Logic for picking rates if two rates are set for same place

Understanding how ITILITE determines per diem rates when multiple rates might apply to the same location is key to accurate expense management. This article explains the logic behind rate selection, ensuring clarity for both employees and administrators.

Table of Contents

• How ITILITE Picks Per Diem Rates
• Pro-Tips & Guardrails
• Verification & FAQs

How ITILITE Picks Per Diem Rates

ITILITE uses a clear priority system to determine which per diem rate applies when multiple rates are configured for the same location or employee group. This ensures consistency and predictability in expense calculations.

Each per diem rate in ITILITE is assigned a specific "priority order" by your administrators. These rates can be linked to various locations, such as an entire country (e.g., "India") or a specific city (e.g., "Hubli"), and can also be tied to particular employee groups.

When an employee submits a per diem request for a certain location, the system follows these steps:

• Identify Applicable Rates: ITILITE first identifies all per diem rates that match the employee's location and their employee group. This might include a broad country-level rate and a more specific city-level rate, or even different rate slabs for the same place.
• Apply Priority Order: From all the identified rates, the system does not pick the highest monetary value. Instead, it strictly selects the single rate that has the highest configured "priority order." The rate with priority number 1 is considered higher than priority number 2, and so on.

For example, if a per diem rate for the entire US is set with priority number 1, and a specific rate for New York City is set with priority number 2, the system will apply the rate for the US when an employee claims per diem for New York.

For Administrators: You can view all configured per diem rates in a list, along with their assigned "priority order." This allows you to create multiple rates, specify their currency, amount, locations, and employee groups, and crucially, adjust their priority order to ensure the desired rate is always picked when overlaps occur.

For Employees: When you file a per diem expense, you simply select or confirm your location and trip dates. The system automatically calculates the per diem amount using the single rate chosen based on the priority logic set by your administrators. You will see the final calculated amount without needing to manually select between different rates.

Pro-Tips & Guardrails

Deleting or disabling a per diem rate will remove it from consideration, and the system will then apply the next applicable rate based on the remaining priority ordering.

Verification & FAQs

To verify that the correct per diem rate is being applied, administrators can review the "priority order" in their per diem rate configuration settings. Employees can confirm the final calculated per diem amount on their expense claim.