SAP Concur Expense Policy Template EXTERNALTaking the Pain Out of Expenses 2018 SAP SE or an SAP affiliate company. All rights reserved.11 Tips for Creating an Expense Policy1 / 11
Table of Contents4Taking the Pain Out of Expenses5An Example Expense Policy Template6How to Use the Template7Want More Help? Just Ask!2 / 11 2018 SAP SE or an SAP affiliate company. All rights reserved.
Taking the Pain Out of ExpensesCreating an expense policy can be timeconsuming; but when you consider thatalmost 20 percent of travel and expensesfall outside of policy1, it makes sense toinvest the time and effort. Here are sometips and a template to help you get started.1.Travel & Entertainment Expense Management Report, Aberdeen Group, August 20063 / 11 2018 SAP SE or an SAP affiliate company. All rights reserved.
Taking the Pain Out of ExpensesTaking the Pain Out of Expenses1. DITCH THE JARGON5. MAKE IT FLATWrite the policy to cover the basics but don’t beafraid to revise it later. Also, be sure to edit yourpolicy for clarity before it’s published. Doublecheck that it’s easy to read and not loaded withjargon. The easier a policy is to understand, theeasier it is for your employees to follow.Unless there is a very good reason to have different rules for different people, create a policy thatapplies to all employees across the company.Keep it fair and simple. All-encompassing policies are also easier to implement, manageand control.2. MAKE IT FAIR6. MAKE IT EASY TO FINDNo one should have to pay out of pocket if theyspend sensibly. Create a policy that is generallyregarded as fair and then make it easy to findand follow.Even the fairest policy won’t be followed unlesspeople know about it. Make sure yours is visible.Email it to employees, put it on your noticeboards or intranet, or print a copy for everystaff member.3. INVITE PARTICIPATIONGet buy-in from your staff before you implementthe policy. Ask team members to participate inthe process. If they help develop the expense policy they’ll see why it’s necessary and will be morelikely to stick to the rules and encourage othersto do the same.4. USE SENSIBLE, LOCALIZED RULESSometimes a one-size-fits-all policy won’t workacross an entire company. Write your policy toguide behavior, but be flexible enough to adapt tolocal requirements—such as higher hotel costs inmore expensive cities. You could include a tableof acceptable regional rates or use a system thatflags out-of-policy spend at the time it’s booked,to avoid unpleasant surprises later in theexpense-claim process.7. EMPHASIZE THE POSITIVESImplementing a new policy will require a periodof adjustment for employees. You might hold atraining session to explain the reasons for thenew policy so that everyone understands its benefits and purpose. If there’s a policy in place thateveryone understands, chances are it will be easier to approve submitted expenses.8. HELP MANAGERS LEAD BY EXAMPLESince almost 20% of all submitted expenseclaims contain out-of-policy spend, it’s sensibleto focus on reducing that percentage.Managers who approve expenses are your firstline of defense in the expense-claim process, soit’s good to get them on your side. Setting management targets for policy compliance can drive4 / 11 2018 SAP SE or an SAP affiliate company. All rights reserved.
Taking the Pain Out of Expensesdown the number of out-of-policy claims. Similarly, familiarizing managers with the content, theimportance of compliance, and the reasons forimplementing the policy can help them confidently enforce the rules.Automating your paper-based expense processwill soon provide real cost savings. You can takeadvantage of free trials to test the software toolsbefore you commit to buying. Most providerswill be able to demonstrate a rapid returnon investment.9. REMEMBER IT’S EMOTIONALConsider the emotional side of expense claims.Employees are usually spending their own money when they pay for expenses, so they will wantit back as soon as possible. A good systemmakes it easy for employees to submit theirexpenses and receive status updates; it alsospeeds the payment process.10. CONSIDER HELPFUL SOFTWARE TOOLSImplementing an expense policy is a first step,but it shouldn’t end there. Once you have a greatpolicy, you might want to consider using timesaving tools to manage the entireexpense-claim process.And implementing an automated solution willsave time and allow you to focus on whatmatters most.If your employees are using smartphones, you’veprobably already invested in mobile hardware; ifthis is true, make sure you choose a solutionthat works with your existing mobile devicesand allows for submitting digital andphotographed receipts.“Employees are usually spending their ownmoney when they pay for expenses”5 / 11 2018 SAP SE or an SAP affiliate company. All rights reserved.
Taking the Pain Out of ExpensesAn Example Expense Policy TemplateAt its simplest, an expense policy should cover the following categories:1. STATEMENT OF PURPOSE2. COMPANY EXPECTATIONS AND POLICY COMPLIANCE3. AREAS OF AMBIGUITY4. SUBJECT AREAS: travel, travel-related expenses, accommodation, food & entertainment, otherexpense typesThe following pages provide a more detailed explanation for each category, as well as examples oflanguage you can use when you create your own template.SectionExplanationExample WordingStatement of purposeWhy is there an expense policy?This expense policy applies to all employees of (insert company’s name here; e.g., Our Company)when they travel for business purposes or incurbusiness-related expenses.Set some basic guidelines—make itfactual, not scary. Include: Who the policy applies to(managers and employees) Date of policy implementationPlease also refer to the followingcompany documents: HR policy Travel policyCompany expectationsand policy complianceWrite a brief note here to explain: What the company will do to helppeople claim expenses What the company expects in orderto reimburse employees What happens if they fail to complywith policyWhen you incur or submit expenses we expectyou to: Behave honestly, responsibly, and within theguidelines of this policy Submit expenses within 30 days of incurringthem (to help you get paid more quickly and support our finance team’s needs) Keep all your receipts We take this policy seriously and expect you to dothe same. Breaches of policy may result in disciplinary action or termination of employment.Areas of ambiguityThis section explains common areas ofambiguity/confusion, such as: Who authorizes expenses How quickly they are reimbursed Who pays (when more than one employee is present)Your manager should authorize all expenses, butif it’s not possible, their manager may alsoapprove expenses.If you’re travelling/incurring expenses with otherOur Company employees the senior person shouldalways pay.If you are in doubt over whether an expense is inpolicy, ask your manager. When you submit theclaim, provide written justification in thespace provided.6 / 11 2018 SAP SE or an SAP affiliate company. All rights reserved.
Taking the Pain Out of ExpensesHow to Use the TemplateRead the notes in the centre column. Then use the headings in the left column to create your owndocument. Feel free to copy or edit the examples to suit your needs.PLEASE NOTE: This is not a legal document—it’s a starting point.The values included on this policy are only approximate guidelines, but you can check the amountsagainst your industry sector, company size and employee averages.THE NITTY GRITTY: TYPES OF EXPENSES – WHAT’S ALLOWABLE?The main body of your expense policy should cover the standard expense categories—complete withrules about what is or isn’t permitted.SectionExplanationExample WordingTravelThis section should cover the basics, such as:This travel section of the policy covers the variousways we think people at Our Company are likely totravel in the normal course of business.Which suppliers (if any) are preferred.Which booking methods are preferred (e.g., via achosen travel agency vs. through an integratedtravel booking system) for air travel rail travel rental cars mileageWhat range of fares are acceptable; e.g., lowestlogical fare vs. always cheapest.It should also include a section on: The use of company cars The use of personal cars for business Mileage reimbursement rates How far out of their normal commute must people travel to be able to claim mileage? Insurance (is this covered by the company ormust individuals insure themselves?)You might also include answers tothese questions: Do you encourage use of sustainable transport? When is it okay to take first class orbusiness class? Does public transport take precedence over taxis vs. personal cars? If so, when? How far in advance must trips be booked? Is pre-approval needed before employees booktravel or only if the cost is over a certain value?If you are travelling in a way that is not covered bythis policy or have questions that are not answeredhere, talk to your manager and include a note withyour expense claim when you submit it.The policy includes information about how and whenyou should travel by car, air, train and taxi. It includesdetails about our commitment to sustainable traveloptions as well as the importance of choosing thelowest-priced logical method of transport availableat the time.Please note: All bookings should be made throughour travel agent XYZ Travel. Travel that is not bookedat least 3 days in advance will not be reimbursedwithout approval from the CEO.All travel should be booked in standard/economyclass. You are welcome to use your own frequent flyer plans, as long as this does not prevent you frombooking the lowest-priced logical choice available.Personal travel may be combined with business aslong as there is no additional cost to the company.(Other applicable company-related details should beadded as needed here.)7 / 11 2018 SAP SE or an SAP affiliate company. All rights reserved.
Taking the Pain Out of ExpensesSectionExplanationExample WordingTravel-related expensesThis section should be a list of travelrelated expenses that are acceptableand in policy.The following travel-related expenses areacceptable and Our Company employeeswill be reimbursed for these expenses: Baggage (no more than 2 bags) and advancedseat bookings Parking Foreign-currency charges Visas Tips (up to 15%). This does not apply if the tip hasalready been included in the bill. Use of a GPS with rental cars for driving in unfamiliar territoryThe following travel-related expenses are notacceptable. Do not put these on yourexpenses claim: Laundry service/dry-cleaning (unless you havestayed for business for more than 4 nights) Mini-bar contents Movies/videos Parking fines The loss/theft of goods (this should be coveredby your own travel insurance—of which you canreclaim 170 annually) Childcare Petcare Any personal elements of your business trip Personal car maintenance or damage to personalvehicles while on business Spa treatments and health/fitness clubs ToiletriesAccomodationAny preferred booking methods (e.g.,through a travel agent online bookingtool) or preferred suppliers should belisted here.It could also include instructions regarding reimbursement if people staywith friends/relatives.When booking hotels we expect you to use ourpreferred hotels.The maximum we will reimburse per night is 160 taxes (for example—but this depends on region). Thisamount does not include meal costs.You are responsible for all hotel cancellations and forreclaiming reimbursements (less cancellation fees)from the hotel directly.You must always indicate your overnight accommodation location so we can comply with Duty of Carerequirements. Either inform your manager or shareyour travel itinerary with your manager using TripIt .If your manager is not working when you are travellingyou must inform their replacement. If this is yourself,please tell HR.You are not allowed to upgrade your room while travelling on business with Our Company.8 / 11 2018 SAP SE or an SAP affiliate company. All rights reserved.
Taking the Pain Out of ExpensesSectionExplanationExample WordingFood & entertainmentThis section should set limits onmeal prices, explain what is coveredby a per diem, provide guidelines onwhen to claim meals and explain anyother ambiguities surroundingfood/entertainment.Our Company will reimburse employees for allmeals while they’re travelling—up to 10 for breakfast, 15 for lunch and 25 for dinner.Client meals/entertainment costs may be higher.All entertainment claims must include the following details: business reason, venue name and location, name and company of all attendees.Alcoholic drinks may only be claimed if consumedwith a meal.Unless you are entertaining clients, in order toclaim meals/food you must have met the followingconditions: You’ve been away from the office for more thanhalf a working day You’ve traveled more than 5 miles from the office/your home You may claim for breakfast if your journey started before 7:00 amOther expense typesThis section should be a list of otherexpenses that are acceptable andin-policy.The following expenses are acceptable and Our Company employees will be reimbursed for them. Professional membership fees (where these enhance the standing of the individual and by association, the company) Hotel internet fees Postage for business purposes Mobile data-usage fees when travelling abroad (provided it has been pre-booked) Personal phone calls (up to a reasonable limit)The following travel-related expenses are not acceptable. Do not put these on your expenses claim. Computer/other equipment Magazines/newspapers (unless essential for a justifiable business purpose)9 / 11 2018 SAP SE or an SAP affiliate company. All rights reserved.
Taking the Pain Out of ExpensesWant More Help? Just Ask.SAP Concur is an industry leader in expensemanagement solutions. With more than 20 years’experience in this field, you can trust that ouradvice is sound.We actively encourage people to develop theirown expense policies, which is why we’ve provided this template. But if you want more assistance,we’re here.We have the solutions and experience to help,and will work with you to to ensure you are implementing the most suitable expenses management software solution for your company. Thenall you have to do is make the fundamental policydecisions about what and how much to approve.TAKE A TEST DRIVECONTACT USconcur.ca/free-trialconcur.ca/contactABOUT SAP CONCURSAP Concur solutions take companies of all sizes and stages beyond automation to a completelyconnected spend management solution encompassing travel, expense, invoice, compliance, and risk.For more than 20 years, these leading, innovative solutions have kept customers a step ahead bydelivering time-saving tools, connected spending data, and a dynamic ecosystem of diverse partnersand apps. User-friendly and business-ready, SAP Concur solutions unlock powerful insights that helpbusinesses reduce complexity and see spending clearly, so they can manage it proactively. For moreinformation, visit concur.ca10 / 11 2018 SAP SE or an SAP affiliate company. All rights reserved.
Learn more at concur.caWP EXPENSE POLICY TEMPLATE enCA (17/11) 2018 SAP SE or an SAP affiliate company. All rights reserved.No part of this publication may be reproduced or transmitted in anyform or for any purpose without the express permission of SAP SE oran SAP affiliate company.The information contained herein may be changed without prior notice.Some software products marketed by SAP SE and its distributorscontain proprietary software components of other software vendors.National product specifications may vary.These materials are provided by SAP SE or an SAP affiliate company forinformational purposes only, without representation or warranty of anykind, and SAP or its affiliated companies shall not be liable for errors oromissions with respect to the materials. The only warranties for SAP orSAP affiliate company products and services are those that are set forthin the express warranty statements accompanying such products andservices, if any. Nothing herein should be construed as constituting anadditional warranty.In particular, SAP SE or its affiliated companies have no obligation topursue any course of business outlined in this document or any relatedpresentation, or to develop or release any functionality mentioned therein.This document, or any related presentation, and SAP SE’s or its affiliatedcompanies’ strategy and possible future developments, products, and/orplatform directions and functionality are all subject to change and may bechanged by SAP SE or its affiliated companies at any time for any reasonwithout notice. The information in this document is not a commitment,promise, or legal obligation to deliver any material, code, or functionality.All forward-looking statements are subject to various risks anduncertainties that could cause actual results to differ materially fromexpectations. Readers are cautioned not to place undue reliance on theseforward-looking statements, and they should not be relied upon in makingpurchasing decisions.SAP and other SAP products and services mentioned herein as well astheir respective logos are trademarks or registered trademarks of SAP SE(or an SAP affiliate company) in Germany and other countries. All otherproduct and service names mentioned are the trademarks of theirrespective companies.See dex.epx foradditional trademark information and notices.
mileage What range of fares are acceptable; e.g., lowest logical fare vs. always cheapest. It should also include a section on: The use of company cars The use of personal cars for business Mileage reimbursement rates How far out of their normal commute must peo