Oracle HCM Cloud - Expense Restricting Rate Limits in Expense

Oracle Human Capital Management (HCM) stands as a formidable tool for orchestrating various facets of an organization’s workforce. Amidst its manifold functionalities, Oracle HCM Cloud empowers the establishment and enforcement of policies pertaining to expenditures, which encompasses the realm of Miscellaneous Expense Policies including Expense Restricting Rate limits. The process of configuring a Miscellaneous Expense Policy within Oracle HCM serves as a conduit for streamlining the administration of miscellaneous outlays, elevating adherence to regulations, and fortifying transparency across the organizational landscape.

Expense rate thresholds, incorporated into this framework, assume a pivotal role in allowing enterprises to uphold fiscal discipline by instituting predefined expenditure limits. This proactive approach effectively curtails the potential for profligacy amongst employees, thereby preserving the fiscal equilibrium of organizations. Rather than being perceived as constraints, these rate limits manifest as instruments for engendering equity and consistency in the treatment of employees. Consequently, all individuals function within identical financial boundaries, mitigating the prospect of disputes arising from expense reimbursement procedures. Same financial constraints, reducing potential grievances related to expense reimbursements.

In this blog, the process of setting up a Miscellaneous Expense Policy within Oracle HCM Cloud, including the implementation of Expense Restricting Rate limits, will be walked through, ensuring that efficient management and control of miscellaneous expenses policies can be achieved by an organization.

Now let’s commence with the setup process.

Step 1: The setup process can be navigated by going to Setup & Maintenance>> Search >> Manage Policies by Expense Category


Fig.1: Manage policies by Expense Category


Step 2: A policy can be created by clicking on “Create policy” and selecting the category. Assume the Miscellaneous category is selected.

Step 3: Policy name & description is given.

Step 4: In the Miscellaneous Eligibility Rule section, the Minimum Number of Days for Miscellaneous Expense Reimbursement rule is set.



Fig.2: Create Miscellaneous Expense Policy


Step 5: Then from the rate type section select any one of the following options:

  • Rate limit
  • Percentage reimbursement
  • Percentage reimbursement with upper limit

Step 6: For example, the Rate limit is selected.

Step 7: In the Rate Definition section of Expense Restricting Rate limits, the rate is selected based on any one or a combination of the following rate limits:

  • Single instance limit
  • Daily sum limit
  • Monthly limit
  • Yearly limit- Upon Selection, the Period Start Month and Period of start date can be specified in this limit.
  • Lifetime limit- Upon selection, this mandates the highest permissible reimbursement amount that an employee can claim throughout their entire tenure with the company or within a specific business unit, spanning from their date of hire to the present day.

Step 8: As of now Monthly limit and rate currency as INR is selected.

Configuring Rate Definitions

Fig.3: Configuring Rate Definitions


Step 9: Rate determinants can be defined based on Role, Gender, and Location. In this case, Gender has been selected as a Rate determinant.

Step 10: In Policy Enforcement, the tolerance level of policy violation can be defined in the section to warn or prevent users from submitting a report.


Fig.4: Enforcing Policy Rules


Step 11: Once it’s saved, the Create Rates option will be enabled.


Fig.5: Creating Expense Rates


Step 12: Then Click on Create Rates. After that HSDL file will be downloaded.


Fig.6: Spreadsheet to upload Rates


Step 13: Values can be defined as per the requirements then click on Upload Rates.

Step 14: After uploading the policy rates will be created.

Created-Policy-Rates-Oracle HCM Cloud-Expense-Restricting-Rate-limits-in-Expense

Fig.7: Created Policy Rates


Step 15: Then click on Save & Close. After that, the policy will be created but it will be on valid status. Then click on the policy and activate it as shown in the below figure.


Fig.8: Manage policies by Expense Category


Step 16: Then, a confirmation will be received as shown below.


Fig.9: Activation Confirmation


Step 17: After activation, the policy must be mapped to the expense item.

Step 18: Navigate to setup & maintenance >> Manage expense Report Templates >> Create report >> Create expense Types >> Click on (+)

Create-Expense-Types -Oracle-HCM Cloud-Expense-Restricting-Rate-limits-in-Expense

Fig.10: Create Expense Types


Step 19: While creating an expense type, in policies, click on “Create Expense Policy (+)”. In the policy name, map the policy that has been created as shown in the below figure.

Mapping-Expense -Policies-Oracle-HCM-Cloud-Expense-Restricting-Rate-limits-in-Expense

Fig.11: Mapping Expense Policies


Step 20: Then click on Save and Close.


Employee POV

Now an expense submission will be tried from the employee log-in.


Fig.12: Employee Expense Submission


  • As can be seen, an error is encountered, which states, “you cannot submit an expense report with an expense item that exceeds the monthly policy rate”
  • This is because the maximum amount allowed for submission is set to be 1000 or below 1000.


Business Benefits

Embracing and steadfastly adhering to expense rate limits is not just a wise practice but a pivotal one, benefiting both individuals and organizations. These limits act as a protective shield for your finances, guaranteeing that spending remains well-contained and fostering fiscal prudence.

The implementation and enforcement of expense rate limits offer a plethora of advantages, including:

  • Financial Stability
  • Budget Adherence
  • Resource Allocation
  • Cost Control
  • Avoidance of Debt
  • Financial Awareness
  • Long-Term Financial Goals


The Bottom Line:

The expense-restricting rate limits emerge as a valuable asset in the pursuit of financial stability, cost control, and the realization of financial aspirations. When adopted with care and upheld consistently, they pave the path to improved financial well-being and a more secure financial trajectory. Not only do these limits empower organizations to make well-informed financial choices, but they also ensure that expenses remain in harmony with budgetary boundaries, fortifying the overall financial footing.


Author: Abhisek Kanungo, Oracle HCM Cloud Consultant

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