Travel expenses represent a significant portion of corporate spending, making it essential for organizations to establish clear travel policies. These policies help control costs, ensure compliance, and maintain consistency in travel management. SAP Concur, a leading cloud-based travel and expense management solution, provides powerful tools to create, enforce, and monitor travel policies efficiently.
This article covers the essential steps and best practices for setting up travel policies in SAP Concur, helping organizations align travel spending with corporate objectives.
- Cost Control: Define spending limits to reduce unnecessary expenses.
- Compliance: Ensure travel complies with company standards and regulatory requirements.
- Employee Guidance: Provide clear instructions on allowable expenses and preferred vendors.
- Streamlined Approvals: Automate policy checks to speed up approvals and reduce manual oversight.
- Audit Readiness: Maintain clear documentation for internal and external audits.
Begin by outlining the core rules that your organization wants to enforce, such as:
- Maximum daily lodging rates
- Approved airlines, hotels, and car rental vendors
- Meal allowances
- Preferred booking channels
- Restrictions on travel classes (e.g., economy vs. business)
- Rules on advance booking and trip duration limits
SAP Concur allows administrators to build policies with flexible, rule-based criteria. Key components include:
- Travel Request Policies: Set conditions employees must meet before booking travel.
- Expense Policies: Define which types of travel-related expenses are reimbursable.
- Approval Workflows: Assign approvers based on travel amount, employee role, or destination.
Within SAP Concur’s Policy Administration:
- Create policy rules using predefined templates or custom configurations.
- Set parameters like maximum allowable amounts, preferred vendors, and expense types.
- Use policy exceptions to handle special cases or rare exceptions.
- Enable automated warnings and blocks for policy violations during travel booking or expense reporting.
- Integrate with travel booking tools such as SAP Concur Travel or external Global Distribution Systems (GDS).
- Enforce policy compliance by restricting vendor and class options visible during booking.
- Allow exceptions only through managerial approval or travel coordinators.
- Use the SAP Concur user portal and mobile app to display policy summaries.
- Provide training and documentation to help employees understand the rules.
- Set up notifications for policy violations and approvals.
¶ Monitoring and Enforcing Travel Policies
- Use SAP Concur Analytics and Reporting to monitor compliance rates, identify trends, and detect frequent violations.
- Leverage dashboard views to provide visibility to finance and travel managers.
- Regularly review and update travel policies to adapt to changing business needs and regulations.
- Keep Policies Clear and Concise: Avoid overly complex rules that confuse employees.
- Use Data-Driven Decisions: Analyze past travel data to optimize policy limits.
- Incorporate Flexibility: Allow for exceptions in special cases, such as critical business travel.
- Automate Wherever Possible: Use SAP Concur’s automation to minimize manual errors and delays.
- Regular Training and Communication: Keep employees informed about policy changes and compliance expectations.
Setting up travel policies in SAP Concur is a strategic step toward efficient, compliant, and cost-effective travel management. By leveraging SAP Concur’s robust policy configuration and enforcement tools, organizations can gain greater control over travel expenses, ensure adherence to corporate standards, and improve the overall travel experience for employees.
A well-implemented travel policy not only reduces costs but also enhances transparency and accountability—key factors in successful corporate travel programs.