Expense Report

Definition:

An expense report is a document submitted by an employee to claim reimbursement for business-related expenses incurred while performing their job duties. These expenses can include travel costs, meals, accommodations, and other approved purchases.

Example:

A sales representative at Acme Corporation travels to meet with clients and attends a conference on behalf of the company. During the trip, the representative incurs expenses on their T&E Card such as airfare, hotel stay, meals, and ground transportation. Upon returning, the representative compiles an expense report detailing each expense, along with supporting receipts, and submits it to the company for reimbursement.

Why is it Important to Procurement?

Expense reports are important for procurement teams, as they help to track and manage employee spending, ensure compliance with company policies, and maintain accurate financial records. Procurement teams may work with finance to establish expense reporting guidelines, set up automated systems for submitting and approving reports, and analyze expense data to identify trends and opportunities for cost savings. By efficiently managing expense reports, procurement teams can help to control costs, reduce fraud and errors, and support the overall financial health of the organization.