Travel Advances clarification

[Former Member]

I am completely stuck with Advances in Travel Management

Please see the flow and advise if my understanding is correct or anything i'm missing here..

Step 1. Create Travel Request with Advance 200 (TRIP)

Step 2. Approve the Travel Request

Step 3. Approve the Advance (PR03)

Step 4. Settle in FI (PRFI and PRRW)

Entry posted was: 40: Travel Advance for 100

                           31:  Vendor  for 100

Here the Settlement Status is: Transferred to FI

Step 5: Create Travel Expenses 300 (PR05)

Here modifying the Settled Trip

Step 6: Approve the Expense Report

Step 7: Settling in FI (PRFI and PRRW)

Now System has genereted the below Entry

31 Vendor for 200

40 Travel Expense for 300

50 Travel Advance for 100

Is this flow correct..

Also, please advise if the Travel Advance is to be created as an Expense or Asset in GL master data and it should be a Special GL.

Appreciate your valuable thoughts and experiences here.

[Former Member]

Advance via Financial Accounting - Travel Management (FI-TV) - SAP Library

[Former Member]

Hi Siegfried,

I have gone through the link. Just wanted to confirm that we have to perform posting twice. 1. For Advance Payment and 2. For Travel Expense Payment. And the Travel Advance Account should be maintained as a Normal Expense Account or Asset Spl GL.

Appreciate your assistance.

[Former Member]

Hi,

there various scenarios you can do with the advances. For sure you can also not do a posting and give the money in cash. But I think the best process is here to request an advance, get it approved and paid out via financial accounting.

By posting the expense the system needs to reconcile against the advance. In SAP standard this is done automatically. (Please check Cluster Segment ROT via transaction PRTE: Here the solution records all posting results)

Please be aware the the advance can be also higher the the actual expenses. Than the difference will not be cleared on the employee vendor until the next expense report will be posted.

About the account assignment: No it is not a cost account from my understanding.

At the end it should be 0 amount on this account. For sure this is never the case but in the balance sheet it should be listed under receivables from employee. Until the expense report is not submitted the company has lent money to the employee. So please align with the finance department. They know by heart which account they would like to use for it.

Best regards, Sigi