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Version: Current

FAQ: How are mileage expenses calculated?

Zudello calculates the claimable amount for a Mileage Expense based on two key factors:

  1. Distance Travelled:

    • Route Planner (Default): When you enter the Start Address, End Address, and any intermediate Stop Addresses, Zudello uses an integrated mapping service (like Google Maps) to calculate the most likely driving distance between those points.
    • Manual Entry: You can choose to manually enter the total distance travelled if the calculated route is incorrect or if you are using a different method (like odometer readings recorded elsewhere).
    • Odometer (Future): Future functionality might allow direct entry of start and end odometer readings, with Zudello calculating the difference.

  2. Mileage Rate:

    • You (or the system automatically, based on configuration) select an applicable Mileage Rate from a predefined list (Settings > Dimensions > Mileage Rates).
    • This rate represents the amount your organisation reimburses per unit of distance (e.g., $0.78 per kilometre, $0.65 per mile).
    • Different rates might exist based on vehicle type, purpose, or date (configured by your administrator).

The Calculation:

The final claimable Amount for the mileage expense is calculated simply as:

Amount = Distance Travelled * Selected Mileage Rate

Example:

  • You enter addresses, and Zudello calculates the distance as 52.5 km.
  • You select the standard company mileage rate of $0.78/km.
  • Zudello calculates the Amount: 52.5 km * $0.78/km = $40.95.

This calculated amount is then typically added to an Expense Claim for reimbursement. Remember that mileage expenses are usually tax-free (e.g., no GST in Australia).

See Troubleshooting Mileage Calculation Errors if the calculation seems incorrect.