If you want your users to report expenses against single phase projects or multi-phases projects, add Expenses Categories to phases and set up a budget for each category to track the costs and revenue against each of them (revenue is available only for billable categories). Expenses' costs and revenues will be included in the project budget calculations and you will be able to control the project's spending better.
If Expenses Categories are not added to a project, expenses cannot be reported against it.
For System Administrators:
The 'Billable' setting has impact on the expenses calculations on projects.
When expenses are billable - both costs and revenues from expenses are calculated in the Total Revenue, Total Profit and Total Cost of the project.
If expenses are not billable - then only the cost is reflected in the calculations and users cannot add any revenue to their expenses.
To have the possibility to add billable expenses one of the following custom settings have to be switched on: 'Show Markup Expenses Option' (adds an 'Markup Expenses' button to parent projects that when switched on allows to add billable expenses categories to the project) or 'Set new project as chargeable expenses' (sets all new projects' expenses categories as billable).
If your 'Show Markup Expenses Option' custom setting is enabled but the 'Markup Expenses' setting is disabled on the parent project (or 'Show Markup Expenses Option' is disabled so the 'Markup Expenses' setting on the project is not available) and 'Calculate underbooked expenses' custom setting is set to 'Yes', then when the expenses remaining budget on the project is a positive number, the expenses remaining budget is calculated as the profit of the project.
If you want to read more about configuring custom settings, follow the article: How To Configure Custom Settings?
How to switch on the possibility to add billable expenses categories on a project when 'Show Markup Expenses Option' custom setting is switched on?
1) Edit the parent project by clicking 'Update Project'.
2) Drag the 'Markup Expenses' button to the right so it turns green and click 'Update' at the bottom of the page to save the changes.
3) 'Markup Expenses' button switched on adds the 'Billable' checkbox on the expenses categories. When you tick the checkbox, the expense category will be billable. When you leave it un-ticked - it will be non-billable.
How to add expenses categories?
1) Click the Update Project Data or Update Phase depending on the project type - single phase or multi-phase.
2) You will find the 'Expenses Categories' section at the bottom of the page. Click the '+' button to add a category.
3) 'Add New Expense Category' window will appear.
- Fill in the name of the category - this field is required to create a new category.
- Billable checkbox is available only when custom setting 'Show Markup Expenses Option' is switched on. If 'Set new project as chargeable expenses' custom setting is switched on or none of those custom settings is switched on, this checkbox is not displayed. Tick the Billable checkbox if the expenses added to this category should allow not only to report the cost but also a revenue against this category.
- Enter the 'Expense Budget' if you want to track the actual expenses against the budget amount.
- Don't forget to save the phase after adding the categories.
4) New Expense Categories will appear on the list. To see them without having to edit the phase, click on the icon '>' to extend the list.
5) The list of Expenses Categories will show you:
Name - the name of the category
Billable - this column will appear only when 'Show Markup Expenses Option' custom setting is set to 'Yes' and 'Markup Expenses' button on the parent project is on.
Units - shows how many expenses were logged in against the category.
Revenue - shows summarized revenue values when they have been reported on billable expenses categories.
Cost - shows summarized cost values per category.
Balance - this column will appear only when 'Show Markup Expenses Option' custom setting is set to 'Yes' and 'Markup Expenses' button on the parent project is on. Shows the balance between the cost and revenue. If the category is non-billable, the balance will always be a negative number.
Budget - shows the budget defined on the category window.
Rmng. B. - (Remaining Budget) shows the difference between the budget and reported costs.
The expenses' costs will affect the Total Cost, Total Revenue, Total Profit and Total Margin of the project.
For billable expenses categories with revenue - the revenue from expenses will be added to the Total Revenue.
For billable and non-billable categories with costs - the cost from expenses will be added to the Total Cost.
As the Total Profit and Margin are calculations of the difference between the Total Revenue and Total Cost - both will be affected by the costs and revenue.
If 'Show Markup Expenses Option' custom setting is disabled or 'Markup Expenses' is disabled and the Remaining Budget is greater than 0, the Total Remaining Budget will affect the Total Cost and will be added to the project Total Profit.