What is an expense claim?

Key principles of an expense claim

1. What is the purpose of an expense?
   An expense claim is submitted to an employer to compensate for business travel costs. The categories include: transportation, lodging, meals, entertainment, miscellaneous expenses, etc.

2. What documentation is required for an expense transaction?
   An expense claim often requires receipts and details like date, amount, and purpose but this can differ depending on a company’s rules or expense policy.

3. How do you submit an expense claim?
   A claim can be sent to a manager by creating an expense report, often via travel expense management software.

4. How do you get approval for an expense claim?
   A company will define an expense policy to be followed by employees. Once reviewed and approved by supervisors or dedicated manager to ensure policy compliance, the claim will be reimbursed by the company’s accounts payable department.

5. What is a reimbursement?
   A claim is reimbursed when all conditions of the policy are met and the request has been paid out after approval.

Examples of an expense claim:

For a trip costing €940 in flights, hotel, meals, and taxis, the employee submits an expense claim with receipts. After approval, they are reimbursed €940.

An expense claim is the first step in the reimbursement process.

If for example, the expense claim or receipt contained “Alcohol €40“, and purchasing this item is against company policy, this expense claim may be rejected by a manager. The employee who created the request will have to review and provide an explanation.