Some companies permit employees to charge expenses to either meals/lodging expense types or to a per diem expense type. DATABASICS Expense can be configured to deduct an amount from the per diem if an employee charges both per diem and a meal or lodging for the same date. A common example would be when an employee takes a client to dinner and charges the total to a dinner expense type.

For per diem deductions to function, DATABASICS Expense must have both the appropriate per diem expense type, as well as the meals and/or lodging expense types set up.

Added in Version 5.5.1

Support meals deduction percentages based on time out of office. Additional setup Value Types (% of original rate for full day, % of original rate for 3/4 day, % of original rate for 1/2 day, % of original rate for 1/4 day) to allow a percentage deduction to be applied for each meal provided.

For example: Transcontinental Consultants, Inc. (TCI) uses meals per diem. When TCI employee is out of office all day a per diem rate of $50 is given, but if any meals are provided TCI applies a deduction of 25% for each meal provided. So if the TCI employee was provided with breakfast and dinner a deduction of 25% X 25% = 50% will be deducted from the per diem rate. This would result in the user receiving a per diem amount of $25 for this day.

To set up a per diem deduction:

  1. Expand the Expense menu.
  2. Expand the Per Diem Setup menu.
  3. Click Deduction Rule
  4. Click the Add button.
  5. In the Effective Date field, enter a date from which this deduction will be effective.
  6. (V8.3 and higher) To assign the deduction rule to a specific Operating Unit, select a specific Operation Unit, otherwise leave the field as ALL
  7. (V8.3 and higher) To assign the deduction rule to a specific Department, select a specific Department, otherwise leave the field as ALL
  8. (V8.3 and higher) To assign the deduction rule to a specific Location, select a specific Location, otherwise leave the field as ALL
  9. If the deduction will apply to only one country, enter the country. Otherwise, leave this field as All 
  10. If the deduction will apply only within one state in the selected country, enter the state. Otherwise, leave this field as All
  11. If the deduction will apply only within one city in the selected country/state combination, enter the city. Otherwise, leave this field as All 
  12. In the ID field, select the expense type for which this deduction will apply. (See ID Field Definition table below)
  13. In the Value Type field:
  14. In the Breakout Flag Field:

                    Note: Deduction Fixed Rate must be set up in order to use the Breakout Flag.               

Breakout Flag option only applies in cases where an actual expense type is selected in the ID field (Does not apply to breakfast, lunch, and dinner provided or taken options)

    12. In the Value/Percentage field, enter a specific value or percentage this rule is based on.
    13. In the Currency field, select a currency if an Absolute Value was selected in the Value Flag field.
    14. In the Per Diem Type, select the per diem type against which this deduction will apply.

Example - Deduction Rule

Transcontinental Consultants, Inc. (TCI) uses meals per diem. When a TCI employee dines out with a client, the employee is to charge the total meal charge to the appropriate meal expense type. To avoid paying both the meal expense type charge and the meals per diem charge, TCI uses per diem deductions. If an employee enters a breakfast expense and charges per diem, the meals per diem rate is reduced by 20%. If an employee enters a lunch expense and charges per diem, the meals per diem rate is reduced by 30%. If an employee enters a dinner expense type and charges per diem, the meals per diem rate is reduced by 50%.

The table below illustrates the effect on an expense report's per diem calculation for a user who enters a breakfast (20%), lunch (30%) and dinner (50%) while also claiming meals per diem of $50 per day.

Meals Per Diem

Meal Expense

Deduction

Per Diem Paid

$50

None

None

$50

$50

Breakfast

$10 (20%)

$40

$50

Lunch

$15 (30%)

$35

$50

Dinner

$25 (50%)

$25

$50

Breakfast, lunch and dinner

$50 (sum of the three above)

0

Setting Up the Example

Reducing per diem for a breakfast charge

Field

Selection

Reason/Effect

Effective Date

Any date before the meal expense occurs

Effective date must be the date of the expense to be effective.

Expense Type

Breakfast

Deduction reduces per diem if there is a breakfast charge.

Rate Flag

Percentage of Per Diem Rate

The deduction is to be a percentage of the meals per diem rate.

Value/Percentage

20

Meals per diem is to be reduced 20% if there is a breakfast charge.

Per Diem Type

Meals Per Diem

Deducts from meals per diem

Reducing per diem for a lunch charge

Field

Selection

Reason/Effect

Effective Date

Any date before the meal expense occurs

Effective date must be the date of the expense to be effective.

Expense Type

Lunch

Deduction reduces per diem if there is a lunch charge.

Rate Flag

Percentage of Per Diem Rate

The deduction is to be a percentage of the meals per diem rate.

Value/Percentage

30

Meals per diem is to be reduced 30% if there is a lunch charge.

Per Diem Type

Meals Per Diem

Deducts from meals per diem

Reducing per diem for a dinner charge

Field

Selection

Reason/Effect

Effective Date

Any date before the meal expense occurs

Effective date must be the date of the expense to be effective.

Expense Type

Dinner

Deduction reduces per diem if there is a lunch charge.

Rate Flag

Percentage of Per Diem Rate

The deduction is to be a percentage of the meals per diem rate.

Value/Percentage

50

Meals per diem is to be reduced 50% if there is a dinner charge.

Per Diem Type

Meals Per Diem

Deducts from meals per diem

Effect on Expense Report

Action

Meals Per Diem Rate

Deduction's Effect

Employee Sees on Report

Employee enters $15 breakfast expense for 2/1/2002

$50

Subtracts $10 (20%) from $50 per diem

A breakfast expense of $15 (deduction performed and explained when per diem entered and saved.)

Employee enters $20 lunch expense for 2/2/2002

$50

Subtracts $15 (30%) from $50 per diem

A lunch expense of $20 (deduction performed and explained when per diem entered and saved)

Employee enters $40 dinner expense for 2/3/2002

$50

Subtracts $25 (50%) from $50 per diem

A dinner expense of $40 (deduction performed and explained when per diem entered and saved.

Employee enters per diem expense for 2/1/2002 to 2/3/2002.

$50

Per diem calculated at $150

Per diem of $150, with three separate deductions totaling $50, leaving $100 per diem payable to employee, plus the three meals totaling $75. Total due to employee = $175.

ID Field Definition of Provided/Taken and Rule Based

Note: When the non-rule based Provided/Taken are being used the system option needs to be setup to specify if the deduction/allocation should be based on the full rate or adjusted rate (this is in system options)

ID Field

Definition/Effect

[Breakfast Provided Rule Based]System reads the deduction rate specified in the Value/Percentage field in the Deduction Rule table and ignores the "Deduction Fixed Rate" table for breakfast

[Breakfast Provided]

System looks at the "Deduction Fixed Rate" table to read the deduction amount for breakfast

[Breakfast Taken Rule Based]System reads the deduction rate specified in the Value/Percentage field in the Deduction Rule table and ignores the "Deduction Fixed Rate" table for breakfast
[Breakfast Taken]System looks at the "Deduction Fixed Rate" table to read the breakout amount for breakfast
[Breakfast, Lunch, Dinner Provided Rule Based]System reads the deduction rate specified in the Value/Percentage field in the Deduction Rule table and ignores the "Deduction Fixed Rate" table for breakfast, lunch, and dinner
[Breakfast, Lunch, Dinner Taken Rule Based]System reads the deduction rate specified in the Value/Percentage field in the Deduction Rule table and ignores the "Deduction Fixed Rate" table for breakfast, lunch, and dinner
[Dinner Provided Rule Based]System reads the deduction rate specified in the Value/Percentage field in the Deduction Rule table and ignores the "Deduction Fixed Rate" table for dinner
[Dinner Provided]System looks at the "Deduction Fixed Rate" table to read the deduction amount for dinner

[Dinner Taken Rule Based]

System reads the deduction rate specified in the Value/Percentage field in the Deduction Rule table and ignores the "Deduction Fixed Rate" table for dinner

[Dinner Taken]

System looks at the "Deduction Fixed Rate" table to read the breakout amount for dinner

[Lunch Provided Rule Based]

System reads the deduction rate specified in the Value/Percentage field in the Deduction Rule table and ignores the "Deduction Fixed Rate" table for lunch

[Lunch Provided] 

System looks at the "Deduction Fixed Rate" table to read the deduction amount for lunch

[Lunch Taken Rule Based]

System reads the deduction rate specified in the Value/Percentage field in the Deduction Rule table and ignores the "Deduction Fixed Rate" table for lunch

[Lunch Taken]

System looks at the "Deduction Fixed Rate" table to read the breakout amount for lunch

[One Meal Provided]System looks at the "Deduction Fixed Rate" table to read the deduction amount for one meal
[One Meal Taken]System looks at the "Deduction Fixed Rate" table to read the breakout amount for one meal
[Three Meals Provided]System looks at the "Deduction Fixed Rate" table to read the deduction amount for three meals
[Three Meals Taken]System looks at the "Deduction Fixed Rate" table to read the breakout amount for three meals
[Two Meals Provided]System looks at the "Deduction Fixed Rate" table to read the deduction amount for two meals
[Two Meals Taken]System looks at the "Deduction Fixed Rate" table to read the breakout amount for two meals