3025.1 How to Obtain and Reconcile a Cash Advance (Employee Traveler)

Procedure # 3025.1; Rev.: 2 (Effective July 1, 2025)
Related Policy: UW-3025 Cash Advance Policy
Functional Owner: Accounting Services, Business Services
Contact: Expense Reimbursement Program Manager – Allie Watters, expensereimbursement@bussvc.wisc.edu, (608) 263-3525

Procedure statement
Who is affected by this procedure
Procedure
Contact roles and responsibilities
Definitions
Related references
Revisions

I. Procedure statement

Cash Advance requests are submitted via a Spend Authorization in Workday Expenses. This Cash Advance Spend Authorization should be initiated at least 7 – 10 business days prior to the travel start date to ensure adequate time for approvals and receipt of funds. ACH deposit for approved cash advances may take up to 5 business days. Employees must submit an expense report after travel to account for their expenses. Any excess advance must be refunded to the university. Cash advances must be fully reconciled within 30 days of the end of the trip.

II. Who is affected by this procedure

Faculty and staff seeking cash advances for travel expenses
Expense Data Entry Specialists who assist in the creation of Spend Authorizations for Cash Advances or expense report reconciliation of Cash Advances

III. Procedure

Spend Authorization with Cash Advance (employee/traveler):
1. Sign in to Workday.
2. From the Workday Homepage, click on Menu.
3. Click the Expenses Hub app.
4. Click Create Spend Authorization (button under “Tasks”).
  1. Note: If an Expense Data Entry Specialist (EDES) needs to create a Spend Authorization with cash advance for an employee traveler, the EDES will utilize the Search bar to find the task Create Spend Authorization For Worker.
  2. The only difference between the employee traveler doing this and the EDES completing this step to initiate the Spend Authorization is that the EDES will have to search for and add the name of the claimant to header section of the request.
5. Enter header information for the Spend Authorization:
  1. Spend Authorization Information (first column on the pop-up screen)
    1. Company – This field will default to UW-Madison.
    2. Start date – Departure date for business travel for which the cash advance is requested.
    3. End Date – Return date for business travel for which the cash advance is requested.
    4. Description – Utilize this field to explain what the cash advance is for and why advance funds are needed to cover expenses. Include a business purpose and benefit to UW.
    5. Business Purpose – Select the appropriate business purpose from the drop-down menu.
  2. Spend Authorization Details (column to the right on the pop-up screen)
    1. Reimbursement Payment Method – This will default to direct deposit for employees. This may be modified to Check Payable (mailed check) or Manual (Expenses ONLY) for wire payment. The default direct deposit is the recommended method of payment for employee cash advances.
    2. Justification – Additional information may be entered here if necessary to clarify the reason for travel or request for advanced funds. This field is not required.
6. After completing the header-level detail for the Spend Authorization, the employee traveler will click the Add button to add Spend Authorization lines to the expense report listing the Expense Types, descriptions, and dollar amounts for which advanced funds are requested.
7. Edit and review fields for the Spend Authorization expense line:
  1. Expense Item – search for the appropriate item for which funds are being requested in advance (e.g., lodging, per diem).
  2. Total Amount – Enter the estimated total cost for the Spend Authorization line.
  3. Budget Date – This date will auto-fill from the start date entered in the header level of the expense report. This date does not need to be adjusted.
  4. Memo – Enter any supporting details regarding the request for advanced funds for this anticipated travel expense.
  5. Cash Advance Requested – This box MUST be checked in order to receive advanced funds.
  6. Worktag – Enter a Driver Worktag (Program, Grant, Project, or Gift).
  7. Item Details – The panel on the right side of the screen may have additional details to fill out depending on the Expense Item Complete these additional details.
8. Repeat steps 6-7 to include additional Spend Authorization lines.
9. Once all Spend Authorization lines have been entered, scroll back up to view the tabs Spend Authorization Lines and Attachments. Click Attachments to view the screen where attachments are uploaded. This section may be utilized to upload necessary supporting documentation (e.g., agenda/itinerary, cost/pricing documentation, estimated budget for trip).
10. Once all Spend Authorization lines have been entered and attachments have been uploaded, review the Spend Authorization for accuracy and completeness.
  1. To view the total dollar amount of the cash advance review the following summary totals along the top of the Spend Authorization:
    1. Cash Advance Requested – The total dollar amount of expense lines with the Cash Advance Requested box checked.
    2. Spend Authorization Total – The total dollar amount of all Spend Authorization lines. Note: If the Spend Authorization dollar amount is higher than the cash advance requested (see above), one or more of the lines do NOT have Cash Advance Requested checked. Always be sure that the Cash Advance Requested amount MATCHES the Spend Authorization Total.
    3. In the below example, all lines have now been updated with the box checked for Cash Advance Requested. Note that the dollar amounts now match.
11. Click Submit to advance the Spend Authorization to the approval workflow. Spend Authorizations with cash advance requests are approved by a Driver Worktag Manager and an Expense Advance Repayment Specialist. Alternately, click Save for Later to be able to complete the Spend Authorization at a late date/time.
Reconciliation: Cash advances must be fully reconciled within 30 days of the end of the trip.
1. View Cash Advance Balance Owed: Settlement (payment) of the approved cash advance creates a receivable balance for the employee traveler. An employee traveler can view this outstanding balance in their Expenses Hub.
2. Create an Expense Report from Spend Authorization: Account for the use of advanced funds by creating an expense report from a Spend Authorization and adding expense lines. Follow the directions in Procedure 3024.1 Creating and Submitting an Expense Report to create a new expense report. On the Create Expense Report page, under Creation Options, select Create New Expense Report from Spend Authorization. Utilize the drop-down menu to select the correct cash advance Spend Authorization to reconcile. If this is the final expense report to reconcile the cash advance Spend Authorization, check the box Final Expense Report For Spend Authorization.
  1. As expense lines are added to the expense report, the report will record the balance accounted for in the section Cash Advance Applied.
3. Refund Excess Advanced Funds: Any advanced funds not utilized must be promptly refunded to the University. The employee traveler may elect to have the amount owed deducted from a future paycheck, or the employee traveler may write a check back to the University of Wisconsin-Madison. Upon submission of the final expense report for Spend Authorization, the employee traveler will receive a questionnaire to fill out if there is a balance due back to the University (example below). For a cash advance balance owed, the employee traveler has the opportunity to select either Payment withheld from next paycheck or Payment by check or cash. Click Submit to record the choice.
  1. Note: Employees with unreconciled amounts owed greater than 30 days from the end of the trip may be subject to automatic payroll deduction for unreconciled cash advances/unpaid balances. Employees with outstanding cash advance balances will be reminded of the 30-day reconciliation deadline at 20 days and will be notified in advance of payroll deduction if the 30-day deadline is passed without reconciliation.

IV. Contact roles and responsibilities

Employee Traveler: Employee travelers are responsible for submitting cash advance requests in a timely enough manner to allow for approvals and payment. Employee travelers are responsible for reconciling Cash Advances within 30 days of the end of the trip. Travelers must not seek excessive cash advances and must refund any excess advancements promptly.
Driver Worktag Manager: Upon submission, cash advance requests are first reviewed by the Driver Worktag Manager for budget and appropriateness of funding.
Expense Advance Repayment Specialist: Expense Advance Repayment Specialists are responsible for reviewing cash advances for policy compliance and for reconciling refunded payments related to cash advances.

V. Definitions

Cash Advance: Funds disbursed to an employee in advance of UW business travel to offset expenses expected to be incurred out of pocket during the course of travel.
Expense Report: A report submitted by a cash advance recipient to account for use of advanced funds. Expense report initiators will utilize the Create New Expense Report from Spend Authorization option when creating a cash advance reconciliation expense report. The cash advance balance must be applied against expenses in the expense report to properly account for the funds advanced to the traveler.
Spend Authorization: A request submitted in Workday Expenses that can be used to obtain approval for a cash advance.

Workday Expenses: The Workday module used to create, submit, and approve expense reports for out-of-pocket, Shared Liability Card, and Purchasing Card transactions.

VI. Related references

VII. Revisions

Procedure Number	3025.1
Date Approved	October 1, 2018
Revision Dates	Jan. 19, 2021 – Updated Procedure Number to 3025.1 from 321.1 July 1, 2025 – Updated to reflect Workday procedures.

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