Automate Travel Expense Settlement and Transfer to Finance

  • by Gaurav Aggarwal, Lead Consultant, SAP S/4HANA Finance, Infosys Limited
  • February 8, 2012
Learn how to automate the process of settlement and transfer to finance of trip reports created in the SAP Travel Management module. Then, once the trip report is approved, it is automatically settled and posted into FI. Understand the settings, as well as the tips and tricks, needed to set up this automation batch job.
Key Concept
In a standard SAP ERP process, you can use SAP Travel Management for accounting of employees’ traveling expenses. It enables employees to enter the expenses that they incur for official purposes. These expenses are then sent for approval and the amount is paid to the employee.

In standard SAP Travel Management there are various steps for handling trip reports, such as creating, confirming, approving, settling, and posting to accounting. After the finance department confirms the trip report, it is sent to the relevant approver based on the defined workflow.

Managers manually approve these types of reports. They should not be autoapproved as the approver should verify the amounts, eligibility, and other data. Autoapproval is for exceptional scenarios only, such as petty expenses. However, you can design a workflow in such a way that if the trip report is for a small expense or for the top-level manager’s trip report, then the workflow program automatically approves the trip report.

The system then sends it directly to the finance department for settlement (using transaction code PREC) and posting to FI (using transaction codes PRFI and PRRW). Once the trip reports are approved, the business can automate the next steps for settling and posting them into finance. I show you how to automate certain steps (trip settlement and posting) in the process of accounting for travel expenses.

Note
Generally, businesses create self-service employee and manager portals for travel expense management as a front end. The SAP system runs as a background system for the actual execution of the transaction. I explain the travel expense flow using the transaction codes and access paths in an SAP system.

Gaurav Aggarwal

Gaurav Aggarwal is SAP S/4HANA lead consultant at Infosys Limited. He has more than 14 years of experience, including 11 years in SAP Finance. He has expertise in both SAP FI and Controlling (CO) with integration to other modules in manufacturing and process industries. He is a chartered accountant and SAP Certified Financial Consultant. He holds a bachelor’s degree in commerce and is a techno-functional expert with thorough knowledge of the necessary ABAP for functional experts. He is a veteran in G/L, AR, AP, banking, FA, Travel Management, and closing cockpit and has handled greenfield implementation, upgrades and conversions, rollouts, and support projects. 

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