SAP Knowledge Base Article - Public

3142645 - Non-Deductible Account Derived for items of Expense Report for Italy

Symptom

You create an expense report related to a business trip for an employee employed with a company located in Italy.

After the expense report is posted you notice that the expenses are split between the expected G/L account according to the account determination group defined for the respective expense type and the G/L account assigned to the account determination group A-7161 Travel Expense - Non Deductible.

Environment

SAP Business ByDesign

Reproducing the Issue

Example: Create a two-day domestic business trip for an employee of an Italian company, containing hotel as well as meal expenses: 

  1. Open a new Expense Report.
  2. Select an employee of an Italian company.
  3. In the Type of Expense Report field select Business Trip.
  4. In the trip type field select Pie di Lista (Trip outside Home Town).
  5. Maintain all the mandatory data, such as Purpose, Cost Assignment, Start and End date. 
  6. Press Next to navigate to the Expenses tab. 
  7. In the Expenses tab select Expense type hotel paid by company and enter the expense amount, for example 400 EUR.
  8. Enter the following expenses: 
Day Expense Type Expense Amount
Day 1 Hotel paid by company (2 nights) 400,00 EUR
Day 1    Meals paid by company 50,00 EUR
Day 2 Meals paid by company  20,00 EUR
Day 3   Meals paid by company  60,00 EUR
  • You notice that of the hotel expense only 361,52 EUR are posted to the expected expense account. The difference, 38,48 EUR are posted to G/L account defined for non-deductible travel expense.
  • The meal related expenses of day 1 and 2 are also posted to the non-deductible travel expense account.
  • Only the meal expense of day 3 is posted to the G/L account defined for the selected expense type.

Cause

There is a legal requirement for Italy in place to apply a deduction limit per day for meal and accommodation related expenses related to business trips.

The daily deduction limit is

  • for domestic trips: 180,76 EUR
  • for international trips: 258,23 EUR

All values that are exceeding the daily limit are posted to the G/L account specified for Account Determination Group A-7161 Travel Expense - Non Deductible (Fine Tuning >Charts of Accounts, Financial Reporting Structures >Account Determination > Account Determination > Costs > General Expenses).

Resolution

Calculation of non-deductible amounts for domestic example trip:

Day Expense Type Expense Amount Deduction Limit Exceeding amount to be posted as non-deductible expense
Day 1 Hotel paid by company (1 night)  200,00 EUR 180,76 EUR 19,24 EUR
Day 1    Meals paid by company 50,00 EUR 50,00 EUR
Day 2 Hotel paid by company (1 night)  200,00 EUR  180,76 EUR 19,24 EUR
Day 2  Meals paid by company  20,00 EUR 20,00 EUR
Day 3   Meals paid by company  60,00 EUR

 180,76 EUR n/a

Keywords

Expense report Italy, non-deductible account, unexpected G/L account, expense split , KBA , AP-ERM-GLO , Cross-Country Extensions , Problem

Product

SAP Business ByDesign all versions