Expense Contract Lines: What They Are and How They Work in PSOhub

Published: 1 June 2026

Audience

Admin
Controller
Project Manager

Objective

Understand what an Expense contract line is in PSOhub, how it differs from other contract line types, and how it controls the way project expenses are tracked, approved, and invoiced.

Introduction

In PSOhub, an Expense contract line is a dedicated contract line designed specifically for capturing costs that fall outside of billable time — such as travel, accommodation, materials, or subcontractor fees.

Every project has a financial structure made up of contract groups and contract lines. Each contract line defines a specific scope of work or cost category, along with how it is budgeted and billed. The Expense contract line is one of five line types available in PSOhub, alongside Time & Materials, Fixed Fee, Retainer and Product.

Understanding when and how to use an Expense contract line ensures your project costs are tracked accurately and that the right amounts are invoiced to your client.

What is an Expense Contract Line?

An Expense contract line is a contract line type that captures non-time-based project costs. It is used when you need to track and invoice reimbursable or non-reimbursable expenses separately from hours worked.

When a team member logs an expense in PSOhub and links it to a project, that expense is recorded against an Expense contract line. The contract line then reflects the total costs submitted, helping you monitor spend against budget and determine what to invoice.

Billable vs. Non-Billable Expenses

An Expense contract line can be configured as either billable or non-billable, depending on the commercial agreement with your client.

Billable expenses are passed on to the client and included in the invoice. These are costs your client has agreed to reimburse, such as travel or accommodation.

Non-billable expenses are recorded internally for cost tracking and profitability analysis but are not included in the invoice. Examples include internal team meals or equipment costs absorbed by your organization.

This distinction is set at the contract line level when the line is created or edited.

How Expense Contract Lines Fit Into Your Project Structure

In PSOhub, projects are organized into contracts, which contain contract groups and contract lines. An Expense contract line sits within this structure alongside your time-based lines.

Here is how expenses flow through the system:

A team member submits an expense and links it to the relevant project and contract line
The expense is recorded against the Expense contract line and tracked against the budget
If the line is billable, the expense is included when generating the invoice for that contract line
Financial totals — including used amounts, budget variance, and margin — update automatically

This connected structure means that expense data flows directly into your project financials without manual reconciliation.

When to Use an Expense Contract Line

Use an Expense contract line when:

Your project agreement includes reimbursable costs such as travel, lodging, or external services
You need to track internal costs that are not billed to the client but affect project profitability
You want to separate expense budgets from time budgets within the same project
Your invoicing process requires expenses to appear as a distinct line on client invoices

If expenses are small and always absorbed internally, a non-billable Expense contract line gives you cost visibility without affecting client invoicing.

Key Fields on an Expense Contract Line

Field	Description	Type/Values	Notes
Line Name	The label for the expense line (e.g., Travel, Subcontractor Costs)	Text	Use clear, standardized naming to make reporting and filtering easier. Consistent naming improves visibility across projects and financial reports.
Contract Line Type	Set to Expenses for this line type	Select	This is fixed for expense lines and determines how the system treats entries (separate from time-based or fixed fee lines).
Amount	The agreed or estimated value of the expense line	Currency	Acts as a cap or reference for expected expenses.
Budget	The internal budget allocated to this line	Currency	Used for internal cost control. Helps track planned vs actual spend and supports profitability analysis. Should be reviewed if scope or expected expenses change.
Fixed Fee Expense	When enabled, expenses on this line are tracked, but only the agreed fixed fee amount is invoiced.	On/Off	Use when you want to invoice a fixed amount regardless of actual expenses incurred. Any variance between actual costs and the fixed fee will impact project margin.
Non-Billable	When enabled, expenses on this line are tracked but not invoiced	On/Off	Suitable for internal or absorbed costs. These expenses will still impact project profitability but will not generate revenue.
Invoice Method	Controls how and when the line is invoiced (e.g. Manual)	Dropdown	Defines the invoicing workflow.
Amount Used	Total expenses submitted against this line	Currency, Calculated	Updates automatically as expenses are logged. Useful for tracking consumption against the planned Amount or Budget.
Amount Invoiced	Total amount already invoiced from this line	Currency	Reflects invoiced value only (not necessarily equal to Amount Used). Helps track what remains to be invoiced and prevents double billing.

Next Steps

✅ Change a contract line to Expense
Learn how to create and configure an Expense contract line within your project contract.
How to Modify Contract Lines at the Project Level

✅ Log an expense against a project
Submit an expense and link it to the correct contract line so costs are tracked accurately.
How to Book Expenses in PSOhub

✅ Invoice expenses to your client
Generate an invoice that includes billable expenses from your Expense contract lines.
Invoicing in PSOhub