What is an allowance claim?

An allowance claim in travel expense management is a request by an employee for a fixed daily amount provided by the employer to cover expenses incurred during business travel. This daily allowance, often referred to as "per diem," covers costs like meals, lodging, and incidental expenses without the need for detailed receipts for each expense.

🔑 Key Points:

1. Purpose💡: To provide employees with a predetermined daily amount for travel-related expenses.

2. Categories 🏷️ : Typically includes meals, lodging, and incidental expenses.

3. Documentation✍️ : Requires minimal documentation, usually just proof of travel dates and destinations.

4. Submission 😎 : Employees submit a claim for the allowance, often through travel expense management software.

5. Approval 👌 : Reviewed by supervisors to ensure travel occurred and aligns with company policies.

6. Reimbursement 💰 : The fixed daily amount is paid to the employee after approval.

Example:

An employee travels for three days with a per diem allowance of $100 per day. The allowance claim would be $300, covering all eligible expenses without detailed receipts for each expenditure.

Allowance claims simplify the reimbursement process by providing a standard amount for daily expenses, reducing the administrative burden on both employees and employers.

For guidance on allowance tasks, including creating an expense report, please see the articles below. To further your knowledge on compliant and legal allowance rates in your country, visit the Compliance Center:

• How to create an allowance claim

• How to create an expense report

• How to approve an expense report

• Compliance Center

• Expense Report Compliance Made Global