Travel Expense Settlement for Denmark

The SAP application component FI Travel Management contains the legal and business requirements for Denmark. This includes the Denmark-specific Customizing, settlement rules, and standard reports.

The special features of the Danish law and their implementation in SAP Travel Expenses are explained below:

Reimbursement method for meals and incidental expenses

Denmark uses an hourly (rounded to the next whole hour) reimbursement method for meals and incidental expenses based on the location of the employee during the business trip. Legal reimbursement rates vary according to country and region. They are tax-free for the employee and tax-deductible for the company.

The reimbursement rates have been customized in the standard system. For more information, refer to the implementation guide (IMG) for Travel Expenses under Define per diems for meals (view V_T706V).

Trip settled according to actual expenditure

If, on the other hand, the whole trip is settled according to actual expenditure (i.e. also meal expenses are paid by receipts and no per diem rate is paid), a tax-free travel compensation can be given, which is a given percentage of the amount of the per diem rates of the respective country. For this reimbursement method a special trip schema Receipt settlement with the trip type Business trip with receipts is set up in the standard system. The amounts – technically paid as per diem rate – could be paid tax-free to the employee or used to decrease the employee's taxable income.

In the Customizing activity Assign wage types to expense types for Per Diem rates (view V_T706B4_A) the field 3 ^rd wage type for the trip expense type ‘VERP' ( Meals per diems ) controls whether the travel compensation will be reimbursed tax-free (MJ23 in the standard Customizing) or whether it will decrease the employee's taxable income (MJ24 in the standard Customizing).

Trips shorter than 24 hours or longer than 3 months / 6 months

For trips lasting shorter than 24 hours or longer than 3 months (domestic trips) or 6 months (international trips) there are no tax-free reimbursement rates for meals and incidental expenses allowed by the tax authorities.

For these trips the trip types Trip < 24 Hours and Expatriate have been customized in the standard system (see Customizing activity Define statutory trip types (V_T706G)). Corresponding reimbursement rates for these trip types have also been customized in the standard system. If an employee is on a trip for more than 3 months, he can simply create a stopover with the trip type Expatriate for the continued duration of the trip.

Deductions

When on a business trip and an employee has a breakfast, lunch or dinner included in his accommodations or is invited by someone else, he must enter a deduction for this meal from the full (24hr.) reimbursement rate for the location of the deduction. For more information, refer to the IMG of Travel Expenses under Define deductions (view V_T706A).

Danish law for deductions requires a 15% deduction for breakfast, and a 30% deduction for lunch and for dinner. The reimbursement rate to which the deduction refers depends on the location of the meal. The location is determined by the time of the meal causing the deduction, which the user may enter on the Deductions tab page in the entry scenario. If the user does not enter a time, default times proposed by the system are used. The stopovers of the trip are checked against the times of the meals that caused the deductions in order to determine the exact location for reimbursement deduction.

The default times for the deductions can be customized. The constant names are

The delivered customized default times are

For more information, see the IMG of Travel Expenses under Check Travel Expenses constants (view V_T706_CONST).

Mileage Reimbursement

The normal mileage reimbursement rate for travel by car is 1.44 DKK/km (in 1999) for domestic and international trips. However, Danish companies can approve a reimbursement rate of 2.56 DKK/km up to 12,000 km and a reduced rate of 1,44 DKK/km thereafter (see the IMG of Travel Expenses under Define flat rates for travel costs (view V_T706F)).

See also:

Examples: Travel Expense Statements (Denmark)