1973525 - Expense Report Reimbursement in Italy

For Italy, the Outstanding Reimbursement for a customer’s employee is limited to 25.82 EUR, even if the employee incurred a higher amount.

SAP Business ByDesign

1. Go to Travel and Expenses Work Center.

2. Click on Expense Reports View.

3. Select the Expense Report and click on Edit.

4. Go to the Review tab.

In Reimbursements and Expense Summary that the Payout to Employee is XX EUR. But, under Reimbursement History, the Outstanding Reimbursement is 25,82 EUR.

By clicking Preview and then Reimbursement Details, the Tax-free Receipts and the Taxable Receipts discriminated.

For Trip Type Pie di Lista – Trip Outside Home Town, receipt type Other Expenses (of expense category OTHER) has a daily tax-free limit of 25.82 EUR. Any amount above this limit is treated as taxable for the employee.

The receipt type used can be verified in the Receipts tab of the expense report.

To identify the expense category, follow these steps:

1. Business Configuration work center.
2. Overview sub view.
3. Open Expense Reporting - Italy.
4. Choose Edit receipt types.

All Receipt Type descriptions and their corresponding categories are displayed.

The Receipt Type – Other Expenses under the Trip Type "Pie di Lista – Trip Outside Home Town" refers to expenses other than meals, accommodation, lodging, and transportation, as these expense types are fully tax-free.

Examples of Other Expenses include tips, laundry, and Pay TV charges. Whether these expenses are reimbursed is determined by the customer's business policy.

If these expenses are reimbursed, they are subject to partial taxation in accordance with the limits defined by Italian tax law. Therefore, they must be transferred to Payroll to ensure the appropriate tax treatment is applied to the employee.

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