Prohibited Expenses Rule

The Prohibited Expenses rule helps Workspace Admins enforce compliance by automatically flagging receipts that contain restricted purchases like alcohol, gambling, or tobacco, or that are handwritten. This rule uses Expensify’s AI-powered SmartScan to review individual line items and alert admins when prohibited categories are detected.

In New Expensify, the rule is called Flag receipt line items and lives on the General tab of the Rules page.

Once set up, SmartScan reviews scanned receipts at the line-item level:

• Works in both New Expensify and Expensify Classic
• Can only be configured in New Expensify
• Automatically adds a violation to a prohibited expense type

Who can configure the Prohibited Expenses rule

• Only Workspace Admins can enable or adjust this rule.
• Rules must be enabled for the workspace. Learn how to enable Workspace Rules.

How to set up the Prohibited Expenses rule

1. In the navigation tabs (on the left on web, and at the bottom on mobile), click Workspaces.
2. Click your workspace name.
3. Click Rules.
4. On the General tab, click Flag receipt line items.
5. Select the prohibited categories you want to monitor:
   • Adult entertainment
   • Alcohol
   • Gambling
   • Gift card purchases
   • Handwritten receipts
   • Hotel incidentals
   • Tobacco
6. Click Save.

Note: Gambling and Adult entertainment are selected by default. Workspace Admins can add or remove any of the other categories.

What happens when a prohibited item is detected

If SmartScan finds a prohibited item in a receipt:

• The expense is flagged with a violation.
• The following messages will appear:
  • "Receipt Issue Found"
  • "Prohibited expense: Alcohol" (or another selected category)
• The expense will require manual review by an approver.

FAQ

Will SmartScan still work if I clear every category?

Yes. SmartScan will still extract the merchant, date, and amount. However, it won’t scan for prohibited items unless at least one category is selected.

Where did the Prohibited Expenses section go?

It is now the Flag receipt line items rule on the General tab of the Rules page. Learn how to configure Workspace Rules.