How Do I Create Expense Codes?

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Expenses incurred by an employee or a vendor can be reimbursable by the company or billable to the client.

 

Products sold to the clients are set up as expense codes. BillQuick Online can handle both pass-through items and inventory and non-inventory items.

 

You can set up your expense code at a basic level with a few mouse-clicks or at an advanced level with all the details. Please read the desired sections.

 

Basic Setup

To create an expense item:

 

  1. Open Expense Log screen from the Expense menu.
  1. To add a new expense code, click New. BillQuick Online automatically positions the pointer in the Code field.
  2. Type the desired Code and, optionally, Sub code. The resulting Expense ID must be unique, allowing a maximum of 15 characters each.
  1. Press the Tab key or click to move to the Description field. Enter a descriptive name for the expense (up to 100 characters).
  2. Enter the default per unit Cost for the expense item. For proper tracking, exclude any markups and taxes from this value. If the cost of an expense varies, leave the field blank; you can enter the rate in the Expense Log.
  3. Enter the Markup percentage by which you want to increase the cost. BillQuick Online uses it to compute the amount charged to a client. Leave the field blank if the percentage varies with each expense entry.

    BillQuick Online also allows you to enter negative markups. This markup automatically displays on the Expense Log screen.
  4. Make sure that each billable expense is marked as ‘Billable’.
  5. Click Save.

 

Advanced Setup

To add additional information:

 

  1. Choose a Default Group for the expense. This can be specified in addition to any other group you choose.

    This is useful for reports like Budget Comparison. If there is a budget for an expense, which is a member of both group A and B but its default group is A, then it will be listed against A on the reports.
  2. Select the Expense Type for better identification; whether it is Inventory, Non-Inventory or Other Charge Item.
  3. Specify Tax 1/2/3 rates for the expense. BillQuick Online sums the percentages before applying them to individual expenses. BillQuick Online applies item taxes in addition to any Main Expense Tax on invoiced expenses.
  4. Enter a Purchase Tax amount for the expense item. This is the tax paid by the company on that item and is subtracted from the Charge Amount to avoid double-taxation for the client.
  5. Custom fields allow you to record additional information about the expense (up to 50 characters). You can customize these fields in the Custom Labels screen.
  6. Check the Product option if the expense code is a product sold to the clients.

    Identifying the expense code as Inventory automatically marks the Product check box.
  7. For reimbursable expenses, select the Reimbursable check box. This means the company needs to pay the cost amount to the employee or vendor incurring this expense.
  8. Enter unlimited text or notes for the expense in the Memo.
  9. Click Attachments to attach files, web links and documents to the expense record.
  10. When you have finished, click Save and then Return to close the screen.

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