Manage Travel Expense Trip Settlements Based on Trip Status

  • by Gaurav Agarwal, Principal Consultant, SAP S/4HANA Finance, Infosys Limited
  • August 2, 2013
Before settlement of an employee’s travel expense can be made in SAP Travel Management, you need to ensure that the trip is approved correctly as per the procedure set by an organization’s corporate policy. See how you can do the trip settlement in transaction PREC based on trip status. Learn how to:

Enable the settlement of the trips based on trip status in SAP Travel Management to ensure that only relevant trips are settled and accounted for as per corporate policy
Use two options to control trip settlement
Key Concept
Transaction PRAP is for AP clerk approval, and transaction PREC is for settlement. Both have different purposes. A standard SAP system provides functionality to select trips based on the status in PRAP (AP clerk approval) and not in PREC (trips settlement).

Standard SAP Travel Management includes two main approval statuses: Request approved and trip approved. An organization uses the request approved status when the accounting clerk verifies the receipts against the trip claim from an employee. An organization uses the trip approved status when the manager verifies and approves the trips. The SAP system does not differentiate between these two statuses during settlement in transaction PREC.

You can use SAP Travel Management for settlement of employees’ traveling expenses in the standard SAP ERP processes. By settling the trip, you can then post it to finance. The payment can then be made to the employee for the expenses incurred.

Figure 1 is a snapshot of the basic standard process for travel expense handling.

Gaurav Agarwal

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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