Billable expenses

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No, it is not, because the net effect of either approach is identical. If you use billable expenses in Manager, those expenses do not appear in your P&L, but neither does the reimbursement from the customer. If you use a more traditional approach, your income will be higher by the billable expense amount, but so will your expenses. Net profit is identical.

The only income that does show on your Manager P&L from billable expenses comes if you mark up the expenses beyond what they cost. That is additional profit and shows up automatically in the Billable expenses - markup income account.

Please believe me, the methodology is completely correct from an accounting perspective. The only issue that could arise is whether it satisfies particular legal requirements or managerial policies for where entries are posted. But, as you already pointed out, there is great flexibility available under most accounting standards over how good accounting practices are applied. The guiding principle is usually that your method must accurately reflect the financial position of the organization at all times and its net income during a reporting period. The workflow of Billable Expenses in Manager does both.

Ok thanks but my delima with what was just said is not everyone that does business is in business with anything they mark up so no expenses are “transfered to customer”. And I realize it’s some how acceptable once you to the CPA audit level which is how I know they get books with all types of ways things can be done and then they can make their own kinda. I’m involved in a business that’s governed under state laws so certain things must be documented directly to the property in which it belongs this makes one of the reasons using standard programs a challenge as well as the fact we have an asset that exists but doesn’t really if that makes sense lol.

For me this discussion sums up as a feature request: provide easy one click invoice generation for expenses recorded on P&L.

Actually, it is a request for major restructuring in the way the program works. The question is not just about creating a sales invoice. You also have to accommodate accounting for the expenses prior to invoicing. Currently, they are temporarily accounted for as assets, not expenses.

Well, all new features restructure the way the program works to some extent.

It would be silly to comment on how difficult is to implement something without looking at the source code. :slight_smile:

It isn’t about code. It is about the underlying accounting concept. Your suggestion would require two entirely different paths, one requiring the use of an asset control account, with subsidiary ledgers for customers. The other would require introduction of control accounts and subsidiary ledgers for expense accounts, which the program does not accommodate.

I am not saying it is impossible. I am only saying this is not a simple feature request. As I said, it would require major restructuring of the foundations of the program.

It would require some work. I don’t know if it is a “major restructuring of the foundations of the program.”

The point is, obviously from this discussion, different jurisdictions and tax rules require a different handling of billable expenses.

While the current way is not wrong per se, it is not the only right way as well.

And users might need this. Having the odd expense done by hand on the P&L side is not an issue. But having hundreds of such transactions that would miss out on the beautiful feature of almost-automatic invoice creation is an issue.

I can spend couple of hours in tracking jurisdictions that require keep all expenses on the P&L side if that can contribute to a more convincing case for the implementation of the above mentioned beautiful feature. :slight_smile:

No, I don’t think that would contribute. More than jurisdiction would be involved. Some auditors may prefer a specific approach, regardless of jurisdictional requirements.

I think you’ve made your case. Whether anything is done with your idea is up to the developer.

May I assume the billable expenses are fit for contracts basis activity? Like construction.

I would like to know your opinion whether should I follow Mike Civalier’s Chart of Account or I just use Billable modules. Since I’m currently looking at one.

This is my reference.

and this is Mike Civalier’s Chart of Account. Quite Extensive I dare say.

Manager’s Guide.
If I understand correctly. the transaction are not in P n’ L instead its in the Asset under Billable Expense so I assumed it was not ‘off-the-books’. Unless I understood the term ‘off-the-books’ incorrectly please correct me.

I believe the ‘of-the-books’ term refers to the situation where, if everything entered as billable expense is invoiced, than you can’t determine how much money have gone through that account simply by looking at the summary in Manager.

The above discussion was about whether or not Manager should/could provide simple (one-click) invoicing regardless of whether billable expenses show on P&L or not (it probably will not).

Whether you should use the Billable expense features in your business depends on the standards required in your jurisdiction.

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@novica, you are correct in all your interpretations.

Well, after so many posts on the forum, finally - it was about time :slight_smile: