Last week, my post covered the workflow for Travel and Entertainment / Employee expenses. https://faoblog.com/processes-ap-tne-ee-workflow/
Doesn’t P-Card also look the same? Well, it is almost the same, except for the fact that there is another entity involved, the bank or a card issuer.
A typical process sequence for a P-Card transaction will be as given below:
- Employee incurs an expense by swiping his purchase card
- Employee submits the expense report with the relevant bills and charge slip copy
- This is scanned and uploaded to a workflow by the mail room
- The document is checked and audited by a team, having access to all the business rules and limits, the nature of expense is specially verified for any personal expenses
- It may be sent for approvals if required
- Once done, hard copy archived
- Amount expense entry triggered or executed to ERP and amount transferred from employee account to expense or relevant capital account
- In case of personal transactions, the employee may need to return some amount by cheque / check.
I will share more on bank side transactions and purchase card maintenance in the next post.
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Nice post!
Good day,
I mean’t, on my email above, “Will the balance outstanding be transfered to all employee’s separate accounts or maybe one master account for control perposes?”
Is there a telephone I can reach you? You can send this to me on blogmasterfao@faoblog.com. I can call you to help you with a lot of these queries.
Good day,
Thank you for all your responses. I am in South Africa. At my work place, in accounts department, we want to implement travel cards for all employees who travel. I just need processes to put in place for approval by my managers so that I can go ahead and start using them like P-card.
Hi Charlotte.
Thanks for your note. You can reach out to us whenever you want either through the blog or through the email id I had given earlier. My husband works for an outsourcing and consulting company. Whenever you need any help, you can reach out to us.
Also, a quick request. If you genuinely benefited from our posts, please refer your friends and colleagues to the blog.
Thank you for sharing this info in such a clear n precise form.
Just want to know what are the draw backs / challenge of P- Card.
Sure, I will try to cover this in Saturday’s post. I briefly covered this in an earlier post. https://faoblog.com/processes-ap-p-card/
Good day,
Kindly explain what a P-Card is?
Does it work like a credit card, where all transactions are swiped then a statement is received later for payment?
If employees travel and have to pay for their hotel bills and come back and claim, can the P-card help? As they consistantly complain about having no money to pay for themselves and claim afterwards.
Yes, P-Card works like a credit card depending upon the limits assigned to the card. This will help in your situation. Normally this is deployed organization or unitwise. you can reach out to your bankers, I am sure they can propose a solution for your organization.
Thank you so much for your response yesterday. I am interested in introducing this P-card at my work place.
I a big organisation like the one i work at, many employees and consultants travel daily.
Will each employee who travels need to have a P-card each and return it on the day they return? How will I control this?
Hi Charlotte,
Normally P-Cards dont work that way. There are travel cards, which work that way. A card is issued to an employee when he/she wants to travel for the first time. The card is charged / loaded with an amount for estimated spend. Some employers load only a weekly balance on the card, and the employee can request an additional top up as desired. The employee will do the spend and submit bills. The balance amount will remain as an advance on the card. Based on company policies, the accounting department can either reverse the balance or just adjust it through payroll. If the spend is more, the differential can be paid to the employee.
The card remains with the employee, and at the time of next travel, the accounting department will load an estimated amount again. It may take a maximum of 24 to 48 hours for a bank to upload the amount, a minimum of 2-3 hours is neeeded.
Please let me know if you need some help on this. One of our blog promoters works for an outsourcing and consulting company. I can get him connected to you.
Good morning,
Thank you for your response.
After the employee has done the spending and submitted bills, will the bank send me one big statement of account showing the amount due from all the employees total travel cards transactions to validate all employees submitted bills for me to validate and pay the cards? Will the balance outstanding be transfered to all cards or maybe one master card for control perposes?
Good morning lady.
Yes they can, for both your queries. It will depend upon the technological maturity of your bank. If you let me know about the country you are based in, I may give you more insights.
To your query, depending on your bank’s capability, they can do either.
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