SAP B1 blog

1 What is a travel expense report - and what is it for?

Travel expense accounting is not a bureaucratic end in itself. Rather, it serves the very practical purpose of carefully recording all expenses incurred during a business trip - including the supporting documents - and thus enabling reimbursement by the company. On the basis of these invoice tax advantages can also be claimed. However, only if all types of costs are accurately documented and substantiated can they actually be properly offset against taxable income. accounting and the tax office - without unnecessary queries or risks.

2. which expenses count as travelling expenses?

As soon as employees leave their first place of work, potentially reimbursable travel expenses are incurred almost automatically. The most common categories are quite typical:

• Travelling expensesTrain, flight, hire car, taxi or private car use (with kilometre allowance)
• Accommodation costsHotel, pension, possibly Airbnb
• Additional catering expensesPackages, staggered according to trip duration and location
• Ancillary travelling expensesParking fees, luggage storage, professional telephone costs

Not refundable: snacks from the minibar, private films in the hotel or fines - the tax office shows little humour here.

3 The reality: Why travel expense processes often fail

Many companies still rely on Excel spreadsheets, scanned receipts by email and manual checks by the accounting department. Sounds old-fashioned? It is. In practice, this regularly leads to the following problems:

• Missing or illegible receipts
• Confusion between private and business costs
• Queries from the accounting department that come days later
• Long waiting times for reimbursement

And all this for a journey that has often long since been forgotten.

4. from document chaos to a digital solution

Why keep paperwork when you can centralise it? With modern tools for travel expense accounting, the entire process runs digitally - from receipt entry via app to GoBD-compliant archiving in the system.

A good travel expense tool offers:

• Automatic calculation of flat rates
• Mobile upload of receipts in real time
• Clear workflows with approval processes
• Audit-proof storage of all documents

The highlight: employees don't need to complete any IT training - intuitive apps reduce the workload for everyone involved.

5 The middle way: corporate credit cards with a digital connection

Another piece of the puzzle for efficient travel expense accounting: Corporate credit cards. If these are systematically linked to the travel expense software, expenses can be automatically allocated to the correct project or location.

Advantages for companies:

• No pre-financing by employees
• Clear control over budgets through individual limits
• Real-time transparency for accounting
• Fewer queries, fewer errors

The expenditure is made - the accounting department sees it immediately. Finance can be that simple.

6 Legal framework & tax requirements

Travel expenses can be reimbursed free of income tax and at the same time recognised as a business expense - under one very important condition: The business reason for the trip must be clearly proven. This includes, for example:

• A complete travel application or proof
• Seamless supporting documents with date, time, occasion
• Compliance with statutory lump sums

If no costs are reimbursed, employees can claim these via the Income tax return as income-related expenses - even then, all receipts are required.

7. best practices for billing in 2025

If you want to reduce the effort involved, establish clear processes:

1. Create guidelineWhat is reimbursed? What deadlines apply? What proof is required?
2. Introducing digital toolsTravel expenses should be processed via a central platform - no Excel files in circulation!
3. Involve employeesA simple tool lowers the inhibition threshold for completing billing promptly.
4. Review processes regularlyAre flat rates still correct? Are there any technical hurdles?

Companies that pay attention to these points not only save money - but also nerves.

8 Outlook: Where travel expense accounting is heading

A look into the near future shows: Automation is clearly the keyword. Artificial intelligence recognises receipt content, categorises it practically automatically and checks it fairly reliably for plausibility. Mobile apps become virtually the only interface for travelling employees - exactly where they are needed.

In addition, the separation of expense reimbursement, entertainment and travel expenses is increasingly being abolished. Everything flows together in a centralised process - integrated with accounting and directly linked to ERP systems such as SAP Business One or DATEV.