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Travel Expense Reimbursement Scenario

When employees travel for work, they often incur various expenses such as flights, accommodation, meals, and transportation. Reimbursing these expenses is a standard practice, but it involves a systematic approach to ensure fairness, accuracy, and adherence to company policy. This tutorial will guide you through a structured method to calculate the reimbursable amount for an employee's travel.

What We Will Do:

Collecting Travel Details​

Capture essential details:

  • Employee Name
  • Departure (should be different from destination)
  • Destination (should be different from departure)
  • Duration of Stay (don't exeed the yealy vacation 15 days)
  • Accommodation Type (Hotel, Hostel, Guest House)

Travel Expense Submission​

  • Data Gathering:
    • Airfare: The cost of the flight ticket.
    • Accommodation Costs: Daily rate for the stay.
    • Meal Costs: Daily meal expenses.
    • Miscellaneous Expenses: Other expenses like taxi fares, bus tickets, etc.

Expense Limit Verification​

Each category has a set maximum limit based on company policy. Any amount exceeding this limit will not be reimbursed.

Verification Process​

Expense CategoryMaximum Allowable (in $)
Airfare500.00
Accommodation (Hotel)50.00/day --> 150.00/day
Meals50.00/day
Miscellaneous75.00/day

Total Reimbursement Calculation​

Calculation:​

Total Reimbursement = Min(Airfare, 500) + Min(Accommodation Cost, Accommodation Limit * Duration) + Min(Meal Costs, 50 * Duration) + Min(Miscellaneous Expenses, 75 * Duration)

Communicating Reimbursement Outcome: Building the Flow​

Once the reimbursable amount is determined, communicate the amount to the employee. This ensures transparency, and the employee understands how the reimbursement was calculated.