Per diem expenses

Simplify daily allowance tracking with automatic calculations for meals and incidental expenses during business travel.

Overview

Per diem (Latin for "per day") expenses provide a fixed daily allowance for meals and incidental expenses during business travel. Instead of tracking individual receipts for every meal, employees receive a set amount per day based on their travel destination and company policy.

Creating a per diem expense

Step 1: Select per diem category. When creating a new expense, select "Per Diem" from the expense category dropdown or create an expense within a per diem report type. This activates per diem-specific fields on the form.

Step 2: Enter daily rate. Input your organization's per diem daily rate in the "Daily Rate" field. This rate may vary based on travel destination—domestic vs. international travel often have different allowances. Your company policy or travel coordinator can provide the correct rate for your destination.

Step 3: Enter number of days. Specify how many days you're claiming per diem for in the "Number of Days" field. This should match your actual travel dates. Partial days at the start or end of a trip may require adjustment.

Step 4: Select per diem type. Choose from the available per diem calculation options:

Full day - Claim the complete daily rate for each day
Breakfast only - Claim one-third of the daily rate (for partial days)
Lunch only - Claim one-third of the daily rate
Dinner only - Claim one-third of the daily rate
Custom - Select specific meals to calculate a custom amount

Step 5: Review calculated amount. Eloope automatically calculates the total per diem amount based on your inputs. For example, 3 days at $75/day full rate equals $225. Custom selections calculate proportionally—selecting breakfast and lunch for 3 days at $75/day equals $150 (two-thirds of the full rate).

Meal breakdown

When using custom per diem, you can select which meals to include:

Breakfast. Represents one-third of the daily rate. Select this if breakfast was not provided by the hotel or conference.

Lunch. Represents one-third of the daily rate. Select this if lunch was not included in your meeting or event.

Dinner. Represents one-third of the daily rate. Select this if dinner was your own expense rather than a group meal or provided meal.

Example calculation: Daily rate of $90, traveling for 2 days. Day 1: breakfast provided by hotel, claim lunch and dinner = $60. Day 2: all meals on your own = $90. Total claim: $150.

Per diem rates

Per diem rates vary based on several factors:

GSA rates (US). The US General Services Administration publishes per diem rates for domestic travel. Rates vary by city and are updated annually. Major cities like New York, San Francisco, and Washington DC have higher rates than smaller cities.

International rates. The US State Department publishes per diem rates for international destinations. These rates account for the cost of living in different countries and cities.

Company-defined rates. Some organizations set their own per diem rates, which may be higher or lower than government rates based on company policy and budget.

Destination-based rates. Your company may configure different rates for different travel destinations. The expense form may prompt you to select your destination to apply the correct rate.

Partial day rules

Per diem for partial days follows these general guidelines:

Travel days. The first and last days of a trip are often considered partial days since you may be traveling rather than eating all meals at the destination.

75% rule. Many organizations pay 75% of the daily rate for travel days. Check your company policy for specific guidance.

Actual meal selection. Using the custom meal breakdown feature, you can accurately claim only the meals you actually purchased yourself during partial travel days.

Meals provided. If any meals are provided by the airline, hotel, conference, or client, you typically should not claim per diem for those meals.

Per diem vs. actual expenses

Understanding when to use per diem versus actual expense tracking:

Use per diem when:

Your company policy allows or requires per diem for meals
You prefer not to track individual meal receipts
Your meal spending typically falls within the per diem rate
Traveling to destinations with standard per diem rates

Use actual expenses when:

Your company requires itemized receipts for all expenses
You're hosting clients or attending business meals that exceed per diem rates
Your policy requires actual expenses for certain trip types
You want to claim the exact amount spent (may be higher or lower than per diem)

Combining per diem with other expenses

Per diem covers meals and incidental expenses only. You should still create separate expenses for:

Lodging - Hotel costs should be tracked with receipts as actual expenses
Transportation - Flights, rental cars, taxis, rideshares, parking
Conference fees - Registration, materials, or event tickets
Business supplies - Items purchased for work purposes during travel

Best practices

Know your company policy. Per diem rules vary significantly between organizations. Understand your company's specific policy before claiming per diem expenses.

Be accurate with dates. Only claim per diem for actual travel days. Extending a trip for personal reasons typically means those days are not eligible for per diem.

Adjust for provided meals. If a meal is provided at a conference, by a client, or as part of your hotel stay, deduct that meal from your per diem claim.

Document your travel. Keep a record of your travel dates, destination, and business purpose. This documentation supports your per diem claims if audited.

Use the correct rate. If your company has destination-based rates, ensure you're using the rate for your actual travel location, not a different or default rate.

Creating expenses
Trip management
Travel expenses
Submitting reports