Learn more about the Acubiz flow
Most bank and credit card providers do not support the full 3-step accounting flow because they cannot provide the monthly invoice basis (step 3). However, this does not exclude the use of Acubiz; the function can instead be set up as an efficient 2-step accounting flow based on the available data.
When a company credit card is used, the transaction moves through three phases: The Accrual (automatic feed from the card issuer), The Expense (employee's settlement in Acubiz). The 2 steps are:
Step 1: The Accrual (The automatic card feed)
As soon as the transaction is registered by the card issuer, it is automatically loaded into Acubiz as an accrual. The purpose is to immediately make the outstanding consumption visible in the balance, even though the receipt has not yet been processed.
Debit: Accrued to operations (Balance or operations) – Expected expense (Can also be posted directly to operations)
Credit: Accrued to creditor (Balance) – Expected debt to credit card company/Bank
ℹ️ When using a 2-step accounting flow, the account for 'Accrued to creditor' will not be automatically offset in Acubiz. Instead, the balance will accumulate continuously as transactions are posted.
Why? We know the money has been spent and that we owe it, but we do not yet know the exact expense account (e.g., representation, hotel, or IT equipment).
Step 2: The Expense (User's registration in Acubiz)
When the employee opens Acubiz, adds their receipt, and selects the correct expense account, the expense is released to operations. The temporary accrual to operations is reset.
Debit: Expense account (Operations) – e.g., Hotel or Representation
See also the related flows: Cash Withdrawal on Company Credit Card: and Private Purchases on Company CardCredit: Accrued to operations (Balance or operations) – Offset to Step 1 Debit
Why? The expense is now correctly placed in the income statement, and the account for "Accrued to operations" is zeroed out (offset) for this specific transaction.
See explanation of the different Acubiz flows
How to set up credit card postings for the above setup
Derived Flows
There may be derived flows for common expenses explained below
Cash Withdrawal on Company Credit Card:
Cash withdrawals are typically made in situations where card payment is not possible. In Acubiz, a cash withdrawal is registered and handled as an advance salary payment to the employee.
Principle: From Expense to Receivable (Employee Debt)
When the transaction lands in Acubiz via the automatic feed (Step 1), the accrual occurs exactly as usual: The money has been charged to the card, and the company owes the amount to the card issuer.
| ℹ️ Step 1: The Accrual (The automatic card feed) remains unchanged! |
It is only in Step 2, when the employee must settle the transaction, that the derived flow is activated. Instead of selecting an expense category (e.g., "Travel expenses"), Acubiz automatically selects a system account called "Cash withdrawal on company card". From an accounting perspective, the posting is now moved away from the income statement (operations) and remains in the balance sheet as an intercompany receivable between the company and the employee.
Step 2: User's Registration of Cash Withdrawal
When Acubiz marks the consumption as a cash withdrawal, the debit posting changes. Instead of an expense account, the company's receivable from the employee is debited. Typically, one of two methods is used depending on the company's payroll system and ERP setup:
| Method A: Employee Intercompany Account (Payroll Deduction) | Method B: Employee Creditor (Collective Account) |
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This method is most often used if the amount is automatically deducted from the employee's next payroll payment.
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This method is used if the employee must repay the amount to the company via bank transfer or if intercompany balances are settled manually.
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| How is the intercompany balance closed (Step 4)? | |
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When an employee withdraws cash for business purposes – for example, during a business trip – the withdrawn amount is considered an advance salary payment and thus a debt to the company. The employee is obliged to document all incurred expenses. This is done by continuously recording expenses as reimbursements and attaching valid receipts, after which the amounts offset the employee's outstanding debt. Missing documentation: If there is a remaining amount that cannot be documented with relevant receipts, this is considered an outstanding balance with the company. Below are options for final settlement | |
In connection with payroll processing, the employee's paid salary is reduced by the given amount. The offsetting is then automatically posted via the payroll system to the ERP system's intercompany account, which is then zeroed out. |
When reconciling intercompany balances on the employee creditor account, any outstanding balances can be handled in the following ways if the employee owes money to the company:
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How to set up accounting for cash withdrawals on company credit cards
Private Purchases on Company Card
Principle: From Expense to Receivable (Employee Debt)
When the transaction lands in Acubiz via the automatic feed (Step 1), the accrual occurs exactly as usual: The money has been charged to the card, and the company owes the amount to the card issuer.
| ℹ️ Step 1: The Accrual (The automatic card feed) remains unchanged! |
It is only in Step 2, when the employee must settle the transaction, that the derived flow is activated. Instead of selecting an expense category (e.g., "Travel expenses"), the employee selects a specific category in Acubiz called "Private purchase on company card". From an accounting perspective, the posting is now moved away from the income statement (operations) and remains in the balance sheet as an intercompany receivable between the company and the employee.
Step 2: User's Registration of Private Purchase
When the employee marks the purchase as private in Acubiz, the debit posting changes. Instead of an expense account, the company's receivable from the employee is debited. Typically, one of two methods is used depending on the company's payroll system and ERP setup:
| Method A: Employee Intercompany Account (Payroll Deduction) | Method B: Employee Creditor (Collective Account) |
|
This method is most often used if the amount is automatically deducted from the employee's next payroll payment.
|
This method is used if the employee must repay the amount to the company via bank transfer or if intercompany balances are settled manually.
|
| How is the intercompany balance closed (Step 4)? | |
| In connection with payroll processing, the employee's paid salary is reduced by the given amount. The offsetting is then automatically posted via the payroll system to the ERP system's intercompany account, which is then zeroed out. |
When reconciling intercompany balances on the employee creditor account, any outstanding balances can be handled in the following ways if the employee owes money to the company:
|
How to set up accounting for private purchases on company credit cards
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