Skip to main content
article

What is the default rate?

This article explains what the Default Rate is within ITILITE's Per Diem module and how it ensures your employees always receive the correct daily allowance.

Table of Contents


Understanding the Default Rate

In ITILITE, the Default Rate is a specific Per Diem Rate configuration that acts as a universal fallback. It ensures that a daily allowance is always available for your employees, even when no other specific rates are configured for a particular location or employee group.

Essentially, it's a standard Per Diem Rate that has been marked as the "default" within your ITILITE settings. This means it's ready to be applied across all employees and locations unless a more specific rate takes precedence.


How ITILITE Applies Per Diem Rates

When an employee files a Per Diem expense, ITILITE follows a smart logic to determine the correct rate:

  • The system first looks for specific Per Diem Rates that match the expense's details, such as the location, the employee's group (e.g., Department, Level, Entity, Business Unit), and the effective date range.
  • If multiple specific rates could apply, ITILITE uses the configured Priority Order to select the most appropriate one.
  • If no specific rate matches the expense's criteria, the system then falls back to the Default Rate. This ensures that a Per Diem allowance is always calculated, providing consistent support for your employees.

It's important that any applicable rate, including the Default Rate, is enabled and within its effective date range to be considered for calculation.


Key Characteristics of a Default Rate

NOTE: A Default Rate is typically configured with broad or empty location and employee group filters, making it applicable to all employees and locations unless a more specific rate is defined.
PRO-TIP: We recommend setting up one general Default Rate that covers all employees and locations. Then, you can add more specific rates for particular cities, countries, or employee groups (like specific Departments or Levels) and assign them a higher priority to override the default when applicable.

Here are some key aspects of how Default Rates work in ITILITE:

  • Every Per Diem Rate record has an `is_default` flag. Setting this flag to "1" designates that rate as a Default Rate for your organization.
  • A Default Rate includes a name, rate amount, currency, and can have an effective date range. It can also be configured to apply travel hours.
  • You can set a Default Rate to have an open-ended effective duration, meaning it remains valid indefinitely until you choose to change it.
  • Any changes made to a Default Rate (e.g., amount, currency, effective dates) will apply to new Per Diem calculations going forward. Previously filed Per Diem expenses will retain the rate that was active at the time they were created.


Find quick answers to common questions about Default Rates.

Q: What is the primary purpose of a Default Rate?
A: The primary purpose of a Default Rate is to serve as a fallback. It ensures that a Per Diem allowance is always calculated for an employee when no more specific Per Diem Rate (based on location, employee group, or date) applies to their expense.

Q: Can a Default Rate have specific location or employee group constraints?
A: While a Default Rate is typically configured with broad constraints to apply universally, you can technically add specific location or employee group filters. However, this would limit its "default" behavior, as it would only apply when those specific constraints are met, and no higher priority rate exists. It's generally recommended to keep default rates broad.

Q: What happens if no enabled rate (including the Default Rate) matches an expense?
A: If no enabled Per Diem Rate, including the Default Rate, matches the parameters of an expense (e.g., all rates are out of their effective date range or disabled), the Per Diem amount calculation will not be successful, and a rate will not be applied.

Was this article helpful?

That’s Great!

Thank you for your feedback

Sorry! We couldn't be helpful

Thank you for your feedback

Let us know how can we improve this article!

Select at least one of the reasons
CAPTCHA verification is required.

Feedback sent

We appreciate your effort and will try to fix the article