What occurs after an expense claim is approved?

When an expense claim is approved in Xero, the system generates a bill for that expense. This action helps streamline the financial processes by converting the approved expense into a payable item that can be paid to the employee or vendor. This automatic creation of a bill also enables tracking and reporting on expenses within the accounting system, ensuring that financial records remain accurate and up-to-date.

The generation of a bill is an essential part of the workflow as it facilitates the next steps in handling the expense, including payment processing and reconciliation. Once the claim is transformed into a bill, it can be scheduled for payment, thus ensuring that all financial obligations are managed efficiently.

In contrast, other options do not reflect the standard functioning of Xero in handling approved expense claims; bills are typically created upon approval as a crucial component of expense management within the platform.