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DCAA Compliance · Expense Rate Calculation

Automated rate compliance, run for you.

The calculation is required. The maintenance isn't. SAP Concur runs allowable-vs-unallowable rate compliance as a managed service — no more IT tickets, no legacy code to update.

Every government contractor has to separate allowable cost from unallowable, meal by meal and trip by trip. Most build that logic in-house and then spend years maintaining it. Hand us the code and get your engineers back on mission work.

Rate Calculation Illustrative
ENTRY  Business meal · CONUS
ATTENDEES  4 total — 2 employee, 2 guest
POLICY  Government contracts travel
Entry amount$0.00
M&IE per diem rate$0.00
× allowable attendees× 2
Allowable$0.00
Unallowable$0.00
Calculated on submit, before the first approver
Written to Standard Accounting Extract → ERP
Logic documented and reviewable
Audit-ready

Transparent, documented calculation logic replaces custom code nobody can fully explain.

Automatic

Fires on report submission. No manual policy checks, no rate lookups, no traveler judgment calls.

Fully managed

24/7 monitoring, on-call developers, and life-cycle maintenance included in the service.

01  This one isn't optional

You are already paying for this calculation. The line item just isn't labeled.

Under Cost Accounting Standards and FAR Part 31, allowable cost has to be separated from unallowable — every business meal, every trip, every attendee. There is no version of your business where this doesn't get done. The only open question is who does it and what it costs you.

Not optional

It's a regulatory requirement

Not a best practice, not an efficiency play. If you hold government contracts, the calculation happens — correctly, or expensively.

Not one-time

The rates move every year

CONUS per diem rates reset with the federal fiscal year. OCONUS rates move more often. Whatever runs your calculation has to be updated on that clock, forever.

Not forgettable

The audit arrives years later

DCAA can ask you to defend a calculation long after the person who wrote the logic has moved on. Every report has to be airtight the day it's filed.

So the question was never whether to run rate compliance.
It's whether your IT team should be the ones maintaining it.

Most government contractors answered that question a decade ago, when there wasn't another option. There is now.

02  Three ways to run it

Most contractors are sitting in the middle column.

It was the right call when it was made. It has quietly become the most expensive of the three.

Path A

Spreadsheets and manual review

Someone in finance checks each report against policy and looks up the rate by hand.

  • No build cost
  • Scales only by adding headcount
  • Error rate rises with volume
  • Hard to evidence consistently in audit
Path B — where most of you are

Custom code inside IT

A functional extension was built years ago to automate the calculation. It works — until something changes.

  • Every policy change is an IT ticket
  • Rate updates compete with the roadmap
  • Usually one person truly understands it
  • You own the logic in the audit
Path C — managed by SAP Concur

A service, not a codebase

The calculation runs inside the platform your travelers already use, maintained by the people who built it.

  • Policy changes are configuration
  • Rate maintenance is on us
  • Monitored 24/7, developers on call
  • Documented logic you can hand an auditor
What Path B actually costs — the line items nobody budgets
  • 01
    Black-box logicThe extension calculates rates in ways nobody currently on your team can fully explain. That's technical debt with audit exposure attached.
  • 02
    Developer time you didn't plan forEvery rate change, policy revision, and platform update pulls engineers off mission work and onto accounting logic.
  • 03
    Key-person riskThe person who wrote it is one resignation away from taking the only complete mental model of your compliance calculation with them.
  • 04
    Errors that surface too lateMistakes appear downstream — in the ERP, at close, or during an audit — when they're expensive to unwind and awkward to explain.
  • 05
    Judgment pushed onto travelersEmployees apply accounting rules they were never trained on. Who counts as a guest, which attendees are allowable — decided by someone who books travel for a living.
  • 06
    No visibility in flightFinance can't see results until after the fact, which makes proactive management of unallowable cost nearly impossible.
03  The shift

The compliance stays with you. The burden doesn't.

Same calculation, same audit trail, same obligation — moved off your infrastructure and onto ours, where it's someone's full-time job to keep it correct.

1 Today — you own the box
YOUR IT CUSTOM CODE ? IT ticket Rate updates Audit YOU MAINTAIN
Burden
moves
2 With SAP Concur — we own it
SAP CONCUR CLOUD RATE CALCULATOR Monitored · Maintained CUSTOM CODE RETIRED
Engineers back on mission

Policy and rate changes become configuration. Your developers build product instead of maintaining accounting logic.

A lighter balance sheet

The extension retires and the technical debt goes with it. One fewer system your team is on the hook to keep alive.

Continuity you can count on

Documented logic maintained by a team, so the calculation outlives any one person's tenure — or memory.

Audit-confident by default

Walk into a DCAA review already knowing every number holds — each result carries its inputs, reconstructable line by line.

What moves across the line.

ResponsibilityYour team todaySAP Concur tomorrow
Calculation logicCustom extension you wroteBuilt and owned by SAP Concur
Per diem rate updatesManual, on your release calendarApplied automatically
Monitoring and errorsFound downstream, usually at close24/7 monitoring and error logging
Platform changesYour team rewrites to keep upLife-cycle maintenance included
Developer supportWhoever is free that sprintOn-call access to the people who built it
Audit documentationReconstructed under pressureDocumented logic, standing
04  How it works

Four mechanisms, running inside the workflow your travelers already use.

Delivered by the SAP Concur Custom Integration & Automation team as a hosted, managed service. You aren't buying a build. You're subscribing to an outcome.

01

It triggers itself

When a report is submitted, an event subscription fires the calculation. A system-level "ghost approver" holds the report just long enough to calculate — before it ever reaches a human.

Event Subscription Service
02

It finds the right rate

The correct location is resolved automatically, so the appropriate CONUS or OCONUS Department of State per diem rate is applied. No manual lookup, no stale rate table.

Itinerary Simulation API
03

It counts the right attendees

Attendee counts are pulled directly from the entry, so business meals, social events, and foreign government official meals are each handled to their own policy treatment.

Expense v4 API
04

It feeds your ERP cleanly

Results are written to the Standard Accounting Extract for downstream consumption. Calculated rates always reconcile to the total reimbursement amount.

Standard Accounting Extract
The calculation, in plain terms
Allowable= applicable CONUS / OCONUS per diem rate× allowable attendee count
Unallowable= total entry amount allowable amount

Scoped to a specific travel policy, so the rest of your enterprise is untouched. Rates populate in USD for standardized ERP ingestion. Every result carries its inputs, so the calculation can be reconstructed line by line — years later, in front of an auditor.

05  Learn more

Three small steps to the workshop. No commitment at any of them.

  1. Align internally on who should be in the room.Finance, travel policy, and whoever owns the ERP integration. That's usually the right group.
  2. Join a workshop with your SAP Concur team.Sixty minutes, working session format — not a pitch.
  3. Leave with the art of the possible.We walk through how this works in practice and what it would take to move the maintenance burden off your team.

You'll run this calculation either way. Do it as a service, and rate compliance stops being a system you maintain — and becomes one less thing standing between your team and the mission.