How to claim an expense based on mileage?

When employees use their personal vehicles for work-related purposes, they can seek reimbursement by claiming expenses based on mileage. This approach simplifies the reimbursement process as it calculates mileage instead of tracking individual expenses. It ensures fairness by compensating employees based on their actual usage and allows employers to control costs more effectively. Moreover, claiming mileage expenses can help employees comply with tax regulations and potentially reduce their taxable income.

Expense claims for local conveyance are usually calculated based on the distance travelled, whether in kilometres or miles.

To enable mileage for Expense Claims first, we need to create a Mileage Expense category.

To do this, go to Org (1) and navigate to Expense & Travel (2). Then go to Policies & Settings (3) and select Expense & Travel Categories (4), under which you will be able to see Add Expense Category (5).

In the next window, enter the expense name and expense code as per your requirement, and under Usage Type, select Mileage (6). Once done, you can click Save Expense Category (7).

Once you have saved the Expense category, you need to add it to an Expense policy. To do this go to Expense and Travel policies (8) and select the Expense policy (9) to which you would like to add the category. In the policy, click Add Category (10).

In the overlay window, select the Expense Category with Expense type as 'Mileage' using the Check Box (11) available and click Add (12).

Once added, click the Setup Rules (13) to configure the Expense claim rules.

On the next window, you can configure additional settings such as capping the amount one can claim over a given period, setting a limit on how long after the occurrence of the incident one can submit an expense claim, etc., as per your requirement.

Then, Select the units in which you would like to measure the mileage as in Kilometers or Miles and the Rate per Kilometer/Mile (14). Also, mark How would you like to measure the distance? (15). Once done you can Save Rules (16).

The employees who are added to this expense policy can now claim the expenses for local conveyance based on the distance travelled according to the rules configured. 

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