In a global business service model, travel and expense services typically fit in a transactional center, which can serve the global population. Many challenges exist with international travel and expense due to the complexities that come with a global process including policy standardization, regulatory and data protection compliance, system choices, and design options, among others. ScottMadden provides best practices for planning and preparation, requirements and design, and training and audit when implementing a global travel and expense program. This report discusses ScottMadden's best practices for implementing international travel and expense administration.

1. Copyright © 2013 by ScottMadden. All rights reserved.
International Travel and Expense
Implementation Best Practices
June 2013
Contact: mollydonofrio@scottmadden.com
jcrosby@scottmadden.com

2. Copyright © 2013 by ScottMadden. All rights reserved.
Introduction
 Thinking about expanding the use of your travel and expense (T&E) system globally?
 Considering how to choose a system and vendor? Debating how you can get more from your current system and your audit
group?
 Many challenges exist on the topic of international T&E due to the complexities that come with a global process
 ScottMadden recommends several best practices in planning and preparation, requirements and design, and training and audit
when implementing a global T&E program
1
• Complex tax and
reporting
requirements
• Foreign
language
requirements
• Policy
standardization
• Regulatory and
data protection
compliance
• Multitude of
system choices
and design
options
• Dispersed audit
resources

3. Copyright © 2013 by ScottMadden. All rights reserved.
Global Business Service Models
In a global business service model, T&E typically fits in a transactional center, which can serve the global population.
2
Regional – Analytical
 Accounting close
 Settlement
 Risk management
 Budgeting
 Business case
 Reporting
 SOX
 Internal audit
 Pricing
Global – Transactional
 Accounts payable
 Travel and expense
 Accounts receivable
 Billing
 Payroll
 Fixed assets
Regional – Analytical
Regional – Analytical
Customer facing hub
Varies: COEs
 Rebates and inventory
accounting
 Competitive intelligence
 Risk management
 Deal review
 Mergers and acquisition
 Workforce management
 Tech pool management
 Financial systems
Regional – Analytical
Regional – Analytical

4. Copyright © 2013 by ScottMadden. All rights reserved.
Planning and Preparation
Get started early with data protection reviews with your
legal team, especially if implementing in Europe
 Data privacy and protection is a hot topic for global
companies and is marked by significant differences
between the United States and Europe in their approach
 Significant lead time should be added to the
implementation timeline in each country for:
— Internal legal reviews
— Interaction with local in-country legal counsel
— Workers’ Council review cycles
— Required communications to international
employees about use of data
 For Europe, the “Safe Harbor” framework is in place for
U.S. organizations to follow to ensure adequate data
protection per the European Commission
— Many systems are
“Safe Harbor”
compliant. Perform
the due diligence with
your vendor, legal,
and corporate IT to
ensure this is the case
 While data privacy standards are most stringent in Europe,
countries in Asia and South America are becoming more
aware and imposing some regulations
— Japan, S. Korea, Mexico, and Brazil all have
stipulations for protection in data transfer
Ensure that there is harmonization of T&E policies at the
global, regional, and country level prior to system
implementation
 Country and cultural difference can impact design and
implementation requirements. Understand what these are
and what should be allowed as a standard in each country
 Meal limits, entertainment standards, and travel
allowances vary by country. Know what is required and
what will be allowed for reimbursement prior to
implementing a T&E system
 Policy harmonization can take several weeks to
accomplish—many stakeholders must be consulted to
implement standard policies effectively
3
Global
Regional
Country
Harmonized
T&E Policy

5. Copyright © 2013 by ScottMadden. All rights reserved.
Requirements and Design
Establish a portfolio of design principles and solutions
(which can be re-used across countries)
 At first glance, the varying requirements of T&E in regards
to tax, deductions, limits, and reporting can be daunting
and seem unique by country
 However, design decisions can be made from a portfolio of
design principles that meet the various requirements but
also streamline configuration, testing, and the user
experience. Be creative and test solutions to see how the
financial postings behave
 For example:
— In Sweden, the tax rate on food varies depending
upon whether the meal was eat-in or carry-out
— In France, users must select the appropriate tax
rate for certain expenses and apply different rates
to fractions of the total expense (e.g., one rate
applies to food and another rate applies to
service)
— The same design in the form used for the
expense type can be used for both situations
Use a T&E system that can be flexible in design and has
preconfigured modules for international per diems, travel
allowances, and tax configurations
 Systems are available that come with modules to easily set
up your travel policy with international per diems, tax, and
travel allowances
— Various rate sources are available who set their
rates against market conditions and benchmarks.
Software application vendors should initiate
updates to the rates routinely and notify you that
the rates will be changing
— Be clear on internal requirements and discuss
options for use with the vendor before committing
to a system design
4
Expense Type Mapping
Country Tax Authority State/Province Tax Name Rate Type Calculation Method Tax Rate Effective Date End Date
CANADA CA-GST Alberta GST Standard Percentage 5.0% 1/1/2012 12/31/2014
British Columbia
Manitoba
Northwest Territories
Nunavut
Ontario
Prince Edward Island
Quebec
Saskatchewan
Yukon Territory
CA-HST New Brunswick HST Standard Percentage 13.0% 1/1/2012 12/31/2014
Newfoundland
Nova Scotia
CA-PST5 Saskatchewan PST5 Standard Percentage 5.0% 1/1/2012 12/31/2014
Yukon Territory
CA-PST7 British Columbia PST7 Standard Percentage 7.0% 1/1/2012 12/31/2014
Manitoba
CA-QST Quebec QST Standard Percentage 7.5% 1/1/2012 12/31/2014
CA-PSTON Ontario PST8 Standard Percentage 8.0% 1/1/2012 12/31/2014
CA-PSTPE Prince Edward Island PSTPE Standard Percentage 10.0% 1/1/2012 12/31/2014
UNITED KINGDOM UK UK Standard Percentage 15.0% 1/1/2011 12/31/2012
Reduced Percentage 5.0% 1/1/2011 12/31/2012
Zero Percentage 0.0% 1/1/2011 12/31/2012

6. Copyright © 2013 by ScottMadden. All rights reserved.
Requirements and Design (Cont’d)
Do internal analysis on country regulations and
requirements
 Use data from historical financial postings to prove design
concepts
— Look back at T&E postings from the past year to
gain insight on how expense and tax amounts
need to be posted
— Test assumptions and findings with project team
and leverage design portfolio
 Gain local leadership and subject matter expert approval
on outputs
— Ensure that local reporting requirements are met
 As you test the various design concepts, ask an in-country
finance representative to validate the results. Involve in-
country representatives and project team members in the
user-acceptance testing phase
Use a stable implementation team who can share insight
on design and configuration for various country
requirements
 Build the functional and technical knowledge within the
team as the vendor cannot always provide the design and
integration support needed for complex solutions
 Use a cross-functional team with representatives from
HRIS, IT, finance, and corporate travel. Test the system
with frequent T&E submitters to validate the functionality
 Be thoughtful, creative, and test the design and
configuration thoroughly. Use solutions that were
successful in other countries to expand the use of the
design portfolio
5
Gather
Requirements
Conduct
Analysis
Propose
Design
Test
Design
Approve
Design

7. Copyright © 2013 by ScottMadden. All rights reserved.
Training and Audit
Understand requirements for language translation, and
translate both system and collateral communication and
training materials where required
 There are both regulatory and cultural reasons for
translating a system into the local language
— In countries like France and Germany, local
language translation may be required by the
Workers’ Councils. In places like Japan, it may
not be common for employees to read and write
in English; therefore, Japanese translation is
required
— Ask for advice on translation from international
HR representatives and legal counsel
 Some applications, like Concur, offer in-system language
translation that can be easily applied to an existing
configuration. Custom fields can be translated with
assistance from representatives in country to ensure
fluency and accuracy
Centralize your T&E audit function for efficiency in audit
and consistency in policy interpretation
 Once T&E policies are harmonized, efficiencies and cost
savings can be gained by centralizing T&E audit in one
location
— Using one group to administer T&E policy
ensures consistency across the organization.
Reporting centrally will provide consistency in
audit, allowances, and exceptions that can be
difficult to achieve in a decentralized model
— Cycle times for review and approval of T&E do
not require 24-hour employee support and can be
managed with e-communication, documented
approval and processing schedules, and a clear
escalation procedure
— A global company might leverage additional
locations or processors to optimize parts of the
financial process
 Hire T&E auditors with foreign language proficiency to
ensure accuracy and provide support in reviewing expense
reports from international locations
— Many U.S. cities offer a diverse workforce with
many language capabilities
— Vendors exist who can offer support for foreign
languages that are not frequently used in the
organization
6
Category
Category
[Japanese] Expense Type
Exp Type
[Japanese]
02 - Meals and Entertainment 食事・ 接待交際費 Per Diem 国内出張： 食事日当
ガ ソ リ ン 代03 - Transportation 交通費 Gas / Petrol
空港使用料
03 - Transportation 交通費 Car Rental レ ン タ カ ー
03 - Transportation 交通費 Airport Tax
航空運賃
02 - Meals and Entertainment 食事・ 接待交際費 Special Events 全社イ ベン ト
03 - Transportation 交通費 Airfare

8. Copyright © 2013 by ScottMadden. All rights reserved.
Training and Audit (Cont’d)
Train on site and in person; the importance of change
management through face-to-face interaction during go-
live and training should not be minimized
 Pair the go-live period with an on-site training program to
increase adoption and reduce go-live errors and issues
— Trouble-shooting errors can happen quickly while
on site locally to provide a smoother launch
experience
— Identify local “super users” who are trained early
on the process and can act as contacts locally
post-launch
— Follow-up and Q&A sessions can be offered
remotely; but these are often more effective once
the relationship is established face to face
 A standard portfolio of communication and training
materials should be developed and used across all T&E
system users; however, customization and modifications
can be completed where required. For example:
— Translation into local language when required on
advice from local HR or legal counsel
— Special instructions for assistants and approvers
— Customized reference guides for different
country requirements
— Training webinar sessions delivered in local
language with the assistance of a local “super
user”
7
airfare
航空運賃
pasaje
aéreo
passagem
aérea
flygresor
billet
d'avion
flugpreis

9. Copyright © 2013 by ScottMadden. All rights reserved.
Contact Us
To learn more about our approach to implementing the best practices for international T&E, please contact us.
8
ScottMadden, Inc.
3495 Piedmont Rd, Bldg 10
Suite 805
Atlanta, GA 30305
Phone: 404-814-0020
jcrosby@scottmadden.com
Jerred Crosby
Partner
Molly Donofrio
Director
ScottMadden, Inc.
2626 Glenwood Ave
Suite 480
Raleigh, NC 27608
Phone: 919-781-4191
mollydonofrio@scottmadden.com