Reinvoice expenses¶
If expenses are tracked on customer projects, they can be automatically charged back to the customer. This is done by logging an expense, referencing the corresponding sales order, and then creating an expense report.
Next, managers approve the expense report, then the accounting department post the journal entries.
Finally, once the expense report is posted to a journal, the expenses appear on the specified SO. When the SO is invoiced, the customer is charged for the expenses.
Important
Approving expenses, posting expenses to accounting, and reinvoicing expenses on SOs is only possible for users with the appropriate access rights.
See also
This document provides lower-level instructions for the creation, submission, approval, and posting of expenses. For fully-detailed instructions for any of these steps, refer to the following documentation:
Setup¶
First, specify the invoicing policy for each expense category. Navigate to . Click on an expense category to view the expense category form. Under the INVOICING section, click the radio button next to the desired selection for Re-Invoice costs:
No: The expense category cannot be reinvoiced.
At cost: The expense category invoices expenses at the Cost set on the expense category form.
Sales price: The expense category invoices at the Sales Price set on the expense form.
Log an expense¶
First, when creating a new expense, the correct information needs to be entered to reinvoice the expense to a customer. Using the drop-down menu, select the SO to add the expense to in the Customer to Reinvoice field.
Next, select the Analytic Distribution the expense is posted to. The options available are pulled from the Projects app.
Multiple projects can be selected, if desired. To add another Analytic Distribution, click on the line to reveal the Analytic pop-over window. Click Add a line, then select the desired Analytic Distribution from the drop-down menu.
Important
If selecting more than one Analytic Distribution, the Percentage fields
must be modified. Both fields are populated with 100%, by default. Adjust the percentages
for all the fields, so the total of all selected accounts equals 100%.
Example
A furniture company is building seating for two different locations for one client. The client agrees to pay for all travel expenses for site visits related to these two projects. The furniture company plans one trip to visit both locations.
When creating the expenses for travel expenses, both projects are listed in the Analytic Distribution line, for 50% each.
Create an expense report¶
After the expenses are created, the expense report must be created and submitted, in the same manner as all other expenses.
Once the expense report is submitted, a Sales Orders smart button appears at the top-center of both the expense report, and each individual expense record being reinvoiced.
Important
Selecting the proper SO in the Customer to Reinvoice field is critical, since this is how expenses are automatically invoiced after an expense report is approved.
The Customer to Reinvoice field can be modified only until an expense report is approved. After an expense report is approved, the Customer to Reinvoice field is no longer able to be modified.
Approve and post expenses¶
Before approving an expense report, ensure the Analytic Distribution section is populated for every relevant expense line.
If an Analytic Distribution entry is missing, assign the correct accounts from the drop-down menu, then click Approve.
Note
The Approve button only appears after an expense report has been submitted.
The accounting department is typically responsible for posting journal entries. To post expenses to an accounting journal, click Post Journal Entries. Once an expense report is approved, it can then be posted.
The SO is only updated after the journal entries are posted. Once the journal entries are posted, the expenses now appear on the referenced SO.
Invoice expenses¶
After the expense report has been approved, and the journal entries have been posted, the SO is updated, and the customer can be invoiced.
Navigate to the expense report, and click the Sales Orders smart button to open the SO. The expenses to be reinvoiced now appear on the SO.
Note
More than one SO can be referenced on an expense report. If more than one SO is referenced, clicking the Sales Orders smart button opens a list displaying all the SOs associated with that expense report. Click on a SO to open the individual SO details.
The expenses are listed in the SO Order Lines tab.
Next, click Create Invoice, and a Create invoices pop-up window appears. Select if the invoice is a Regular invoice, a Down payment (percentage), or a Down payment (fixed amount). Then, click Create Draft. Doing so creates a draft invoice for the customer. Click Confirm to confirm the invoice, and the customer is invoiced for the expenses.
See also