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SAP TM (Travel Management)

Definition - What is SAP TM?

Full form or SAP TM stands for (Travel Management), helps you keep a tab on travel related costs and simplifies all allied processes - in an easy and cost-effective manner.

From supporting all the different travel concerns related to the handling of business trips to integrating comprehensive functionality by taking care of the settlement, taxation and payment taxes, a well conceived SAP (TM) system takes care of it all. In addition to addressing regular processes, it helps companies request, plan, and book upcoming trips, create reliable and accurately formatted travel expense reports and transfer expense data to all the other connected functional areas.

In the fast evolving global business environment that we find ourselves in today, travel has become an unavoidable necessity and involves numerous costs. To bring about effective reductions in these expenditures, companies often adopt a well-conceived and managed travel management policy that serves to incorporate smarter automated solutions. An integral part of the popular SAP ERP (Enterprise Resource Planning) application, the SAP Travel Management module ensures substantial, ongoing and immediate savings.


Sub-Components of SAP Travel Management (TM)

The following areas of SAP TM (Travel Management) are capable of being combined in different ways to reflect the organizational structure and requirements of a specific company:

Travel Request

  • The person, who plans to travel in the next few days, has to access the SAP System and submit a request to his/ her manager. This travel request gives all the relevant information to the superior such as the destination, date, and purpose of the trip; along with the transportation /accommodation required, the estimated costs for the trip, and the requested advance.
  • After receiving the request, the manager can send it back for corrections, reject it, or approve the same.

Travel Planning

  • After the travel request submitted by an individual has been approved, the available travel services (car rental, flight, hotel, train and so forth) in a travel plan are determined and booked online through easy tools in the SAP system. Thereafter, all bookings are made in an external reservation system that is effectively aligned with the SAP (Systems, Applications, Products in Data Processing) system. When the travel plans are recorded, the booking code (PNR) is punched into the processing queue related to the travel agency. Then, the travel agency checks the consistency and correctness of the booking and makes all necessary arrangements as requested.
  • The travel plan is sent to the manager for approval. After gaining the same, the travel agency issues the tickets/ trip documents and sends them to the concerned employee.

Travel Expense Report

After the trip, a comprehensive expense report, including all essential data and documents has to be filed, which is then audited by the requisite department. Once approved, the trip is settled in the SAP system

Benefits of SAP Travel Management (TM)

With reliable SAP Travel Management (TM) components in place, organizations can deal with travel concerns in a more organized and result-oriented way.

Its many benefits include:

  • Realizes savings by setting better travel policies and increasing compliance;
  • Raises productivity by reducing administrative tasks and extending travel functions to mobile devices;
  • Improves cash management by using travel processes that are integrated with SAP financial processes.


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