How to set up a new expense type?

I have a request to set up a new expense type, so when employees go to select type in the create expense item screen the new option appears there, but I don't appear to be able to get it to appear in the list.

I have gone to "Manage Expense Report Templates" in set up and maintenance and added the new expense type to the template, but its not showing on the list and it hasn't updated the "Last Updated Date" field either, is there something I need to do, to publish it to update this date and push it to the first page of expenses so employees can choose it?