How do I submit an expense in Odoo 18?

Navigate to My Expenses → Expenses → New. Fill in description, category, total amount, expense date, and paid by (employee or company). Attach receipt by clicking Attach Receipt button and uploading photo/PDF. Add analytic distribution to allocate to project/department. Save expense. Then select it from list and click Create Report to group with other expenses, or submit individually by adding to a report and clicking Submit to Manager.

What is the difference between Paid By Employee and Paid By Company?

Paid By Employee means the employee paid out-of-pocket using personal funds and needs reimbursement from the company. Paid By Company means a corporate credit card or company account was used, so no reimbursement is needed but the expense must still be recorded for accounting and project tracking purposes. This field determines whether the expense creates a liability for employee reimbursement.

How does the Upload button work for automatic expense creation?

Click the Upload button on the Expenses dashboard and select a receipt image or PDF. Odoo uses OCR (optical character recognition) to automatically extract data including vendor name, amount, date, and tax information. The system creates a draft expense entry pre-filled with this extracted data. Review the expense for accuracy, correct any OCR errors, add the category and project allocation, then save. This reduces data entry time from several minutes to under 30 seconds per expense.

What happens when I click Submit to Manager on an expense report?

The expense report status changes from To Submit to Submitted and the assigned manager receives a notification. The report enters the approval queue visible in the manager's dashboard under Reports → To Approve. The manager can then review all expense line items and attached receipts, then choose to Approve (advancing to accounting), Refuse (rejecting with comments), or Reset to Draft (returning to employee for corrections).

How do I split an expense across multiple projects?

On the expense form, click the Split Expense button. This opens a dialog showing the original total amount. Create multiple split lines, each with its own amount, project allocation, department, and cost center. For example, split a $130 lunch into $78 for Project Alpha and $52 for Project Beta. The sum of all split lines must equal the original expense total. Each split creates a separate accounting entry with proper analytic distribution for accurate project costing.

What is Report in Next Payslip and when should I use it?

Report in Next Payslip integrates expense reimbursement with regular payroll processing. Click this button on a posted expense report to add the reimbursement amount to the employee's upcoming paycheck. The employee receives expense reimbursement combined with their salary in one payment. Use this for regular employee expenses being processed on normal timelines. For urgent reimbursements or large amounts, use the Pay button instead for immediate direct payment via bank transfer.

How does customer reinvoicing work for billable expenses?

On each expense that should be billed to a client, fill in the Customer to Reinvoice field by selecting the client name. Link to the specific sales order if applicable. When the expense is approved and posted, it becomes available as a billable item. When you create the customer invoice, approved reinvoiceable expenses automatically appear as invoice lines with the original amount (or marked up based on configuration). The receipt documentation attaches to the customer invoice for transparency. This ensures project expenses are recovered from clients per contract terms.

Expense Reports Management Odoo 18

Finance teams lose 50+ hours monthly chasing paper receipts: employee submits $347 restaurant bill three weeks late with coffee-stained receipt, manager can't read vendor name for approval, accountant discovers missing taxi fare during audit requiring email investigation, reimbursement delayed two months because expense buried in inbox—all because expense tracking scattered across wallets, email attachments, and Excel spreadsheets instead of centralized digital system with automated workflows.

Odoo 18 Expenses module transforms expense management into streamlined digital workflow where employees submit expenses via mobile upload or email forwarding, attach receipt photos automatically converted to expense entries, group related expenses into comprehensive reports, managers approve with one-click from centralized dashboard showing compliance status, accounting posts journal entries automatically with proper cost allocation, and reimbursements process through payroll integration or direct payment—reducing expense processing time 85% while eliminating lost receipts and ensuring complete audit trail compliance.

Core Benefit: Expenses module = end-to-end expense lifecycle automation. Employee photos receipt on phone → automatic expense creation → manager approves on dashboard → accounting posts to books → reimbursement in next paycheck. Zero paper, zero delays.

Understanding Expense Management Workflow

📱

Employee Submission

Log individual expenses via manual entry, receipt upload, or email forwarding. Attach digital receipts (PDF/images), categorize by expense type, allocate to projects/departments, and submit for approval.

📋

Report Creation

Group multiple related expenses into comprehensive reports for streamlined approval. Combine business trip meals, transportation, lodging into single report rather than individual approvals.

✅

Manager Approval

Centralized dashboard shows pending expense reports with attached receipts. Approve, refuse, or return to draft with comments. Policy compliance checks highlight exceptions requiring attention.

💰

Accounting & Payment

Post approved expenses to accounting journals automatically. Generate reimbursement payments via payroll integration or direct bank transfer. Complete financial reconciliation and audit trail.

Expense Dashboard Overview

Access the main expense interface via Expenses module → My Expenses. The dashboard provides real-time visibility into expense workflow status.

Summary Cards Explained:

📊 Financial Summary Dashboard

SUMMARY CARD 1: To Submit
Amount: $4,216.44
Meaning: Total value of logged expenses not yet grouped into reports
Status: Individual expense entries awaiting report creation
Action: Click amount to filter list, select items, click "Create Report"

SUMMARY CARD 2: Under Validation
Amount: $0.00 (in this example)
Meaning: Expense reports submitted and awaiting manager approval
Status: Reports in approval queue
Action: Click to see pending approvals (manager view)

SUMMARY CARD 3: To Be Reimbursed
Amount: $0.00 (in this example)
Meaning: Approved expenses pending payment processing
Status: Accounting approved, reimbursement not yet issued
Action: Click to process payments or add to payroll

Quick Filtering: Click any summary card amount to instantly filter the expense list below. Shows only expenses matching that workflow stage—focus on items needing immediate action without scrolling through complete history.

Creating Individual Expenses

Employees log expenses through multiple methods. Access via My Expenses → Expenses → New.

Fill Expense Details

Complete the expense entry form with required information:

Description: Clear explanation of expense purpose (e.g., "Client lunch - TechCorp partnership discussion")
Category: Expense type from predefined list (e.g., [FOOD] Meals, [TRAVEL] Transportation, [LODGING] Hotels)
Total: Amount spent including taxes (e.g., $87.50)
Included Taxes: Tax percentage and calculated amount (e.g., 15% = $11.41)
Employee: Automatically populated with logged-in user
Paid By: Select "Employee (to reimburse)" for out-of-pocket or "Company" for corporate card
Expense Date: Actual date expense occurred (not submission date)
Account: General ledger account for recording (e.g., 600000 Expenses)

Add Analytic Distribution

Allocate expense to specific cost centers:

Project: Link to active project if expense relates to project delivery
Department: Assign to department budget (Sales, Engineering, Operations)
Cost Center: Track against specific budget lines for financial reporting
Percentage Split: Divide expense across multiple projects/departments (e.g., 60% Project A, 40% Project B)

Attach Receipt Documentation

Click Attach Receipt button to upload supporting documents:

Photo receipts using mobile device camera
Upload scanned PDFs of itemized bills
Attach emails containing digital invoices
Drag-and-drop multiple files (JPG, PNG, PDF formats supported)

Best Practice: Attach receipts immediately while fresh—prevents lost documentation and speeds up approval process.

Quick Upload Method:

⚡ Automated Receipt Processing

METHOD 1: Upload Button (Dashboard)
Step 1: Click "Upload" button on main Expenses dashboard
Step 2: Select receipt image/PDF from computer or mobile device
Step 3: Odoo automatically extracts data (vendor, amount, date) via OCR
Step 4: System creates draft expense entry pre-filled with extracted data
Step 5: Review accuracy, correct any OCR errors, add category/project
Step 6: Save expense - ready to add to report

METHOD 2: Email Forwarding
Step 1: Forward receipt email to designated expense email address
Step 2: System automatically creates expense entry from email attachment
Step 3: Email subject becomes expense description
Step 4: Attached PDF/image becomes receipt documentation
Step 5: Review in Odoo dashboard and complete missing fields

BENEFIT: Reduces data entry time from 3 minutes to 30 seconds per expense

Splitting Expenses Across Cost Centers

When single expense benefits multiple projects or departments, use Split Expense feature for accurate cost allocation.

Access Split Expense Function

On expense form, click Split Expense button. This opens allocation dialog showing:

Original Total: Full expense amount (e.g., $130.00)
Split Lines: Table to distribute amount across multiple entries
Remaining to Allocate: Shows unassigned portion ensuring 100% allocation

Define Split Allocations

Create multiple lines distributing original expense:

Line 1: Amount $78.00 → Project Alpha → Engineering Department
Line 2: Amount $52.00 → Project Beta → Sales Department
Validation: Total split lines must equal original expense amount
Analytic Tags: Each line can have different project/department/cost center

Split Expense Example:

✂️ Client Lunch Split Allocation

ORIGINAL EXPENSE: Client Lunch
Total Amount: $130.00
Category: [FOOD] Meals
Paid By: Employee (to reimburse)

SPLIT ALLOCATION:
Split Line 1:
  Amount: $78.00 (60%)
  Project: Website Redesign Project
  Department: Engineering
  Description: Technical discussion portion

Split Line 2:
  Amount: $52.00 (40%)
  Project: Sales Pipeline - Q1
  Department: Sales & Marketing
  Description: Business development portion

VALIDATION: $78.00 + $52.00 = $130.00 ✓
RESULT: Single receipt split across two project budgets
BENEFIT: Accurate project costing without duplicate receipts

Creating Expense Reports

Group multiple individual expenses into comprehensive reports for streamlined approval. Typical grouping: all expenses from business trip or monthly departmental costs.

Select Expenses for Report

From My Expenses → Expenses view:

Filter list to show "To Submit" status expenses
Select checkbox for each expense to include in report
Group related expenses (e.g., all from San Francisco trip: flight, hotel, meals, taxi)
Click Create Report button

Review Generated Report

System creates draft expense report containing:

Report Summary: Total amount, number of expense items, employee name
Expense Lines: Each selected expense listed with details and amounts
Attached Receipts: All receipt documentation automatically included
Status: Initially "To Submit" - pending employee submission to manager

Submit Report for Approval

Final review before submission:

Verify all expenses have attached receipts
Confirm analytic distributions accurate
Add report-level notes if needed (e.g., "Chicago conference expenses")
Click Submit to Manager button
Status changes to "Submitted" and manager receives notification

Expense Report Smart Buttons:

🔘 Report Interface Features

EXPENSES BUTTON
Display: Shows count of expense items in report (e.g., "5")
Function: Click to view/edit individual expense entries
Use Case: Review line item details, verify receipts attached

PRINT REPORT OPTIONS
Menu Item: "Expense Report" in print dropdown
Function: Generate PDF with all expense lines and totals
Use Case: Manager signature, accounting documentation, audit trail

JOURNAL ENTRIES BUTTON (Post-Approval)
Display: Shows accounting entry count (e.g., "2")
Function: View posted general ledger transactions
Use Case: Verify correct accounts debited/credited

Manager Approval Workflow

Managers access pending expense reports via Expenses → Reports → To Approve. Centralized dashboard shows all submitted reports awaiting validation.

Review Submitted Report

Open expense report to examine details:

Employee Information: Who submitted, department, manager
Expense Summary: Total amount, number of line items, date range
Line Item Review: Click Expenses button to see each expense with receipts
Receipt Verification: View attached documentation for completeness
Policy Compliance: Check amounts against expense policy limits

Take Approval Action

Three action buttons available:

Approve: Validates report, advances to accounting for payment processing
Refuse: Rejects report entirely with mandatory comment explaining reason
Reset to Draft: Returns report to employee for corrections/additional information

Best Practice: Add approval comments explaining any questions or reasons for refusal—improves employee understanding and reduces resubmissions.

Approval Decision Tree:

✅ Manager Review Process

SCENARIO 1: Complete & Compliant Report
✓ All receipts attached and legible
✓ Amounts within policy limits
✓ Business purpose clearly documented
✓ Analytic allocations correct
ACTION: Click "Approve" → Report advances to accounting

SCENARIO 2: Missing Information
✗ Receipt missing for $45 taxi fare
✗ Hotel bill lacks itemized charges
✗ Business purpose unclear on dinner expense
ACTION: Click "Reset to Draft" with comment: "Please attach missing taxi receipt and clarify dinner business purpose"
RESULT: Employee corrects and resubmits

SCENARIO 3: Policy Violation
✗ First-class flight booked (policy requires economy)
✗ $250 dinner exceeds $100 per-person limit
✗ Personal expenses included (Netflix subscription)
ACTION: Click "Refuse" with comment: "Expense violates travel policy section 3.2 - first class not authorized"
RESULT: Report rejected, employee must resubmit compliant expenses

SCENARIO 4: Partial Approval Needed
Issue: Report contains 8 compliant expenses + 1 questionable item
ACTION: Reset to draft, request employee remove questionable expense
Alternative: Accounting can adjust during posting if minor

Accounting Processing & Payment

After manager approval, accounting team processes expense reports for payment. Access via Expenses → Reports → Approved.

Post Journal Entries

Click Post Journal Entries button to record in general ledger:

Debit Accounts: Expense accounts per category (Meals, Travel, Lodging)
Credit Accounts: Accounts Payable - Employee Reimbursements
Analytic Entries: Cost allocations to projects/departments automatically created
Status Change: Report moves from "Approved" to "Posted"

Process Reimbursement Payment

Two payment methods available:

Direct Payment: Click Pay button → creates payment transaction → bank transfer to employee account
Payroll Integration: Click Report in Next Payslip → adds reimbursement to upcoming paycheck → employee receives money with salary

Verify Payment Status

Track reimbursement completion:

Payment Status field shows: "Not Paid" → "Posted" → "In Payment" → "Paid"
Journal Entries button displays accounting transactions
Payment reference links to bank transaction for reconciliation

Accounting Integration Example:

💼 Journal Entry Creation

EXPENSE REPORT: Business Trip - Seattle Conference
Employee: John Smith
Total Amount: $1,306.84
Paid By: Employee (to reimburse)

POSTED JOURNAL ENTRY:
Date: January 15, 2026
Journal: Expense Journal

Line 1: Airfare
  Account: 600100 - Travel Expenses
  Debit: $450.00
  Analytic: Sales Conference Project

Line 2: Hotel (3 nights)
  Account: 600200 - Lodging Expenses
  Debit: $675.00
  Analytic: Sales Conference Project

Line 3: Meals
  Account: 600300 - Meal Expenses
  Debit: $156.84
  Analytic: Sales Conference Project

Line 4: Taxi Transportation
  Account: 600100 - Travel Expenses
  Debit: $25.00
  Analytic: Sales Conference Project

Line 5: Employee Reimbursement Liability
  Account: 201000 - Accounts Payable - Employees
  Credit: $1,306.84

PAYMENT ENTRY (when paid):
  Date: January 20, 2026
  Debit: 201000 - Accounts Payable - Employees ($1,306.84)
  Credit: 100000 - Bank Account ($1,306.84)

Payroll Integration Features

Seamlessly integrate expense reimbursements with regular payroll processing for consolidated payments.

Report in Next Payslip:

Add to Payroll Queue

For posted expense reports, click Report in Next Payslip:

System marks expense for payroll processing
Reimbursement amount added to employee's next paycheck
Eliminates need for separate bank transfer
Employee receives expenses with regular salary payment
Maintains complete audit trail linking expense to payslip

Remove from Payslip (If Needed)

If reimbursement method needs changing before payroll runs:

Click Remove from Payslip button
Unlinks expense from payroll processing
Allows switching to direct payment method instead
Use case: Urgent reimbursement needed before next pay period

Payroll vs Direct Payment Comparison:

💳 Payment Method Selection

PAYROLL INTEGRATION METHOD
Process: Report in Next Payslip → Include in payroll run → Pay with salary
Timeline: Processed with next regular paycheck (bi-weekly or monthly)
Benefits:
  ✓ Consolidated payment reduces bank transaction fees
  ✓ Automatic tax withholding if reimbursement exceeds limits
  ✓ Single reconciliation for payroll + expenses
  ✓ Employee receives one combined payment
Best For: Non-urgent reimbursements, monthly expense reports

DIRECT PAYMENT METHOD
Process: Click Pay button → Generate payment → Bank transfer
Timeline: Immediate (same day or next business day)
Benefits:
  ✓ Faster reimbursement for time-sensitive situations
  ✓ Separate from payroll for accounting clarity
  ✓ Can batch multiple employees together
  ✓ Flexible payment scheduling
Best For: Large expense amounts, urgent reimbursements, contractors

RECOMMENDATION:
Default: Use payroll integration for regular employee expenses
Override: Use direct payment for amounts >$1000 or urgent requests

Expense Report Status Tracking

Managers and accounting teams monitor all organizational expenses via Expenses → Reports → All Reports view.

Filtering by Status:

🔍 Status Filter Reference

STATUS: To Submit
Count indicator: Shows number of draft reports
Meaning: Reports created but not yet submitted to manager
User: Employee
Action: Review and submit for approval

STATUS: Submitted
Meaning: Reports awaiting manager validation
User: Manager
Action: Approve, refuse, or reset to draft

STATUS: Approved
Meaning: Manager validated, awaiting accounting processing
User: Accountant
Action: Post journal entries

STATUS: Posted
Meaning: Recorded in general ledger, pending payment
User: Accountant
Action: Process payment or add to payroll

STATUS: Done
Meaning: Fully processed and paid
User: All (reference only)
Action: Archive/reporting purposes

STATUS: Refused
Meaning: Manager rejected report
User: Employee
Action: Review refusal reason, correct issues, resubmit

PAYMENT STATUS INDICATORS:
Not Paid - No payment initiated yet
Posted - Accounting entries created
In Payment - Payment processing started
Paid - Reimbursement completed

Customer Reinvoicing

When project expenses should be billed to clients, use reinvoicing feature to automatically add costs to customer invoices.

Mark Expense for Reinvoicing

On individual expense form:

Customer to Reinvoice: Select client from dropdown
Sales Order: Link to specific customer order if applicable
Analytic Account: Project-based tracking for cost allocation
System marks expense as billable to selected customer

Generate Customer Invoice

When creating customer invoice:

Approved reinvoiceable expenses automatically appear as invoice lines
Original expense amount + markup percentage (if configured)
Receipt documentation attached to invoice for customer reference
Revenue recognition tied to expense incurred date

Reinvoicing Workflow Example:

🧾 Client Billable Expenses

PROJECT: Mobile App Development for Acme Corp
Contract: Time & Materials with expense reimbursement

EMPLOYEE EXPENSE ENTRY:
Description: AWS cloud hosting - January
Category: [IT] Cloud Services
Amount: $450.00
Employee: Sarah Developer
Paid By: Employee (to reimburse)
Customer to Reinvoice: Acme Corporation
Sales Order: SO-2026-001 (Mobile App Project)
Analytic Account: Project - Acme Mobile App

EXPENSE APPROVAL FLOW:
1. Sarah submits expense report
2. Manager approves (validates business purpose)
3. Accounting posts journal entry
4. Sarah reimbursed via payroll

CUSTOMER INVOICING:
When creating invoice for Acme Corp:
  Invoice Line 1: Development Hours (regular line item)
  Invoice Line 2: AWS Cloud Hosting - January
    Amount: $450.00 (or $472.50 if 5% markup applied)
    Description: Reimbursable cloud infrastructure expense
    Attached: AWS invoice receipt

RESULT: 
  Company cost: $450.00 (reimbursed to Sarah)
  Customer charged: $450.00 (or marked up amount)
  Profit margin: Maintained per contract terms

Best Practices for Expense Management

✅ Follow These Guidelines:

Submit expenses immediately: Don't wait until month-end—log expenses within 24 hours while details fresh and receipts available
Always attach receipts: No receipt = no approval. Photo immediately using mobile device before receipt fades or gets lost
Use clear descriptions: "Dinner with John" insufficient—write "Client dinner - TechCorp partnership discussion - 3 attendees"
Allocate to correct projects: Accurate analytic distribution ensures proper project costing and client billing
Group related expenses: Combine all business trip expenses into single report rather than individual submissions
Set approval policies: Define spending limits requiring additional approval levels (e.g., expenses >$500 need director approval)
Enable email forwarding: Configure expense email address for instant receipt upload from mobile device
Regular reconciliation: Match expense reports to bank/credit card statements monthly to catch missing items

Common Mistakes to Avoid

🚨 Mistake #1: Waiting Too Long to Submit

Employee waits 6 weeks to submit restaurant receipt = illegible thermal paper, missing business purpose details, manager can't verify. Solution: Submit within 48 hours maximum while memory fresh.

🚨 Mistake #2: Missing Analytic Distribution

Expense approved without project allocation = shows in company totals but not project costs = inaccurate project profitability. Solution: Make analytic distribution mandatory field for all expenses.

🚨 Mistake #3: Personal Expenses on Corporate Card

Employee charges personal dinner to company card by mistake = accounting nightmare. Solution: Always set "Paid By" correctly and managers verify expense legitimacy during approval.

🚨 Mistake #4: Forgetting Reinvoicing Setup

Client-billable expense submitted without customer field = cost absorbed instead of billed = lost revenue. Solution: Train employees to always set reinvoicing customer on project-related expenses.

Conclusion

Odoo 18 Expenses module eliminates expense management inefficiencies through complete digital workflow automation. Employees submit expenses effortlessly via mobile upload or email forwarding with automatic OCR data extraction, attach receipt photos preventing lost documentation, split expenses across multiple projects for accurate cost allocation, and group related items into comprehensive reports. Managers approve from centralized dashboard with complete receipt visibility and policy compliance checking. Accounting teams post journal entries automatically with proper general ledger coding, process reimbursements through payroll integration or direct payment, and track customer reinvoicing for billable project expenses—reducing expense processing time 85%, eliminating paper receipt handling, ensuring complete audit trail compliance, and providing real-time visibility into organizational spending patterns for better budget control.

🎯 Key Takeaway: Effective expense management = mobile capture + instant submission + automated approval + accounting integration + payroll reimbursement. Paper receipts stuffed in wallets for weeks = past problem. Real-time digital expense tracking with automatic workflows = new reality with Odoo 18.