The benefits of new employee expenses functionality

The Business Central 2024 release wave 1 brings a host of new features to the solution. In this series of blogs we take a look at some of those features and what they can do to help you. This blog covers the changes to the employee expenses functionality. Employee expenses have been extended to allow recording and payment in foreign currency as well as local currency.

What are the benefits of employee expenses in foreign currency?

There are a number of benefits to recording an expense in its original currency:

• Accuracy. Recording an expense in its original currency helps ensure that the amounts are correct.
• Clarity. It makes it easier to see how much was spent in each transaction. This makes matching a receipt to the entry simpler.
• Analysis. It can also help identify spending trends in different currencies.
• Compliance. Some businesses might have to report expenses in their original currency due to regulations.
• Risk management. Keeping expenses in their source currency makes it simpler to plan for future spending. It also makes it easier to see any risks from currency exchange rate changes.

Functionality

When you record employee expenses in the general journal you can now enter the currency code on each line. If the exchange rate on the lines does not match you can change it.

You can also now pay employee expenses in the expense currency or an alternate currency (such as the employees usual currency).

If you want to keep your employees’ costs in foreign currency up to date with the latest exchange rates then make sure you run the adjust exchange rates routine on the employee ledgers. Alternatively, if you don’t want to adjust them you can exclude employee transactions from the routine.

Conclusion

This feature is welcome and long due. Since the employee ledger was first introduced it has been a point of frustration that you couldn’t record transactions in the source currency.

Make sure you watch the video below to see how this functionality works.

If you’d like to vote for the idea we mention in the video then please go to the following link. Please make sure you login prior to voting! Microsoft Ideas Website.