Receipt Verification Checks - Check for a valid receipt and verify it against the expense report to flag errors and misuse.

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). The amount verification model will flag above the threshold in order to flag as a High. For example, 50.01 will flag as high if the threshold was set at 50.00

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 a risk if the threshold amount per attendee is set to 20$.

Please note: This model checks against all configured expense types, therefore you will see the new messaging for expense types that do not contain any attendees. However, expense types that have no attendees will display a 1 in the total attendees section.

Automated Receipt Verification

Automated Receipt Verification checks if the user input data matches the receipt data picked up by AppZen's OCR. Here are some key facts about the Receipt Verification Model:

  1. Checks if there is an existing receipt.
  2. Checks if the amounts match between the user input data and the receipt.
  3. 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.
  4. A 20% variance is hardcoded into the model for meals and taxis only.
  5. With recent updates to the model, receipt verification can read handwritten digits on receipts (english only) does not include handwritten text or signatures.
  6. Ability to search for the 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 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

Cash Line Validation Check

AppZen will validate the credit card number on the receipt of a Cash (out of pocket) expense line against a customer provided list of Corporate Credit Card numbers and customer last names. If there is a match, AppZen will flag this as High Risk since the employee is reimbursing a corporate credit card transaction that is potentially already paid out.

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.

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).

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.

Duplicates Checks - Look through all employee expense reports to identify duplicate expenses

Duplicates within a Report

Duplicates within a Report analyzes receipts for the date, amount, merchants to find duplicate claims within a single report. 

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. If an expense line has not been flagged ensure that the configured threshold for the expense type is added to the configurations for duplicates across reports.

Policy Compliance Checks - Ensure compliance with the company T&E policy

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.

Merchant Price Check (Restaurant Price Check)

The Merchant 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. 

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.

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).

Non-Conforming Receipt

The non-conforming model will determine if an employee uploaded a valid receipt. Some examples of non-conforming receipts are handwritten receipts, sticky notes, random photos, and blurry receipts. If the receipt makes up less than a quarter of the full page AppZen will flag this as high risk. Depending on the confidence level the receipt can be marked as high or medium risk.

Please note: There are some exceptions with the non-conforming receipt model. If the receipt is below the threshold of receipt verification and the receipt qualifies as a non-conform receipt it will not flag as a high or medium risk. However, if the receipt is above the threshold limit and it qualifies as a non-conform receipt, the non-conforming receipt model will flag as either medium or high-risk. Also, parking tickets are not subject to the non-conforming receipt model.

Regulatory Compliance Checks - Prevent regulatory compliance, fraud, bribery, and violations

Anti-Corruption and Bribery Check

The Anti-Corruption and Bribery performs an FCPA (Foreign Corrupt Practices Act) check, where AppZen looks at different US/Global databases (e.g., Government, FBI most wanted, news sites, etc.) to match attendee names and business titles that are on those lists with names submitted within an expensed meal. The location field is used from the expense entry or from the OCR to help flag more accurately to reduce false positives.

Healthcare Professional Check (HCP)

Checks if medical professionals are listed among business attendees. AppZen cross-references the US National Provider Identifier Registry (NPI) to spot expense reports that have a healthcare professional tagged as the attendee.

Manager as Attendee 

The Manager as Attendee model checks if a manager is listed as an attendee of an expense type that has attendees. 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. 


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