3819687 - What is the difference between out-of-pocket expenses and company-paid expenses?

Expense Pay facilitates the reimbursement of out-of-pocket expenses by generating payment demands. A payment demand is created only when all of the following conditions are satisfied:

1. The expense report has completed the full approval workflow – This means all required approvers have approved the report, and it has reached the payment processing stage without any pending workflow steps.

2. The reimbursement method is properly configured – The employee’s profile must be set to Expense Pay by Concur, or the employee must belong to a group with a batch definition where the reimbursement method is defined as Expense Pay by Concur. Without this configuration, the system will not generate a payment demand.

3. An active bank account is on file – The report owner must have a valid, active bank account configured in their profile. If banking information is missing, incomplete, or inactive, the payment demand cannot be created and the report may remain in a pending payment status.

Expense Pay is specifically intended to reimburse out-of-pocket (cash) expenses directly to the employee. These are expenses personally paid by the employee and eligible for reimbursement.

 

It is important to note that expense lines marked as Company Paid are not classified as cash or out-of-pocket transactions. These typically represent corporate card charges or centrally billed transactions that the company pays directly to the vendor or card provider. Because of this:

• Company Paid expense types are not supported by Expense Pay.

• These lines will not generate a payment demand.

• They will not be processed or reimbursed through Concur Pay.

If an expense report contains a mix of out-of-pocket and Company Paid transactions, only the eligible out-of-pocket amounts will generate a payment demand (provided all required conditions are met). The Company Paid lines will be excluded from reimbursement processing.

In summary, once a report containing Company Paid transactions is fully approved, those entries will not go through Expense Pay. Instead, they will be captured in the next scheduled accounting extract file and transmitted to the financial system (e.g., AP/GL) for posting and reconciliation according to your organization’s accounting process.

Understand when your organization pays expenses directly versus when you pay out-of-pocket and need reimbursement. , KBA , CON-EXP-ADM-COB , Configure Batches , Problem