Summary: Answers
to frequently-asked questions about tracking expenses in Clients &
Profits. Clients & Profits can efficiently track expenses, e.g.,
mileage, meals, and postage; charge appropriate job tickets for expenses;
and if necessary, reconcile with an employee advance check .
How should expense reports
be used?
Expense reports are added by employees to track incidental costs such
as parking, mileage, phone calls, etc. They can be reconciled with
an employee’s advance check. (Employee advance checks are not
available in Clients & Profits Classic.) Also, expense reports
are used to capture out-of-pocket costs on jobs without affecting
the General Ledger. Back to Top
Q. How are expenses different from Accounts Payable
invoices or checks?
Expenses don't have an invoice or require payment. They are costs
that an agency has incurred during the course of business, has already
paid for, and needs to allocate to specific jobs. Back
to Top
Q. Do expense reports affect the General Ledger?
Unless an expense report is reconciled with an employee’s advance
check, it does not affect the General Ledger. An expense report updates
cost and billable amounts on a job ticket. Back
to Top
Q. What is the difference between choosing My >
My Expense Reports or Accounting > Expense Reports?
Both are areas through which you add expenses. Choose My > My Expense
Reports to enter expenses and also print a report of your expenses
for a specific date. To add, find, or print expense reports for yourself
and another staffers, choose Accounting > Expense Reports. This
is also the area where expenses are approved and can be reconciled
with employee advance checks. Back to Top
Q. What should I enter in an expense’s category?
An expense's category is user-defined, so can contain any meaningful
explanation of an expense. It appears on job cost reports in the "Who"
column, the same place that the staff initials or vendor ID appear
for other costs. There are expense reports that sort by category,
so be consistent with descriptions and remember that a category is
case-sensitive as well. Back to Top
Q. What determines the cost and billable amounts
of an expense?
You determine a cost amount as you add an expense. If the task you
use has a markup, then the cost amount is marked up to produce a billable
amount. If the task you use has no markup, then the cost amount is
also entered for the billable amount. If the task you use is unbillable,
then the cost amount is the only amount for the expense. It will not
have a billable amount.Back to Top
Q. Should I use expense reports to record client-related
cellular phone charges even if I won't bill these to a client?
Yes. The costs are job related and affect its profitability. If
you don’t bill these costs, then add them to an unbillable task.
The cost is recorded, but it won't be appear as billable. Back
to Top
Q. I use time sheets to add expenses. Will this create
any problems?
Yes. Using time sheets to allocate expense costs leads to an inaccurate
number of hours posted to a job ticket. Also, expenses then print
on time and productivity reports resulting in confusing and inaccurate
totals. Back to Top
Q. I use expense reports to record postage costs.
How can I get a report of postage expenses charged to jobs?
Choose Accounting > Expense Reports. Choose File > Print Expense
Report. To print a report by a specific category of cost such as postage,
type the category in the “and for what” area, then select
the specific report. Back to Top
Q. How do I approve expense reports?
Choose Accounting > Expense Reports. Find the expense report. Choose
Edit> Approve/
Unapprove. Approving an expense report updates job tickets. The costs
don’t appear on a job until the expenses are approved. Back
to Top
Q. Who can approve expense reports?
IExpense reports must be approved by a Clients & Profits user
with the access privilege to approve them. To give a user access to
approve expenses, choose Setup > Users, Access & Passwords,
double-click on a user name, then click the Costs button. A user can
either approve expense reports for everyone or only for their department.
Back
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Q. Can an employee advance
check be applied to expenses added on different days?
No. An employee advance check can only be reconciled with a single
day’s expenses. Back
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Q. Can unapproved expenses
be reconciled with employee advance checks?
INo. Only approved expenses can be reconciled with employee advance
checks. (Employee advance checks are not available in Clients &
Profits Classic.) Back
to Top
Q. What happens if an employee
owes money when an advance check is reconciled with their expense
report?
IThe employee has to provide a personal check for the balance of what
is owed. That check number is entered during the reconciliation process.
Back
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Q. What happens if an employee
is owed money when an advance check is reconciled with their expense
report?
The employee is automatically reimbursed if owed money. A company
check for the amount owed is added and posted. After the advance check
is reconciled with the expense report, choose Accounting > Checkbook.
There you’ll find a check which you can immediately print and
give to the employee. Back
to Top
Q. What is the effect on
the General Ledger of a reconciled employee advance check?
When an approved expense report is reconciled with an employee advance
check, a journal entry is added to move the expenses from an asset
account (e.g., prepaid expense) that was debited when the check was
posted to the appropriate expense accounts. Back
to Top
