Expense Codes

Defines expense codes that users can book staff and project expenses to and their settings.

Additional Information

You can enter staff expenses and third party purchases in Timemaster to contribute to project costs. Expenses may be entered using a free-format description, but a more common method is to pre-define expense codes and then enter expenses only against the pre-defined expense codes.

Typical uses for expenses are staff expenses such as mileage claims and subsistence allowances, and third party costs such as advertising bills, photography, postage, and so on. Costs from external consultants may also be entered under project expenses.

Expense codes are defined using a two-tiered code comprising of a three character expense type followed by a numeric sub-division. The expense grouping provides summary information on reports and also allows the entry of an external account code for each type.

As a practical example of grouping you could create a number of expense headings for mileage claims, depending on the size and usage of car, but group them all under an expense type of "mileage" for reporting or invoice narrative purposes.

Typical list of expense codes

Expense Types	Expense Codes
MIL – Mileage	Company Car – 14p/mile Own Car – 40p/mile Own Car – 25p/mile
EAT – Meals and Refreshments	Meals with receipt Un-receipted meals
ENT – Entertainment	Client entertaining
PRN – Printing	Printing costs Copier costs
PST – Post and Carriage	Postal costs Courier costs
PUB – Public Transport	Taxis Bus/Tube/Trains Air fares
OFF – Office supplies	Office supplies
TEL – Telephone costs	Internet charges Personal mobile phone costs Conference call costs

Associated with each expense type is the user interface they are allowed to be used:

For example, if the expense type MIL is set-up to be a mileage type of entry, then all expense codes linked to MIL can only be used in the mileage entry screen.

Associated with each expense code are unit rates (if applicable), rules associated with maximum and minimum costs, and links to accounting packages.

Operation

To edit or delete expense code details, click the edit options on the in-line menu for the row you wish to edit.

Expense Codes Data Entry

Expense Codes Page

Expense Type

NOTE: This is only visible if the user has the access right Setups > Activity and Expense Codes > Expense Codes set.

A three-character code defining the type of expense. You are free to create your own codes for expense types. The expense types must be created in advance using the Expense Types button.

Expense Code

A numeric code (numbered within the expense type) to store the detail of the expense. Timemaster automatically allocates the next available code within the expense type but you may override this if you wish to leave expansion gaps.

Description

NOTES: If the Control Parameter > Expenses > Pre-fill expense description from expense code description is ticked the system will populate the description with this description.

The expense description.

Prevent the expense description from being altered during expense entry

Tick this option if you don’t want the staff member to be able to change the expense description.

Is this expense code normally used for outsourced fees?

Check this option if the expense code is used for recording consultants payments where the payment is taken from the overall total fee.

Tax code

The tax code gives the default tax rate for this expense. This is the tax levied on the purchase to be reclaimed (if possible), NOT the output tax code that you levy to your client.

Also use the input vat code for charging vat purposes instead of the project

Currency

NOTE: This is only available if the Multi Currency Functionality is registered.

The currency of the unit cost and charge rates.

Chargeable?

It is unlikely that staff entering expenses will know if the expense is chargeable back to the client.

In order to automate this process there are three options:

Never Chargeable

Expenses entered are always marked as non-chargeable.

Always Chargeable

Expenses are marked as chargeable. If an expense is chargeable but does not have a unit charge rate, the chargeable amount is set to the cost amount.

Depends on Task

setting

The task setting Are staff expenses chargeable to this task? determines whether expenses are chargeable or not (refer to Edit Task Fees).

NOTE: These are only default settings. The charge setting can be over-ridden on any individual expense by the approver / checker (user requires the access right Staff Expenses Related Functions > Change Chargeable Expense Flag)

Unit Cost

The notional unit cost for the expense.

Unit Charge

The notional unit charge for the expense

If different unit/charge rates are required for different currencies, then create a separate expense code for each country.

Max value allowed without receipt

Enter the maximum value allowed when a receipt is not submitted. (Zero means no maximum – to enforce a zero maximum enter a value of 0.01)

Max allowed overall value

Enter the maximum value allowed when a receipt is submitted. (Zero means no maximum – to enforce a zero maximum enter a value of 0.01)

Are notes mandatory

Check if the user MUST enter notes to accompany this expenses.

Mileage Page

NOTE: This is only open for editing if the expense's Expense Type is defined as a Mileage expense.

Maximum Mileage

The maximum mileage allowed for this code.

Next Expense Type

The next expense type to be used when the staff member has exceeded the number of miles on the current expense code.

Next Expense Code

The next expense code to be used when the staff member has exceeded the number of miles on the current expense code in the current tax year.

Cost Per Passenger

Used to calculate additional cost / charges per passenger.

For example: Cost is .40 per mile and the cost per passenger is .02 per mile. If a staff member entered an expense with 2 passengers the cost would be;

.40 + (.02 x 2) = .44 per mile.

Charge Per Passenger

Apply flat additional rate for passengers

If checked the additional pence per passenger is added to the cost and charge only once, regardless of number of passengers.

If un-checked, the additional rates are added per passenger.

Sage Codes
Nominal for IMPORTING purchase invoices (PI) from Sage	Nominal code from the external system to be used as a look-up when importing purchase ledger data from an accounts system into Timemaster.
Nominal for EXPORTING sales invoices (SI) to Sage	This code is added to the invoice record and used when exporting sales invoices to Sage.
Nominal for EXPORTING non chargeable PI expenses to Sage	Nominal code to be used when exporting non chargeable expenses into external purchase invoice ledger systems.
Nominal for EXPORTING chargeable PI expenses to Sage	Nominal code to be used when exporting chargeable expenses into purchase invoice ledger systems.

Expense Types

Expense Types form the first part of the full expense code and must be defined before the expense codes may be created. Examples of expense codes are MIL-1, MIL-2, MIL-3, where MIL is the expense type and the 1, 2, 3 are expense codes.

Expense Type	A 3 character code to identify the expense type.
Description	A description of the expense type.
Account Code	A spare field that can be used to contain an account code from an external system.
Sales Ledger Code	Spare fields that can be used to contain a sale or purchase code from an external system. Although the standard import and export transfer routines within Timemaster use the SAGE codes allocated at the expense code level, these are provided in case custom export routines are needed.
Purchase Ledge Code
Use as Project Expense	Tick if this expense type is allowed to be used as a project expense (i.e. non staff related).
Use as Staff Expense	Tick if this expense type may be used as a staff expense.
Used Mileage	Tick if this expense type may be used as mileage. If an expense code is used for mileage it cannot be used as a staff or project expense item.