Cash Reimbursement Ratio
Written by Michelle Henley
Updated at October 24th, 2024
Table of Contents
Use Case:
Monitoring the proportion of cash reimbursements compared to other payment methods is crucial for detecting potential non-compliance or policy violations in employee expense reporting. A high cash reimbursement ratio may indicate excessive use of cash, which can pose risks.
The Cash Reimbursement Ratio analytic flags employees whose cash reimbursement ratio exceeds the average for their organization. This ratio is calculated based on either the volume or value of expenses over a historical period, with comparisons made across dimensions like country, company, or cost center. The system highlights employees with significantly higher cash usage than their peers, ensuring the organization can identify potential risk areas and investigate further. Employees must have a minimum of 20 expenses within the 90-day period for inclusion in the analysis.
| Description | Employee's cash ratio is greater than the average for their organization |
| Domain(s) | Employee |
| Analysis Type | Indicator |
| Focus Area | Cash |
| Score Methodology | The cash ratio variance in basis points (100 bps = 1%) between the employee and the compared peer set |
Default Scoring Criteria
Importance: 2 (default)
Enabled: True (default)
| Risk Result | Default Value | Notation |
|---|---|---|
| Weak | 1500 bps | Basis Points |
| Moderate | 2500 bps | |
| Strong | 3500 bps | |
| Auto | Not set. |
Unique Configuration
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The default ratio type is trans, which calculates the ratio based on the volume of expenses
- Value is also available to calculate the ratios
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The comparison dimension is country, which establishes the ratio comparison figures
- Organization (Company Code) and Cost Center are also available.
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Historical period for comparison days:
- Employee - 90 days
- Comparison dimension - 365 days
Exclusions
- Employees must have a minimum of 20 expenses in the historical period to be considered