Writing off expenses in Core

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Sometimes you need to write off expenses due to various reasons, such as if you exceed the contract amount and expenses are part of it. You cannot bill for that written-off expense, but still need to know what actual expenses were incurred by the project.

There are several ways to write off expenses in Core prior to generating invoices.

Mark Billed: 
Mark Billed option is essentially writing off an expense entry resulting in no revenue, but there is a cost involved. It is not included on detailed invoices nor the Gross Margin reports because they are not tied to the invoices.

  1. On the Invoices screen, select the Batch Invoice mode.
  2. Select the relevant billing record in the grid and click Expense Details.
  3. Now select the expense entries on the grid that you want to write off. Click Actions > Mark Billed.

Non-Billable:
Making items non-billable is recommended than marking them as billed. Non-billable expense entries can be associated with an invoice and show as ‘No Charge’. They can also display on the reports. If you mark the expense entries as non-billable, they show on the cost side of your reports but not on the revenue side.

  1. On the Expense Entries screen, filter the data to view the relevant entries.
  2. Un-check the Billable box for those expense entries. You can also select multiple entries on the grid and use Actions > Batch Update to set the billable status to False.

Check Update Expense Entries for details.

For profitability reporting, all these scenarios should be considered. Mark Billed and Non-Billable options both involve costs charged to a project; thus when reporting profitability for clients, projects and employees, all costs charged to projects should be included. This results in an accurate measure of profitability.

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