Bill Consultant Expense as Labor

You may want to have consultant expense appear as labor expense on a project's invoices.

To bill consultant expense as labor, complete the following steps:

  1. In the Employee Info Center, create a new employee record to represent the consultant.
  2. Enter a 0 (zero) job cost rate on the Accounting tab so that nothing will be costed to Vision for the timesheets entered by this employee.
  3. Modify any billing rate tables, if applicable, to include this new employee, and enter an hourly billing rate. The Rate times multiplier method cannot be used as the labor method because of the zero cost rate entered in step 2.
  4. In the Account Info Center, create a 600-level account that will be used for the consultant work only.

    All invoices for the consultant should be posted to this account. Because it is a 600-level account, amounts will not flow through as billable expenses to the client invoice.

  5. Enter the account created in step 4 into an Expense Accounts Table, with an override multiplier of 0 (zero).
  6. Assign this table as the rate table for your project on the Labor tab of the Billing Terms form. This step will ensure that project reports run at billing rates will not include billing amounts with your labor and expenses.
  7. Enter and post timesheets for the hours worked by this consultant, charging the appropriate projects. A 0 (zero) dollar amount will be costed to the projects at cost rates. However, a billing amount will appear to be billed.
  8. When an invoice from the vendor is received for the expense of the consultant's time, enter it into the Transaction Center as a payable to the 600-level account number (created in step 4) and post the transaction. This step will cost the expense of the consultant to Vision as an expense and not create a billing amount on the invoice.
  9. Create a client invoice to bill the consultant expense as labor.

The client invoice displays the timesheet hours posted in step 7 at billing rates in the labor detail section of the invoice. Nothing appears for the expense item. A project report at cost rates displays the hours without a billing extension in the Labor section and displays the expense in the Expense section.