Reimbursements

Udyamo HRMS provides a complete reimbursement module that allows employees to submit expense claims, attach supporting documents, and route them through an approval workflow. Approved reimbursements can be paid through payroll or tracked as standalone payments. This module reduces paperwork, speeds up approvals, and maintains a clear audit trail for all expense claims.

This chapter covers how to configure reimbursement categories, how employees submit claims, the approval process, payroll integration, and reporting.

What You Will Learn

• How to create and manage reimbursement categories
• How employees submit reimbursement claims
• Attachment requirements and limits
• The approval workflow (approve, reject, deny with reason)
• Reimbursement status tracking
• Integration with payroll for payment
• How to generate reimbursement reports
• Viewing claim history

Prerequisites

Required: Before using the reimbursement module:

• The Reimbursement feature toggle is enabled in Settings > Features
• At least one reimbursement category is created (covered in this chapter)
• Payroll is configured if you plan to process reimbursements through payroll (see Running Payroll)

Understanding the Reimbursement Model

Each reimbursement claim in Udyamo HRMS captures the following information:

Setting Up Reimbursement Categories

Reimbursement categories define the types of expenses employees can claim. Setting up clear categories simplifies submission, approval, and reporting.

Step 1: Navigate to Reimbursement Categories

1. From the sidebar, click Settings.
2. Under the Finance section, click Reimbursement Categories.
3. The Reimbursement Categories list page opens.

Step 2: Create a Reimbursement Category

1. Click Add New (or Create Reimbursement Category).
2. Enter the category details:

3. Click Save.

Example Reimbursement Categories

Tip: Create categories that match your organization's expense policy. Having well-defined categories makes it easier for employees to classify their claims and for approvers to review them.

Step 3: Edit or Delete a Category

1. From the Reimbursement Categories list, click on a category name.
2. Modify the fields as needed and click Save.
3. To delete, click the Delete button.

Warning: Deleting a reimbursement category does not remove existing claims filed under that category. However, employees will not be able to submit new claims under the deleted category.

Submitting a Reimbursement Claim

How an Employee Submits a Claim

1. The employee logs in to Udyamo HRMS.
2. From the self-service portal, navigates to Finance > Reimbursements (or My Reimbursements).
3. Clicks New Claim (or Submit Reimbursement).
4. Fills in the claim form:

5. Clicks Submit.

Attachment Requirements

Udyamo HRMS supports attachments on reimbursement claims with the following specifications:

Tip: Scan or photograph receipts clearly before uploading. Ensure the date, amount, and vendor name are legible. Blurry or illegible attachments may cause delays in approval.

What Happens After Submission

1. The claim is created with a status of Pending.
2. A notification is sent to the designated approver (manager or admin).
3. The employee can view the pending claim under My Reimbursements.

Approval Workflow

Approval Process

The reimbursement approval workflow involves the following steps:

Reviewing and Approving a Claim

1. From the sidebar, click Finance > Reimbursements (or navigate to the reimbursement requests page).
2. Filter by status Pending to see all awaiting claims.
3. Click on a claim to review:
   • Employee name and department
   • Category and amount
   • Expense date
   • Description
   • Attached document (click to view or download)
4. Verify the claim against your organization's expense policy.
5. Choose one of the following actions:

Entering a Denial Reason

When rejecting a claim:

1. Click Reject.
2. A text field appears for the Denial Reason.
3. Enter a clear, specific reason (e.g., "Receipt is missing the date" or "Amount exceeds the per diem limit of Rs 2,000").
4. Click Confirm Rejection.
5. The employee receives a notification with the denial reason.

Tip: Always provide a constructive denial reason. This helps the employee understand what went wrong and whether they can resubmit with corrections.

Reimbursement Statuses

Each reimbursement claim moves through a defined set of statuses:

Status Flow Diagram

Pending  -->  Approved  -->  Approved & Paid
   |
   +-------->  Rejected

Integration with Payroll

Approved reimbursements can be processed through the payroll cycle, adding the reimbursement amount to the employee's monthly payout.

How Payroll Integration Works

Viewing Reimbursements on Payslips

1. Navigate to Payroll > Payslips.
2. Select the month and click on an employee's payslip.
3. The Earnings or Reimbursements section shows the reimbursement amount with the category name.

Manual Payment (Outside Payroll)

If your organization pays reimbursements separately from payroll:

1. Open the approved claim.
2. Click Mark as Paid.
3. Optionally enter the payment reference (bank transfer ID, cheque number, date).
4. Click Save.
5. The status changes to Approved & Paid.

Tip: Whether you process reimbursements through payroll or manually, always update the status to "Approved & Paid" to maintain accurate records and avoid duplicate payments.

Viewing Claim History

For Employees

1. Log in to Udyamo HRMS.
2. Navigate to My Reimbursements.
3. The page displays all claims, sortable and filterable by:
   • Status (Pending, Approved, Rejected, Approved & Paid)
   • Category
   • Date range
4. Click on any claim to view its full details, including the approval/rejection history and denial reason (if rejected).

For Administrators

1. Navigate to Finance > Reimbursements.
2. The list shows all claims across the organization.
3. Use filters to narrow down:

Reimbursement Reports

Available Reports

Generating a Reimbursement Report

1. From the sidebar, click Reports.
2. Select Reimbursement Report (or Finance Reports > Reimbursements).
3. Choose the report type.
4. Select the Period (month, quarter, or year).
5. Apply optional filters (category, department, status).
6. Click Generate.
7. Review the results on screen.
8. Click Export to download in Excel or PDF format.

Best Practices

Tax Implications

Warning: Tax treatment of reimbursements depends on the nature of the expense, the amount, and the applicable tax regime. Consult your tax advisor for specific cases. Udyamo HRMS processes reimbursements as configured; the tax treatment is determined by the salary component mapping.

Troubleshooting

Next Steps

• Configure Advance Salary — see Advance Salary
• Review payroll integration — see Running Payroll
• Set up Loan Management — see Loan Management