Employee Expenses in Odoo 18 Accounting
By Braincuber Team
Published on January 14, 2026
Your sales team just returned from a conference. They have hotel receipts, flight tickets, taxi fares, and meal expenses totaling $3,500. They need reimbursement, you need proper documentation, accounting needs correct journal entries, and payroll needs to include it in the next check. Without a system, this becomes a nightmare of spreadsheets, lost receipts, and frustrated employees waiting weeks for reimbursement.
Odoo 18's Employee Expenses feature in the Accounting module streamlines the entire expense lifecycle. Employees submit expenses with receipt photos, managers approve or reject with one click, approved expenses automatically create journal entries, and reimbursements flow through payroll or direct payment. The system integrates expense categories, approval workflows, and accounting codes—ensuring every business expense is documented, approved, and properly recorded in your books.
Employee Expenses in Odoo 18: A complete expense management system integrated with Accounting and HR. Employees submit expense reports with receipts. Managers approve/reject. Approved expenses auto-post to journals. Reimbursement through payroll or vendor payment. Full audit trail from receipt to reimbursement.
Benefits of Expense Management
Receipt Scanning
Employees snap photos of receipts. OCR extracts amounts. No more lost paper receipts.
Approval Workflow
Managers review and approve expenses with visibility into totals and policy compliance.
Auto Journal Entries
Approved expenses automatically post to correct expense accounts. No manual data entry.
Payroll Integration
Reimbursements can be added to next paycheck, simplifying payment processing.
Expense Categories
Organize expenses by type (travel, meals, supplies) with automatic account mapping.
Spending Analytics
Analyze expense trends by employee, department, category, or time period.
Employee Expense Workflow
EMPLOYEE EXPENSE WORKFLOW IN ODOO 18
═══════════════════════════════════════════════════════════
OVERVIEW
───────────────────────────────────────────────────────────
Employee Manager Accounting
│ │ │
│ Submit │ │
├──────────────▶ │ │
│ │ Approve │
│ ├────────────────▶ │
│ │ │ Post Journal
│ │ │ │
│◀───────────────────────────────────────┤
│ Reimbursement │
DETAILED WORKFLOW STEPS
═══════════════════════════════════════════════════════════
STEP 1: EMPLOYEE CREATES EXPENSE REPORT
───────────────────────────────────────────────────────────
Employee incurs business expense:
• Business trip (flights, hotel, taxi)
• Client meal
• Office supplies purchase
• Conference registration
Goes to: My Expenses → New Report
Creates expense report with:
• Report Summary: "Q1 2026 Client Visit - Chicago"
• Expense Lines (one per receipt)
STEP 2: ADD EXPENSE LINES
───────────────────────────────────────────────────────────
For each expense, clicks "Add a Line":
Example Expense Lines:
┌────────────────────────────────────────────────────┐
│ Category │ Description │ Amount │ Paid By │
├────────────────────────────────────────────────────┤
│ Air Travel │ ORD-LAX roundtrip │ $425 │ Employee│
│ Hotel │ Marriott 2 nights │ $380 │ Employee│
│ Meals │ Client dinner │ $145 │ Employee│
│ Transport │ Uber to airport │ $52 │ Employee│
│ Supplies │ Presentation print│ $28 │ Company │
├────────────────────────────────────────────────────┤
│ TOTAL │ $1,030 │ │
└────────────────────────────────────────────────────┘
Attachments: Upload receipt photos/PDFs
STEP 3: SUBMIT TO MANAGER
───────────────────────────────────────────────────────────
Employee clicks: "Submit to Manager"
Expense Report Status: Draft → Submitted
Manager receives notification
Report appears in manager's approval queue
STEP 4: MANAGER REVIEWS & APPROVES
───────────────────────────────────────────────────────────
Manager opens expense report
Reviews:
✓ Amounts match receipts
✓ Business purpose documented
✓ Within policy limits
✓ Proper categories selected
Options:
[Approve] - Accept all expenses
[Refuse] - Reject with reason
[Reset to Draft] - Return for corrections
On Approve:
Status: Submitted → Approved
STEP 5: POST JOURNAL ENTRIES
───────────────────────────────────────────────────────────
After approval, accountant clicks: "Post Journal Entries"
Odoo automatically creates:
JOURNAL ENTRY: EXP/2026/0015
┌────────────────────────────────────────────────────────┐
│ Account │ Label │ Debit │Credit │
├────────────────────────────────────────────────────────┤
│ 621000 Travel Exp. │ Air travel │ $425 │ │
│ 621100 Hotel Exp. │ Accommodation │ $380 │ │
│ 625000 Meals Exp. │ Client meal │ $145 │ │
│ 621200 Transport │ Uber │ $52 │ │
│ 606100 Supplies │ Printing │ $28 │ │
│ 421000 Employee Pay. │ Due to emp. │ │$1,002 │
│ 401000 Accounts Pay. │ Company card │ │ $28 │
├────────────────────────────────────────────────────────┤
│ TOTAL │ $1,030 │$1,030 │
└────────────────────────────────────────────────────────┘
Note: $1,002 to employee (paid personally)
$28 to vendor (company card)
STEP 6: REIMBURSEMENT
───────────────────────────────────────────────────────────
Option A: Include in Next Payslip
Click: "Report in Next Payslip"
$1,002 added to next payroll
Employee reimbursed with salary
Option B: Direct Payment
Create vendor payment to employee
Process bank transfer
Mark expense as paid
EXPENSE STATUSES
═══════════════════════════════════════════════════════════
Draft → Being created by employee
Submitted → Waiting for manager approval
Approved → Manager approved, awaiting posting
Posted → Journal entries created
Done → Fully processed and paid
Refused → Manager rejected
Accessing Employee Expenses
Navigate to Expenses
- Open Accounting module
- Go to Vendors → Employee Expenses
- View dashboard of all expense reports
Dashboard Overview
- Employee: Who submitted the expense
- Expense Report: Summary title
- Company: Which company (multi-company setups)
- Total Amount: Sum of all expense lines
- Status: Current workflow stage
- Payment Status: Whether reimbursed
Creating an Expense Report
CREATING A NEW EXPENSE REPORT ═══════════════════════════════════════════════════════════ NAVIGATION: Accounting → Vendors → Employee Expenses → New REPORT HEADER ─────────────────────────────────────────────────────────── Expense Report Summary: "January 2026 Business Trip - New York" (Descriptive title for the expense batch) Employee: Auto-filled with current user Or select employee if creating for someone else Manager: Auto-filled based on employee's reporting structure Who will approve this expense Paid By: Employee (personal funds) - needs reimbursement Company (company card) - no reimbursement needed EXPENSE TAB - ADDING LINES ═══════════════════════════════════════════════════════════ Click "Add a Line" for each expense: LINE 1: FLIGHT ─────────────────────────────────────────────────────────── Category: Air Travel Description: JFK-SFO Roundtrip, Delta DL456 Total: $485.00 Paid By: Employee Date: 15/01/2026 Attachment: flight_receipt.pdf LINE 2: HOTEL ─────────────────────────────────────────────────────────── Category: Accommodation Description: Hilton Garden Inn, 3 nights Total: $567.00 Paid By: Employee Date: 15-17/01/2026 Attachment: hotel_invoice.pdf LINE 3: MEAL ─────────────────────────────────────────────────────────── Category: Meals & Entertainment Description: Client dinner with Johnson Corp Total: $178.50 Paid By: Company (corporate card) Date: 16/01/2026 Attachment: restaurant_receipt.jpg LINE 4: TRANSPORTATION ─────────────────────────────────────────────────────────── Category: Ground Transportation Description: Uber from JFK to hotel Total: $65.00 Paid By: Employee Date: 15/01/2026 Attachment: uber_receipt.pdf EXPENSE REPORT TOTALS ═══════════════════════════════════════════════════════════ ┌─────────────────────────────────────────────────────────┐ │ Expense Lines Summary │ ├─────────────────────────────────────────────────────────┤ │ Total Amount: $1,295.50 │ │ Paid by Employee: $1,117.00 (needs reimbursement)│ │ Paid by Company: $178.50 (no reimbursement) │ └─────────────────────────────────────────────────────────┘ SCAN RECEIPTS FEATURE ═══════════════════════════════════════════════════════════ Alternative to manual entry: 1. Click "Scan" button 2. Upload receipt image 3. Odoo OCR extracts: • Vendor name • Amount • Date • Category (guess) 4. Review and confirm 5. Receipt attached automatically Great for: High volume expense processing
Create Report Header
- Click New button
- Enter Expense Report Summary (descriptive title)
- Verify Employee and Manager fields
Add Expense Lines
- Click Add a Line button
- Select Category (Travel, Meals, Supplies, etc.)
- Enter Description and Total
- Specify Paid By (Employee or Company)
- Attach receipt image/PDF
- Repeat for each expense
Submit for Approval
- Review total amounts
- Verify all receipts attached
- Click Submit to Manager
- Status changes to "Submitted"
- Manager receives notification
Manager Approval Process
MANAGER APPROVAL PROCESS ═══════════════════════════════════════════════════════════ ACCESSING PENDING APPROVALS ─────────────────────────────────────────────────────────── Navigation: Accounting → Vendors → Employee Expenses Filter: Status = "Submitted" (awaiting approval) Or: Notification bell shows pending approvals REVIEWING EXPENSE REPORT ═══════════════════════════════════════════════════════════ Open submitted expense report Check each line: ✓ Amount matches attached receipt ✓ Business purpose is clear ✓ Category is appropriate ✓ Date is reasonable ✓ Within company policy limits View Expenses Smart Button: Shows all individual expense lines Click to see receipt attachments Verify amounts and descriptions APPROVAL OPTIONS ═══════════════════════════════════════════════════════════ APPROVE • All expenses accepted • Status: Submitted → Approved • Ready for accounting to post REFUSE • Click Refuse button • Enter rejection reason • Status: Submitted → Refused • Employee notified of rejection • May need to revise and resubmit RESET TO DRAFT • Return to employee for corrections • Status: Submitted → Draft • Employee can edit and resubmit PARTIAL APPROVAL ─────────────────────────────────────────────────────────── If only some expenses are valid: Option 1: Refuse entire report Ask employee to remove invalid lines Resubmit with valid expenses only Option 2: Edit amounts Adjust line amounts if within authority Approve reduced total Document reason for adjustment APPROVAL BEST PRACTICES ═══════════════════════════════════════════════════════════ ✓ Review within 48 hours Fast turnaround encourages compliance ✓ Check receipts match amounts Validate before approving ✓ Verify business purpose Ensure expense is legitimate ✓ Apply policy consistently Same rules for all employees ✓ Document refusal reasons Clear feedback helps employees improve ✓ Set spending limits Configure per-category limits
Posting Journal Entries
Post Approved Expenses
- Open approved expense report
- Click Post Journal Entries button
- Odoo creates journal entry automatically
- Debits expense accounts (Travel, Meals, etc.)
- Credits payable account (due to employee or vendor)
View Journal Entry
- Click Journal Entry smart button
- View which journal (usually Vendor Bills)
- See debit/credit breakdown by expense category
- Verify accounts are correctly mapped
Account Mapping: Each expense category links to a default expense account in your chart of accounts. Travel category maps to Travel Expense account, Meals to Entertainment Expense, etc. Configure these mappings in expense category settings.
Reimbursement Options
REIMBURSEMENT OPTIONS IN ODOO 18 ═══════════════════════════════════════════════════════════ OPTION 1: REPORT IN NEXT PAYSLIP ─────────────────────────────────────────────────────────── Best for: Regular employees, recurring reimbursements Process: 1. After posting journal entries 2. Click "Report in Next Payslip" button 3. Expense amount added to employee's payslip 4. Reimbursed with next salary payment Advantages: ✓ Single payment to employee ✓ Integrated with payroll taxes ✓ Less manual work ✓ Automatic tracking Example: Expense Report: $1,117.00 Regular Salary: $5,500.00 Next Paycheck: $6,617.00 (includes reimbursement) OPTION 2: DIRECT VENDOR PAYMENT ─────────────────────────────────────────────────────────── Best for: Large amounts, urgent reimbursements, contractors Process: 1. After posting journal entries 2. Go to Accounting → Vendors → Payments 3. Create payment to employee (as vendor) 4. Reference expense report 5. Process bank transfer Advantages: ✓ Immediate reimbursement ✓ Separate from payroll ✓ Works for non-employees Example: Large conference expense: $3,500 Employee needs immediate reimbursement Create vendor payment, process same day OPTION 3: COMPANY-PAID EXPENSES ─────────────────────────────────────────────────────────── For expenses marked "Paid By: Company" No reimbursement to employee needed Journal entry credits vendor payable (not employee) Pay vendor directly (credit card, invoice) Example: Company corporate card used Expense recorded for tracking Credit card statement paid monthly No employee reimbursement involved TRACKING PAYMENT STATUS ═══════════════════════════════════════════════════════════ Expense Report shows Payment Status: Not Paid → Approved but not reimbursed yet In Payment → Included in payslip or payment created Paid → Fully reimbursed Filter by Payment Status to find: • Outstanding reimbursements • Completed expense cycles
Expense Categories
Travel
Flights, trains, rental cars, mileage reimbursement for business travel.
Accommodation
Hotels, Airbnb, lodging during business trips.
Meals & Entertainment
Client dinners, team lunches, business meals with documentation.
Transportation
Uber, taxi, parking, public transit for business purposes.
Office Supplies
Stationery, printer supplies, small equipment purchases.
Training & Events
Conference fees, course registrations, professional development.
Best Practices
✅ Expense Management Best Practices:
- Submit promptly: Submit expenses within 30 days of incurrence
- Attach all receipts: No receipt = no reimbursement (set clear policy)
- Use clear descriptions: Include business purpose, attendees, project
- Categorize correctly: Proper categories ensure correct accounting
- Approve quickly: Managers should review within 48 hours
- Set spending limits: Define per-category and per-trip limits
- Audit regularly: Review expense patterns for policy violations
- Train employees: Clear guidelines reduce errors and rejections
- Integrate with payroll: Use payslip reimbursement for efficiency
Common Mistakes to Avoid:
- Missing receipts: Always attach proof of purchase
- Vague descriptions: "Lunch" is not enough—include who and why
- Wrong categories: Miscategorized expenses affect reporting
- Delayed submissions: Old expenses are harder to verify
- Skipping approval: Never bypass the approval workflow
Conclusion
Employee Expenses in Odoo 18 Accounting transforms expense management from a manual hassle into a streamlined, automated workflow. Employees create expense reports with categorized lines and receipt attachments, submit to managers for approval, and receive reimbursement through payroll or direct payment. The system automatically creates proper journal entries, mapping each expense category to the correct account. Managers get visibility into spending, accounting gets accurate records, and employees get timely reimbursements. Configure expense categories to match your chart of accounts, establish clear policies for submissions and approvals, and leverage the payroll integration for efficient reimbursement processing.
🎯 Key Takeaway: Employee creates report → Adds expense lines with receipts → Submits to manager → Manager approves → Post journal entries → Reimburse via payroll or payment. Complete audit trail from receipt to reimbursement.