Expense Policy
Guidelines for business expenses and payment methods.
Purpose
This policy clarifies how different types of expenses should be paid and documented to maintain clean accounting records.
Payment Methods by Expense Type
Manufacturing-Related Expenses
Payment method: Bank transfer from Kookmin Bank (국민은행)
**Who processes:**승연 (Seung-yeon)
Includes:
- Packaging costs (포장비)
- Goods production costs (굿즈제작비)
- Labor costs (공임비)
- All manufacturing-related expenses
Why this matters: Manufacturing costs are managed by the Design Team and need separate tracking for accurate cost accounting.
General Business Expenses
Payment method: Bank transfer from Hana Bank (하나은행)
Who processes: 다은 (Da-eun)
Includes:
- Everything NOT related to manufacturing
- General operating expenses
- Administrative costs
- Most other business expenses
Credit Card Guidelines
Use Personal-Name Cards When Possible
New policy (effective 2024-07-18): Use your individual corporate card (기명 카드) instead of shared company cards whenever possible.
Why: Makes it easier to track who spent what and for which project.
Common situations:
- Quick delivery services (퀵)
- Small purchases
- Routine business expenses
After Using Your Card
1. Categorize the expense type:
- Is it delivery cost (운반비/퀵비) or taxi fare (택시비)?
- Be specific - don't just write "transportation"
2. Tag the project:
- In the "granter" tag field, indicate which project this expense belongs to
- This helps accounting track costs by project
Why this is important: Accounting staff cannot know after the fact which project an expense belongs to. Only you, the person who made the purchase, know the context. Proper tagging saves hours of follow-up questions.
Expense Categories
Delivery & Transportation
Delivery costs (운반비/퀵비):
- Quick delivery services
- Courier services
- Freight charges
Taxi/ride costs (택시비):
- Business travel taxis
- Ride-sharing for business purposes
IMPORTANT: These are different accounting categories. Always specify which one.
Manufacturing Costs
All costs related to making products:
- Raw materials
- Production labor
- Packaging
- Manufacturing supplies
Track separately because these go into Cost of Goods Sold (COGS).
Documentation Requirements
For All Expenses
Required information:
- Date of expense
- Vendor name
- Amount
- Business purpose
- Project or cost center
- Receipt with vendor business registration number (if required by tax law)
For Credit Card Expenses
Additional requirements:
- Expense category (delivery, taxi, meals, etc.)
- Project tag (which project/initiative)
- If split among multiple people, note who attended
See Corporate Card Policy for detailed card usage rules.
Why These Rules Exist
Clean Accounting Records
- Proper categorization ensures accurate financial statements
- Project tagging enables cost tracking per initiative
- Separate manufacturing costs show true product margins
Tax Compliance
- Different expense types have different tax treatments
- Business registration numbers are required for most expenses
- Proper documentation protects the company in audits
Budget Management
- Project tagging shows which initiatives are over/under budget
- Department tracking prevents budget overruns
- Helps plan future budgets based on actual costs
Special Situations
Split Expenses
If multiple people share a business expense:
- One person pays
- Note all attendees in expense report
- Tag the appropriate project/department
Advance Payments
Manufacturing vendors sometimes require advance payment:
- Get approval from Finance Lead first
- Document the payment terms
- Track the advance payment separately until goods/services are delivered
Reimbursements
If you paid with personal money:
- Submit expense report with receipt
- Note that this is a reimbursement request
- Include all required documentation
- Finance Team will process payment to you
Approval Requirements
Requires CEO Approval
- Expenses outside normal categories
- Expenses exceeding your budget limit
- Unusual payment terms
- First-time vendor relationships
Requires Finance Lead Approval
- Budget category changes
- Manufacturing vs. general expense reclassification
- Unusual expense timing or amounts
Common Mistakes to Avoid
❌ Wrong: "Used card for business expense" (too vague) ✓ Right: "Quick delivery for fabric samples - Project Vintage Denim 2024-Q2"
❌ Wrong: Submitting receipt without project tag ✓ Right: Receipt + project tag + expense category
❌ Wrong: Paying manufacturing cost from general account ✓ Right: Check expense type → use correct bank account → proper tracking
FAQ
Q: I forgot to tag the project. Can I add it later? A: Yes, but do it as soon as possible. Contact Finance Team to update.
Q: What if I don't know which project to tag? A: Ask your team lead or manager. If truly unclear, tag your department and note "general operations."
Q: Can I use shared company cards instead of my personal-name card? A: Only if your personal card isn't available or for very large purchases. Prefer personal-name cards when possible.
Q: What if the vendor doesn't have a business registration number? A: Some small vendors are sole proprietors without registration. Document this and get manager approval for the expense.
Q: How do I know if something is manufacturing-related? A: If it goes into making a physical product (materials, labor, packaging), it's manufacturing. If unsure, ask Design Team or Finance.
Changes from Previous Policy
Before (~ July 2024):
- All transfers from Hana Bank
- Shared company cards used for most expenses
After (July 2024 ~):
- Manufacturing expenses → Kookmin Bank (Seung-yeon)
- General expenses → Hana Bank (Da-eun)
- Individual cards preferred over shared cards
- Project tagging mandatory
Why the change: Better cost tracking, clearer expense ownership, faster accounting reconciliation.
Need Help?
General questions: Finance Team via Slack or email
Manufacturing expense questions: Contact Seung-yeon or Design Team
Budget questions: Contact your team lead or Finance Lead
System/technical issues: Contact Finance Team
Version: 2024-07-18 (Policy change date) Last Updated: 2026-02-02
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