Allowance Rules—Exercises

Initial Exercise

Create New Expense Rule

Purpose: The purpose of this exercise is to learn how to create a new expense rule. You must create a new expense rule before you can continue with the following exercises.

New Expense Rule

Main Exercises

Purpose: The purpose of these exercises is to learn how to set up allowance rules according to specified recommendations and requirements.

Allowance ID

Purpose: Create allowance IDs to define the Swedish calculation rules for allowances.

Windows:
Expense Rule

Note: The Only Hours After 06 check box should be selected for all allowance IDs. Selecting the Only Hours After 06 check box ensures that the allowance is calculated only after 06:00 AM on a particular day.

  1. Click the Allowance tab and then click the Allowances sub tab.
  2. Create an allowance ID for travel lasting an entire day.
    1. The allowance requires an overnight stay. 
    2. The country that has been visited for the longest period of time should be used for pricing of abroad allowance, i.e., do not select the Use Last Country check box.
    3. Enter 1 for Priority to indicate that this allowance ID has the highest priority. Priorities begin at one which is the highest priority. When calculating the allowance, the program first looks at the allowance ID with the highest priority. If the conditions specified in the allowance ID do not match the entered travel information, the program looks at the allowance ID with the next highest priority and so on.
  3. Save your changes.
  4. Create an allowance ID for travel lasting half a day.
    1. The allowance requires an overnight stay.
    2. The country that has been visited for the longest period of time should be used for pricing of abroad allowance.
    3. The allowance should have the second highest priority.
  5. Save your changes.
  6. Create an allowance ID for an hourly allowance over 10 hours. The allowance does not require an overnight stay, but the travel must last for at least 10 hours.
  7. Create an allowance ID for an hourly allowance from 4 to 10 hours. The allowance does not require an overnight stay, but the travel must last for at least 4 hours.
  8. Make sure to enter appropriate dates in the Valid From and Valid To fields for all the allowance IDs you create.

Abroad Rule

Purpose: Create allowance compensation for travel abroad.

Windows:
Allowance Compensations Abroad

  1. Create an abroad rule containing one or two countries and price per country. The price is the value of compensation per day in that country.
  2. Save your changes.

Deductions

Purpose: Create default deductions that always should be subtracted from the allowance if the requirements are met.

Windows:
Expense Rule

  1. Click the Allowance tab and then click the Default Deductions sub tab.
  2. Create default deductions for breakfast, lunch, and dinner that are valid for the second and following days.
  3. Save your changes.

Create Expense Codes for Domestic Travels

Purpose: Create expense codes for domestic travel allowance compensation. 

Windows:
Expense Rule

  1. Click the Allowance tab and then click the Allowance Codes sub tab. We need expense codes for domestic travels according to the requirements below. Make sure to enter the minus sign for deductions as specified.
  2. Tax-Free Compensations: Whole Day: price 180 SEK; Half Day: price 90 SEK.
  3. Taxable Compensations: Over 10 hours, price 70 SEK; and 4–10 hours, 50 SEK
  4. Deductions, Whole Day: Breakfast price, -36 SEK; Lunch price, -63 SEK; Dinner price, -63 SEK
  5. Deductions, Half Day: Breakfast price, -18 SEK; Lunch price, -31 SEK; Dinner price, -31 SEK
  6. Taxable Benefits: Breakfast price, 26 SEK; Lunch price, 52 SEK; Dinner price, 52 SEK
  7. All domestic allowances and deductions should be summarized on the expense report as Domestic Allowance and the taxable benefits should be summarized as Taxable Benefits. Enter the appropriate value in the Sub Total Description field for each allowance ID you create to have them correctly summarized.
  8. Make sure to enter appropriate dates in the Valid From and Valid To fields for all the allowance IDs you create.

Create Expense Codes for Abroad Travels

Purpose: Create expense codes for abroad travel allowance compensation.

Windows:
Expense Rule

  1. Click the Allowance tab and then click the Allowance Codes sub tab. We need expense codes for travel abroad according to the requirements below. Make sure to enter the minus sign for deductions as specified.
  2. Compensations: Whole Day, price 100%, Half Day, price 50%
  3. Deductions, Whole Day: Breakfast price, -15%; Lunch price, -35%; Dinner price, -35%
  4. Deductions Half Day: Breakfast price, -15%; Lunch price, -35%; Dinner price, -35%
  5. All abroad allowances and deductions should be summarized on the expense report as Allowance Abroad. Enter Allowance Abroad in the Sub Total Description field for all the allowance IDs you create for travel abroad.
  6. Make sure to enter appropriate dates in the Valid From and Valid To fields for all the allowance IDs you create.

Note: Connect all expense codes for travel abroad to the abroad rule that you created above.

Connect Expense Codes to Allowance IDs

Purpose: Understand how to connect all expense codes for allowance compensation, deductions, and taxable benefits to the correct allowance IDs. Also understand how to connect the expense codes to other requirements necessary for the calculation of allowance compensations.

Windows:
Expense Rule

  1. Click the Allowance tab and then click the Compensations sub tab.
  2. Connect your expense codes to the correct allowance ID.
  3. Indicate whether an expense code is valid for travel abroad, is a taxable benefit, or is a deduction. For deductions, choose the correct deduction type.
  4. Make sure to enter appropriate dates in the Valid From and Valid To fields for all the allowance IDs you create.