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What is an Expense contract line?
What is an Expense contract line?

Understand what an Expense contract line is.

Julie Bennett avatar
Written by Julie Bennett
Updated over a week ago

Updated August 2023

Expense contract line in detail

A contract line is defined with a Name and a Line ID and it is always part of a Group. You can also further define your contract line with a description which will appear on the invoice.

PSOhub support four types of contract lines: Fixed fee, Expenses, T&M (Time and Material), and Retainer.

A contract line defined as Expenses will allow you to invoice the actual expenses that have been booked towards the contract line. There is no fixed amount here, you invoice expenses booked.

The financial information of an Expense contract line will be displayed in the four following fields: Amount, Budget (Sales), Budget (Costs) and Total value.

Field

Description

Amount

This field is automatically populated by PSOhub with the value of the expenses booked (exclusive of tax) and, as such, can't be overwritten. This field is also leveraged in the process of billing.

Budget (Sales)

Represents your budget based on your selling rate. In the case of
a Fixed fee expense, contract lines that would be your internal budget (based on your selling rate). An Expense contract line would represent the budget/estimate you have agreed upon with your client.

Budget (Costs)

Represents your budget based on your cost rate. The Budget (Costs) represents your internal budget based on your cost rate.

Total Value

This field will always display a zero value because it is excluded from the calculation of the Total Project Value (Left-hand pane representing the project properties).

Note: That the value of expenses booked towards an Expense contract line is always displayed in the Used column of the Contract tab.

Fixed fee expense

A fixed fee expense will allow you to enter a value in the Amount field that will be invoiced no matter what the actual expenses booked on the contract line. An Expense contract line set as fixed fee will behave the same way as a Fixed Fee contract line (related to Hours).

If you want to capture expenses but do not want to invoice them, you can define your contract line as a Fixed fee expense and leave the field Amount at 0; this, will automatically exclude the contract line from being invoiced. This follows the same principle as non billable hours.

Non-billable expense

When a contract line is defined as a Non-billable expense, the Amount is set to 0 and cannot be modified. This contract line will also be excluded from being invoiced.

Budget used alert

You will be able to define one or two budget alerts:

Once the value of expenses booked towards the contract line reaches the percentage of budget defined for the first alert, a message will show in the Activity feed of your project.

If you have checked the Alerts box for any team member of your project, the alert will show up as a notification in their PSOhub account and/or in their email:

The overrun budgets alerts are highlighted in the contract. The Expense icon will become orange if the first budget alert has been reached. When the second alert has been reached the icon will become red. If you are only using one budget alert, the icon will simply become red when reached.

Deactivate line on budget overrun

In addition to the alerts, you can also check the function Deactivate the contract line on budget overrun which will prevent anyone from booking expenses once there is no budget left on the contract line.

The Active option will only appear once your project is set to Active.

As soon as you change the status of your project to Active, your contract line will also be set to Active and this box will be automatically checked. This will allow expense entries to be made towards the contract line.

If you wish to prevent team members from booking expenses towards a contract line, simply uncheck this box and this contract line will no longer be available for entry.

Add as task list in tasks

This option will allow you to add this contract line as a task list to your project's task board if it's not already included in your project's task board template, or if you plan on creating your task board without any existing template.

Invoicing details

The Invoicing tab will allow you to define how to invoice the Expense contract line.

If you need PSOhub to use a specific tax category or revenue account for this contract line, you will select it here.

When integrated to an accounting software, you can overwrite the default revenue account defined in the My Organization settings. You can select an alternative option in the GL Name / Article / Item / Service /Product drop-down list.

Click the Save button to save the configuration.

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