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

per diem settlement - Overview

• Component: AP-ERM

• Component Name: FIN-Expense and Reimbursement Management

• Description: The calculation of expense reimbursements based on per diem rates.

per diem settlement - Details

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  Key Concepts: 
  Per diem settlement is a feature of SAP’s Expense and Reimbursement Management (AP-ERM) component. It allows companies to reimburse employees for expenses incurred while traveling for business purposes. The reimbursement is based on a predetermined daily rate, or “per diem”, which is set by the company. 
  
  How to use it: 
  The per diem settlement feature in SAP’s AP-ERM component allows companies to easily manage employee travel expenses. Companies can set a per diem rate for each type of travel expense, such as meals, lodging, and transportation. Employees can then submit their expenses for reimbursement using the per diem rate. The system will automatically calculate the total amount due to the employee based on the per diem rate and the number of days traveled. 
  
  Tips & Tricks: 
  When setting up the per diem rate in SAP’s AP-ERM component, it is important to consider the local cost of living in the area where the employee will be traveling. This will ensure that the per diem rate is fair and accurate. Additionally, it is important to keep track of any changes in the local cost of living so that the per diem rate can be adjusted accordingly. 
  
  Related Information: 
  SAP’s AP-ERM component also includes features such as expense report management, travel request management, and credit card reconciliation. These features can be used in conjunction with the