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Mileage rates

In short​

When an employee submits a mileage expense, TEM calculates the reimbursement amount by multiplying the trip distance by the applicable rate. The rate is looked up from the Travel Rates table based on the transport option used, the date of travel, and whether the employee has an individual rate.

Why it matters​

Mileage reimbursement rates often vary by vehicle type, distance band, and year. Misconfiguring rates - or not managing them over time - causes employees to be over- or under-reimbursed. The rate history mechanism (using Starting Date) allows correct calculation of historical expenses even after rates change.

How it works​

Rate lookup logic​

Given a mileage expense, TEM selects the rate by matching:

  1. Transport option - the vehicle the employee selected (e.g. Car, Car with Trailer, Motorcycle). Options are defined under Means of Transport.
  2. Employee No. - if a rate record exists for this specific employee and transport option, it takes precedence over the general rate.
  3. Starting Date - TEM uses the rate record whose Starting Date is closest to (but not after) the expense date. This allows rate changes to take effect from a specific date.
  4. Starting From (mileage threshold) - if tiered rates apply (e.g. higher rate for first 500 km, lower rate beyond), TEM selects the rate tier matching the employee's cumulative distance for the period.

Transport options​

An employee must be assigned at least one Means of Transport on their Employee Card (Expense Management → Vehicles) before they can submit mileage. The assignment also specifies:

  • Reimburse Mileage - if unchecked, the mileage is recorded but not reimbursed
  • Default - the vehicle pre-selected when the employee opens a new mileage entry

Distance calculation​

In the mobile app, the employee can enter a route using the map view (with automatic distance calculation) or type From and To addresses. The calculated distance can be manually overridden. In the web portal, From/To addresses are used with automatic distance calculation.

Worked example​

Configuration:

  • Option: Car
  • Rate: 0.45/km for first 500 km, 0.25/km beyond 500 km
  • Employee cumulative for the year: 480 km already recorded

Employee submits a 40 km trip:

First 20 km: within 500 km threshold → 20 × £0.45 = £9.00
Remaining 20 km: beyond 500 km threshold → 20 × £0.25 = £5.00
Total: £14.00

Note: the mileage statistics page shows the starting balance, posted mileage, and unposted mileage per employee per year, useful for verifying tier calculations.