Identify average expense transaction sizes by business unit/division/department/cost center by highest total and highest average spend:
- Obtain a dump of all of the T&E expenses from within the audit period you want to review.
- Import the expense data into ACL Analytics using the import wizard.
- Ensure completeness by verifying the data against control totals (e.g. count, and total on expense amount to tie to audit period actuals).
- Summarize on Cost Center (could be department or business unit) and Expense Category, subtotaling on Expense Amount (FC)
- Check “Include Statistics for Subtotal Fields” to produce average, minimum, and maximum values for the Expense Amount field.
- Examine the results of the Summarize (step 4) to review the cost centers with the highest total spend in each category.
- Examine the results of the average calculation (step 4) to review the cost centers with the highest average spend in each category.
- For your T&E data, make sure you have fields such as:
- Expense Report Number
- Expense Line Number
- Cost Center
- Expense Category
- Expense Amount (Functional Currency, FC)
- Employee Number
- Employee Name
- Employee Department
- Expense Date
- Number of Attendees
- It can be a hassle to chase after every slightly-too-expensive employee meal, but if you are able to narrow down a trend by department it can be much easier to handle the issue.
- Specify a time period to investigate, and if time is available consider comparing differences in fiscal quarters.
- Please note Step 4 requires AN version 11.4. To calculate the average expense amount manually, you can define a computed field:
- Total Expense Amount (FC) / COUNT (number of transactions in the same cost center and expense category)