What is per diem reduction in SAP AP-ERM - FIN-Expense and Reimbursement Management?

SAP Term: per diem reduction

• Component: AP-ERM

• Component Name: FIN-Expense and Reimbursement Management

• Description: Reduction of the meals and lodging per diem rates, for example due to gratuitous meals or lodging.

Smart SAP Assistant

• Key Concepts: 
  Per diem reduction is a feature of SAP's Expense and Reimbursement Management (AP-ERM FIN) component. It allows companies to reduce the amount of money they pay out for employee expenses by setting a maximum daily rate for certain types of expenses. This rate can be adjusted based on the employee's location, the type of expense, and other factors. 
  
  How to use it: 
  To use per diem reduction, companies must first set up a per diem rate in SAP. This rate can be adjusted based on the employee's location, the type of expense, and other factors. Once the rate is set, it will be applied to all expenses that fall within its parameters. Employees can then submit their expenses for reimbursement, and the system will automatically reduce any amounts that exceed the per diem rate. 
  
  Tips & Tricks: 
  When setting up a per diem rate in SAP, it is important to consider all relevant factors such as location, type of expense, and other factors. This will ensure that the rate is accurate and that employees are not overpaid for their expenses. Additionally, it is important to regularly review and update the per diem rate to ensure that it remains accurate and up-to-date. 
  
  Related Information: 
  For more information about SAP's Expense and Reimbursement Management (AP-ERM FIN) component, please visit SAP's website at https://www.sap.com/products/expense-management.html. Additionally, you can find more information about setting up per diem rates in SAP in the SAP Help Portal at https://help.sap.com/viewer/product/SAP_ERP_FINANCIALS/6.0/en-US/f9f8d7a3c2b14e8a9f3d7c2b1e5f9a4d.html?q=per+diem+reduction&language=en-US&resultType=help&searchid=1590990984520&originalSearch=per%20diem%20reduction