Handle Expenses (PSA Edition)

In this article, you’ll learn how to handle Expenses on Projects. This means you can determine whether an Expenses should be charged back and invoiced to the Client; should be allocated to an existing Allowance set up in the Fee Estimator; or is not chargeable and will be absorbed internally, reducing the overall profit of the Project.

1. Go to your Home Dashboard and find the Live Project Status box. Click on a Project’s Budget vs. Actual traffic light to go straight to the Budget vs. Actual page of that Project.

If you right-click and open in a new tab, you can work down all of your Live Projects and open up their Budget vs. Actuals in tabs contained within one window. This makes it quicker and easier to work through each Project one-by-one, closing the tabs as you go.

2. Scroll down to the Unhandled Expenses area of the Budget vs. Actual, where you will see all unhandled Project Expense items, listing:

  • Resource: The CMap user the Expense relates to.
  • Date: The date the Expense was incurred.
  • Description: A description of the Expense item e.g. “Hotel for client meeting”.
  • Status: Where it’s up to in the financial approval process e.g., “Open”, “Awaiting Payment”, etc.
  • Value: The value in the default currency i.e. GBP.
  • Handling Options: A dropdown box to select the relevant handling option.

If the drop-down box is unavailable within Handling Options, it’s because the Expense item is awaiting financial approval. Only approved Expense items can be handled.

3. You now need to use the drop-down box at the end of each row to select whether the Expense is Allowance, Retention or Chargeable.

  • Charge: The Expense is to be charged back to the client.
  • No charge: The Expense is not to be charged back to the client.
  • Allowance: The Expense should be factored into an existing budgeted allowance for expenses.

What happens if I select Charge?

The Expense items are added to the Additionals area of the Budget vs Actual page and CMap will automatically set both the Cost and Sale price to match the value of the Expense item.

This will prompt the Invoicing traffic light on the Live Project Status dashboard to turn red since the total of Scheduled Invoices will now differ by the amount of the chargeable Expense item. This prompts project managers to remember to bill their chargeable Expenses.

What happens if I select no charge?

The Expense items are added to the Additionals area of the Budget vs Actual page and CMap will automatically set both the Cost and Sale price to match the value of the Expense item.

What happens if I select Allowance?

A pop-up box will appear and ask you to select the additional cost to associate the Expense item to. You can select an option from the dropdown list.

4. Once handled, the expense item will move to the Handled Expenses area of the Budget vs. Actual page.

Hopefully, you now know how to handle Expenses within CMap so that the Expenses submitted are charged onto the client or not. This allows you to keep on top of Expenses so that they are charged out to clients on time, or absorbed within the company.

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