Prepaid travel is travel paid for using IU’s credit card, also referred to as the ghost card. In these situations, credit card information is on file with the vendor, such as Egencia or Enterprise, and automatically charged.
The list below contains examples of prepaid charges that generate a credit card item in the expense owner (or traveler’s) Chrome River eWallet:
- Airfare booked in Egencia
- Airfare booked by IU's Designated Travel Agencies (DTAs)
- Hotel booked in Egencia (credit card item created after check-in)
- Car rental booked by a Travel Arranger in Egencia
- Shared car service from Classic Touch/Carte Blanche
- Agent call charges (~$20) from Egencia Customer Service
- Toll road charges (varies by state)
- Refunds from cancelled IU-prepaid travel
Booking the travel, however, is not the end of the story! These business expenses must be reconciled in Chrome River to meet IRS Accountable Plan standards. This means that the expense owner, or their arranger, must add the credit card item to an expense report and update the funding information to the department account which is covering the cost within a safe harbor time period. Check out this video walkthrough of the reconciliation process.
What happens if the safe harbor period elapses? The expense must still be reconciled as soon as possible, and the expense owner will be taxed on the value of the travel that was booked. Taxes due are withheld from the expense owner’s next payroll payment and added to their W-2 at the end of the year.
How can you help yourself (or your travelers) avoid these consequences? Here are a few tips:
- Pay attention to Chrome River notifications: Chrome River will notify the expense owner when a new credit card item is created. If that credit card item continues to sit in the eWallet, Chrome River will send reminder notifications more and more frequently, starting at once a week and up to twice a day.
- Setup a weekly report: Are you managing expenses and reservations for multiple travelers? Schedule a report that sends you a list of outstanding credit card items as often as you’d like. Visit the Unreconciled Transactions tableau lookup to get started.
- Look out for credits: The guidelines addressed above apply to credits too! Refundable lodging or airfare from cancelled trips in Egencia will generate corresponding credit card items. Review this Negative eWallet Items story to learn more.
Questions about the reconciliation process? Contact the Travel Helpdesk by submitting a Travel Support Form.