Travel & Entertainment Payment Error Rate
Definition: The number of travel and entertainment (T&E) reimbursement payments that contain an error (not paid, incorrect amount, applied to wrong employee, not processed, etc.) divided by the total number of T&E reimbursement payments processed over the same period of time, as a percentage.
Discussion: The Travel & Entertainment (T&E) Payment Error Rate key performance indicator (KPI) measures the number of T&E payments processed per pay period that contain an error. Common T&E payment errors include over/under payment, omitted payments and payment for expenses that should not have been reimbursed under the company's expense policy. This number should be as low as possible, as payment errors can cause rework for finance staff and lead to disputes with employees. Look to improve the quality of T&E voucher submission and perform proactive training with expense processing staff on common T&E payment issues to move towards a low, or leading, value for this KPI.