Purpose
The purpose of this policy is to:
a) Describe all types of expenditures that can be reimbursed by the company.
b) Make employees aware of their responsibilities to control and report travel and entertainment expenses and limits according to their designation, etc.
c) Set out the process for an employee to file and obtain travel expenses and reimbursement.
Travel Policy
Method of travel - air, car, rail, class of travel, etc.
Hotel stay - amounts/limits/class of hotel.
Budget
The company needs to make a budget, which is reviewed monthly and linked with outstation sales.
Process of claiming travel expenses
Define it carefully - forms to be used, who gives sanction for tours, whether tickets, hotel vouchers are to be attached, etc.
Travel agent
The company can enter into a contract with a selected agent who handles all reservations, hotel bookings, etc.
Entertainment expenses
Policy for entertainment - who can entertain, limits, whether liquor can be served in such entertainment, etc.
These are some ideas that can be considered while framing the travel policy. The policy will depend on the size and nature of the business. Frame a suitable policy after consulting all stakeholders and follow it.