How Do I Determine Expense Cost and Amount?

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BillQuick Online calculates the cost and amount of expense entries in the following way:

 

  1. Open Expense Log from the Expense menu.
  2. Click the ID of an expense code listed in the grid or entering a new one.
  3. Check the values in the Cost, Markup, Tax 1/2/3 and Purchase Tax fields. Change them if required.
  4. Click Save and then Return.
  5. Open the Expense Log screen and create an expense entry using the above expense code.
  6. Enter the number of expense Units. The Cost, Markup and Tax 1/2/3 fields are pre-filled with the expense code values. You can enter negative values for Cost and Markup to reduce the charge amount.

 

BillQuick Online calculates the Amount (Cost x Units). The total Amount to be charged is computed only when the expense is marked as Billable. The formula is:

 

[Cost Amount x (1 + MU)] x [1 + (Tax 1 + Tax 2 + Tax 3)]

 

When calculating Charge Amount, BillQuick Online subtracts the Purchase Tax (paid on expenses) from the Cost Amount to avoid doubly taxing the client.