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Set up mileage rates for expense management

[This article is prerelease documentation and is subject to change.]

Use the Mileage Rate Setup page to define effective-dated mileage reimbursement rates by vehicle type and currency. Business Central uses these rates to calculate mileage expenses and expense report lines.

Important

Before you start

  • You need the Expense Management - Admin permission set or equivalent permissions.
  • On the Expense Agent Setup page, set Default Mileage UOM and Standard Rate of Mileage. In assisted setup, these fields are named Default unit of distance and Rate per unit. Business Central uses Standard Rate of Mileage when no mileage rate setup record matches an expense. Learn more in Set up Expense Agent.

Set up vehicle types

Your organization defines the vehicle types that expense users can select. If you use vehicle-specific mileage rates, create the vehicle types before you set up the rates.

  1. Select Search (Alt+Q) in the upper-right corner, enter Vehicle Types, and then choose the related link.
  2. On the Vehicle Types page, choose New.
  3. Enter a Code and Description for the vehicle type, such as a car or motorcycle.
  4. Create more vehicle types as needed.

Configure a mileage rate

  1. Select Search (Alt+Q) in the upper-right corner, enter Mileage Rate Setup, and then choose the related link.
  2. Select New to add a rate.
  3. Fill in the fields:
    • Code: Enter a unique code for the rate.
    • Vehicle Type: Optionally, select the vehicle type that the rate applies to. A blank value applies only to expenses that also have a blank Vehicle Type.
    • Starting Date: Enter the first date that the rate applies. This field is required.
    • Ending Date: Optionally, enter the last date that the rate applies. Leave this field blank to keep the period open-ended.
    • Rate: Enter a nonnegative reimbursement amount per unit of distance.
    • Currency Code: Optionally, select the currency that the rate is expressed in. Leave this field blank to define the rate in the local currency.
  4. Create more rates for different vehicle types, currencies, or date ranges as needed.

The starting and ending dates are both included in the effective period. Date ranges can't overlap for the same Vehicle Type and Currency Code combination. Start a following period on the day after the previous period ends.

Understand how Business Central selects a rate

Business Central uses the Expense Date to find a rate whose effective period includes that date. The Vehicle Type must match exactly. A blank Vehicle Type isn't a wildcard and matches only an expense with a blank Vehicle Type.

For the matching vehicle type and date, Business Central selects rates in this order:

  1. A rate with a Currency Code that matches the expense currency.
  2. A rate with a blank Currency Code, which is a local-currency rate. Business Central converts this rate to the expense currency using the exchange rate for the expense date.
  3. Standard Rate of Mileage from the Expense Agent Setup page if no mileage rate setup record matches. Business Central treats the fallback as a local-currency rate and converts it when needed.

Business Central calculates the reimbursement as effective distance multiplied by the applicable rate. For a round trip, Business Central doubles the distance first. Business Central rounds a converted rate and the final reimbursement by using the rounding precision configured for the expense currency.

Understand when rate changes apply

Editing mileage rate setup doesn't automatically recalculate existing expenses or expense reports. Business Central applies the current setup when it creates or recalculates an open mileage expense or expense report line. For example, changing the expense date, currency, vehicle type, distance, or round-trip setting on an open record can cause recalculation.

Posted expenses aren't recalculated. Review open mileage expenses and reports that must use a changed rate.

Set up per diem and mileage allowances Create and manage expenses

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