location or the destination location, during any leg of a trip, is outside the U.S.
   • If yes, the travel expenses and any other expenses (e.g., honoraria, conference registration, goods and services purchased, regardless of where they are used, provided or consumed) incurred or paid as a result of the trip are considered Foreign Transactions.
   • If no (not foreign travel-related), then go on to Step 2.
2. Second, determine if goods are used, or services provided or consumed outside the U.S.
   • If yes, it is a Foreign Transaction.
   • If no, it is a Domestic Transaction.

Visitor Reimbursements are limited to the following categories regardless of dollar value. When creating a new expense report for Non-SU Payee (Visitor Reimbursement), begin on the General Information screen by choosing the correct category based on the descriptions below. Visitors may be reimbursed for eligible out-of-pocket travel expenses and other eligible expenses.

Non-PO Payments are limited to the following expense categories regardless of dollar value. Some categories allow for a single request for payment to multiple payees.

The tracking of foreign expense activity has become critical to Stanford University, as the global reach of the University's activities continues to grow. Data about expenses related to foreign travel, foreign purchases, and activities outside the United States are important for a variety of reasons:

• Statistics regarding Stanford's global presence
• Risk Management
• Compliance

The Expense Requests system has been designed to collect the much-needed data around foreign travel and expenses.

See definition of foreign transaction in Guidelines for Use of Categories for SU Payees.

Exceptions to the Rule:

• All expenses related to a business purpose involving foreign travel, including the purchase of goods and services while traveling (regardless of where they are used or provided), should be included in a foreign expense report.
• Non-PO Payments related to a business purpose involving foreign travel should be considered a foreign expense, even if service was provided or goods used in the U.S.

Expense Reports Foreign Expense Categories

Foreign Events

All foreign transactions must be associated with a foreign event in the Expense Requests system. It is recommended that a Foreign Event be set up in My Events Preferences prior to entering a transaction related to that event. See How To: Set My Events Preferences.

A Foreign Event consists of an Event Name (created by the user), and Start and End Dates that define the duration of the event. A Foreign Event also consists of one or more activities. You must identify the country, types of activities in the country, and number of faculty, employees, graduate students, and undergrad students involved with each activity. There may be multiple countries in an event, and multiple activities in a country.

Once a foreign event is set up, you can apply it to multiple transactions related to that event (if needed).

FAQs

Q: If a visitor travels from outside the U.S. to Stanford, and is given honoraria for speaking at an event, should the honorarium be requested as a foreign or domestic expense?

A:  Foreign expense, because the honorarium was for an activity related to foreign travel (the travel originated outside the U.S.), even though the speaking event was in the U.S.

Q:  Is it possible to have a Foreign Event with an activity in the U.S.?

A:  Yes. The U.S. should be entered as the Country of Activity when the activity occurs in the U.S., and travel from outside the U.S. was required.

Advances are limited to the following categories and expense types regardless of dollar value. There is no Miscellaneous category for advances. Advances requests must be for travel or human subject incentive.

This How-To offers instructions on how to itemize travel and business expenses when creating an expense report. The procedures apply to both TCard charges and out-of-pocket expenses. This How-To also covers how to itemize a partially personal TCard charge (specifying the portion of the charge that is business and the portion that is personal).

Itemize Expenses or Itemize a Partially Personal TCard Transaction

1. Click Details for the expense line on the Transaction Lines or Travel Card Expenses screen
2. Click Itemize
3. Change the Itemized Receipt Amount field to the dollar amount of the business portion of the expense
4. Enter description in the Remarks
5. Click Add Another Row and repeat the process to itemize other business portions of the expense Any remaining amount not put on an itemized line will show as Personal Expenses.

See Demo: Itemize a Partially Personal TCard Transaction

Each Supplier / Payee will have a default Payment Method of either Check or Electronic (ACH / Direct Deposit) in the database.

When Check is the default, Special Payment Types (Foreign Draft, Wire Domestic, and Wire Foreign) can be chosen, and additional delivery options are available for checks and foreign drafts.

When payments or incentives are made to a non-resident alien, tax withholding rules apply. The human subject or the Department must pay the 30% Federal withholding tax at the time the money is disbursed.

Example 1 – If you want the human subject to absorb the tax payment:

If the payment is $100...

1. Disburse $70 to the non-resident alien,
2. Process the transaction for $100, and
3. The Travel and Reimbursements Department will make a payment of $30 to the IRS.

Example 2 – If you want your Department to pay the tax:

If you want the human subject to receive a total of $100...

1. Disburse $100 to the non-resident alien,
2. Process the transaction at $142.90
   • The additional $42.90 covers the required 30% tax payment (42.90 equals 30% of $142.90)
   • The Travel and Reimbursements Department will make a payment of $42.90 to the IRS.

This is the "gross up" formula:  desired payment amount + 42.9% of the desired payment amount.