You might need to do write-offs time and expenses due to various reasons, such as if you exceed a fixed fee contract. You cannot bill for that written-off time or expenses, but still need to know what actual time and expenses were incurred by the project. How does the write-off work in CORE?
There are several ways to write off service fees or expenses prior to generating an invoice. You can use any method that suits your situation.
Writing off time entries can be handled by using the Write-Up/Down feature in the Invoices screen (Create Batch Invoice). In this case, you can change the bill amount of the selected time entries to $0.00. Doing this will keep it tied to the invoice, making it part of WUD as well as Gross Margin reports. You can also write off or write down the invoice amount by changing the Net Bill amount, which automatically generates a WUD. Check CORE Help Center for details on WUD.
Making time or expense entries non-billable is recommended than marking them as billed. Non-billable time entries can be associated with an invoice and shows as ‘No Charge’. They will also display on the Gross Margin reports. If you mark the time or expense entries as non-billable, they show on the cost side of your reports, but not on the revenue side.
- From the Invoices screen, select the project's billing record in the Create Batch Invoice grid and and go into its time and expense details.
- Uncheck the Billable option for the desired time (or expense) entries.
- Go to the Time Entries screen.
- Uncheck the Billable option for the specific time entries. The best way to do this is to select all the time entries you want in the list view and update the status using Batch Update. Check Update Time Entries for details.
- On the Expense Entries screen, filter the data to view the relevant entries.
- 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.
Mark Billed option is essentially writing off a time or expense entry resulting in no revenue, but there is a cost. It is not included on detailed invoices nor the Gross Margin reports because it is not tied with the invoices.
- From the Invoices screen, select the project's billing record in the Create Batch Invoice grid and go into its time and expense details.
- Check the Mark Billed option for the desired time (or expense) entries. Check CORE Help Center for details on WUD.
For profitability reporting, all these scenarios should be included. 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. WUD is reflected in the net invoice amounts totaling to “Billed” (for profit reports showing billed work). This results in a truer measure of profitability. If you want to see the gross margins by invoice (what was billed and direct costs associated with it), then run the profit by invoice report in CORE. If you have written off time in CORE using the Invoices > Write-Up/Down feature, on printing the Aging Activity report, these written off projects are shown.