Set Up a Car Rental Policy

Your company can set up and enforce car rental expense policies to help control, manage, and reduce spending by employees for car rentals.

An example of a scenario where a car rental expense policy is applicable is when a consultant rents a car during a business trip and then submits an expense report for reimbursement of the car rental.

To set up a car rental policy, you complete these steps:

1. Setting up a car rental policy

2. Setting up car rental policy violations

3. Completing the car rental rate spreadsheet

4. Activating the car rental policy

5. Assigning the car rental policy to an expense type

Setting Up a Car Rental Policy

To set up a car rental policy, complete these steps:

1. In the Setup and Maintenance work area, go to the following:

   • Offering: Financials

   • Functional Area: Expenses

   • Task: Manage Policies by Expense Category

2. On the Manage Policies by Expense Category page, from the Create Policy choice list, select Car Rental.

3. On the Create Car Rental Policy page in the Rate Definition section:

   1. Select the Single currency option.

   2. From the Currency choice list, select USD US Dollar.

      Note: If a currency rate conversion is necessary to verify a policy rate limit, you must define a conversion rate in Oracle General Ledger.

4. In the Rate Determinants section:

   1. Select the Role check box.

   2. From the Role Type choice list, select Job.

The preceding car rental policy says the following: The car rental policy is set up with a daily limit in US dollars, by job, and is enforced by a warning and an error.

Setting Up Car Rental Policy Violations

To set up car rental policy violations, complete these steps in the Policy Enforcement section:

1. Select the Policy violation warning check box.

2. Enter 10 in the Warning Tolerance Percentage field.

3. Select the Display warning to user check box.

4. Select the Prevent report submission check box.

5. Enter 20 in the Error Tolerance Percentage field.

The following table describes what employees see when you set up warning and error policy violations, as well as the calculation used to derive the policy violation.

Policy Violation	Application's Action	Effect	Calculation
Warning	Generates a warning policy violation when a car rental expense exceeds the defined tolerance.	You see a warning if you selected the Display warning to user check box. Note: A warning is always displayed to the approver, whether or not you select the Display warning to user check box.	Policy Rate * (1+Warning Tolerance/100)
Error	Generates an error policy violation when a car rental expense exceeds the defined tolerance.	You see an error and you're prevented from submitting the expense report.	Policy Rate * (1+Error Tolerance/100)

Completing the Car Rental Rate Spreadsheet

To complete a car rental rate spreadsheet, compete these steps:

1. On the Create Car Rental Policy page, click Create Rates.

2. Download the predefined spreadsheet to your local drive for completion.

   Tip: If you select rate determinants in the Rate Determinants section, you complete the predefined spreadsheet. If you don't select any rate determinants, you create car rental rates in the Create Rates dialog box.

3. On the Create Car Rental Rates spreadsheet, complete the fields as shown in the following table.

   Role	Daily Sum Limit (USD)	Start Date
   ACC500.Accounting Manager	100	1/2014
   SAL600.Salesperson	120	1/2014
   SAL700.Sales Manager	150	1/2014
   All Others	90	1/2014

4. Click Upload.

When rates are successfully uploaded, the policy status is Valid.

Activating the Car Rental Policy

To use the car rental rates spreadsheet for calculation of car rental expenses, you must:

1. Activate the car rental policy.

   1. In the Setup and Maintenance work area, go to the following: Navigate: Setup and Maintenance > Manage Policies by Expense Category task > Go to Task > Manage Policies by Expense Category page.

      • Offering: Financials

      • Functional Area: Expenses

      • Task: Manage Policies by Expense Category

   2. On the Manage Policies by Expense Category page, select the car rental policy that you created and click Activate.

2. Assign the car rental policy to an expense type.

Assigning the Car Rental Policy to an Expense Type

To assign the car rental policy to an expense type, complete these steps:

1. In the Setup and Maintenance work area, go to the following:

   • Offering: Financials

   • Functional Area: Expenses

   • Task: Manage Expense Report Templates

2. On the Manage Expense Report Templates page, select an applicable template for a business unit or click the Create icon.

3. On the Create Expense Report Template page, create a template for Car Rental expenses.

4. On the Expense Types tab, click the Create icon.

5. In the Create Expense Type dialog box, select Car Rental from the Category choice list.

6. On the Policies tab in the Create Expense Type dialog box, select the Car Rental policy you created, specify the start date, and optionally specify an end date.