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| 1 | +--- |
| 2 | +title: Prohibited Expenses Rule |
| 3 | +description: Learn how to enable and use the Prohibited expenses rule to automatically flag receipts with restricted items such as alcohol, gambling, or tobacco. |
| 4 | +keywords: [prohibited expenses, receipt violation, SmartScan, alcohol, gambling, expense rules, workspace settings, line item compliance] |
| 5 | +--- |
| 6 | +<div id="new-expensify" markdown="1"> |
| 7 | + |
| 8 | +Enable the **Prohibited expenses** rule to automatically flag receipts containing restricted purchases like alcohol, gambling, or tobacco. This rule uses Expensify’s AI-powered SmartScan to detect violations at the line-item level and notify admins for review. |
| 9 | + |
| 10 | +# Prohibited Expense Rule |
| 11 | + |
| 12 | +The Prohibited expenses rule allows Workspace Admins to enforce compliance by flagging receipts that contain restricted items. SmartScan analyzes individual line items and applies violations when prohibited categories are detected. |
| 13 | + |
| 14 | +## How it works |
| 15 | + |
| 16 | +Once enabled, this rule uses AI to review receipt line items during SmartScan. If a prohibited item is found, the expense is flagged for review. |
| 17 | + |
| 18 | +- Available in both Expensify Classic and New Expensify. |
| 19 | +- Configuration is only available in New Expensify. |
| 20 | +- Automatically flags receipts for manual review by a Workspace Admin or approver. |
| 21 | + |
| 22 | +## How to enable the rule |
| 23 | + |
| 24 | +To turn on the Prohibited expenses rule: |
| 25 | + |
| 26 | +1. Go to **Settings** > **Workspaces** > click _Workspace Name_ > **Rules** > **Expenses**. |
| 27 | +2. Scroll to the section titled **Prohibited expenses**. |
| 28 | +3. Toggle on the rule. |
| 29 | +4. Select the prohibited categories you want to monitor: |
| 30 | + - Adult entertainment |
| 31 | + - Alcohol |
| 32 | + - Gambling |
| 33 | + - Hotel incidentals |
| 34 | + - Tobacco |
| 35 | + |
| 36 | +**Note:** This rule is disabled by default. Admins must enable it and choose which categories to apply. |
| 37 | + |
| 38 | +## What happens when a prohibited item is detected? |
| 39 | + |
| 40 | +If a SmartScan detects a prohibited item: |
| 41 | + |
| 42 | +- A violation is added to the expense. |
| 43 | +- The expense displays the messages: |
| 44 | + - `"Receipt Issue Found"` |
| 45 | + - `"Prohibited expense: Alcohol"` (or the relevant flagged category). |
| 46 | +- The expense requires manual review by the approver. |
| 47 | + |
| 48 | +--- |
| 49 | + |
| 50 | +# FAQ |
| 51 | + |
| 52 | +## Who can enable the Prohibited Expenses Rule? |
| 53 | + |
| 54 | +Only Workspace Admins can enable or adjust this rule in New Expensify. |
| 55 | + |
| 56 | +## Will violations appear in Expensify Classic? |
| 57 | + |
| 58 | +Yes. Even though configuration is handled in New Expensify, violations appear in both **Expensify Classic** and **New Expensify** when viewing expenses. |
| 59 | + |
| 60 | +If the Domain Group setting, **Strictly enforce expense workspace rules** is enabled, it will block the submission of the expense with the prohibited item violation. |
| 61 | + |
| 62 | +## Will SmartScan still work if the rule is off? |
| 63 | + |
| 64 | +Yes. SmartScan will still extract the merchant, date, and amount. However, it will not flag line items for violations unless the rule is enabled. |
| 65 | + |
| 66 | +## Is this rule part of SmartScan? |
| 67 | + |
| 68 | +Yes. Once enabled, the rule works seamlessly with SmartScan to detect prohibited line items in all scanned receipts. |
| 69 | + |
| 70 | +</div> |
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