Defining Location and Rates for PeopleSoft Expenses

This chapter provides an overview of locations and rates and discusses how to:

Set up distance rates.
Set up expense locations and amounts.
Set up per diems.
Set up transportation types.

Understanding Locations and Rates

When employees use their own cars for business purposes, they are typically reimbursed based on how far they must drive. PeopleSoft Expenses allows you to set up and define distance rates based on kilometers or miles, and you can apply a standard rate or a varied rate with which to calculate reimbursements to employees. Define distance rates for various base countries, with each combination tied to an expense type.

With PeopleSoft Expenses, you can create an expense location to use for expense reports, create classifications for groups of travel destinations, and establish spending limits for business travel. You can also define per diem ranges and establish amounts to reimburse employees within a per diem range. PeopleSoft Expenses uses expense locations for value-added tax (VAT) processing on expense reports to determine the consumption country and consumption state.

To determine the need for exception comments for expense report expense items that exceed authorized spending amounts, PeopleSoft Expenses looks first for a limit in the Location Amount or Per Diem Amount table based on the transaction currency. If PeopleSoft Expenses finds a limit, it compares the amount with the transaction amount that is entered on the expense report and determines if an exception comment is required.

If PeopleSoft Expenses does not find a limit for the location based on the transaction currency, it next looks for a limit based on the employee's base currency. If PeopleSoft Expenses finds a limit based on the employee's base currency, it compares the amount with the calculated base amount that is on the expense report and determines if an exception comment is required.

Setting Up Distance Rates

To set up distance rates, use the Distance Rate (EX_AUTO_RT_TBL.GBL) component. Use the EX_AUTO_RATE_SETUP component interface to load data into the table for this component.

This section discusses how to define distance rates.

Before you can establish a distance rate, you must:

Create an expense type (such as Mileage) to which the distance rate is applied.
Select an expense type edit of Automobile for the expense type.

Page Used to Set Up Distance Rates

Page Name	Object Name	Navigation	Usage
Distance Rate	EX_AUTO_RT_TBL	Set Up Financials/Supply Chain, Product Related, Expenses, Management, Distance Rate Travel and Expenses, T and E Administration Center, Define Expense System, Locations and Rates, Distance Rate	Define distance rates for various base countries, with each combination tied to an expense type.

Defining Distance Rates

Access the Distance Rate page.

Distance Type

Select either Kilometers or Miles.

Distance Rate Type

Select Standard Rate when mileage reimbursement is not dependent on miles or kilometers traveled. If selected, PeopleSoft Expenses uses the Standard Distance Rate field to determine reimbursement.

Select Varied Rate to have PeopleSoft Expenses determine reimbursement based on the distance traveled by the employee for a particular transportation type.

Split Rate

Select Split Rate to have PeopleSoft Expenses calculate reimbursement based on the distance that falls in each row in the Varied Distance Rates grid when the distance that is traveled spans multiple distance rate rows. In other words, PeopleSoft Expenses can take one distance traveled amount and apply two different rates to calculate a reimbursement amount.

If Split Rate is not selected, and the accumulated distance spans multiple distance rate rows, PeopleSoft Expenses uses the rate that is in the highest distance rate row in the Varied Distance Rate grid to calculate the entire reimbursable amount.

For example: Kilometers 0 through 5,000 has a distance rate of 2.925 EUR; kilometers 5,001 through 20,000 has a distance rate of 1.601 EUR. The accumulated miles are 4,925, and you travel 100 kilometers. If Split Rate is selected, PeopleSoft Expenses calculates 75 kilometers at 2.925 EUR and 25 kilometers at 1.601 EUR. If Split Rate is not selected, PeopleSoft Expenses calculates 100 kilometers at 1.601 EUR.

Note. The Split Rate check box is only available if you select Varied Rate for the distance rate type.

Standard Distance Rate

If the Distance Rate Type is Standard Rate, indicate the monetary amount to reimburse per unit that is driven.

Currency

Enter a currency to use for the distance rate. If the employee's base currency is different from the currency that is on the Distance Rate page, Expenses converts the amount to the employee's base currency.

Varied Distance Rates

Transportation Type	Designate modes of transportation that employees use. For instance, in many countries, mileage is reimbursed based on the horsepower of the car that is driven, so the transportation types would be 3HP, 4HP, and so on.
From Distance and Through Distance	Enter the beginning or end of a range in which an employee is reimbursed a particular distance rate. The range is for cumulative mileage that is driven by an employee in a calendar year.
Distance Rate	Enter the rate at which to reimburse an employee within the specified range.
Rate Adjustment Factor	Enter a rate to create a sliding scale for auto mileage reimbursement. This factor is used in the formula to determine the mileage rate reimbursement, which is based on distance rate and distance that is accumulated (in miles or kilometers) that an employee travels in a calendar year. The rate adjustment factor is used in countries such as France and Belgium. The rate that results is determined by this formula: Adjusted Distance Rate = (( Distance Rate * Total Distance) + Rate Adjustment Factor) / Total Distance)

Setting Up Expense Locations and Amounts

To set up expense locations and amounts, use the following components:

Expense Location (EX_LOCATION.GBL)
Expense Location Group (EX_LOCATION_GRP.GBL)
Expense Location Amount (EX_LOC_AMOUNT.GBL)

Use the EX_LOCATION_SETUP component interface to load data into the expense location table and the EX_LOC_AMT_SETUP component interface to load data into the expense location amount table.

This section provides an overview of expense locations and amounts and discusses how to:

Define expense locations.
Define spending limits for expense locations.

Understanding Expense Locations and Amounts

Different travel destinations have different costs; for example, you might expect employees to pay more for a hotel in Japan than in Mexico. To ensure that submitted expenses accurately reflect regions' prevailing prices, when you define an expense type, you can require employees to enter transaction locations. This feature also lets you track how much your organization spends in particular cities, as well as groups of cities, and extract information about groups (such as Europe).

Defining expense location amounts also enables you to establish authorized spending limits for a particular expense type in various currencies. PeopleSoft Expenses can then compare how much an employee spends at a destination (after appropriate exchange rates are applied) to the amount that your organization establishes as acceptable.

Locations and location groups are effective-dated, so you can create more than one definition to be used at predetermined times.

Note. To make an expense location part of an expense location group, define the group before you define the location. Before you create location amounts, you must create expense types and locations.

Pages Used to Set Up Expense Locations and Amounts

Page Name	Object Name	Navigation	Usage
Expense Location Group	EX_LOCATION_GRP	Set Up Financials/Supply Chain, Product Related, Expenses, Location, Expense Location Group Travel and Expenses, T and E Administration Center, Define Expense System, Locations and Rates, Expense Location Group	Create a common classification (such as Europe) for a group of travel destinations.
Expense Location	EX_LOCATION	Set Up Financials/Supply Chain, Product Related, Expenses, Location, Expense Location Travel and Expenses, T and E Administration Center, Define Expense System, Locations and Rates, Expense Location	Create an expense location that is to be used on an expense report.
Expense Location Amount	EX_LOC_AMOUNT	Set Up Financials/Supply Chain, Product Related, Expenses, Location, Expense Location Amount Travel and Expenses, T and E Administration Center, Define Expense System, Locations and Rates, Expense Location Amount	Establish spending limits for business travel in a particular location.

Defining Expense Locations

Access the Expense Location page.

Location Group

Link the expense location to a predefined expense location group.

Note. Although you are not required to set up State, PeopleSoft Expenses looks at the field to autopopulate the state for VAT processing during expense report entry.

Defining Spending Limits for Expense Locations

Access the Expense Location Amount page.

Note. Multiple views of this page are available by clicking the tabs that are in the scroll area. Fields that are common to all views are documented first.

All tabs display the following information:

Location	Geographical site (such as a city, state, or office).
Start of Season	Beginning date that is used for locations where rates vary (perhaps due to tourism).
End of Season	Ending date that is used for locations where rates vary (perhaps due to tourism).
Season	Select whether this location amount is In season, Out of season, MidSeas (mid-season), or None.
Data Source	Origin of expense location amounts. This value can be entered manually or loaded from an external source such as Runzheimer or CONUS.

Active Amounts Tab

Active Average Amount	Displays the current mean value for the location amount that is used for online comparison to the amount that is on an expense line.
Active High Amount and Active Low Amount	Displays the current maximum and minimum for the location amount.

Benchmark Amounts Tab

If you loaded benchmark data into your expense tables, the following appears:

Benchmark Average Amount	Displays the mean value of the location amount benchmark. The grid on the right displays the amount's currency.
Benchmark High Amount	Displays the maximum value of the location amount benchmark.
Benchmark Low Amount	Displays the minimum value of the location amount benchmark.

Other Tab

This tab tracks the following update information for audit purposes:

Last Update User ID	Displays the user ID that is used to make the most recent modification to this row.
Last Update Date/Time	Displays the date and time of the most recent modification to this row.

Add rows to designate more expense location amounts.

Setting Up Per Diems

To set up per diem ranges and amounts, use the following components:

Per Diem Amount (EX_PER_DIEM_AMT.GBL)
Per Diem Range (EX_PER_DIEM_RANGE.GBL)

This section provides an overview of per diem setup and discusses how to:

Define per diem ranges.
Define per diem amounts.

Understanding Per Diem Setup

The Per Diem Amount table is keyed by country, so the employee's country, which is based on the base business unit that is set up in the employee profile, determines the per diem rates that are fetched from the table. The ranges that you establish by country on the Per Diem Range page determine how per diem amounts are defined (i.e. the column headings in the Per Diem Amount page are based on the specified ranges).

Pages Used to Set Up Per Diems

Page Name	Object Name	Navigation	Usage
Per Diem Range	EX_PER_DIEM_RANGE	Set Up Financials/Supply Chain, Product Related, Expenses, Location, Per Diem Range Travel and Expenses, T and E Administration Center, Define Expense System, Locations and Rates, Per Diem Range Click the Per Diem Range Setup link on the Per Diem Amount page.	Allows companies to set up hourly or daily ranges to define per diem reimbursement percentages.
Per Diem Amount	EX_PER_DIEM_AMT	Set Up Financials/Supply Chain, Product Related, Expenses, Location, Per Diem Amount Travel and Expenses, T and E Administration Center, Define Expense System, Locations and Rates, Per Diem Amount Click the Per Diem Amount Setup link on the Per Diem Range page.	Sets the amount that an employee is reimbursed within a per diem range.

Defining Per Diem Ranges

Access the Per Diem Range page.

Range Type

Select Daily or Hourly. Daily allows you to increase reimbursement if an employee is on a longer-than-normal business trip. Hourly allows you to incrementally reimburse per diem amounts based on a 24-hour period.

Country

Select a country to set up with a per diem range.

From Value and To Value

Enter the start and end of the range in hours or days. You can enter up to four ranges. The system displays these ranges on the Per Diem Amount page.

Defining Per Diem Amounts

Access the Per Diem Amount page.

Range ID

You establish the range IDs on the Per Diem Range page. This controls the column headings on this page. The range is in days or hours, depending on what you set up on the Per Diem Range page.

Copy Govt to Active Rates (copy government to active rates)

Click to populate the active amounts with the government rates.

Government rates are published on a website or are mailed to customers; however, they are not downloadable to PeopleSoft Expenses at this time. If you manually input the government rates in the Government Amounts tab, you can copy those rates to the Active Amounts tab where you can change the rates if needed.

Government Amounts Tab

Location

Select the location to apply a per diem rate.

Active Amounts Tab

PeopleSoft Expenses uses these amounts during expense report entry.

Lodging Amount Tab

Per Diem Lodging Amount

Enter a per diem rate to reimburse employees who stay with family or friends while on business trips. (Some European countries use this as an employee bonus.)

Setting Up Transportation Types

To set up transportation types, use the Transportation Types (EX_TRNSPT_TYPES.GBL) component.

This section lists the page used to set up transportation types.

Page Used to Set Up Transportation Type

Page Name	Object Name	Navigation	Usage
Transportation Types	EX_TRNSPT_TYPES	Set Up Financials/Supply Chain, Product Related, Expenses, Management, Transportation Types Travel and Expenses, T and E Administration Center, Define Expense System, Locations and Rates, Transportation Types	Define car types by setID. Transportation Types are used when you define distance rates on the Distance Rate component (EX_AUTO_RT_TBL). See Defining Distance Rates.

Page Name

Object Name

Navigation

Usage

Transportation Types

EX_TRNSPT_TYPES

Set Up Financials/Supply Chain, Product Related, Expenses, Management, Transportation Types
Travel and Expenses, T and E Administration Center, Define Expense System, Locations and Rates, Transportation Types

Define car types by setID. Transportation Types are used when you define distance rates on the Distance Rate component (EX_AUTO_RT_TBL).

See Defining Distance Rates.

Distance Type	Select either Kilometers or Miles.
Distance Rate Type	Select Standard Rate when mileage reimbursement is not dependent on miles or kilometers traveled. If selected, PeopleSoft Expenses uses the Standard Distance Rate field to determine reimbursement. Select Varied Rate to have PeopleSoft Expenses determine reimbursement based on the distance traveled by the employee for a particular transportation type.
Split Rate	Select Split Rate to have PeopleSoft Expenses calculate reimbursement based on the distance that falls in each row in the Varied Distance Rates grid when the distance that is traveled spans multiple distance rate rows. In other words, PeopleSoft Expenses can take one distance traveled amount and apply two different rates to calculate a reimbursement amount. If Split Rate is not selected, and the accumulated distance spans multiple distance rate rows, PeopleSoft Expenses uses the rate that is in the highest distance rate row in the Varied Distance Rate grid to calculate the entire reimbursable amount. For example: Kilometers 0 through 5,000 has a distance rate of 2.925 EUR; kilometers 5,001 through 20,000 has a distance rate of 1.601 EUR. The accumulated miles are 4,925, and you travel 100 kilometers. If Split Rate is selected, PeopleSoft Expenses calculates 75 kilometers at 2.925 EUR and 25 kilometers at 1.601 EUR. If Split Rate is not selected, PeopleSoft Expenses calculates 100 kilometers at 1.601 EUR. Note. The Split Rate check box is only available if you select Varied Rate for the distance rate type.
Standard Distance Rate	If the Distance Rate Type is Standard Rate, indicate the monetary amount to reimburse per unit that is driven.
Currency	Enter a currency to use for the distance rate. If the employee's base currency is different from the currency that is on the Distance Rate page, Expenses converts the amount to the employee's base currency.

Range Type	Select Daily or Hourly. Daily allows you to increase reimbursement if an employee is on a longer-than-normal business trip. Hourly allows you to incrementally reimburse per diem amounts based on a 24-hour period.
Country	Select a country to set up with a per diem range.
From Value and To Value	Enter the start and end of the range in hours or days. You can enter up to four ranges. The system displays these ranges on the Per Diem Amount page.