Manage Expense Charge Types

Use the Manage Expense Charge Types screen to create charge types and set up rules for assigning or entering charge information to expense amounts.

Overview

Charge types define the rules for assigning charge information (UDT codes) to expense amounts for types of expense. In most cases, companies set up rules that provide automatic assignment of most charge information by the system, so the employees entering expense reports need not be concerned with entering correct charge information.

After you create one or more charge types for a type of expense, you assign them to the appropriate expense types on the Manage Expense Charge Types screen. A single expense type often has multiple charge types. For example, you may assign the following charge types to your Car Rental expense type:

  • Direct Car Rental
  • Bid and Proposal Car Rental
  • Overhead Car Rental
  • G&A Car Rental

    When an employee enters an expense for car rental, Time & Expense with ESS determines which of these charge types applies and uses the rules set up in that charge type to assign, or prompt the employee to enter, the necessary charge codes.

Portions of Expense Amounts

When you create a charge type, you can set up separate charge defaults and rules for these portions of the total expense:

  • Under Ceiling — The part of the expense amount that is under the authorized ceiling for the expense.
  • Over Ceiling — The part of the expense amount that is in excess of the authorized ceiling for the expense.
  • Unallowable — The part of the expense amount that has been classified as unallowable for the expense.
  • Tax 1 — The first tax amount included in the expense amount.
  • Tax 2 — The second tax amount included in the expense amount.

Location

To display the Charge Types screen, complete the following step:

Click Time & Expense > Expense > Expense Controls > Manage Expense Charge Types.

Contents

Screen Fields

Field Description
Code

In Code, enter a unique code of up to 10 characters (letters or numbers) to identify the charge type.

Each code must be unique.

Description

In Description, enter a short description of the charge type (up to 30 characters).

You should make descriptions as short as possible and properly capitalize them, because they are used in drop-down lists and as column headings for reports and inquiries.

Each description must be unique.

Type

The Type column displays the portions of expense amounts for which you are entering charge assignment information:

  • Over Ceiling — Expense amounts that are above the authorized ceiling amount.
  • Unallowable — Expense amounts that must be written off because they are not allowed under terms of the contract.
  • Under Ceiling — Expense amounts that are under the authorized ceiling amount.
  • Tax 1 — Tax amounts associated with expenses. (These rules only apply to tax amounts for expense types for which Distribute Taxes is selected on the Expense Types tab of the Expense Report Types screen. See Expense Report Types - Expense Types Tab for more information.)
  • Tax 2 — Second-tier tax amounts associated with expenses. (These rules only apply to tax amounts for expense types for which Distribute Taxes is selected on the Expense Types tab of the Expense Report Types screen. See Expense Report Types - Expense Types Tab for more information.)

    It is recommended that you enter charge information for each row. However, if you know that amounts of a particular type will never be entered (no unallowable amounts, for example), you do not need to enter anything for that row. Be aware, however, that if you do not set up one of the types, and an expense is later entered with an amount of that type, the charge type will not be valid for that expense because it is missing the required charge information.

    Note that each type can contain the same information if that is what you want. For example, if you want all costs to go to the same UDT02 or UDT01 , you can set up the same UDT02 or UDT01 for each of the rows.

Billable

Select the Billable check box for a row if the type of expense amounts are billed to a client or UDT02.

Note: If you select this check box, any amounts to which the information in the row applies are summarized in the Billable field on the overall expense report.
UDT01 - UDT15

If you want Time & Expense with ESS to get the value of the charge code from this charge type record, enter that value in the column for the charge code and select Charge Type in the ...Source column next to it.

For example, if you want unallowed expenses to go to a specific UDT01, enter (or look up and select) that UDT01 code in UDT01, and select Charge Type in UDT01 Source.

If you want Time & Expense with ESS to get the charge code value from a source other than this charge type record, do not enter a value for the charge code, and select the source in the ...Source column.

UDT01 - UDT15 Source

In each of the rows, use the drop-down list in the ...Source > column for each UDT used for expenses to indicate where Time & Expense with ESS should get the default charge information for each portion of the expense amount. These are the options:

  • None — Select None if you want the system to use the primary charge specified in the expense report header. If the UDT is displayed, the person entering the expense will not be able to change it. (None or Charge Tree is commonly selected as the source for UDT02.)
  • Charge Tree — Select Charge Tree if you want the system to determine the UDT value based on what is set up in the applicable charge tree. If the UDT is displayed, the person entering the expense will not be able to change it. (Charge Tree or None is commonly selected as the source for UDT02.)
  • Charge Type — Select Charge Type if you want the system to use the value you specify for the UDT on the Charge Types screen. If the UDT is displayed, the person entering the expense will not be able to change it. (Charge Type is often used when a company wants a particular UDT01 used.)
  • Employee History — Select Employee History if you want the system to get the UDT value from the employee's history file. If the UDT is displayed, the person entering the expense will not be able to change it. (This option is rarely used because the UDT information in employee history is usually for time entry and not valid for expenses. The occasional exception is UDT09, which may be correct for both time and expenses.)
  • User Input — Select User Input if you want the person entering the expense report to enter the proper value for the UDT. By default, the field is blank. If the UDT is displayed, the person entering the expense will be able to enter or change it.
  • Tax Schedule — (This option is available only for Tax 1 and Tax 2.) Select Tax Schedule if you want the system to get the UDT value from the defaults set up on the Charge Defaults tab of the Tax Schedules screen for the tax schedule associated with the expense. If the UDT is displayed, the person entering the expense will not be able to change it.
  • UDT02 > User Defined Code 1, 2, 3 — (These options are available only for UDT09 > Source.) Select one of these options if you want the system to get the UDT09 value from one of the user-defined codes set up for the UDT02. If the UDT09 is displayed, the person entering the expense will not be able to change it.
  • Charge Allocation — (This option is available only for UDT09 > Source.) Select this option if you want the system to use the UDT09 value entered on the Charge Allocation screen for the expense report.
Note: Although the table shows columns for all UDTs used in your system, you only need to select a source for those that are used in Expense.
Expense Reference

If you want Time & Expense with ESS to use expense reference text from this charge type record, enter that text (up to 20 alphanumeric characters) in Expense Reference and select Charge Type in Expense Reference Source.

If you want the expense reference text to come from another source, leave Expense Reference blank, and select the source you want in Expense Reference Source.

Expense Reference Source

In each of the rows, use the drop-down list in the Expense Reference Source > column to indicate where Time & Expense with ESS should get the expense reference for that type of expense amount. These are the options:

  • None — Select None if you do not want a reference associated with the expense.
  • Charge Type — Select Charge Type if you want the system to use the reference text you specify for the UDT in Expense Reference for that row on the Charge Types screen.
  • User Input — Select User Input if you want the person entering the expense report to enter reference text.
  • Tax Schedule — (This option is only available for the Tax 1 and Tax 2 portions of expense amounts.) Select Tax Schedule if you want the system to use the reference text specified for the tax schedule selected for the expense. That reference text is entered on the Charge Defaults tab of the Tax Schedules screen.