Configure per diem groups and allowances

7 Min.

Per diem groups are used to differentiate setups between multiple user categories. Some companies in the logistics industry, for example, have different per diem rates for different employee groups.

A per diem group is a grouping of all available rates for different countries and regions. A per diem group also contains allowance codes that specify the accounts that should be used for each rate. An allowance code is an account, just like expense types are for expenses.

To create a per diem group, go to Per Diem Groups.

Here you can set up different per diem groups. It's common to only have one per diem group, but if your company has different allowance rates for different employees, you can easily manage it by creating several per diem groups.

To create a new per diem group, select New, fill in Code and Description, and activate the Default field for the per diem group that you want to automatically be suggested to the expense users. After you've created your preferred per diem group(s), open the Per Diem Group card by selecting the per diem group that you want to set up, and then select Edit.

Now that you've created one or more per diem groups, the next step is to set up posting groups. Each posting group needs an allowance code that specifies how submitted per diems will be posted. Notice that you can set up several posting groups, one for each Destination Country/Region. If the Destination Country/Region field is left blank, this posting group will be used for all per diem postings.

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You can import a list of countries to Expense Management by selecting the search icon, enter EM Countries/Regions and select the related link. On the EM Countries/Regions page, select Actions > Copy Countries/Regions.

To set up an allowance code, follow these steps:

Perform a lookup in one of the allowance code fields.
Select New.
Fill in a meaningful Code and Description.
Select Setup.
Fill in the Employee No., or Employee Group, Posting Account Type, and Posting Account No..
Go back to the Per Diem Group page, and select the Allowance Code you just set up.
Repeat the above steps for each Allowance Code.

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If you want all allowances to be posted to the same G/L account, no matter if it's a meal or accommodation, you can just use the same allowance code.

Now that the posting setup has been defined, the next step is to set up Allowance Rates, which define the amounts that will be reimbursed. In the Posting Groups FastTab, select Rates or select the Allowance Rates field in the table.

On this page, you can set up different rates for all allowances. The Meals FastTab has a few options to accommodate different regional practices. Tax-Free Allowance specifies the full amount expense users will be reimbursed if they are entitled to three meals a day. If an expense user is not entitled to part of the meal allowance, the value of the meal will be deducted from the Tax-Free Allowance.

Below is a description of the value methods and calculation methods that can be set up for meals.


Value Method
	Percentage of Daily Meal Allowance:	The value of each meal is calculated as a percentage of the Tax-Free Allowance.
	Fixed Amount	The value of each meal has a fixed amount independent from the Tax-Free Allowance
Calculation Method
	Hourly Ratio	Expense users will receive a partial reimbursement for the first and last day of the per diem in proportion to the hours of the first and last day.
	Sub Rates	The meal allowance is defined in sub rates it's specified how many hours must be spent before expense user are entitled to a meal allowance. The sub rates have a steps structure where the allowance increases in value after a set number of hours.
	First/Last day fixed rate	Expense users will receive a partial allowance on the first and last day, depending on what time the day started/ended.

Once you've setup per diem rates, go to the Role Center, and select Synchronize to update the Expense App with the newest configurations.

Video

Hinweis

This video was created in an earlier version of the solution. There may be some slight differences in appearances, but the overall functionality is still accurate.