T&E expenses (purchases) cannot be categorized as the same or similar to P-card purchases. For tax purposes they need to be handled separately.
The rate of tax charged on the T&E expenses are different from other business expenses such as raw materials versus office supplies as an example.
Most companies that provide the P-card service support their customers by providing an inter-face file which can be uploaded directly into the AP system for payment to the P-card vendor – the file allocates the expenses directly to the appropriate General Ledger accounts based on the category of spend.
By: Ramona Callender
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Thanks Ramona Callender for your post. Technically yes you are right. Normally P-Cards are used for day to day purchases, and will attract a different rate of tax. The full conceptual implementation is for purchases only.
However, in our experience, though called P-Cards, a large number of clients use this for employee expenses. The term P-Card still continues to identify them, and in the back office / outsourcing world, most workflows are defined similar to T&E workflows.
Hope that helps our readers.