Project Expenses

Note NOTE: You must have the Windows Application > Setups > Control Codes > Control Parameters > Expenses tab page > Activate purchase orders option ticked for this functionality to be enabled on your system.

 

Navigation:

Projects > Project Expenses > Project Expenses

Access Right:

Project Expenses Related Functions > Administer Project Expenses

Additional Access Rights:

The following access right are also applicable.

Access Right

Function

Delete Project Expenses

This allows the user to have the ability to delete Project Expenses.

 

Purpose

Project expenses are used to record payments to external consultants and also all non-labour expenditure. These payments are entered into Timemaster as Purchase Orders. From within the Project Expenses entry you can link the specific expense to the purchase order.

 

Data Entry

Item

Description

Purchase Order No

If the project expense is a payment against an existing purchase order, enter the purchase order.

If the purchase order is entered, all fields relating to the purchase order (eg, expense code, project, service etc.) are copied from the purchase order and disabled.

Date of Expense

The date of the expense

Supplier Code

The supplier code looks up the company name from the suppliers table. If left blank, the supplier company name may be manually entered.

Supplier Name

Looked up from the supplier code or can be entered if the code is left blank

Expand Invoice Details

Three additional optional data items are available by clicking the Expand Invoice Details button:

oSupplier’s Invoice Ref

oCustomer Ref

oInternal Ref

These three items are considered narrative within Timemaster and may be used for any purpose.

Project ID

The project the project expense is allocated to

Task

The task within the project

Service and Group

The service and group are copied from the task. If no task is required the service and group will default to the lead service and group on the project record but may be overwritten.

Expense Code

The expense code of the expense.

In some case this can contain a unit cost and/or change rate, in which a quantity is required.

If no unit cost or charge rates are linked to the expense code, the quantity is not required.

Description

A description of the expense.

Is this expense a payment as part of an outsourced fee?

If this is ticked the system recognises that the expense should not be charged to the client. Click here for more details on outsourced fees.

If you have projects which are charged on a fixed fee basis, and need to outsource some of your fee to external consultants, then these are called outsourced fees in Timemaster.

Outsourced fees are handled in Timemaster by creating a purchase order for each sub-consultant with the amount of fee being outsourced. Timemaster then deducts the value of the outsourced fee from your predicted income so your reports of predicted income, or profit and loss are based on your net fee income.

 

In order for Timemaster to accurately predict when the cost of the outsourced fee falls, a set of rules are applied:

▪Each purchase order value is split over tasks using the same percentage proportions as your gross fee

▪The proportions can be changed either using a lump sum value or percentage entry

▪Once allocated to a task, the cost profile of the purchase order tracks the gross fee income schedule. That is, if the gross fee is scheduled on a monthly basis, then the purchase order cost tracks the monthly schedule. If the gross fee is straight-line apportioned, then the purchase order cost tracks the straight line apportionment.

 

If a different profile is required, then the purchase order can be scheduled on a monthly basis independently.

 

For information on how to enter outsourced fees, please see the topic Project Purchases and Expenses Overview.

 

 

 

Quantity

If a unit cost/charge rate is linked to the expense code, the quantity is used to calculate the cost. If no unit cost or charge rates are linked to the expense code, the quantity is not required.

Cost ex VAT

The cost excluding VAT of the item

Vat Code

Defines the VAT rate

VAT Amount

The amount of VAT

Chargeable Y/N

Defines whether the expense item is chargeable

Charge amount ex VAT

The amount chargeable.

Chargeable expenses will be invoiced when approved.

 

 

Approving

Project expenses need to be approved before they may be invoiced. Because project expenses tend to be entered retrospectively (as opposed to employees submitting a claim for their own expenses), they are effectively already approved by the time they are entered into Timemaster.

There is a setting which automatically sets the approved flag when an expense is entered so that chargeable expenses can be invoiced without someone having to go through and approve them all. If this is the case you will need to either un-approve the expense before it can be edited or be granted the access right "Edit Approved Expenses"

Invoice expenses cannot be changed. If it required to alter an invoiced expense, the invoice must be either edited or a dummy expense record put through as an adjustment.

 

Related Topics

Fee Schedules

Profitability Schedule

 

Any images shown may be representative of the previous version of Timemaster

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