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 Lodging Per Diem allowable rate, the overage is typically not allowed to be billed.
What’s covered in this document:
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.
Note: A separate option from using "-100%" markup is display the Project Type in the Expense report and ask that people mark overage Expense types to a non-billable Project Type (same Task/Project) or separate Task/Project with 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.) See below in CP table for more information.
The Expense Markup applies a percentage to the billable amount of an expense to show as additional revenue in the Unanet reports. By entering an Expense Markup of "-100%" all of the revenue is removed and only a cost will be shown for that line item.
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.
CP Billing Type projects
The Markup solution above will not apply to CP Billing Type projects.
Methods for handling unallowable expenses as non-billable on CP Billing Type projects are outlined below, along with pro's and considerations.
|Exclude Expense Type of Unallowable/Overage from the Cost Structure||The unallowable/overage amount will always appear as Unmapped and will not show up as a cost other than as Unmapped|
|Write off the amount on the invoice||You have to check each invoice and catch any that have the unallowable/overage|
|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 a non-billable Project Type (but same Task/Project)
The Project Type drop down would need to be displayed on the timesheet.
There may be room for error in charging 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 only may use the "Default" option for project type.
For information on planning non-billable expenses on Cost Plus projects, please use this link: https://knowledgecenter.unanet.com/x/2Lv8Aw
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.