1. Amount Verification
The Amount Verification model ensures that the amount submitted for an expense line is below a specific threshold, broken down by cash (personal credit card or cash currency) and credit (corporate card). This is usually set to a higher number like $10,000 (often only to be violated by marketing spend).
2. Amount Verification by Expense Type
The Amount Verification by Expense Type checks for specific expense types and ensures that the submitted amount is below a specific threshold, broken down by cash (personal card or cash currency) and credit (corporate card). If an expense line is flagged as low risk but the user amount is over the threshold it will be flagged as high risk. Amount verification by expense type checks if there are attendees associated with the expense. The rule will always divide the total amount by the number of attendees and will use that against the threshold. Eg, 100$ spend with 2 attendees could be flagged as risk if threshold amount per attendee is set to 20$.
3. Anti-Corruption and Bribery Check
The Anti-Corruption and Bribery performs an FCPA (Foreign Corrupt Practices Act) check, where AppZen looks at different databases (e.g., Government, FBI most wanted, etc.) to match attendee names and business titles that are on those lists with names submitted within an expensed meal. Currently the lists are limited to the US only.
4. Receipt Verification
Receipt Verification checks if the user input data matches the receipt data picked up by AppZen's OCR. Validates whether:
- There is an existing receipt.
- The amounts match between the user input data and the receipt.
- The tip amount falls outside a specified variation set in AppZen (e.g., greater than 25%).
- Matches the date on the receipt against the user input date. The date has a two-day variance from the actual date. For example, if the date on the receipt is Jan 1st 2019 and user input date is Jan 3rd 2019, AppZen will not flag as high risk. However, if the receipt date is Jan 1st 2019 and user input is Jan 4th 2019 AppZen will flag as medium according to the receipt verification rule.
- With recent updates to the model, receipt verification can read handwritten digits on receipts (english only) does not include handwritten text or signatures.
- Ability to search for total sum of user input amount across receipts that have more than one page.
Things to keep in mind:
AppZen uses the expense type that is mapped on the configuration to determine how a rule is flagged. If the customer expense type is lunch and it’s mapped to meal we would we use the default expense type “meal”. The only exception is if the expense type was mapped to “Miscellaneous” AppZen would automatically map the expense type to “hotel” based on what we classify the receipt as. For Receipt Verification we use the mapped expense type (meal) and apply the normal logic for such as: threshold, and tip deviation for meal. If a rule did not flag ensure that the expense type is mapped correctly.
Please note: Certain Appzen expense types do not require a receipt: Tolls, Mileage, and Gratuity
5. Credit Card Check on Cash Lines
Credit Card Check on Cash Lines checks whether the employee used a personal credit card to pay for an expense while a corporate card was expected for the particular transaction.
6. Daily Meal Limit
The Daily Meal Limit checks for meal amounts across expenses & expense reports, against the amount a person can spend on meals on a specific day. Specific meal expense types (e.g., breakfast, lunch, dinner, snack) can also be broken down further to set specific limits per type depending upon the expense system.
7. Duplicates within a Report
Duplicates within a Report analyzes receipts for the date, amount, merchants to find duplicate claims within a single report.
8. Duplicates Across Reports
Duplicates Across Reports is based on image receipt check across all employees. However, the (Date, Amount, Merchant) check is only for a single employee.
For duplicates across reports, the receipt image submitted to the report will appear alongside the receipt image that has been identified as a duplicate of the receipt submitted. In doing so, auditors will be able to cross-reference the information within the two receipt images to verify the duplicate.
Duplicates may be flagged as high due to a duplicate image matching or matching an expense with the same total amount, purchase date, and merchant.
9. Expense Age Check
Looks at the date on user input & the receipt to validate if the submitted report is older than a predetermined duration (e.g., 90 days or 180 days).
10. Merchant Category Check
The merchant is searched on the web to verify if the merchant is associated with any questionable activity including adult entertainment, movie theaters, spas, golf, etc. AppZen also looks for MCC codes in Credit Card transactions.
Additional logic has been implemented in this model to handle nuances and different variations such as plurals in merchant names. For example Trader "Joe’s" is a grocery store. If user input is Trader "Joe" we will be able to map Trader Joe's back to the merchant category of grocery store.
11. Receipt Itemization Verification Check
Receipt Itemization Verification check ensures that a hotel register/folio or a meal receipt is itemized, further breaking down the different purchases that are mentioned on the receipt.
12. Restaurant Price Check (Merchant Price Check)
The Restaurant Price Check performs an internet search to verify the average amount that a meal should cost for an individual, and validate it against the cost and number of people that an employee has submitted within their expense report.
13. Unauthorized Expenses
Using AppZen's AI this model reads receipts to identify expenses that a client has identified as unauthorized per their expense policy. Typical examples include tobacco products, alcohol, spa treatments, first class upgrades, etc. With recent updates to AppZen, functional admins can configure the model for "Business Class" and "First Class" expense types.
The functional admin can now separate the two unauthorized categories out to possibly add a different threshold between the two unauthorized categories.
14. Weekend Expenses Check
The Weekend Expenses Check looks at the date on user input & the receipt to validate if a purchase was made on a Saturday or Sunday (or another designated day).
15. Manager as Attendee
The Manager as Attendee model checks if a manager is listed as an attendee of a meal expense. A company T and E policy states, "the most senior person who attends a company outing pays the bill" then that manager should pay and submit the expense report.
Based on the hierarchy information that AppZen has access to, the model will flag and raise awareness to the auditor that an employee expensed the meal and one of the attendees was the manager.
The auditor would be aware of the issue and speak to the manager or employee to understand why they didn't follow the T and E policy.
16. VAT Detection Model
Identifies if “VAT” related lexical in local language is detected in following 13 countries: the UK, Singapore, Germany, France, Canada, Netherlands, Sweden, Denmark, Switzerland, Belgium, Norway, Finland, and Spain.
If “VAT” related lexical in local language is detected on the receipt, then we will flag risk accordingly. This model does not compare amounts between receipt and user-entered data at this time.
When VAT is detected the model can be configured for high or medium within the audit model configuration menu.