Expense Entry Business Skill

This skill defines the business process for creating expense report entries from receipt information. It enforces company expense policies, proper categorization, and validation rules.

Prerequisites

This skill requires an Expense Report table to be created in your Dataverse environment. Use the schema below to create the table, or adapt the skill to work with your existing expense management table.

Required Table Schema: Expense Report

Create a custom table named Expense Report (logical name will be cr###_expensereport where ### is your publisher prefix) with these columns:

Note: Replace cr###_ with your actual publisher prefix (e.g., contoso_, new_, etc.)

Alternative: Dynamics 365 Finance Integration

If your organization uses Dynamics 365 Finance, this skill can be adapted to work with the msdyn_expense table from the Expense Management module.

Instructions

When to Use This Skill

Use this skill when:

• Processing expense receipts (images, PDFs, or text)
• Creating expense report entries from purchase documentation
• Categorizing and validating business expenses
• Ensuring compliance with company expense policies

DO NOT attempt to create expense entries without this skill - proper categorization and validation are required.

Dataset Table Reference

All expense data is stored in your Expense Report table (see Prerequisites for schema). The skill references these fields using placeholder notation:

• [reportid]: Unique identifier (e.g., ER-2025-1120-001)
• [reportstatus]: Draft, Submitted, Pending Approval, Approved, Rejected, Paid
• [totalamount]: Total expense amount before tax
• [taxamount]: Sum of all tax amounts
• [corporatecardamount]: Amount paid with corporate card
• [personalcardamount]: Amount paid with personal card (requires reimbursement)
• [approvaltier]: None, Manager, Controller, CFO (based on amount)
• [dayssinceexpense]: Days between expense and submission
• [latesubmission]: Yes/No (if > 90 days)
• [billableamount]: Amount billable to clients
• [internalamount]: Amount for internal expenses
• [projectcode]: Project code if billable
• [expensecategories]: Categories included (e.g., "Hotel, Meals, Travel")
• [duplicatestatus]: No Duplicates, Duplicates Found, Not Checked
• [policyviolations]: Any policy violations detected

Workflow Overview

Step 1: Extract Receipt Information

From the receipt, extract:

• Merchant name and merchant category (airlines, hotels, restaurants, retailers, etc.)
• Transaction date (receipt date, not submission date)
• Total amount (pre-tax amount)
• Tax amount (separately itemized)
• Currency (default to USD if not specified)
• Payment method (Corporate Card vs Personal Card - critical for reimbursement)
• Itemized details (line items if available for multi-item receipts)
• Receipt description/purpose (business justification)

Step 2: Categorize the Expense (CRITICAL)

Based on merchant category and itemized details, assign the correct expense category for the expense_categories field:

Hotel/Lodging

• Room rates, resort fees, hotel parking
• Hotel wifi charges (when part of hotel bill)
• Merchant Categories: Hotels, Lodges, Resorts
• EXCLUDE: AirBnB or short-term rentals (use "Travel")

Meals

• Business dinners with clients/partners
• Individual employee meals during travel
• Merchant Categories: Restaurants, Cafes, Catering
• Validation: If > $75 per person, require attendee list in description

Office Supplies

• Pens, paper, folders, toner, staplers
• USB drives, cables (under $50)
• Printer supplies, desk accessories
• Merchant Categories: Office Supply Stores, Stationery Stores

Travel

• Airline tickets, baggage fees, seat upgrades
• Taxi, Uber, Lyft, rental cars
• Parking fees, tolls, train tickets
• Merchant Categories: Airlines, Travel Agencies, Transportation Services

Software & Subscriptions

• SaaS subscriptions, software licenses
• Cloud services, API usage fees
• Merchant Categories: Software Vendors, Online Services

Equipment & Hardware

• Laptops, monitors, keyboards (over $100)
• Mobile devices, tablets
• Merchant Categories: Electronics Stores
• Validation: Items over $500 require asset tag assignment

Conference & Training

• Conference registrations, seminar fees
• Training course fees, certification exams
• REQUIRES: Event name and dates in description

Step 3: Apply Business Rules & Validation

Approval Threshold Rules (Sets approval_tier field)

• Under $500: approval_tier = "None" (auto-approved)
• $500 - $2,000: [approvaltier] = "Manager"
• $2,000 - $5,000: [approvaltier] = "Controller"
• Over $5,000: [approvaltier] = "CFO" (requires business case documentation)

Payment Method Tracking (Sets [corporatecardamount] and [personalcardamount])

• If Corporate Card: Set [corporatecardamount] = total amount, [personalcardamount] = 0
• If Personal Card: Set [personalcardamount] = total amount, [corporatecardamount] = 0
• Corporate Card = no reimbursement needed
• Personal Card = requires reimbursement workflow

Project & Billability Rules (Sets [billableamount], [internalamount], [projectcode])

• If client name mentioned (not "Internal"):
  • Set [billableamount] = total amount, [internalamount] = 0
  • Extract and populate [projectcode] (search for active projects for that client)
  • If no project code found, flag for assignment
• If internal expense:
  • Set [internalamount] = total amount, [billableamount] = 0
  • Set [projectcode] = empty
  • Use department cost center code

Duplicate Detection (Sets [duplicatestatus] field)

• Search for existing expense entries with:
  • Same merchant name
  • Same transaction date
  • Same amount (within $1 tolerance)
  • Same employee
• If found: Set [duplicatestatus] = "Duplicates Found" and DO NOT CREATE
• If no duplicates: Set [duplicatestatus] = "No Duplicates"

90-Day Policy Validation (Sets [dayssinceexpense] and [latesubmission])

• Calculate [dayssinceexpense] = submission date - transaction date
• If [dayssinceexpense] > 90: Set [latesubmission] = "Yes"
• If [dayssinceexpense] <= 90: Set [latesubmission] = "No"

Step 4: Create Expense Report Record

Create record in your Expense Report table with:

Required Fields:

• [reportid]: Generate unique ID (format: ER-YYYY-MMDD-XXX)
• [reportname]: "[Month Year] [Category] - [Employee Name]"
• [submissiondate]: Today's date (YYYY-MM-DD format)
• [employee]: Lookup to Contact record for employee
• [reportstatus]: "Submitted" (or "Draft" if saving for later)
• [totalamount]: Expense amount before tax (numeric)
• [taxamount]: Tax amount (numeric)

Payment Method Fields:

• [corporatecardamount]: Amount paid with corporate card
• [personalcardamount]: Amount paid with personal card

Approval Fields:

• [approvaltier]: Based on amount thresholds from Step 3
• [approvedby]: Empty (will be filled after approval)
• [approveddate]: Empty (will be filled after approval)

Validation Fields:

• [dayssinceexpense]: Calculated in Step 3
• [latesubmission]: "Yes" or "No" based on 90-day policy
• [duplicatestatus]: Result from duplicate detection
• [policyviolations]: Any violations detected (empty if none)

Billability Fields:

• [billableamount]: Amount billable to clients
• [internalamount]: Amount for internal expenses
• [projectcode]: Project code if billable

Category Field:

• [expensecategories]: Categories from Step 2 (e.g., "Hotel, Meals, Travel")

Step 5: Create Supporting Records

If Approval Required (approval_tier not "None"):

• Create task record for approver
• Link to expense report
• Subject: "Approve Expense: [Category] - $[Amount] - [Merchant]"
• Assigned to: Based on approval_tier (Manager/Controller/CFO)
• Due date: 3 business days from submission

If Billable to Client:

• Create note linked to Project
• Content: "Expense incurred: [Category] - $[Amount] - [Date] - [Description]"
• Link to both Project and Expense Report for audit trail

Step 6: Update Report Status

Set [reportstatus] based on approval requirements:

• If [approvaltier] = "None": Set [reportstatus] = "Approved"
• If [approvaltier] = "Manager", "Controller", or "CFO": Set [reportstatus] = "Pending Approval"

Validation & Quality Checks

Before finalizing expense entry:

1. Amount Reasonableness:
   • Hotel: $100-$500/night typical (flag if outside range)
   • Meals: $15-$75 per person typical
   • Travel: $10-$150 typical for ground transport
   • Office supplies: Usually under $100
2. Date Validation:
   • Transaction date not in future
   • Calculate [dayssinceexpense] accurately
   • Set [latesubmission] = "Yes" if > 90 days
3. Policy Compliance:
   • Meals over $75/person: Verify attendee list in description
   • Hotel: Not from home city (unless business reason documented)
   • Expenses over $25: Receipt required
4. Duplicate Detection:
   • Always search before creating
   • Set [duplicatestatus] appropriately

Error Handling

If validation fails:

• DO NOT CREATE incomplete/invalid expense entry
• Return specific error message:
  • "Missing required field: [field name]"
  • "Invalid category: [attempted category]"
  • "Duplicate expense detected: [details]"
  • "Policy violation: [specific rule]"
  • "Amount exceeds threshold: Requires [approval level]"

Examples

Example 1: Standard Office Supplies Expense

User says: "I bought office supplies for the team yesterday. Create an expense for this receipt: Office Depot, $247.50 total ($227.89 + $19.61 tax), paid Dec 2, 2025 with corporate card. Items: toner cartridge, copy paper, folders."

Actions:

1. Extract receipt data: Merchant = "Office Depot", Amount = $227.89, Tax = $19.61, Date = 2025-12-02, Payment = Corporate Card
2. Categorize: Merchant category = Office Supply Stores → expense_categories = "Office Supplies"
3. Apply rules: $247.50 < $500 → approval_tier = "None" (auto-approved)
4. Validate: No duplicates found, 1 day since expense → late_submission_flag = "No"
5. Create expense_reports record with all fields populated

Result:

Expense Report Created: ER-2025-1203-015
Status: Approved (auto-approved)
Amount: $247.50 (Corporate Card)
Category: Office Supplies
No reimbursement needed
No manager approval required

Example 2: Client Dinner Requiring Approval

User says: "Log this dinner receipt: The Capital Grille, $425 total ($390 + $35 tax), personal card, client dinner with Contoso team on Dec 5. Attendees: John Smith, Sarah Chen, myself."

Actions:

1. Extract: Merchant = "The Capital Grille", Amount = $390, Tax = $35, Date = 2025-12-05, Payment = Personal Card
2. Categorize: Restaurant → [expensecategories] = "Meals"
3. Validate: $425/3 people = $141.67/person > $75 threshold → attendee list required (provided)
4. Apply rules: $425 ≥ $500 threshold → [approvaltier] = "Manager"
5. Set [billableamount] = $425 (client expense), find Contoso project code
6. Create record with [reportstatus] = "Pending Approval"
7. Create approval task for manager

Result:

Expense Report Created: ER-2025-1206-022
Status: Pending Approval (Manager)
Amount: $425.00 (Personal Card - Reimbursement Required)
Category: Meals
Billable to: Contoso (Project: PROJ-CONTOSO-2025)
Approval task created for: [Manager Name]

Example 3: Late Travel Expense with Warning

User says: "Need to expense this flight from September: Delta Airlines $650, Sept 15, corporate card, NYC to Chicago for internal training."

Actions:

1. Extract: Merchant = "Delta Airlines", Amount = $650, Date = 2025-09-15, Payment = Corporate Card
2. Categorize: Airlines → expense_categories = "Travel"
3. Calculate: Days since expense = 82 days (approaching 90-day limit)
4. Apply rules: $650 ≥ $500 → approval_tier = "Manager"
5. Set internal_amount = $650, billable_amount = $0
6. Create record with late_submission_flag = "No" (still under 90 days)
7. Create approval task

Result:

Expense Report Created: ER-2025-1206-023
Status: Pending Approval (Manager)
Amount: $650.00 (Corporate Card)
Category: Travel
⚠️ Warning: 82 days since expense (90-day limit approaching)
Approval task created for: [Manager Name]

Troubleshooting

Error: Duplicate expense detected

Cause: Expense with same merchant, date, and amount already exists Solution:

• Do NOT create duplicate record
• Return: "Duplicate expense detected: [ER-ID] created on [date] for $[amount] at [merchant]"
• Ask user to verify if this is a different expense

Error: Missing required field

Cause: Receipt information incomplete (no amount, date, or merchant) Solution:

• Do NOT create incomplete record
• Return: "Missing required field: [field name]"
• Request user provide missing information

Error: Policy violation - Late submission

Cause: Expense older than 90 days Solution:

• Set [latesubmission] = "Yes"
• Set [policyviolations] = "Late submission: [X] days past 90-day limit"
• Create record but flag for additional approval
• Note: Requires Controller approval regardless of amount

Error: Meals expense over threshold without attendees

Cause: Meal expense > $75/person but no attendee list provided Solution:

• Do NOT create record
• Return: "Meals over $75/person require attendee list. Please provide names of attendees."
• Wait for user to provide attendee information

An expense entry is complete and valid when:

• ✓ Category correctly assigned in [expensecategories]
• ✓ Approval tier determined based on amount thresholds
• ✓ Payment method properly tracked in [corporatecardamount] or [personalcardamount]
• ✓ Duplicate check performed and [duplicatestatus] set
• ✓ 90-day policy validated with [dayssinceexpense] and [latesubmission]
• ✓ Billability correctly determined in [billableamount] and [internalamount]
• ✓ Record created in Expense Report table with all required fields
• ✓ Approval task created if [approvaltier] requires it
• ✓ [reportstatus] set appropriately based on approval requirements