Calculating mileage expenses by applying the principle of compensation - case study

Selim Ounis Updated by Selim Ounis

Here is a case study example for calculating mileage expenses using the principle of compensation: 

My company has configured the following URSSAF scale on its Expensya account 

 

 

  1. I entered mileage expenses in Expensya using a vehicle with a taxable horsepower of 7HP. 

A first trip totalling 1,000 miles "trip 1" 

  • New cumulative distance = 1,000 miles 
  • The sum of all my other mileage expenses = 0, because I have yet to enter any mileage expenses with this vehicle. 
  • The formula to be applied is "up to 5,000 miles" 
  • Value to be reimbursed = (New Cumulative Distance x 0.601) – (The sum of all my other mileage expenses ) = (1,000 x 0.601) - 0 = €601 

A trip totalling 2,000 miles "trip 2" 

  • New cumulative distance = 1,000 + 2,000 = 3,000 
  • The sum of all my other mileage expenses= 601€ 
  • The formula to be applied is "up to 5000 miles" 
  • Value to be reimbursed = (New Cumulative Distance x 0.601) – (The sum of all my other mileage expenses ) = ((1,000 + 2,000) x 0.601) - 601 = €1202 

A trip totalling 3,000 miles "trip 3" 

  • New cumulative distance = 1,000 + 2,000 + 3,000 = 6,000 
  • The sum of all my other mileage expenses = 601 + 1,202 = €1,803 
  • The formula to be applied is "From 5,000 to 20,000 miles" = (distance x 0.34) + 1,301 
  • Value to be reimbursed = ((New Cumulative Distance x 0.34) – (The sum of all my other mileage expenses) = ((6,000 x 0.34) + 1,301) - 1,803 = €1,538 
  1. I then deleted "journey 2" which totalled 2,000 miles 

Remaining on my Expensya account is: 

  •  Cumulative distance = 1,000 + 3,000 = 4,000 miles 
  • Total sum of all my mileage expenses = 601 + 1,538 = €2,139 
  1. I add a “journey 4” mileage expense totalling 500 miles 
  • New cumulative distance = 4000 + 500 = 4500 miles 
  • The sum of all my other mileage expense = €2139 
  • The formula to be applied is "up to 5,000 miles” = (distance x 0.601) 
  • Value to be reimbursed = ((New Cumulative Distance x 0.601) – (The sum of all my other mileage expense ) = (4,500 x 0.601) - 2,139 = €565.50 

 

  1. I now remove the “trip 4” and “trip 4” associated mileage expenses  
  • So, I now only have mileage expenses left for “trip 3”. 
  • New cumulative distance = 3,000 miles 
  • The sum of all my other mileage expenses = €1,538 

 

  1. In the list of mileage expenses, I can see that "trip 3" has a value of €1,538; I click on it to make modifications and see that the value changes - why is this? 

 

  • When opening a mileage expense, Expensya recalculates the value to adjust the amount. This is based on the history of changes to other mileage expenses. Here, for example, a mileage expense has been removed, therefore the value may need to be updated. 
  • The calculation is changed as follows: 

- New cumulative distance = 0 miles (because my "trip 3" is being edited) and the other routes (1, 2 and 4) have been deleted 

- The sum of all my other mileage expenses = €0 (because my only trip is in the process of being edited) 

- The formula to be applied is "up to 5,000 miles” = (distance x 0.601) 

- Value to be reimbursed = (Cumulative Distance x 0.601) – (The sum of all my other mileage expenses) = (3000 x 0.601) – 0 = €1,803 

- The value has changed 

If I save, the amounts are updated in Expensya, otherwise, compensation is applied to the next mileage expense that is entered. 

How did we do?

How to modify invoices of other employees in Expensya

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