Example: Receipt Settlement

T R A V E L E X P E N S E S S T A T E M E N T

Name	De Cervantes, Miguel
Personnel no.	00065734	Country template	ES	Payroll area 1
Trip no.	0000000051	Personnel area	ES01	Cost center TRV_01

I T I N E R A R Y

Main destination	Reason/Location/Country	TTS/TTE/Activity
06.11.1997 06:00 -	Visit customer	Trip
06.14.1997 22:00	Bad Kreuznach	All employees
	Germany	No distinction
Border crossing, trip out		11.06.1997 10:00
Border crossing, trip home		13.06.1997 20:00

M E A L S A N D A C C O M M O D A T I O N S

	Rec							Amount in
Date	No.	Expen. text	VAT	Amount,	Curr.		Ex. rate	ESP
06.11.97	001	Lunch	S0	120.00	DEM		84.55945	10,147
06.11.97	002	Dinner	S0	450.00	DEM		84.55945	38,052
06.12.97	003	Hotel	S0	160.00	DEM		84.55945	13,530
06.12.97	004	Lunch	S0	130.00	DEM		84.55945	10,993
06.12.97	005	Dinner	S0	170.00	DEM		84.55945	14,375
06.12.97	006	Hotel	S0	480.00	DEM		84.55945	40,589
06.13.97	007	Hotel paid	S0	10,000	ESP	X	1.00000	10,000
06.13.97	008	Lunch	S0	13,000	ESP		1.00000	13,000
06.13.97	009	Dinner	S0	7,000	ESP		1.00000	7,000
06.13.97	010	Hotel	S0	23,000	ESP		1.00000	23,000
06.14.97	011	Hotel paid	S0	100,000	ESP	X	1.00000	100,000
06.14.97	012	Lunch	S0	43,000	ESP		1.00000	43,000
06.14.97	013	Breakfast	S0	2,800	ESP		1.00000	2,800

Date	Cntry	Tax-free	Company	Amount,	Amount,	Reimburse.
				tax-free	taxable	amount
06.11.97 06:00 - 06.11.97 24:00
Max. rate	DE	61,000	62,000
All receipts	DE	61,729	61,729	61,000	729	61,729
06.12.97 00:00 - 06.12.97 24:00
Max. rate	DE	61,000	62,000
All receipts	DE	65,957	65,957	61,000	1,000	62,000
06.13.97 00:00 - 06.13.97 24:00
Max. rate	ES	36,900	37,000
Paid receipts	ES	10,000	10,000
All receipts	ES	53,000	53,000	26,900	100	27,000
06.14.97 00:00 - 06.14.97 22:00
Max. rate	ES	3,600	4,400
Paid receipts	ES	100,000	100,000		96,400
All receipts	ES	145,800	145,800	0	0	0

Total amounts meals and accomm. in ESP

148,900

1,829

150,729

T O T A L A M O U N T S

Total amount tax-free in ESP

Total imputed income (taxable amount) in ESP

148,900

96,400

Total amount taxable/Additional amount in ESP

1,829

Trip reimbursement amount in ESP

150,729

S E T T L E M E N T

Trip reimbursement amount in ESP	150,729
Paid by company	110,000
Total trip costs in ESP	260,729

On 6/11/97 the employee has a hotel, a lunch, and a dinner, a total of 61,729 in meals receipts. Since the maximum amount for tax for this day in Germany is 61,000, he receives this amount tax-free. The enterprise reimburses meals receipts for up to 62,000 on this day, so the employee receives the remaining taxable amount of 729.

On 6/12/97, the employee had meals receipts for 65,957. Since the enterprise only reimburses 62,000, the employee receives 61,000 tax-free and 1,000 subject to tax. The remaining 3,957 is capped and not reimbursed.

On 6/13/97, the employee had a hotel receipt paid by company amounting to 10,000. Both the tax-free amount and the enterprise-specific maximum amount are reduced by 10,000 to 26,900 and 27,000.

On 6/14/97, the employee had a luxury hotel paid by company amounting to 100,000. Both the tax-free and the enterprise-specific maximum amounts are reduced by 100,000. Consequently, 0 is reimbursed to the employee although he paid 45,800 for breakfast and lunch on the same day. In the standard system the hotel paid by employer is stored in the view ‘Travel expense types for receipt’ under travel expense category ‘V’ as travel expense type HOBZ. If an enterprise pays accommodations in a luxury hotel that costs more than the government calculates for tax-free reimbursement of receipts for an employee, this is considered imputed income for the employee. Since the tax-free maximum rate for this day is 3,600, the employee receives imputed income amounting to 96,400, which is taxable. This is shown on the form as a taxable amount resulting from a paid receipt with the line ‘Total imputed income (taxable amount)’. In the database, this amount is stored in table ROT under the wage type that was stored in the view ‘Input tax, wage type for receipt’ for travel expense type ‘HOBZ’. In the standard system, this is wage type ‘MJ60’ which leads to an increase in the gross tax amount in HR. If the enterprise-specific maximum amount were 200,000 and not, as in this case, 4,400, the employee would receive the 45,800, taxable, reimbursed for the remaining receipts that he paid. Of that amount, 42,200 would be taxable and 3,600 tax-free.