This article is for: finance teams, admins and HR teams.
Paid an employee back outside Factorial, for example by a manual bank transfer, in cash or through another payroll tool? Set the expense as paid so your records match reality and the employee sees it has been paid.
Set an expense as paid
Overview
Set as paid closes an approved expense without sending any money from Factorial. Use it only after you've paid the employee another way. It works in any currency.
Before you start
- You have the permission Can set expenses as Paid. Approvers don't have it by default.
- The expense is Approved.
How to use
- Go to Spending > Employee expenses and click the Approved tab.
- Select the expenses and click Set as paid in the bar at the bottom. They're set as paid straight away and move to the Paid tab.
For one expense, you can also open it, click the arrow next to Reimburse and choose Set as paid.
The expense becomes Paid, with today as its paid date. The employee sees Paid and the message "This expense was set as paid on [date], but it could take a while to see it in your account. Contact your manager for further details."
Undo the paid status
Overview
Set an expense as paid by mistake? You can undo it, as long as it was set as paid with Set as paid. You need the same permission. Expenses paid through payroll or a SEPA payment are undone where they were paid: remove them from the payslip, or delete the payment request.
How to use
- Find the Paid expense in Spending > Employee expenses > Paid tab.
- Open it, click the ⋯ menu at the top and choose Undo paid status. You can also select several and click Undo paid status.
- The expense goes back to Approved: "The expense went back to 'Approved'".
With One
Ask One, our AI assistant, for example "Set the approved expenses from the Leeds trip as paid". One does it straight away, with no confirmation, so ask it to list them first if you're not sure. To undo, ask "Undo the paid status of Ana's taxi expense": it goes back to Approved. Neither moves any money. One can't change the paid status of expenses paid back through payroll or a SEPA payment, and it needs your permission to set expenses as paid.
Tips and Best Practices
- Prefer payroll or SEPA when you can. They pay and update the status in one go, so nothing is set as paid by mistake. See How do I pay back expenses through payroll? and How do I pay back expenses with a SEPA file?.
- Set as paid on the day you pay. The paid date is the day you click, and it's what the employee sees.
Related articles: How do I pay back expenses through payroll? · How do I pay back expenses with a SEPA file? · How do I approve, reject or send back an expense?
Troubleshooting and FAQ
Troubleshooting
I don't see "Set as paid".
The expense isn't Approved, or you don't have the permission Can set expenses as Paid.
I don't see "Undo paid status".
The expense was paid through payroll or a SEPA payment, or you don't have the permission Can set expenses as Paid. For payroll or SEPA, remove it from the payslip, or delete its payment request in Treasury, instead.
FAQ
1. Can approvers mark an expense as paid?
Only if they also have the permission to set expenses as paid. Approving and paying are separate steps.
2. Does "Set as paid" send money to the employee?
No. It only records that you've paid them another way.
3. Can I set an expense in another currency as paid?
Yes. Unlike payroll and SEPA, Set as paid works in any currency. See Expenses in another currency.
4. Can I edit an expense after it's paid?
No. Paid and approved expenses can't be edited. Undo the paid status first; the expense goes back to Approved. Then someone with the permission Reset the expense approval flow resets its approval flow, and the approver can use Request changes so the employee can fix it. See How do I fix an expense that was sent back or rejected?.