Ours are pretty open in that employees put memberships on them, donations, etc., where I know other companies may limit the credit card expenses to only being available for travel and entertainment. I would like some feedback from other companies that are members of this group.
First some general guidelines ... most companies set a dollar limit:
Beginners: $1,000 to 1,500.00
Then they move to: $5,000
Raising the dollar levels just comes with your comfort level with the process and the size of your company. There is no right or wrong amount.
Then the policy is usually about all MRO (materials, repairs, operating expenses) under that dollar amount, and will then spell out the exceptions: for example, no inventory, chemicals, assets, and so on. It is usually specific to your industry. Some companies will have a no alcohol policy, and will block undesired suppliers (lingerie shops, cigar shops, etc.).
To provide a very specific written policy, I would suggest you benchmark companies in your industry and ask for a copy of their policy. It would be the best match for you.
Here are some additional responses from members:
1. We allow for club/association memberships to be paid with T&E card. Proper support and support needs to be attached to expense report. Donations are to be processed via AP as it needs special approval from Finance Director. We created an “expense type” within Concur for memberships.
Hope this helps.
Senior Manager, Procurement and Accounts Payable
Heidrick & Struggles
2. I always recommend that T&E as well as P-Card cardholders sign-off on an agreement that references the applicable policy. The agreement should specify the outcome of any cardholder abuse. I’ve attached an example of a P-Card agreement that you can easily modify to fit your T&E needs. (I can forward the sample document if you'd like it; just let me know. --Royce)
Chris Doxey, CAPP, CCSA, CICA, CPC
President, Doxey, Inc.
GRC Leading Practices
3. Our policy is for T&E use, however, from time to time there may be charges exceptions (which need to be preapproved). Each cardholder has a set limit . Also, cardholders must submit a travel approval request and receive a TAC (Travel Approval Code) which has to be approved by the CFO prior to travel.
If the card holder does not obtain the TAC prior to travel, their expenses will be rejected.
Sheila Velazquez | RLJ Entertainment| Sr Manager, Accounts Payable, Payroll & Shared Services
Silver Spring, MD
4. Our policy allows for any business related charges to be charged to credit cards. We have a limit on charges up to $5k for Corporate Cards and $3k for personal cards.
Operations Accounting Manager
ULI - the Urban Land Institute
Washington, DC 20036
5. Our policies are pretty much the same with that of A. Atkins, with nothing else to add here except our limit is $1k except otherwise authorized by the CEO.
Accounts Payable Clerk
Family Health Centers of Baltimore
6. We are limited to our categories because of our GL setup. We use Concur for T&E expenses and try to keep the categories limited otherwise employees with have to sort through a ton of categories. A lot of our GL rules require product codes etc so there is no way we can make a category for most marketing types expenses etc.
So we do try to limit the use to T&E expenses with a few exceptions of very commonly used accounts such as Postage or Office Supplies.
The limitation is solely because of our GL build, we are a manufacturer) so other companies might not have this issue. Because of this we require either use of a department Purchasing Card which has unlimited GL combinations or that they pay it out of pocket and submit a manual expense for reimbursement.
Lynda Fuentes, Intermatic