Manage Credit Card Expenses with mySAP ERP Travel Management

  • by Debbie Peake, SAP Labs LLC
  • September 15, 2005
SAPexperts HR/Financials
mySAP ERP Travel Management supports expense reporting and management of all types of corporate credit cards and business travel activity. Learn what the options are, what other companies are doing, and how you can leverage your systems to save money, streamline processes, and prevent fraud.
Key Concept

SAP Travel Expense enables the importing of corporate credit card files (credit card clearing) into the SAP system using accounting files supplied by the credit card providers. This allows employees to see their credit card expense receipts (online and offline) and to assign their receipts to their relevant expense report. The origin of the expense,as well as information about the payment, are then transferred to Financial Accounting (FI), resultingin more transparency within the financial supply chain and quicker payment to the credit card provider. The IRS allows for the use of electronic receipts versus the storage of paper receipts. For more information, go to http://ftp.fedworld.gov/pub/irs-irbs/irb98-11.pdf.

Consider these two scenarios for a company that provides employees with company credit cards that carry personal liability:

Scenario 1. The employee completes the expense report and uses the company credit card. The company reimburses the employee for all credit card and out-of-pocket expenses. The employee pays the credit card provider. Time-to-pay is based on how quickly the company reimburses the employee and when the employee opts to pay the credit card provider.

Scenario 2. The employee completes the expense report and uses the company credit card. The company reimburses the credit card provider directly on behalf of the employee and reimburses the employee for out-of-pocket cash expenses. Time-to-pay is now in company control, which could reduce it to as few as three days.

Companies with strong travel and expense purchasing power generally receive rebates from the credit card provider. If a company is able to reduce the time-to-pay by implementing scenario 2, an enhanced rebate is achievable and the cost impact can be significant. A key factor in the calculation of the rebate amount is the average of the company's time-to-pay.

Debbie Peake

Debbie Peake is a 25-year corporate travel management industry veteran. She has worked for SAP for more than five years dedicated to the business development, product management, and marketing of SAP's Travel Management solutions. Debbie has previous experience working for global distribution systems, mega-travel agencies, airlines, and corporate travel management consulting.

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