Cleemy functions as an accounting software: each operation triggers the transfer of accounting entries.
Cleemy manages the entries of different accounting journals linked to expense reports. This is described below.
Expense report journal
Simply put, this pertains to expense report entries. When an employee declares an expense report, an entry is created containing:
- A line of credit from the employee’s third-party account (the entry can be in the red if the expense report has a negative amount. For example, in the case of train ticket cancellations).
- Debit lines in charge accounts for expenses. Cleemy distinguishes between the untaxed amounts of each expense, but it is possible to merge them in accounting exports.
- VAT lines: there will be one per rate and per expense.
Cleemy tracks one third-party account per employee, even if they are all grouped together in a centralized account in your accounting department. In this case, Cleemy will export the entries in this centralized account. It is not necessary to modify your accounting plan to use Cleemy.
Journal of expenses regularized by entity
Expenses regularized with a company’s payment methods are entered in a bank account or in an account dedicated to a specific payment method (usually for company banking cards granted to a specific employee).
Apart from the compensation account, these entries are identical to those found in the expense report journal.
Payment entries are generated in two ways:
- if you use the payment module, Cleemy will transfer a payment entry when the SEPA transfer order is created.
- if you do not use the payment module, payment entries will be automatically generated at the time of accounting exports (even if you do not export these entries to accounting).
To calculate payments, Cleemy will balance the accounts of each employee. You do have the ability to exclude certain entries, such as expense reports that were declared after the creation of the payment or the accounting export.
Employee accounts are lettered at the time of each payment and delettered when an expense report that has already been paid is modified. This allows Cleemy to keep track of amounts to be paid in a reliable way and without you having to double check it in accounting.
As soon as the payment is made, Cleemy will generate a distinct entry per employee. The moved accounts are the employee’s third-party account (debited) and a compensation account that you can modify in two different ways in your accounting plan:
- A bank account (being distinct by legal entity and possibly subdivided by employee).
- A temporary “pending” account that can be divided in sections which is very practical if you generate transfers using a banking communication software along with your accounting software or via miscellaneous payment operations. All you have to do is balance these accounts with a bank compensation account with the amounts to be regularized being provided by Cleemy.
In its internal accounting plan, Cleemy distinguishes between the one-time advances account of an employee (i.e. one that Cleemy balances when an expense report is declared) and his or her third-party account in order to easily calculate the deductions due upon the imputations of advance expenses.
Cleemy also keeps track of an account of regular advances separately by employee which is never moved when an expense report is declared. Instead, this happens when entries are transferred via the advances management module
These three subsidiary accounts (employee, one-time advances and regular advances) can be configured to use the same accounting code in your accounting department.
The advances journal keeps track of the granting of advances or their manual reimbursements by employees.
To manage one-time advances and regular advances, Cleemy retrieves the appropriate advances account according to the entry type in your accounting plan.
In the case where an employee is granted a one-time advance, there will be, for example:
- A debit to the employee’s advances account
- A credit to the advances compensation account (petty cash or bank according to your configuration).
Journal of advance imputations
When an expense report is declared by an employee whose one-time advances account is in the red, Cleemy will transfer an advance imputation entry in parallel with the entry of the expense report:
- Debit the employee’s account
- Credit the one-time advance account
- The amount is calculated to try to balance the advances account by taking the smallest amount between the expense report’s total and the debtor balance of the advances account.
If you do not distinguish between the advances account of employees and their third-party accounts, it is possible to configure these two accounts with the same accounting code or to even ignore this type of entry in your accounting export format.
Compartmentalization by legal entity
Cleemy strictly compartmentalizes the accounting of each legal entity. Each entry is attached to a legal entity at the time of its creation, typically during the creation of expenses.
This attached entity does not change once its entry is created. Therefore, the previous expenses of an employee who changes entities will remain in its original legal entity.
Cleemy does not allow for the transfer of intercompany entries. It is better to manually balance the equivalent accounts in each entity.