Go to Settings, then Expense Preferences, and configure the mileage rate (the reimbursement per kilometre). Many Indian companies use rates between INR 5 and INR 12 per km depending on the vehicle type (two-wheeler, four-wheeler, or rented vehicle). You can set different rates for different vehicle categories if your policy requires it. Once configured, the rate applies to all mileage expenses until you update it.
When a sales executive travels to a customer site and covers 45 km, they log a mileage expense in Zoho Books: select Mileage type, enter 45 km, the date, the from and to locations, the purpose (client visit), and the customer or project. Zoho Books calculates the amount at the configured rate. For businesses with expense approval workflows, the mileage claim routes to the manager for approval before reimbursement is processed.
Vehicle travel reimbursements to employees are generally outside the scope of GST (they are salary-related reimbursements, not purchases of services). However, if you hire a taxi or cab for business travel and receive a GST invoice from the service provider, that is a regular expense with ITC potentially available (subject to Section 17(5) restrictions on personal vehicles). In Zoho Books, mileage expenses for employee-owned vehicles are recorded without GST, while hired vehicle invoices are recorded as regular bills with the vendor’s GSTIN and applicable GST.
A mileage expense in Zoho Books records business vehicle travel, calculated by multiplying distance by a per-km rate, allowing employees to claim reimbursement without individual fuel receipts.
Go to Purchases, Expenses, click New Expense, select Mileage. Enter the distance, date, travel purpose, and project. Zoho Books multiplies by the configured per-km rate to calculate the reimbursable amount.
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