PA STATE SYSTEM OF HIGHER EDUCATION
Shared Administrative System
TM – Travel Management
Process for Advances
A travel advance may be issued (if university policy allows it) prior to a trip for expenses that are anticipated to be
incurred during the time of travel.
Advances entered into the SAP Travel Management module will serve an informational purpose only. Advance
processing will be handled manually, outside of SAP Travel Management.
General Processing Steps:
1. Create Travel Request (with Advance)
a. Submit Travel Request to workflow (i.e. Save & Send for Approval)
b. Approval via workflow
c. Post trip to Financial Accounting (automated process)
i. This is a zero posting but it changes the Processing Status of the Request to “transferred to FI”
2. Create invoice in Accounts Payable via FB60 to pay the Advance
a. Debit – Advance; Credit - Vendor
b. Since AP is the last step in workflow, they will know from the item details and/or form that an advance is
being requested.
i. Exact procedures to be determined by each university
3. Issue Payment for Advance via F110
4. Create Travel Expense Report for Travel Request created in Step 1 (upon return from trip)
a. Submit Travel Expense to workflow (i.e. Save & Send for Approval)
b. Approval via workflow
c. Post trip to Financial Accounting (automated process)
5. Create credit memo in Accounts Payable via FB65 to adjust for the Advance
a. Debit – Vendor; Credit - Advance
b. Since AP is the last step in workflow, they will know from the item details and/or form that an advance
was issued for the trip.
i. Exact procedures to be determined by each university
6. Issue Payment for Trip via F110
a. Amount will be the net of the Travel Expense Report less the Advance
7. Clear the advance account (automated process)
File:I:\Finance\Travel Management\Training\TM - Process for Advances.docx
Page 1 of 10
Revised: 05/2014
PA STATE SYSTEM OF HIGHER EDUCATION
Shared Administrative System
TM – Travel Management
Process for Advances
EXAMPLE
Employee creates a Travel Request including an Advance for $100.
File:I:\Finance\Travel Management\Training\TM - Process for Advances.docx
Page 2 of 10
Revised: 05/2014
PA STATE SYSTEM OF HIGHER EDUCATION
Shared Administrative System
TM – Travel Management
Process for Advances
Trip Details per Travel Request form.
File:I:\Finance\Travel Management\Training\TM - Process for Advances.docx
Page 3 of 10
Revised: 05/2014
PA STATE SYSTEM OF HIGHER EDUCATION
Shared Administrative System
TM – Travel Management
Process for Advances
When the Request is Saved and Sent for Approval, the commitment in Funds Management is statistical.
When the Request is Approved, the commitment in Funds Management becomes real.
File:I:\Finance\Travel Management\Training\TM - Process for Advances.docx
Page 4 of 10
Revised: 05/2014
PA STATE SYSTEM OF HIGHER EDUCATION
Shared Administrative System
TM – Travel Management
Process for Advances
Accounts Payable creates an invoice via FB60 to pay the Advance
• Is it recommended that the Trip Number be entered in the Reference field to faciliatate clearing of the Advance
account (128410).
Next, payment is issued for the above via F110.
File:I:\Finance\Travel Management\Training\TM - Process for Advances.docx
Page 5 of 10
Revised: 05/2014
PA STATE SYSTEM OF HIGHER EDUCATION
Shared Administrative System
TM – Travel Management
Process for Advances
Upon completion of trip, create the Expense Report for the Travel Request.
Trip Details per Travel Expense Report form.
File:I:\Finance\Travel Management\Training\TM - Process for Advances.docx
Page 6 of 10
Revised: 05/2014
PA STATE SYSTEM OF HIGHER EDUCATION
Shared Administrative System
TM – Travel Management
Process for Advances
When the Expense Report is Saved and Sent for Approval, the commitment in Funds Management remains real and is
adjusted to the actual cost of the trip.
When the Expense Report is Approved, the commitment in Funds Management remains the same as above.
When the Expense Report is Posted to FI, the commitment is liquidated and replaced with an actual.
File:I:\Finance\Travel Management\Training\TM - Process for Advances.docx
Page 7 of 10
Revised: 05/2014
PA STATE SYSTEM OF HIGHER EDUCATION
Shared Administrative System
TM – Travel Management
Process for Advances
Here is the entry that was posted to FI.
** Note: The payable to the traveler has not been adjusted for the Advance. This is because the Advance recorded in
SAP Travel Management is for informational purposes only. In order to adjust for the Advance and reimburse the
traveler the appropriate amount, a credit memo must be entered via FB65.
Accounts Payable creates a credit memo via FB65 to adjust for the Advance
• Is it recommended that the Trip Number be entered in the Reference field to faciliatate clearing of the Advance
account (128410).
File:I:\Finance\Travel Management\Training\TM - Process for Advances.docx
Page 8 of 10
Revised: 05/2014
PA STATE SYSTEM OF HIGHER EDUCATION
Shared Administrative System
TM – Travel Management
Process for Advances
Next, payment is issued for the above via F110.
The below items in the Travel Advance account can now be cleared.
File:I:\Finance\Travel Management\Training\TM - Process for Advances.docx
Page 9 of 10
Revised: 05/2014
PA STATE SYSTEM OF HIGHER EDUCATION
Shared Administrative System
TM – Travel Management
Process for Advances
Accounting entries for the above steps:
File:I:\Finance\Travel Management\Training\TM - Process for Advances.docx
Page 10 of 10
Revised: 05/2014