An Accounting Policy assigns default expense categorizations, including line and transaction tags, to a transaction. In this sense, an Accounting Policy is a rule that you can define for an additional layer of accounting automation.
An Accounting Policy can be defined for both individuals and groups.
To access Accounting Policies in Airbase, go to Settings > Accounting Policy.
An Accounting Policy includes:
- Line tags: Assign tags (class, department, location) for each line in a GL entry.
- Transaction tags: Assign tags (class, department, location) at the transaction level in a GL entry.
- Receipt required amount: Specify dollar value limit which, if exceeded, requires a receipt to be attached.
- Send Reminder to attach receipts: Enable this option if you would like Airbase to remind employees to attach receipts for transactions that require one based on the Receipt required amount setting. This reminder will be sent once a week.
In addition to the above features, here's what you can do with an Accounting Policy:
1. Set as Default Policy.
Default policy is the policy assigned to the user by default when:
- They were not explicitly invited by the administrator into their company's Airbase account.
- Allow access without invitation setting is enabled.
- User has an active company email account with the email domain registered with Airbase.
Every Airbase User will follow the default policy until they're assigned a new Accounting Policy.
Set as Default Policy option allows you to set an existing policy as the default policy of your organization.
2. Copy Policy.
Copy option creates a copy of an existing Accounting Policy. This saves the time it takes to create multiple accounting policies.
3. Edit Policy.
Edit option allows you to update the Policy Name, Line Tags, Transaction Tags, Receipt Required Amount, and Send Reminder to attach receipts to an existing policy.
4. Delete Policy.
Delete option allows you to delete an Accounting Policy. You will not be able to delete an Accounting Policy if it's assigned to a User.
5. Accounts Visibility.
Select the GL Categories a User can view while creating or requesting an expense. Users will find these Categories while updating Virtual Card and Physical Card transactions as well. Select All will select all the Categories by default.
It is recommended to provide Users with access to a relevant subset of expesne accounts.
6. Tags Visibility.
Select the GL Tags a User can view while creating or requesting an expense. Users will find these Tags while updating Virtual Card and Physical Card transactions. Select All will select all Tags by default.
You specify color values using hexadecimal values. For example, black is If there are parent-child hierarchies in their tags structure, it's recommended to unselect the parent tags so users will have to select the specific tag associated with their spend.
Users need Manage Tags User Permission to update Tags on Virtual Card and Physical Card transactions.