Title: Unallowable expenses as non-billable
The page below describes how to handle setting up unallowable expenses as non-billable for any contract type. For example, if amounts are charged above the Per Diem allowable rate, the overage may not be allowed to be billed.
What’s covered in this document:
Charge to a Non-Billable Project Type
Have the employee charge the overage Expense types to a separate Task/Project with a non-billable Project Type.
This option may benefit from additional support via a Validation Stored Procedure which would enforce that overage Expense Types are always associated with a non-billable Project Type (otherwise, without the VSP, the Project Type method may be prone to error since they may forget, or may choose the wrong project type).
|Charge Expense Type of Unallowable/Overage to a separate Task/Project with a non-billable Project Type.|
VSP should be set up to ensure that the overage Expense types are only ever allowed with those special Task/Projects (which have the non-billable Project Type).
Charge Expense Type of Unallowable/Overage to the same Task/Project with a non-billable Project Type.
Not recommended for Financials customers, as the Project Type dropdown menu would need to be displayed on the Expense Report, and there could be an error to the wrong Project Type accidentally - they might choose B&P instead of NB.
Note: You could wrap the expense validation with a VSP to enforce that unallowable/overage expense types are switched to a NB project type, and that all other expense types may only use the "Default" option for project type.
Alternative Solutions by Billing Type
TM Billing Type projects
For TM Billing Type, if you set up the expense type to have a "-100" value in the Markup % field, it will display as non-billable in the reports and will be excluded from invoices. This is the case even if the Project Type of the project/task to which the expense is charged is a Billable project type. For TM contracts, the "-100%" markup is particularly useful for the expense types to capture unallowable overages for per diems. See the Expense Setup screen and Report display screen below.
The Expense Markup can be entered at the global level or for a specific project. The global level should be updated if the Expense Type is always considered non-billable on each project. An example of this may be an internal expense, like Office Supplies or personal cell phone reimbursement. If a particular expense is only non-billable for a specific project, like a contract that does not allow for billable travel, the Markup can be established at a project level. Only a Unanet Administrator can manage the global Expense Type. A Project Manager can manage the project Expense Type.
Note that even though the Project Type is Billable, since the Overage is set up as -100% Markup it will "bill" $0.
Note: In the screenshot below the Bill Amount and Billable Amount are $0 for the overage amount.
CP Billing Type projects
The Markup solution above will not apply to CP Billing Type projects. If you do not wish to have the employee charge a separate Non-Billable project or task, you may wish to simply write off the amount on the actual invoice.
For information on planning non-billable expenses on Cost Plus projects, please use this link:
FP Billing Type projects
The nature of Fixed Price projects is that typically expenses are not billed. If you are dealing with a FP project that does bill expenses, then you will be setting up a TM Billing Type Task to handle those expenses. See the TM section above.