What is Reimbursement? Definition and Meaning

Reimbursement is a term that is closely related to finance. This term can be interpreted as a refund, especially to employees. In this case, the refund is made to the employee who has already spent his money for business purposes.

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The employee raises his money to pay fees related to the activities of the company. So the employee makes a company operational payment and later the employee will receive back the money.

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Receiving the money back from the company can be done by employees by applying for reimbursement. If the submission is correct, the company will later replace all the money that has been paid previously by the employee.

But before applying for money back, of course, every employee must know more about this matter. The kind of expenses that can be submitted needs to be known further. By knowing all of the types, later the application for a refund will be smooth and not constrained.

Types of Reimbursements

What is Reimbursement? Definition and Meaning

1. Reimbursement of business expenses

One of the costs that can undergo reimbursement is business costs. There are many examples of things that show the existence of business expenses by employees. For example, the issuance of credit is done to call the client. Or it could be the expense of getting office supplies.

Many other things also show the expenditure of employee money for the continuity of the company’s operations. The costs that have been incurred by the employee, in this case, can be submitted for return by the company.

2. Reimbursement for business trips

In addition to the above costs or expenses, employees can also refer to reimbursement in other respects. i.e. in the case of expenses for conducting or going on a business trip. Money spent by employees to finance business trips can be submitted for return.

The application for this travel fee is usually accompanied by proof of ticket purchase. Later employees who have traveled on a business trip can apply for a refund. Business trips are not always out of town. Business trips within the city can also be continued with refund application activities. This can be done so that employees do not get losses from business trips they make.

3. Reimbursement for employee health

Health costs can also be submitted for a refund by the company. Of course, reimbursement of health costs is a policy for some companies. Employees who get treatment or undergo an examination may apply for a refund. but now there are more and more companies that provide health BPJS for their employees.

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How to Apply for Reimbursement


1. Preparing documents

To apply for reimbursement from the company requires a fairly easy step. The first step is to prepare all the necessary supporting documents or data. This document can be in many forms ranging from proof of payment or invoice to other forms.

This document that must be submitted or filed should already be original. So always keep all the proof of payment you have made to apply for a refund.

2. Apply as soon as possible

After completing all the required documents, then you can apply for a refund. We recommend that the submission of this and return be done as soon as possible. Do not apply for the development of these funds more than the time that has been determined by the company.

Therefore, know exactly when the company gives time for each employee to apply for reimbursement. Do it as soon as possible so that all your documents don’t get lost.

3. Understand the procedure well

The thing or step that every employee also needs to pay attention to in applying for a refund is to understand the procedure. Each company certainly provides a procedure step that can be passed gradually by each employee.

So to get a refund, employees must go through a predetermined procedure. To know and understand for sure what are the procedures of your company. Know for sure what are the requirements for applying for a refund at your company. By fulfilling the applicable procedures, your application will run smoothly and overcome obstacles.

4. Recheck

Applying for reimbursement also requires precision from you. Don’t let the submission you make turn out to be wrong. For example, the amount is wrong or maybe the calculation details are wrong. Therefore, double-check your data and documents before submitting them.

Don’t let a miscalculation occur. Because the funds returned by the company are greater than the outgoing funds, this can be detrimental to the company. However, if the number is smaller, you as an employee may experience losses.

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5. Calculating the amount received

Reimbursement applications or refund applications that go through various stages end well. Then the employee will receive back the money in the number of funds he has spent. After receiving the money, don’t forget to recalculate the amount of money. It is necessary to ensure that the amount of money received corresponds to the correct calculations so that no one is harmed.

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Reimbursement, a refund to employees, is not a rare thing to find in the company. Almost every company carries out this process by returning employees’ money. Not infrequently, employees pay for company expenses by using their money first. Only then does the employee will get the money back. Then employees and the company are both not harmed and even benefit from the company.