Expense Policies

Expense policies are required to manage reimbursement requests of employees for expenses incurred on behalf of the organisation.

You can find these settings at Admin Section > Setup Policies > Expenses

Overview of Expense Types

To understand Expense Policies, first a quick summary of what expenses an employee can claim reimbursement for:

You can raise expense requests under 3 broad categories:

1. Business Expense - typically for food, gifts, office supplies, credit card payments and similar expenses made on behalf of the organisation
2. Local Travel Expense - typically for claiming money spent on fuel for self-owned vehicles or local transport 
3. Trip Expense - typically for claiming money spent on business trips. Under Trips, you can claim expenses for
   • Travel
   • Accommodation
   • Others

What do Expense Policies do?

Expense policies help you define the following

1. Manage Expense Categories - used when raising an Expense request for Business Categories or Others under Trip Expenses. Typically, this would be sub-categories like food, public transport, hardware, miscellaneous expenses and so on
   
   
2. Manage Taxes - When you add a category, you can choose to assign one or more taxes applicable to that category. TeamNest lets you define taxes as per your state/country. When creating categories you can assign the taxes applicable to these categories. For e.g. Let’s assume GST is applicable in your country and further there are several GST rates. You can add each GST rate as a list in your Taxes master. When creating a category say Food, you may apply 18% GST. But when creating a category like say Hotel stay, you may apply 28% GST
   
   This becomes useful when you view the tax set-off. It shows you the amount of taxes you have already paid as part of the reimbursement request. This number can benefit your organisation if the laws in your state/country allows you a set-off against these taxes.
   
   
3. Manage Mileage - Set the default compensation  amount per kilometre for fuel consumed when utilising self-owned vehicles for official purpose

Once you update these settings, your Expense Policy is ready. You can now apply it to one or more employees via a Master Policy