Vendor Invoice Distribution Window - Operating Expense
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Clicking the Add or Edit buttons on the Vendor Deposit, Invoice, or Operating Expense Window for Vendor Invoices on Project and Inventory Purchase Orders and Operating Expenses will display the Vendor Invoice Distribution Window. This window will appear differently for each type of Payable transaction. The Vendor Invoice Distribution Window when recording an Operating Expense is described below.
Two options exist for Operating Expenses: Non-Project and Project Related. Selecting Project Related will allow a Specification in a Project to be created in order to bill the Client for the expense. Such expenses are often referred to as Reimbursables and will be discussed below.
Account Number (Account No.): Enter the General Ledger Account Number to which the Expense, or portion of the Expense, is to be charged. To locate the desired Account Number using the Account Search Window, click the Search button. In most cases, choose an Account whose Type is either Expense or Cost of Goods Sold.
Amount / Cost: Enter the amount of the Expense or portion of the Expense being allocated to the selected Account into the Amount / Cost field.
Type / Account Information:
Sales Category: A Sales Category can optionally be used to define which Cost of Goods Sold and Revenue Accounts will be used when saving the Expense and invoicing the Client, respectively. Since Project Related Expense Distributions are usually intended to be invoiced to the Client, a Sales Category is entered instead of a direct Account Number in order to record the cost into the proper COGS Account for the desired Revenue Account. If a Sales Category is not used, the appropriate COGS and Sales Accounts from the Company Information Window for the selected Component Type will be used. To locate the desired Sales Category Code using the Sales Category Search Window, click the Search button.
Amount/Cost: The cost of the Expense or portion of the Expense that is attributed to the particular Project.
Item / Component Information:
Project: The Project responsible for the portion of the Expense for which reimbursement is desired. To locate the desired Project Code using the Project Search Window, click the Search button
New Item: Use this option if a new Item in the Project should be created in order to bill the Client for the Reimbursable Expense.
Existing Item: Use the Existing Item option if to join the Reimbursable Expense to an Item that has previously been created in the Project. Doing so creates a new Component within the Item, increasing the cost and price of the Item accordingly. This is useful if certain Reimbursable Expenses should be consolidated for the Client under a single Item on the Invoice, preventing the Client from seeing the detail of the expenditures. For example, an Item such as "Reimbursable Shipping Expenses" could be created and all shipping expenses could be joined to that single Item for billing to the Client.
Location: When using the New Item option, the desired Location within the Project may optionally be entered, under which the Item will be displayed when invoicing the Client. The Location Search Window can be used to locate the desired Location Code by clicking the Search button. The Location field is not available when using the Existing Item option.
Bypass WIP: The Bypass WIP option determines whether the costs of the Expense will be recorded into Work in Process or directly into Cost of Goods Sold. Selecting the option will cause the costs to go to Cost of Goods Sold. When using the Existing Item option, the Bypass WIP option will be automatically selected if the Bypass WIP option is selected on the Item Window - Status Tab for the Item or the Item has already been invoiced to the Client. It may be desirable to set the Bypass WIP option if the cost of the Expense will never be invoiced to the Client. If unsure of the proper setting for the Bypass WIP, it is wise to leave the defaulted selection.
Type: Select the desired Component Type for the reimbursable Item.
%Type: Select whether Design Manager should calculate the Client Price using Markup, Discount, or Fee pricing. For more information, see % Type on the Component Window - Component Tab.
Markup, Discount, Fee%: Depending on the % Type selected, input the appropriate percentage to calculate the Client Price.
Taxable: Select this option if sales tax should be charged to the Client for the Expense. The taxable value will default to the settings entered on the Project Advanced Options Window – General Tab.
List Price: If using Discount pricing, enter the List Price from to discount in order to determine the Client Price.
Client Price: The Client Price is the sell price of the reimbursable Expense to the Client and will be calculated automatically based upon the selected % Type and percentage.
Cost is Non-Taxable: Use this option if the cost of the Expense from the Vendor is not taxable but any additional value or markup that is added for the Client is taxable. Certain states will allow sales tax to be charged to the Client if tax has already been paid to the Vendor. Check with the company accountant before using this feature.
Description: If the New Item option is selected, the text entered here will be the Item Description seen by the Client on the Invoice. If using the Existing Item option, this will be only the Component Description for future reference. The Description can be of nearly unlimited length. As text is entered into this field, the text will automatically wrap at the end of each line. To skip to a new line, press the Enter key on the keyboard. For information on formatting the description, see Description/Note Formatting.