Set up expense management

Path: Business functionality > Expense management (preview) > Set up expense management · tier official · system none · narrative reviewed (checked by Opus)

Overview

This section covers the configuration an administrator completes before employees can submit expenses. It starts with the general expense management setup and the Expense Agent setup. Together they handle submission channels, approval workflows, accounting defaults, policy evaluation and communication settings. Both are available through assisted setup.

The remaining pages cover the master data the setup depends on. Expense categories, subcategories, groups, locations, rules and policies classify and validate expenses, with AI-assisted policy evaluation. Expense users link employees to the system with posting groups, and teams and approvers can be added if needed. Mileage rates and per diem and mileage allowances define how travel reimbursements are calculated.

Mileage rates and per diem allowances are only needed if employees claim travel costs. Per diem rates depend on the expense locations defined with the categories.

Key points

• General expense management setup covers approval workflow, posting groups, payment methods, VAT reclaim, number series and notification preferences, and is available through assisted setup.
• Expense Agent setup configures the email and web app submission channels, approval workflows, accounting defaults, receipt handling and policy compliance and evaluation.
• Expense categories carry posting groups; subcategories allow itemization, groups support reporting, and locations hold per diem rates.
• Expense rules can set conditions and amounts, and policies can include merchant requirements and restrictions, with AI-assisted policy evaluation.
• Expense users are created by linking employees and assigning posting groups; teams, team managers and approvers are optional, and users can be imported from Microsoft Entra ID.
• Mileage rates are defined by vehicle type, currency and effective dates, with fallback to a standard rate and automatic rate selection by date and vehicle.
• Mileage calculation can double the distance for round trips.
• Per diem uses location-based rates and calculation methods such as full calendar day, 24-hour rolling period and overnight stay, with partial day rules, meal reduction percentages and vehicle-specific mileage rates.

Learn pages

• Set Up Expense Agent in Business Central: Learn how to set up Expense Agent to automate expense tracking, processing, policy evaluation, and approval workflows in Business Central.
• Set Up Expense Categories, Rules, and Policies: Learn how to create expense categories, subcategories, groups, rules, and AI-evaluated policies that control employee expenses in Business Central.
• Set Up Expense Management in Business Central: Learn how to configure Expense Agent, policies, payment methods, posting groups, VAT reclaim, and approval workflows for expenses in Business Central.
• Set Up Expense Users and Teams: Learn how to create expense users, link them to employees, and organize them into teams for expense management in Business Central.
• Set Up Mileage Rates for Expense Management: Configure mileage reimbursement rates by vehicle type, currency, and date range so Business Central applies the correct rate automatically.
• Set Up Per Diem and Mileage Allowances: Learn how to configure per diem rates, mileage reimbursement, partial day rules, and meal reductions for expense management in Business Central.

Business Central pages and reports

The pages, reports and queries this hub’s Learn pages name (ms.search.form, API reference), joined to the code by exact object id (data/index/docs-objects.json); a page shows the table it runs on.

• Page 6900 “Expense Management Rules” · on Table 6927 “Expense Rule Header”
• Page 6901 “Expense Rule Card” · on Table 6927 “Expense Rule Header”
• Page 6920 “Expense Location Card” · on Table 6925 “Expense Location”
• Page 6930 “Expense Payment Methods” · on Table 6913 “Expense Payment Method”
• Page 6937 “Expense Locations” · on Table 6925 “Expense Location”
• Page 6939 “Expense Approval Setup” · on Table 6932 “Expense Approval Setup”
• Page 6945 “Expense Category Card” · captioned “Expense Category” · on Table 6921 “Expense Category”
• Page 6946 “Expense Categories” · on Table 6921 “Expense Category”
• Page 6949 “Expense User” · on Table 6923 “Expense User”
• Page 6951 “Expense Users” · on Table 6923 “Expense User”
• Page 6952 “Expense Groups” · on Table 6924 “Expense Group”
• Page 6973 “Expense Subcategories” · on Table 6929 “Expense Subcategory”
• Page 6974 “Per Diem Expenses” · on Table 6905 “Expense Per Diem”
• Page 6976 “Expense Posting Groups” · on Table 6928 “Expense Posting Group”
• Page 6988 “Expense” · on Table 6900 “Expense”
• Page 6990 “Expense Teams” · on Table 6931 “Expense Team”
• Page 6996 “Expense Agent Setup” · captioned “Expense Management Setup” · on Table 6930 “Expense Agent Setup”
• Page 7127 “Expense Policies” · on Table 7092 “Expense Policy”
• Page 7128 “Mileage Rate Setup” · on Table 6939 “Mileage Rate Setup”
• Page 7130 “Expense Vehicle Types” · captioned “Vehicle Types” · on Table 7108 “Expense Vehicle Type”

Source: Microsoft Learn (CC BY 4.0). Descriptions are Learn’s own.