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If per diem is configured as per travel duration, how will my per diem be calculated?

By default, the ITILITE system considers 100% of the per diem rate while calculating the reimbursement amount, irrespective of the number of hours the employee spends at the destination.

Let’s take an example. Suppose an employee visits New York, where the per diem rate is $100. They reach at 6 pm on 13 November, spending 6 hours that day at the destination. They stay and attend all the meetings on 14 November, spending 24 hours that day at the destination. And finally, they leave at 6 am on 15 November, spending 6 hours that day at the destination.

As per the default configuration, the employee will get full 3 days’ worth of reimbursement, i.e., $300.

However, considering the same example, if you configure different percentages of the per diem rate according to different travel durations, the reimbursement amount will be adjusted by the system.

So, if you have configured a 25% per diem rate for 6 hours of the day, the total amount will be calculated as follows:

Day 1: 25% of $100= $25

Day 2: 100% of $100 = $100

Day 3: 25% of $100= $25

Hence,  the employee will get $150 ($25+$100+$25) as per diem claim reimbursement.

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