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Travel and Expense

Management Business Blue
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Table of Contents
1. Travel and Expense Management ........................................................................................................ 01
Background: ..................................................................................................................................................... 02
1.1 Current Business Process ....................................................................................................................... 03
Request for Domestic Travel ............................................................................................................................... 04
1.2 Solution in SAP ....................................................................................................................................... 05
1.2.3 Description of Process ............................................................................................................................ 07
1.6.1 General Process Details – Employee Self Services ................................................................................. 09
ESS Process 10
General Explanations: .......................................................................................................................................... 11
Explanations of Functions and Events: ................................................................................................................ 11
Process: ................................................................................................................................................................ 11
Changes to Existing Organization processes:....................................................................................................... 12
Description of Improvements: ............................................................................................................................. 14
Solution in SAP ..................................................................................................................................................... 17

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1. Travel and Expense Management

In this competitive world of business environment, travel is a necessary and expensive part of life. It is not
surprising that in such a tight and unprecedented economy more and more companies are seeking ways to reduce
necessary travel cost. It provides end to end solution for managing business trip. Travel management becomes
efficient in accounting cycle and up to date cost information result in better cash flow along with faster
reimbursement.

Travel Management Process in SAP is to ensure that all the necessary details about a Business trip are captured to
facilitate smooth transactions and avoiding data redundancy and data inaccuracy. Travel Management process also
ensures that necessary information / data needed for other SAP sub-modules are captured.

Background:

This process is an integrated management of all processes involved in a business trip and the travel expenses
incurred. The process includes the entire procedure of creating a trip, accounting the travel expenses and the
posting of travel expenses in Financial Accounting (FI) and clearing in controlling (CO).

1.1 Current Business Process

Process of Business Travel and its Applicability

All the travel requirements of the employees are handled by the Administration departments & Finance
Departments.
Types of travel which are applicable to all the employees as a part of his/her responsibilities are:

a) Domestic Travel
b) Intra City Travel (Local Conveyance by Self Car Booking/Company Car Booking)
c) Field Travel
Request for Domestic Travel

Any employee who has to undertake domestic travel (air/bus/train) as a part his/her official responsibilities has to
fill the Travel Requisition Form (TRF) and forward the same to the Facilities department duly authorized by the
respective Head of the Department. The TRF should be complete with all the details like details of the travel,
details like the location, department, client process, grade etc.

Entitlements:

Boarding & Lodging

a) The boarding & lodging limits, mode of travel, incidental charges and other details as per the company policy.
Actual, over and above the entitlement can be claimed on specific recommendation of HOD. Subject to approval of
CEO

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b) Permission for Air Travel /Travel by Taxi or any other economical means may be given by the CEO to non-eligible
personnel if exigency of work justifies the same.

c) The amount towards accommodation will be claimed only on production of bills up to a maximum mentioned
against each category.
d) The amount on accommodation does not include taxes on room rent.
e) All employees should settle their hotel bills prior to checking out.

1.2 Solution in SAP

Business processes of Global Company Ltd consist of numerous functions which are being mapped in SAP as per
the requirements put forth by Core Team Members.
Features of Travel Management Process at Global Company Ltd:

 Employee initiates the Travel Request with full details of itinerary (Date of travel, Source / Destination,
Preferred time, Accommodation request, Vehicle request, Travel advance request & respective Cost Center.
Employee can edit / delete the travel requests also.

 Travel request is subject to the defined approval-cycle, based on the Business process.

 Employees are entitled for per-diem allowance based on the defined trip schema.

 Ticket Cost-booking shall be done directly in appropriate GL accounts through the Finance module.

 Ticket Rescheduling / Cancellation process shall be kept outside the preview of SAP Travel Management.

Some of these functions are addressed by SAP Travel Management and rest, since they are not addressed by SAP
Travel Management are outside the scope of Travel Management implementation. Precise distribution of the same
is described below.

The following processes are considered: -

 Travel Request for employees of Global Company Ltd

 Travel Expense Reimbursement for employees of Global Company Ltd
 Posting of travel expenses to SAP FI
 Workflow processes for travel request and expense approvals

The following processes have not been considered:-

 Booking of guest house / hotel room, air / train tickets and other services by Travel-desk.
 Posting of vendor-invoices. Manual posting to SAP FI would be done.
 Posting of travel advance amount. Manual postings to SAP FI would be done.
 Travel advance-balance recovery. Manual postings to SAP FI would be done.

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Travel Request Process:

Employees are expected to create a travel request through ESS before travelling.

Request for Car, Tickets,

Accommodation, Special request, Notification to travel desk
Advance
On approval

Notification to Employee
Travel request
By employee

On rejection

Time, date & destination of travel

Notification to Employee

Trigger
 Travel request is raised through Employee self services

Prerequisites

 Trip area, Trip activity, Advance, estimated cost, Cost centre.

Travel Expense Reimbursement:

Employees after completing their travel, create travel expense report through Employee self services.

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Approved
Trip expenses Y/N
(Superior)
Raised by employee

Trip facts Rejected Settled

Posting to FI/CO

Trigger

When the employee raises trip expenses after coming from the trip through ESS

Prerequisites
Expenses incurred during travel to have been captured as expense types.

Travel Expense Posting:

The travel expense report on being settled is then sent for posting to financial accounting.

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Employee

Travel Request
advance

Advance Balance paid Travel Expenses

Advance
paid Incurred

Approval

Approval

Settlement

Posting to
FI / CO

Trigger

After settlement the travel expense are then posted to accounts.

Prerequisites
Settled travel expense report.

Employee
Groupin
gs Activity Types Reasons Trip Schema
All employee
groups Meetings Domestic
Transfer Local (With-in City-Own Car)
Deputation Local (With-in City-Company Car)
Training
Others

Expenses

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All employee
groups Boarding & Lodging(Metro)
Hotel & Accommodation(Metro)
Transport & Conveyance(Metro)
Daily Allowances(Metro)
DA(Metro)
Per Diem (Metro)
Others
Boarding & Lodging(Non-Metro)
Hotel & Accommodation(Non-Metro)
Transport & Conveyance(Non-Metro)
Daily Allowances(Non-Metro)
DA(Non-Metro)
Per Diem (Non-Metro)

Business Process
S.
No Scenario Performed By Further Processing
R/3
1 Eligibilities for Travel HR Infotype 17 contains the eligibility
Enterprise Portal
Domestic Travel Request
From and To (Dates), Destinations,
1 Mandatory Fields Activity Types
Transport Services Mode of Travel, and timings
A request for Approval to immediate
supervisor is released

Accommodation Services Mail to Reporting

Submit to Approval Employee

Advance
2 Approves/Rejects Supervisor

Request for Modification/Cancellation Employee Mail to Reporting

3 Approves/Rejects Supervisor
Trip Settlement

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1 Select the travel record and Trip Schema Employee

Enter expense type
Enter amount Sends to Reporting Boss for approval
Approves/Rejects Reporting Boss Sends to Finance for Approval

Approves/Rejects Finance Posts to Finance

IF modifications or amount claimed doesn’t
2 supported with bills
Modifies the claim amount and make the Posts to Finance. Intimates to employee
necessary adjustment Finance over mail (Manual)

1.2.1 Purpose

Online submission of claims and their reimbursement & settlement.

1.2.2 Process Flow Chart

Diagrammatic representation of the process is shown below.

Completion Approval
Travel of Expense &settlement of
request Approval Report FI/CO
expenses

Traveler Superior Traveler Approver Posting

TRAVEL MANAGEMENT

Payment/ Deduction

1.2.3 Description of Process

 Travel request is an entry scenario of travel management that accompanies the whole process of company
business. It handles the request electronically that can be sent from the SAP system to the respective
superior for approval. Following details are taken care:

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 Destination
o Date and time of departure
o Air Tickets
o Rail Tickets
o Advance required
o Other information

 On approval from the superior, the details raised by the employees are sent to the Travel desk for
providing the required services. This travel request in turn generates a unique number called the Trip
Number.

 The travel desk gets the bookings done for travel-tickets / accommodation / other travel services etc,
through travel agents. Travel desk to provide unique trip numbers to the travel agents.

 The employee collects advance from cash office. Advance requested by the employee is paid through SAP
FI / CO. [This process takes place by posting the advance amount to SAP FI/CO.]

The Travel Expenses function allows the employee to settle the travel expenses incurred during the business trips
efficiently. The expense receipts are entered, checked, and settled centrally by the Expenses department.
The travelers enter the data themselves with a central monitoring of the trip facts and information.
 After the trip has been taken, the traveler completes his or her travel expense report, including all
necessary data and documents.

 The travel expense report is sent to the superior for approval, after which the same reaches the expenses
department for settlement with financial accounting.

 The expenses department then checks the travel expense report, the original documents and receipts.
The trip is then settled and Travel expense results are then posted and amount is transferred to financial
accounting for final payment.

 Reimbursements to employee can take place through SAP FI.

The amount incurred during the trip and the advances raised through travel request are captured in financial
accounting.
 Once the advances are raised through travel request on approval are manually posted in
financial accounting.

 The payment of reimbursement amounts to employee can take place through FI.

 If a planned trip, for which an advance has been paid, does not take place, or if the travel
expense report for a trip, for which an advance has been paid, is rejected, then the trip
advance has to be cancelled. The trip advance is to be submitted to cash office by the
employee and reversal-entries to be done in FI manually.

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 To the Travel expense types, wage types are assigned which in turn are linked with symbolic
accounts.

Finally these symbolic accounts are assigned to expense accounts/clearing accounts in financial accounting.

Any expense which is to be claimed from the employee can be taken care in FI.

1.2.4 Prerequisites
Travel Privileges infotype 0017 should be maintained.

1.2.5 Standard Reports in SAP

Description Transaction Code

Overview of Planned Trips S_AHR_61016288
Cost Assignment for Trip S_AHR_61016404
Trip Receipts S_AHR_61016402
Travel Expense Reporting by Period S_AHR_61016408

1.3 Integration Considerations

Travel management is integrated with FICO module in ECC for the claims posting and their reimbursement.

1.4 F.R.I.C.E (Development Requirements)

Followings are the list of new development / enhancement that needs to be carried out:

S. No Object Object Type

1. Eligibility of travel amount based on Employee Subgroups BADI Enhancement/User Exit
based on the feasibility
checked in Realization.
2. Calculation of amount based on the KMs traveled based on the BADI Enhancement/User Exit
Employee Subgroups based on the feasibility
checked in Realization.

1.5 Authorization

Specific and Customized authorization required that will be finalized in the realization phase as the data is been
prepared by Global Company Ltd. core team as applicable.

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1.6 Gap Analysis

It can be referred from FRICE.

1.6.1 General Process Details – Employee Self Services

ESS Process
Employee Self Service (ESS) Applications allow employees to view benefits, update personal information, submit
time cards, make vacation requests, and request travel expense reimbursement from their Web browsers. The ESS
Applications free human resources staff to deal with more complex tasks.

ESS is an effective means for providing real-time access and data maintenance capabilities to the source or owner
of the data. It has the ability to offload much of the data entry and related customer service activities that may be
typically performed in an organization's human resources, payroll, benefits and purchasing departments.

Employees would be able to access the ESS portal from any computer with Internet access and within Inlogistics
through the Inlogistics Intranet.

ESS has to be a single window for employees to get an access to and manage their data in the HR systems.

General Explanations:
ESS is a user friendly tool to make data access to all the employees based on the level of employees.
The tool reduces some of the cumbersome activities which are to be followed by the Human Resource Department
of an organization, like filling of employee details, maintaining of leave taken and updating leave balances, sending
of pay slip to each and individual employee etc.

Explanations of Functions and Events:

Employees should be able to take care of the following processes/ activities through ESS portal.

1. View Company related relevant information(Who’s Who)

2. View Personal Information
3. Leave Management System
4. Performance Management System(Appraisal Documents)
5. Training and Event Management System
6. Travel and Expense Management

Process:

Corporate Information Management View Company related information

(OM)
Display organizational chart

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Personal Information Management

(PA) View personal information
View address
View family status
View bank details
Time Management (TM) Submit Leave Request
Cancel Leave Request
Display Leave balance
Display availed leave details
Display attendance report
Submit attendance request
Performance Management System Initiation of Performance Objective Setting activity
(PD)
Selection of Appraisal document
Define and Set objectives in the Appraisal document
Filling of Weightage and Ratings by the employee
Changes in Objectives, Weightage in appraisal document after completion of one
cycle
Tracking the application
Training and Event Management Display business event catalog (Training History etc.)
(TEM)
Attendee Booking for the Training event
Cancel Attendance for the Training event
Attendee Appraisal
Travel and Expense Management Travel Request
(TVM)
Travel Expense report creation
Cancellation of Request
Check Request

Changes to Existing Organization processes:

 Online viewing of employee’s own data based on the authorizations.

 Online application of Leaves and online approval by supervisor and auto updating of Quota.
 Online viewing of organizational information.
 Online filling of Appraisal document.
 Online booking and tracking of Training events.
 Online Travel Request.

Description of Improvements:
Employees can take care of their own day to day transactional work by themselves. The HR departments are freed
up from many of the routine, day-to-day processing functions. Overall, service levels and efficiency increase and
costs per transaction are drastically reduced.

Solution in SAP

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All the ESS functionalities required at Inlogistics will be met through the standard Business Package for Employee
Self-Service.

The Business Package for Employee Self-Service enables employees to create, display, and change their own HR-
related data in the Enterprise Portal. It covers data from various business areas: Working Time, Employee Search,
Personal Information, Performance Management, Travel and Expense Management and Corporate Information.

This business package is intended for all company employees. By giving your employees access to their own data,
you simplify and standardize human resource processes and free up your HR department for strategically important
tasks.
Leave Management System (LMS)

LMS is an online leave application system through which employees of an enterprise apply for leave request and do
other related functions in Employee self service on web enabled portal.

Leave approval for the applied request takes place by the approver through Manager’s self service on web enabled
portal.
The Leave Request function comprises the following areas:

 Creation of leave request by employee

 Forwarding of request to manager for approval

 Controlling of deletion and cancellation processes

 Status tracking and monitoring

 Posting of absences to the backend system

Employees can use the Leave Request service to request both absences (infotype 2001) and attendances (infotype
2002). This means that employees can also process records of the Attendances infotype (2002) that have the
quality of an absence in your company, such as Comp off etc.
Features
Leave Request:
This Web application provides your employees with many functions to simplify planning and recording their
absences. All functions can be accessed from the homepage of the Web application.

 Employees can request leave and other absences and enter notifications of sickness and other absences
that do not require approval.

 The Team Calendar enables employees to check their desired periods of leave against other team
members' leave.

 The Calendar gives employees a practical three-month overview of their booked and requested absences.

 The Absences Overview enables employees to view their absences and track the status of their requests.

 Employees can cancel, shorten or lengthen absences. To do this, they select the relevant absence from
the Absences Overview in the Team Calendar or Calendar.

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 The Time Accounts function provides employees with an overview of their absence entitlements and
attendance approvals. This means that you can check your remaining entitlement before entering a leave
request.

 This function also exists as a standalone Web application.

 The information displayed in the Team Calendar, Absences Overview, and Time Accounts is only updated
after an employee has submitted a leave request.

Leave Approve/Reject:

This Web application provides HR managers or other authorized persons with all the functions they require to
check and approve leave requests.

This Web application is part of the Business Package for Employee Self-Service since it uses the same functions as
the Employee Self-Service application, Leave Request and cannot be implemented on its own. However, it is for
use in Manager Self-Service.

 The worklist provides the approver with a list of all the absences he or she needs to approve. By selecting
an absence, he or she can approve or reject it.

 The manager can use the different functions to help him or her determine whether or not the leave
request can be approved.

 The Team Calendar enables the manager to check whether the employee’s absence would create a
bottleneck in his or her team.

 The Time Account function provides the manager with an overview of an employee's leave entitlements
and attendance approvals.

 After an employee has made changes to an absence, the approver can track the changes made.

The approver can enter a note stating the reason for approving or rejecting a request.

Business Process/Requirements:

Sr. No. Business Process SAP Process

1 Submit Leave Request on ESS Standard Process

2 Leave request to Immediate Boss/Mail Intimation to Standard Process

Immediate boss

3 Leave approval/rejection process on the MSS of approver Standard Process

4 Cancel Leave Request by User itself on ESS Standard Process

5 Mail Intimation to user at the time of leave application Workflow Process/ Customization in
approval Workflow

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6 Mail Intimation to user at the time of leave application Workflow Process/ Customization in
rejection Workflow

7 Display Leave balance to user/Approver on ESS/MSS Standard Process

8 Display availed leave details to user/Approver on ESS/MSS Standard Process

9 Display attendance report to user on ESS Standard Process

10 Incorporation of days limit check for different leave types IMG Customization

11 Facilitate the user to apply for half day leave IMG Customization

12 Leave data posting Standard Process/ Background Job

scheduling

Application Date Collision Process:

Collision of leave request dates with another leave dates in case of applied, approved status will not be taken into
consideration. System will consider collision only in case of approved and posted leave requests and will throw the
error.
Assumptions and Considerations:

After successful leave application, the request will be forwarded to immediate boss for approval/rejection.
Relationship ‘A002’ in the organizational structure of the enterprise will be taken into consideration by the
standard functionality of the system.

Reporting Requirements for LMS:

S. No Report required SAP standard report

1 Customized transaction code will be assigned to the standard report
Report for the leave
“RPTARQDBVIEW”.
application status

Performance Management System (PMS)

The performance management capabilities solution delivered in the SAP ERP Human Capital Management bring
performance feedback processes to life. The solution supports end-to-end processes that provide transparency
and help to communicate the enterprise strategy, align initiatives and goals throughout the enterprise, analyze
performance, and reward the workforce accordingly. The solution is extremely adaptable, allowing you to custom
design both the content of your performance feedback documents and processes. These essential features give
you and your employees a road map to success, and just as importantly, set the enterprise on a successful course
into the future.
Phases in PMS:

 During the Planning Phase, goals are established for the company, team and employee (employee goals:
individual and competency and development goals).
 The Review Phase consists of reviewing and updating goals.

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 The Appraisal Phase consists of appraising the individual performance and calibrating the team
performance ratings.
Employee Self-Service PMS:

 Online Objective setting and weightage for each objective in the appraisal form.
 Self Assessment - Online self review of set objectives by rating each one of them in appraisal form.
 Appraiser Assessment - Online review and modification of objectives by the appraiser.
 Reviewer Assessment - Online final review of objectives by the reviewer in appraisal form.

Description of Function:

Each appraisal is created using an appraisal model.

 The form of appraisal specifies who is to appraise whom.

 The appraisal type. This defines the purpose of the appraisal and for what it will be used (if, for example,
performance or potential is being appraised).
 Appraisal criteria: These define the factors to be appraised.
 The appraisal scale used for the appraisal model. This specifies the ratings to be used for the overall result
of the current appraisal.
 All appraisal criteria can be given individual weightings within an appraisal model.
 The overall result of these individual results is calculated in the appraisal model on the basis of the
information stored on the appraisal scale, weighting etc.
Benefits of online PMS:

 Creation of transparency via transformation of person-related data into strategic knowledge of employee
potential throughout the company.
 Involvement of managers and employees via structured and process-guided Self-Services
 Increase of employee motivation by showing development potential
 Integration: Usage of already existing data in SAP to enable integrated management processes. Removal
of paper & excel via an integrated system.
 Simplification: User friendly, intuitive user interfaces enable access to the data for employees and
managers.

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