Understanding Locations and Rates

When employees use their own vehicle for business purposes, they are typically reimbursed based on distance. PeopleSoft Expenses allows you to set up and define distance rates. You can apply a standard rate, or a varied rate, with which to calculate reimbursements to employees. You can also 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 state.

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