¶ Managing Per Diem and Mileage in SAP Concur
Efficiently managing per diem allowances and mileage reimbursements is essential for organizations looking to streamline travel expense processes while ensuring compliance with corporate policies and tax regulations. SAP Concur, a market-leading travel and expense management solution, offers comprehensive tools to automate and simplify the administration of per diem and mileage claims. This article explores how organizations can effectively manage per diem and mileage expenses using SAP Concur.
¶ What Are Per Diem and Mileage?
- Per Diem: A fixed daily allowance given to employees to cover expenses such as meals, lodging, and incidental costs while traveling for business.
- Mileage: The reimbursement for business-related travel using personal vehicles, calculated based on distance traveled, usually at a standardized rate per mile or kilometer.
Both per diem and mileage are common components of travel expense reporting and require accurate tracking to ensure compliance and budget control.
SAP Concur supports automated calculation of per diem allowances based on predefined rules and travel parameters:
- Location-Based Rates: Per diem rates can be set according to destination cities or countries, aligned with government guidelines or corporate policies.
- Trip Duration: The system calculates allowances based on the length of the trip, including partial days.
- Custom Rules: Organizations can configure rules to cover specific scenarios, such as reduced allowances for partial days or exclusions for company-provided meals.
SAP Concur ensures compliance by enforcing per diem policies at the time of expense submission. Travelers can only claim allowable amounts, minimizing audit risks and expense report corrections.
Per diem amounts are automatically integrated into expense reports, reducing manual entry and simplifying approval workflows.
SAP Concur enables users to report mileage expenses accurately and effortlessly:
- Manual Entry or GPS Tracking: Employees can enter mileage manually or leverage mobile app GPS functionality to automatically capture trip distance.
- Standardized Mileage Rates: Organizations can set fixed reimbursement rates, which SAP Concur applies automatically.
- Trip Categorization: Mileage claims can be categorized by trip purpose, vehicle type, or project code for granular reporting.
SAP Concur can enforce policies such as maximum allowable mileage, restrictions on trip types, or mandatory receipt submissions for fuel purchases related to mileage claims.
Mileage expenses are incorporated into the overall expense reports, facilitating faster approval and reimbursement.
¶ Benefits of Managing Per Diem and Mileage with SAP Concur
- Improved Accuracy: Automated calculations reduce errors and manual adjustments.
- Enhanced Compliance: Policy enforcement ensures adherence to corporate and legal requirements.
- Increased Efficiency: Streamlined data capture and integration speed up expense reporting and reimbursement.
- Better Visibility: Detailed reporting helps finance teams monitor per diem and mileage spend and identify cost-saving opportunities.
- Employee Convenience: User-friendly mobile and web interfaces simplify expense submission.
¶ Best Practices for Per Diem and Mileage Management
- Define Clear Policies: Establish transparent and consistent per diem and mileage rules aligned with regulations.
- Leverage Automation: Utilize SAP Concur’s automated calculation and policy enforcement features.
- Train Employees: Provide guidance on submitting per diem and mileage expenses correctly.
- Monitor and Audit: Regularly review expense reports to ensure compliance and detect anomalies.
- Integrate with Payroll and Accounting: Ensure smooth data flow for accurate financial reporting and taxation.
Managing per diem and mileage expenses can be complex without the right tools. SAP Concur’s advanced capabilities simplify this process by automating calculations, enforcing policies, and integrating seamlessly with overall expense management workflows. Organizations adopting SAP Concur for per diem and mileage management benefit from increased accuracy, compliance, and operational efficiency, ultimately contributing to better travel spend control and employee satisfaction.