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Overview
Expense Codes/Groups allow for the categorization of expenses for transaction entry, project reporting and invoicing. Examples are Prints, Travel, Meals, etc. They allow for varied markup per category.
Key Concepts
| • | There are three types of Expense Markup Type. Markups can be Multiplier, Add-on of flat Amount. |
| • | Can be assigned Direct Cost, Indirect Cost, and Revenue G/L Accounts. |
| • | Can be restricted to PM types (ex., ODC,OCC,ICC) |
| • | Can default in billing status (ex., Ready to Bill, Never Bill, etc.) |
| • | Can be budgeted in Project Planning |
| • | Expense Groups allow for subsets and overrides of expense codes that can be assigned to a project. |
| • | Expense Groups allow for non-labor expenses to be grouped into categories. This allows for billing categories to be established without the need for changing the chart of accounts. For example, if a client demands that air travel be separated from local travel, it would not be necessary to set up a separate ODC travel G/L account. |
| • | Expense Groups provide a mechanism for varied unit billing and markups. |
Note 1 - Once expense codes are established, they are then placed in expense groups. An expense code can belong to many groups. In turn, groups are applied to projects. Groups can also have effect dates, allowing for the revision of markups/rates on perhaps an annual basis. Expense groups are the expense equivalent of labor rate schedules.
Note 2 - Expense Codes need to be created before they can be added to Expense Groups. Adding Expense Codes is as simple as filling out a new row in the grid and clicking Save.
Field Descriptions
Expense Codes Grid
| • | Show in Expense Sheet - When checked, the expense will be a selectable option in an employee expense sheet during expense sheet entry. |
| • | Active - When checked, the expense code is active and can be added to an Expense Group. |
| • | Code - Expense code. The code that will be associated with this Expense. The Code must be unique. |
| • | Name - Expense Name. The Name that will be associated with this Expense. |
| • | Currency - Enabled with Multi-Currency Setup. Represents the transactional currency in which the expense code is utilized. For example, if entering a Purchase Journal using an AP Account (USD) only Expense Codes of similar currency would be available to the transaction. For complete instructions on setting up a Multi-Currency environment, go here: More on Multi-Currency |
| • | Exp. Code Type - Allowable PM types for the expense code are chosen here. They include Other Direct Charges, Out-of-Contract Consultants, In-Contract Consultants, Consultants (either OCC or ICC) and Any. |
| • | Expense Markup Type - There are three types of Expense Markup Types: (a) Markup, (b) Add-on,and (c) Flat Amount (see Fig.1). Below shows how each Markup type is calculated. |
| o | Markup - Unit Rate X Qty X Markup (Amount entered in Markup Column) |
| o | Add-on - [Unit Rate + Markup (Amount entered in Markup Column)] X Qty |
| o | Flat Amount - Qty X Markup (Amount entered in Markup Column)) |
| • | Markup - This changes depending on the Expense Markup Type selected. Note: The amount entered in the Markup Column can be the Markup, Add-on, or the Flat Amount depending on what Markup Type you select. |
| o | Markup - Multiplier used to mark up the Unit Rate. |
| o | Add-on - Amount you would like to add on to the unit rate. |
| o | Flat Amount - Flat amount that you would like to charge per unit. |
| • | Unit Rate - Unit cost rate. The amount you pay, per unit, for the expense. This can be overridden in the Expense Journal. Typically used for things like Gas, Printing, etc., when you have a set unit rate amount. |
Note - This will default in all Expense Sheets and Expense Journals.
| • | Bill Status - Bill status that defaults into a transaction when this Expense Code is used. |
| • | Direct Cost - This is the default G/L base account for direct expense. |
| • | Overhead - This is the default G/L base account for indirect expense. |
| • | Direct Bill Revenue - This is the default G/L base account for expense billed revenue direct portion. |
| • | Markup Billed Revenue - This is the default G/L base account for expense billed revenue markup portion |
| • | Unbilled Revenue - This is the default G/L base account for expense unbilled revenue. |
| • | Comment Template - This is where you assign a comment template to the expense code. The template will display when the user clicks on the PM Comments box in the Expense Sheet. More on Comment Templates |
| • | Comment Required - When checked, the expense code is requires that a PM Comment be added when this expense is added to an expense sheet. |
| • | Internal Comment Template - This is where you assign a comment template to the expense code. The template will display when the user clicks on the Notes (Internal) box in the Expense Sheet. This comment is for internal purposes only. More on Comment Templates |
| • | Internal Comment Required - When checked, the expense code is requires that a Note be added when this expense is added to an expense sheet. |
| • | Non-Reimbursable - When checked, the expense codes is flagged as non-reimbursable for expense sheets. |
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