Film Accounting Glossary
Travel and expense policy
What is a travel and expense policy?
Also called T&E policy, or expense policy.
A travel and expense policy is the written statement of what the production will pay for, at what limits, and with what documentation: airfare class, hotel rates, per diem, mileage, rental cars, and receipt thresholds.
Having it in place before the first travel booking is what allows accounting to decline a claim without it becoming personal. It also protects the production, because unsubstantiated payments become taxable income to the recipient.
Example
The policy sets economy airfare, a $185 nightly hotel cap, $75 per diem, mileage at the federal rate, and receipts required above $25. With it in place, declining a $95 unreceipted parking claim is policy. Without it, the same decision is personal.
Figures are illustrative, chosen to show the mechanics rather than to quote market rates.
Where you'll see it
Written and circulated before the first travel booking, and the reference accounting applies to every expense report.
Common mistake
Writing the policy after the first travel booking. Without it in place, every declined claim becomes a personal negotiation instead of a rule.
Related questions
- What should a production travel and expense policy cover?
- Airfare class, hotel caps, per diem rates, mileage, rental cars, receipt thresholds, and what happens to claims outside those limits.
- Why does a production need a written T&E policy?
- So accounting can apply one consistent rule, and so unsubstantiated payments that would become taxable income to the claimant are avoided.