TRAVEL AND

EXPENSE
SETTLEMENT

Version 1 dated May 13, 2015

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Table of Contents
1.1 Objectives......................................................................................................................... 3
1.2 Policy Guidelines............................................................................................................... 3
1.3 Process Flowchart (To be added).......................................................................................3
1.4 Process Description........................................................................................................... 4
1.4.1 Selection and evaluation................................................................................................ 4
Selection of Travel agents................................................................................................ 4
Selection of other vendors (Airlines/Hotel/Car Vendors/Forex Vendors/Credit Card
vendors)........................................................................................................................... 4
1.4.2 Contract management................................................................................................... 5
1.4.3 Master creation and maintenance..................................................................................6
1.4.4 Credit card process........................................................................................................ 6
1.4.5 Handling of trip/other requests.......................................................................................6
Domestic travel requests................................................................................................. 6
International travel requests............................................................................................ 7
1.4.6 Cancellation of trip requests.......................................................................................... 9
1.4.7 Travel insurance............................................................................................................. 9
1.4.8 Expense settlement..................................................................................................... 10
1.4.9 Payment to vendor....................................................................................................... 11
1.4.10 Accounting................................................................................................................. 12
Annexure............................................................................................................................... 12
Annexure 1 International Travel Policy.........................................................................12
Annexure 2 Domestic Travel Policy..............................................................................12

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1.1 Objectives

The purpose of the policy is to ensure the following:

Employee friendly process is developed for travel expense claim and
settlement.
Strong internal control over the process of employee claim submission,
reimbursement and
accounting.
Efficient process is followed to mitigate the risk of incorrect/ineligible
reimbursement of expenses or unauthorized payments made to employee /
Credit Card Company.
Timely and accurate processing of reimbursement and settlement of float
account.
Adherence to the HR and other laid out company policies, wherever
applicable.
Periodic review and reconciliation of employee float account balance and
ageing.

1.2 Policy Guidelines

Travel and Expenses SOP aims at establishing an employeefriendly, effective and

efficient claim settlement process while balancing the risk of unauthorised or excess
payments
Each employee is expected to use the same diligence in incurring business expenses
as one would in case of incurring expenses of personal nature with their own money
or if it was their own business
Department-wise budgets are prepared by FP&A team which include travel &
accommodation budget.
Every employee will be provided with corporate credit card and limits will be assigned
as per group.
Expenses are incurred by the employees for official purpose (e.g. travel costdomestic and international travel, lodging and boarding, conveyance etc.) using the
corporate credit card or the float/advance taken or personal money. These expenses
should be claimed/ settled as per travel policy by submitting claim on the T & E tool.
Employees holding the Corporate Credit card are encouraged to use the card for
official expenses
All expenses incurred by employee using his credit card would be recorded in his float
account and settlement will be made through such float account.
Failure to abide by these policy guidelines will result in disciplinary action
This manual should be read in conjunction with International and Domestic Travel
Policy issued by the HR department. Any subsequent modification in the travel policy,
it will override this manual
This Manual will be updated and modified from time to time due to changes in
company policy, commercial environment and technology over time. Any
modification to this Manual should be approved jointly by the Head - Global Shared
Services (Head - GSS) and Travel Head.

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1.3 Process Flowchart (To be added)

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1.4 Process Description

1.4.1 Selection and evaluation
Sr.
No.

1.

2.

3.

4.
5.

6.
7.

Process activity
Selection of Travel agents
Travel agents are shortlisted jointly by Travel Head and T &
E executive and Request for Proposal (RFP) is floated to
them
Shortlisted travel agents submit filled RFP along with
supporting documents as required in the RFP. Illustrative
fields of RFP and details submitted are as follows:
Name/ address of agency
Years of experience and number of employees
Names of three major Corporate Clients having
business with agency
Hours of operation
Licenses/memberships, e.g. IATA, other etc.
Services provided, e.g. air, bus, train, car, hotels,
cancellations and changes
Cost
Financials (Balance sheet and Profit/ loss)
All information and documents submitted by the shortlisted
travel agent along with RFP are evaluated. A travel agent is
selected based on the following illustrative criteria:
Cost competitive services based on Company travel
needs, including discounts in addition to negotiated
rates
Implant provided by travel agent at Cipla location
Ability to assist with visa processing
Ability to assist with airline negotiations
Ability to provide 24X7 support
Online and on-demand reporting/reviews of services
Once selected, contracts are entered into with travel
agents, as process outlined in section 1.4.2.
Travel agents are evaluated annually based on overall
performance. In case of non-performing travel agencies as
per contract, necessary action is taken, such as termination
of contract with travel agent.
Selection of other vendors (Airlines/Hotel/Car
Vendors/Forex Vendors/Credit Card vendors)
List of available Airlines, location specific hotels, location
specific/pan India car vendors, forex vendors, bank for
credit cards is maintained/updated
Vendors are selected based on the following inter alia
parameters

Responsibil
ity

Template/
Checklist

Travel Head

Travel Head

RFP

Travel Head

Quote
comparison
sheet

Travel Head

Travel Head

Evaluation
checklist

Travel head
Travel head

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Sr.
No.

Process activity

Responsibil
ity

Template/
Checklist

Responsibil
ity

Template/
Checklist

Travel Head

Travel Head

Travel Head

Travel Head

Travel Head

GSS Head

Travel Head

Contract
tracker

Market reputation
Service provided on Company needs
Presence
Payments terms

1.4.2 Contract management

Sr.
No.

1.

2.
3.
4
.
5
.
8
.
9
.

Process activity
Contracts are entered with the following:
Airlines
Travel agent
Hotels (only Domestic)
Car vendors
Forex vendor
Of the above, contract with Travel agent is entered in
standardized template vetted by the Legal team and for
contract with other vendors draft contracts are forwarded
to legal team to review the terms and conditions before
finalizing the contract to ensure that terms are not
detrimental to interests of Cipla. Legal team affixes stamp/
sign on the final contract certifying their review
Airlines: Contract with standard terms and fixed period is
provided by airlines is entered into mentioning the travel
agent through whom the tickets will be booked for Cipla.
Travel Agent: A fixed term contract is entered into with
travel agent for domestic and international air bookings.
Hotels: In case of contracts with hotels for domestic
accommodation, a fixed term contract is entered into
depending on availability from hotels.
Car Vendors/Forex Vendors: Annual contracts are
entered into with car vendors and forex vendors by
mentioning corporate rates offered to Cipla
All the above mentioned contracts are signed by GSS Head
as per DOA.
A tracker is maintained for all the contracts.

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1.4.3 Master creation and maintenance

Sr.
No.

1.
2.

Process activity
T & E tool is linked with the HR system. Auto run cycle is
initiated every 24 hours to update the employee data in T &
E tool.
T & E is linked with the booking system of travel agent for
flow of travel request.

Responsibil
ity
IT
executive
IT executive

Template/
Checklist

1.4.4 Credit card process

Sr.
No.

1.

2.

3.

Process activity

Responsibili
ty

Corporate credit cards are issued to employees as per

corporate credit card policy.

Travel Head

Employee fills credit card request form online on vendors

website. Employee submits the hard copy requisition form
along with supporting documents to Travel team. The
requisition form is signed off by Travel Head and submitted
along with supporting documents to the Bank
When an employee leaves the organization, HR collects
the credit card & submits to Travel Head after confirming
with Corporate Accounts team for settlement. The credit
card is blocked by Travel Head.

Template/
Checklist
Corporate
credit card
policy

Employee/Tra
vel Head

Employee/HR
Team/Travel
Head

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1.4.5 Handling of trip/other requests

Sr.
No.

Process activity

Responsibi
lity

Template/
Checklist

Cost code for trip and trips against IO number

1.

2.

3.

4.

5.

1.

2.

3.

4.

Each travel booking made using the T & E tool is assigned

to a cost code of the department where the travel cost has
to be booked.
By default cost code of the department where the employee
belongs is assigned to his id in the T & E tool. In case the
employee needs to be make booking either for self of for
any other person where the cost has to be assigned to any
other cost code then he needs to obtain email approval
from the cost code owner which is forwarded to the T & E
system administrator.
Based on approved request cost code is assigned to the
employee and the cost code mapping is confirmed by
sending a confirmation email
For trips to be booked against an approved IO number, the
employee selects the IO number appearing in the T & E tool
Listing of IO number is uploaded in the T & E tool by
downloading the list of open IOs from SAP on a fortnightly
basis or on receiving the request from any employee when
the IO number does not appear in the T & E tool
Domestic travel requests
In case of air travel request, employee creates a new
request on T & E tool. Employee can create a request for
self or on behalf of others. Employee fills details like
purpose of travel, sector, date of travel, tentative time of
travel, preferred time of arrival at destination. Employee
can do group booking for up to 9 people. Employee can
raise multi-city travel request limited to 6 cities.
After submitting request, the approver may approve/reject
the request. Line manager can either approve/reject via
Email or via tool. If the request gets approved it gets
forwarded to travel agent and arrangements are made as
per availability and cost. The tickets are booked and
intimation is sent to employee by Email/SMS.
In case of request for domestic accommodation, employee
fills the guest house/hotel request form mentioning details
like check in/check out date/time, preferred area. Travel
desk first checks availability in guest house. If guest house
is not available, hotel is booked. Employee is informed
about the booking reference number and rate at which
bookings have been made.
For inter-city car transport request, employee fills car
request form mentioning details like sector, date of travel,

Respective
Employee

T & E tool
system
administrato
r
Respective
Employee
T & E tool
system
administrato
r

Employee

T&E
executive

T&E
executive

T&E
executive

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Sr.
No.

5.

6.

Process activity
tentative time of travel, preferred time of arrival at
destination. Post approval from HOD, the request goes to
travel desk and desk makes arrangements accordingly.
Employee is informed via Email/SMS once booking is
confirmed.
Limits have been assigned for every employee as per his
group in domestic travel policy.
International travel requests
In case of international air travel requests, employee
creates a new request on T & E tool. Employee can create a
request for self or on behalf of others. Employee fills details
like purpose of travel, sector, date of travel, tentative time
of travel, preferred time of arrival at destination, passport
details, DOB, meal preference, seat preference, frequent
flyer number, if any, and visa validity, if required. Employee
can do group booking for up to 9 people. Employee can
raise multi-city travel request limited to 6 cities.

Responsibi
lity

Template/
Checklist

Travel Head

Domestic
travel policy
-

Employee

After submitting request, it is forwarded to travel desk and

desk searches for 3 best options as per availability and cost
and the same is entered on T & E tool.

7.

Employee is provided with 3 best options on the tool to

select from as per his/her requirements. After selection of
appropriate option, the request goes to line manager for
approval. If line manager approves the request, it goes to
travel desk and travel desk informs travel agent for
arranging the bookings.

T&E
Executive

Employee is informed via Email/SMS once booking is

confirmed.

8.

For request for international accommodation, employee fills

the hotel request form mentioning details like check
in/check out date/time, preferred area. Travel desk searches
for 3 best options as per availability and cost and inform the
employee via email. Employee selects one options as per
his requirements. After selection of option, travel desk
arranges the bookings and informs booking reference
number and rate at which the bookings have been made on
T & E tool.

9.

For forex requirement employee raises a request on T & E

tool. Post approval by line manager, travel desk forwards
request to finance team who makes arrangements for the
same. Limits have been assigned location-wise for every
employee as per his group in travel policy.

T&E
executive

T&E
executive

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Sr.
No.

10.

11.

Process activity

Responsibi
lity

For Visa requirements, employee fills details on T & E tool

and travel desk makes arrangements for the same post
approval of line manager.

T&E
executive

For advance, employee raises a request on T & E

mentioning the purpose of advance. Post line managers
approval, cash is handed over to employee &
acknowledgement is obtained from employee. Limit of INR
10,000 per request has been set in tool. For additional
requirement employee will have to obtain an Email
approval.

Corporate
Accounts
Executive

Travel policy

Travel Head

International
travel policy

Travel Head

Expense
tracker

Limits have been assigned for every employee as per his

12. group in international travel policy.

Tracker is maintained for all the above requests. It is

13. reviewed monthly & a summary report is sent to GSS Head.

10

Template/
Checklist
-

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1.4.6 Cancellation of trip requests

Sr.
No.

1.

2.

3.

4.

5.

Process activity
For cancellations of domestic air travel requests, employee
can raise a cancellation request on T & E tool until the line
manager approves the trip. Line manager will approve the
cancellation request and the request gets forwarded to
travel agent. Travel agent will make arrangements for
cancellation.
For cancellations of international air travel requests,
employee can raise a cancellation request on T & E tool
until the line manager approves the trip. Line manager will
approve the cancellation request and travel desk informs
travel agent about cancellation.
In cases where line manager has approved the trip and
ticket has been issued by travel agent, employee sends
cancellation request on E-mail to travel desk and travel
desk informs travel agent about cancellation.
For cancellation of Hotel requests, employee sends E-mail
to travel desk. Travel desk makes arrangement for
cancellation.
For cancellation of Car/Visa/forex requests, an employee
will raise a cancellation request on T & E tool. Line manager
will approve the cancellation request and the request will
be forwarded to travel desk. Travel desk will make
arrangements for cancellation.

Responsibil
ity

Template/
Checklist
-

Employee

Employee

Employee/
T&E
executive
Employee/
T&E
executive

Employee/
T&E
executive

1.4.7 Travel insurance

Sr.
No.

Process activity
Travel insurance is procured by insurance team for

1. particular number of man-days and it is informed to travel

2.
3.

team.
Travel desk issues travel insurance to each traveler for
whom international air tickets are booked based on
insurance form received from the traveler. Travel Insurance
is forwarded to the traveler when the policy is prepared
Travel insurance statement received from insurer is
reconciled with the excel tracker maintained by T&E team.

11

Responsibil
ity
Insurance
Head

Travel Head
T&E
executive

Template/
Checklist
-

Travel
Insurance
Policy
Reconciliatio
n sheet

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1.4.8 Expense settlement

Sr.
No.

1.
2.

3.

4.

5.

6.
7.

Process activity
In case of domestic and international travel, expenses are
settled by an employee within 15 working days from
completion of trip.
Post completion of trip, employee tags every expense
appearing on credit card statement to a particular trip for
initiating settlement.
Corporate Accounts Executive reviews credit card statement
with the approved expense settlement sheet to verify the
expenses made with the card.
If expenses are not settled along with credit card statement
the amount as per credit card statement is paid by the
company and recorded in employee float account
In case of any expense of personal nature recovery
intimation is sent to the employee marking copy to the
Corporate Accounts Manager and respective HOD.
Additionally the amount of recovery is recorded in the float
account of the employee until it is settled
Expenses settlement would result in either of the following
scenariosa. Recovery from employee of unspent balance amount OR
b. Reimbursement to the employee in case employee has
spent more than the advance obtained but within the
daily expense limit OR
Recovery from the employee if company funds are used for
personal expenses/ expenses incurred are not eligible as
per Travel Policy from in case of emergency or otherwise
a. Recovery from employee of unspent balance
amount
Expense settlement is forwarded to the respective HOD for
obtaining approval on the expense claim along with unspent
advance either in cash or forex card.
Thereafter it is forwarded to Corporate Accounts Team for
booking the expenses and settling advance appearing in
employee float account in SAP.
Cash received from the employee is acknowledged by
Corporate Accounts and is deposited in the bank on the
same/ next working day.
Letter for surrendering unutilized forex is prepared and
forwarded to the forex dealer along with cash and card to
obtain cheque in the name of the Company for the
equivalent INR amount and accounting entries are made in
the books to record forex gain or loss as the case may be
b. Reimbursement to the employee - In case
employee has spent more than the advance
obtained but within the daily expense limit

12

Responsibi
lity

Template/
Checklist

Employee

Employee

Corporate
Accounts
Executive

Employee

Expense
Settlement
Sheet

Respective
HOD and
Corporate
Accounts
Executive

Corporate
Accounts
Executive

Forex
surrender

Respective
HOD and
Corporate

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Sr.
No.

8.

9.

10.

Process activity
Expense settlement is forwarded to the respective HOD for
obtaining approval on the expense claim.
Thereafter it is forwarded to Corporate Accounts Team for
booking the expenses and settling advance appearing in
employee float account in SAP and for booking the
additional expenses to be reimbursed to the employee.
Employee is reimbursed the excess amount spent in the
next payroll cycle
c. Recovery from the employee - if company
funds are used for personal expenses/
expenses incurred are not eligible as per
Travel Policy from in case of emergency or
otherwise
Expense settlement is forwarded to the respective HOD for
obtaining approval on the expense claim along with cheque
favoring the company.
Thereafter it is forwarded to Corporate Accounts Team for
booking the expenses and settling advance appearing in
employee float account in SAP and for recording the money
received from the employee for expenses not to be
reimbursed to the employee
Prior to settling the employee float account invoice amounts
are verified to be within limits the combination of eligibility
of employee group and location of travel as per Domestic
and International Travel Policy.
In case of any additional recovery intimation is sent to the
employee marking copy to the Corporate Accounts Manager
and respective HOD. Additionally the amount of recovery is
recorded in the float account of the employee until it is
settled
Ageing of outstanding advances is generated from SAP and
reasons for all claims outstanding beyond a particular
period is obtained from the employee and documented
against each claim.
Additionally, email intimation is sent to all employees whose
advances are not settled within stipulated time.

Responsibi
lity

Template/
Checklist

Accounts
Executive

Respective
HOD and
Corporate
Accounts
Executive

Corporate
Accounts
Executive

Corporate
Accounts
Executive

Responsibil
ity

Template/
Checklist

T&E
executive

Invoice
tracker

Employee

Invoice
tracker

1.4.9 Payment to vendor

Sr.
No.

1.

2.

Process activity
For domestic and international air travel, invoice is
received from travel agent fortnightly. Post verification of
invoice, payment request is forwarded to Corporate
Accounts team
For hotel and cab, invoices are received from vendors
fortnightly. Post verification of invoice, payment request is
forwarded to Corporate Accounts team

13

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Sr.
No.

3.

Process activity
For corporate credit card, credit card statement is
reviewed and the amount is paid to credit card company
For forex vendors, invoice is received on monthly basis
from the vendor. The invoice is verified and sent to
Corporate Accounts team for payments
Corporate Accounts Manager verifies the following prior to
processing payment for invoices received:
Invoices are authorized by Travel Head and
Invoices are as per corresponding contracts with
vendors (if available)
Corporate credit card statements match with the
corresponding expense settlement sheet

Responsibil
ity
T&E
executive

Template/
Checklist
-

T&E
executive

Corporate
Accounts
Manager

Corporate
Accounts
Manager

Responsibil
ity

Template/
Checklist

3.

Every fortnightly/monthly balances in float account are

reviewed.

Corporate
Accounts
Manager

Float
account
ageing

4.

For every month end, following provision entries are

recorded:
For all bookings done by the travel agent / credit card
payments a report is generated from system and sent
to corporate accounts team
A provision is made for expenses pertaining to that
month not yet settled by employee on T & E tool
For forex vendor, provision is made based on actual
invoices received.

Corporate
Accounts
Manager

4.

5.

6.

On verification of invoice details, payment is duly processed

and accounting entry is made in SAP.

1.4.10 Accounting
Sr.
No.

Process activity
Till the expenses are settled by employee on T & E tool, the

1. expenses incurred by employee through credit card are

2.

parked in employees float account.

Post settlement of expenses by employee on T & E tool, the
expenses are manually transferred from float account to
SAP weekly under the GL code mapped to employee code.

Annexure
Annexure 1 International Travel Policy

International Travel
Policy.pdf

14

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Annexure 2 Domestic Travel Policy

Domestic Travel
Poilcy.pdf

15