It is the company’s responsibility to cover all expenses when an employee goes on a business trip or carries out any other official task which requires a certain expenditure. The company usually does not pay the employee in advance. Such payments are reimbursed after reviewing the bills and receipts. The employee first needs to request the reimbursement. This is a normal procedure carried out in organizations. The approval is then discussed with the employee by means of an official letter.
Here is how this official piece of document is written.
Compose a Brief Approval
This official document needs to be comprehensive. While writing this letter, get to the point right away. State the company’s approval for the reimbursement or funding. Include only necessary details, such as the total amount to be paid or the date by which the payment will be made. Wind up the letter without going into any lengthy discussions.
Discuss Budget Allocation
Briefly discuss the budget allocated by the company for the employee’s business trip or other official tasks. State if a certain limit has been fixed. You should refer to the relevant policies of the organization here. This discussion is important in order to inform the employee of the exact amount of reimbursement or funding that the company allows. In this way, the employees understand the importance of spending within the fixed limit on the company’s budget.
Discuss the Reimbursement
State what is covered for the reimbursement or funding. The exact amount may be mentioned. However, it is not necessary to mention the total sum since it may be reviewed after going through the submitted bills.
State any Relevant Conditions
There may be certain conditions before the transfer is made by the company to the employee’s account. Mostly, employees are supposed to show bills and receipts as proof of the expenditure. In case the employee hasn’t already submitted these bills to the concerned department, instruct him to do so through this letter. Similarly, state if there are any other similar conditions.
Mention the Reimbursement Procedure
Briefly discuss how the reimbursement or funding will take place. Usually, a compensated amount is directly transferred to the employee’s bank account. On the other hand, a cheque may be provided in case of an allocated fund.
Your application for the reimbursement of the expenditure incurred during your official trip to Legos has been approved. You will receive reimbursement for all expenses covering your travel, accommodation, and food during this trip.
Kindly submit all bills and receipts to the Junior Accountant, Miss Maize. You will receive your compensation as soon as the receipts have been reviewed by the finance department. The total amount will be transferred to your bank account. The concerned department will notify you once this process has been performed.