What is an expense?

An expense claim/transaction in travel expense management is a request by an employee for reimbursement of costs incurred during business travel. These costs can include transportation, lodging, meals, and other related expenses.

🔑 Key Points:

1. Purpose : Compensate for business travel costs.

2. Categories 🏷️ : Includes transportation, lodging, meals, entertainment, miscellaneous expenses, etc.

3. Documentation ✍️ : Requires receipts and details like date, amount, and purpose.

4. Submission 😎 : Through an expense report, often via travel expense management software.

5. Approval 👌 : Reviewed and approved by supervisors to ensure policy compliance.

6. Reimbursement 💰 : Paid out after approval.

Example:

For a trip costing $940 in flights, hotel, meals, and taxis, the employee submits an expense claim with receipts. After approval, they are reimbursed $940.

Expense claims streamline the reimbursement process, ensuring accuracy and policy compliance.

If you would like to discover how to perform several of the tasks related to an expense transaction, including how an expense report can be created, kindly check the articles below:

• How to create an expense

• How to split expenses

• How to create an expense report

• How to approve an expense report