On-Charging / Recharging Supplier Invoices to a Project
This article gives an overview of how to pass costs (invoices) paid by the Finance team back through to the Project actuals, and potentially on-charge that cost to a client.
When does this process apply?
If a Proximity staff member has paid for a project-related cost and are to be reimbursed, or a staff member paid on a company credit card, then they should enter it as an expense. See this support article instead. Do not follow the steps below.
If Proximity's Finance staff will pay the invoice (usually post-paid after services have been rendered), then follow the steps below.
Process Overview
- An invoice is received for payment by Proximity and passed on to the Finance team
- The invoice is entered into the system and the relevant Project that incurred the cost is nominated
- The system creates a Miscellaneous Adjustment on the Project for each line item on the invoice:
- If the invoice line item should be recharged to the client, the Miscellaneous Adjustment will be marked as Approved, set to 'Pass-Through Ready to Bill Revenue' category, and billed to the client in the next end of month
- If the invoice line item should not be recharged to the client, the Miscellaneous Adjustment will be marked as Draft, set to 'External Cost' category, and not billed
How to enter an invoice against a Project (Completed by Finance staff)
- On receipt of the invoice, enter it into the system as a new Payable Invoice
- When adding the Expense Lines, use the following fields to control how the Expense Line will be sent to the Project as a Miscellaneous Adjustment.
- 'Project' should be the project this cost aligns with
- 'Recharge Customer' should be ticked only if you want to bill the customer for this line item
- 'Pass to PSA' should be ticked if you want to log this line item against the project as a cost (regardless of if it should be billed to the client)
- Once you have entered expense lines, submit the payable invoice for approval and post it as usual
- After posting, select each expense line and click 'Create Miscellaneous Adjustments' to send these line items to the project
- The Miscellaneous Adjustments will be created on the project, and automatically billed to the client at next end of month if 'Recharge Customer' was selected.
Note: For line items that are rechargeable to the client, 2 Miscellaneous Adjustments will be created; one for the GST inclusive cost for project actuals, and one for the GST exclusive cost to bill to the client (GST is added back on the Sales Invoice)