Before you get started
When you use Lucca Payment Methods, every transaction made with a Business expenses card is accounted for and can be exported to your accounting system to make bank reconciliation easier.
This help sheet explains the accounting system and the settings you need to have in place to benefit from transaction entries.
Accounting system
As soon as a card transaction is carried out (a transaction that debits your Lucca Payment account), an entry is made between your "Lucca Account" and a "reconciliation account" that you can add for each employee. This entry will be exported to your accounting system from the Lucca Expenses accounting export.
When an employee adds a receipt, submits their expenses and has them approved, an entry is then made between the "Reconciliation account" and the corresponding expenses.
In the event of an incorrect expense or an expense that is over the upper limit, a one-off advance entry is automatically made between the employee’s advance account and the reconciliation account.
In the event of a capped expense, only the amount above the upper limit is automatically posted as a one-off advance.
The advance account represents a debt owed by employees to the company. To settle this debt, employees may pay their professional fees using a personal means of payment, or make a transfer to the company's account. For transfers, a cash account is required in the chart of accounts.
For more details, have a look at our help sheet on how to resolve this issue: Resolve an expense paid with a Business Expenses card that is not covered by the company.
Setting up account codes
The previous accounting system requires you to create two new accounts in your accounting system. The Lucca account (a 512) and the reconciliation account. Once these accounts have been created, they need to be entered in Lucca Expenses chart of accounts.
Reconciliation account by employee
Enter your reconciliation account from the Lucca Expenses chart of accounts. If you wish to make a second reconciliation account, use the second line "Auxiliary account".
Lucca account
The Lucca account is also included in the chart of accounts:
Select “Constant” from the drop-down list and enter your Lucca account code.
One-time advance account
You can set up a one-time advance account (in your third-party accounts). You can make a second one-time advance account.
Cash account
Enter the accounting code of your cash account to track advance reimbursements from your employees. This can be the code of your main bank account or the code of your Lucca account.
Setting up accounting line items
In order to get transaction line items in your accounting export, they must be set up in the "Accounting export formats" module.
The accounting export format must be completed according to the entries you require.
Transaction entries
- Lucca account line which credits the Lucca account when a Business Expenses card is used.
- Business Expenses card reconciliation line which credits the reconciliation account (auxiliary or not).
Advance entries
- Line for advance payments to an employee, crediting the one-time advance account (in the event of an incorrect or capped expense).
- Advance payment compensation line, which credits the Business exepenses card reconciliation account (in the event of an incorrect or capped expense) or the cash account in the event that an advance payment or reimbursement of an advance is entered manually.
Advance charge entry
Only useful if your employee accounts and one-time advance accounts are different. In this case, the entry makes it possible to move the employee's advance account to the employee's account when submitting an expense report.
- Advance charge line (advance account)
- Advance charge line (employee account)
