Help CenterPer Diem Policies Parametrization in Operations Management
Purpose
The Per Diem Policy setting defines the structure for per diem payments for business trips.
It ensures consistency and compliance with company reimbursement standards by specifying rates, currencies, and conditional rules based on travel parameters such as country, duration, or departure and arrival dates/times.
This configuration allows organizations to automate travel expense calculations, simplifying approval workflows and increasing financial accuracy across multiple companies or regions.
Access Path
Control Center → Operations Management → Per Diem Policies
Accessing the Configuration
Navigate to:
Operations Management → Per Diem Policies
You can:
- Click Add Per Diem Policy to create a new configuration.
- Use Edit to modify policy details or associated rates.
- Select Delete to remove outdated policies.
Configuration Fields
Each policy includes key fields that define where and how the per diem structure applies.
| Field | Description |
|---|---|
| Name | The title of the policy (e.g., Standard Portugal, Europe Travel Policy). |
| Companies | Specifies which company or business unit applies this policy. |
| Currency | Defines the currency used for per diem calculations (e.g., Euro, USD). |
| First Day Rate | Determines which rate applies to the first day of travel (options: Origin or Destination). |
| Last Day Rate | Defines which rate applies to the last day of travel. |
Country and State Rates
Each policy includes multiple rate lines that define the applicable per diem amount by country and state.
| Field | Description |
|---|---|
| Country | Destination country for the rate. |
| State | Region or state within the country. |
| Rate | Base daily per diem amount. |
| Currency | Monetary unit for the rate. |
| Rules | Indicates how many conditional rules apply to this rate (e.g., Rules: 1). |
Selecting a Rules indicator opens the detailed rule configuration specific to that rate.
Example Configuration
| Field | Example Value |
|---|---|
| Name | Standard Portugal |
| Company | IT Services Company |
| Currency | Euro |
| First Day Rate | Origin |
| Last Day Rate | Origin |
| Country | Portugal |
| State | Lisboa |
| Rate | 60 EUR |
| Rules | 1 |
Interpretation:
This policy defines a 60 EUR daily per diem for travel to Lisboa, Portugal, applicable to the IT Services Company.
Both first and last day calculations use the Origin rate, and one conditional rule applies for specific travel timing.
Rules Configuration
Purpose
Rules define specific conditions under which the standard per diem rate is adjusted.
They allow companies to set logical, time-based, or contextual criteria that influence how much of the rate applies — such as reducing the allowance for late departures or partial travel days.
Accessing the Rules
Within Per Diem Policy Details, each rate line shows a Rules button (e.g., Rules: 1).
Clicking this opens the Rules Details view for that country/state rate.
Rules Details Fields
| Field | Description |
|---|---|
| Name | Identifies the rule (e.g., Start Time, End Time, Late Departure Rule). |
| Description | Provides additional context on what the rule controls. |
| Percentage | Specifies the portion of the daily rate to apply when the rule is met (e.g., 50%). |
| Condition Parameter | Defines the rule variable (e.g., Departure Time, Return Time). |
| Operator | Logical comparator used in the rule (e.g., Greater Than, Less Than, Equal To). |
| Value | The threshold value that triggers the condition (e.g., 3:00 PM). |
| Condition Formula | Displays the logical formula representing how multiple conditions combine (e.g., 1 AND 2 true). |
Example Rule
| Field | Example Value |
|---|---|
| Name | Start Time |
| Description | Standard Time Rule |
| Percentage | 50% |
| Condition Parameter | Departure Time |
| Operator | Greater Than |
| Value | 3:00 PM |
| Condition Formula | 1 AND true |
Interpretation:
If the Departure Time on the travel request is after 3:00 PM, only 50% of the daily rate (30 EUR from 60 EUR) will apply for that day.
Usage
Rules automatically adjust the per diem value during travel expense processing:
-
When an employee submits a travel request linked to this policy, the system checks all active rules.
-
If the rule conditions are met (e.g., departure after 3:00 PM), the per diem is recalculated using the rule’s Percentage.
-
The adjusted value appears in billing, reimbursement, and reporting workflows.
This automation ensures consistent application of company travel policy standards across all users and transactions.
Best Practices
- Keep rule names descriptive for clarity (e.g., Late Departure – 50% Rate).
- Use percentage adjustments for flexible scaling across currencies.
- Limit conditions per rule to maintain readability and performance.
- Review the Condition Formula after editing multiple criteria to ensure logical consistency.
- Periodically audit active rules to align with HR or finance policies.
Summary
| Item | Description |
|---|---|
| Feature | Per Diem Policies |
| Location | Operations Management → Per Diem Policies |
| Objective | Define and automate per diem allowances and rate adjustments |
| Key Fields | Name, Company, Currency, Country, Rate, Rules |
| Rule Capabilities | Time-based or condition-based rate adjustment |
| Output | Consistent and automated travel reimbursement calculation |
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