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3 Enter or select JW01 (Judy White) from the employee ID lookup list.
A ticket number is automatically assigned by Peachtree.
4 Judy is recording the ticket today, January 14, 2000. The ticket date already
states this for us. (If not, enter the date accordingly.) Press e to move to
the Charge Item field.
Charge items are set up in Maintain Inventory Items. These items are
recorded by an employee or vendor when company resources are used
for a customer or job. Charge items are also used to record
administrative expenses within the company and even employee out-of-
pocket expenses. Billable charge items can later be written up and
applied to customer invoices.
5 Enter or select COPY01 (Copies - 1:1 Standard) from the Charge Item
lookup list and press e.
She is making single-sided copies of the cover letter.
Tickets can be recorded for customers, for jobs, or for administrative
purposes. You would select Administrative if this ticket was recorded for
internal use by your company, (for example, meals or parking expenses).
Our example demonstrates a billable expense ticket for a job.


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Select Job, and then press e.
6

7 Click the lookup button in the Job field. The Job ID lookup list appears.

8 Double-click the CHER01-1 (CCT New Season Brochure) job folder.

9 Double-click the 04-Printing phase folder, and then double-click 010- Labor
cost code. You return to the Expense Tickets window.

10 Since this expense is company-paid rather than employee-paid, do not
select the Reimbursable to Employee check box. Press e to move to the
Ticket Description for Invoicing field.

11 In the Ticket Description for Invoicing field, type: Copies: Cover Letter.

12 In the Internal Memo field, type: Printed 1000 standard single-sided
copies of cover letter. Instructed to keep master document on file
for future printings.
Like time tickets, expense ticket internal memos are for internal use only
and can help provide detail regarding the item recorded. Memos can
display in reports, but will not display or print on the customer™s sales
invoice.
Next, we need to enter billing information for the expense ticket.
13 Type 1000 in the Quantity field and press e to move to the Unit Price
field.

14 Accept 0.12 as the unit price and press e to move to the Billing Status
field.

15 Select Billable as the billing status and press e.
The Billing Amount is calculated for us and displays $120.00.

16 Select Save to record the expense ticket.

Entering a Second Billable Expense Ticket
Next, Judy makes 1500 color copies of a subscription form. She needs to enter
a second billable expense ticket.
1 With the Expense Tickets window still open and Judy White™s employee ID
displayed, make sure the ticket date is January 14, 2000.
A ticket number is automatically assigned by Peachtree.
2 Enter or select COPY04 (Copies - 1:2 Color) from the Charge Item lookup
list and press e.
She is making double-sided color copies of the subscription form.


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Select Job, and then press e.
3

4 Click the lookup button in the Job field. The Job ID lookup list appears.

5 Double-click the CHER01-1 (CCT New Season Brochure) job folder.

6 Double-click the 04-Printing phase folder, and then double-click 010- Labor
cost code. You return to the Expense Tickets window.

7 Type the following ticket description: Copies: Subscription Form.

8 Type the following internal memo: Printed 1500 color double-sided
copies of subscription form. Instructed to keep master document on
file for future printings.

Type 1500 in the Quantity field and press e to move to the Unit Price
9
field.

10 Accept 0.90 as the unit price and press e to move to the Billing Status
field.

11 Select Billable as the billing status and press e.
The Billing Amount is calculated for us and displays $1350.00.

12 Select Save to record the expense ticket.

Neither of the expense tickets create General Ledger entries. They are solely
used to track expense items that the customer should be billed for at a later
time.


Entering a Non-Billable Expense Ticket
Because Cherokee Community Theater is a long-time customer, Judy takes
the theater president out to lunch. She pays for the cost of the lunch out-of-
pocket.
1 With the Expense Tickets window open and Judy White™s employee ID
displayed, make sure the date is January 14, 2000.

2 Enter or select MEAL01 (Meals) from the Charge Item lookup list.

3 Select Customer, and then enter or select CHER01 (Cherokee Community
Theater) from the customer ID lookup list.




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4 Select the Reimbursable to Employee check box.
This is an out-of-pocket expense for our employee. The company should
reimburse her for the cost of the meal.
Skip the Ticket Description for Invoicing field since this is a non-billable
expense.
5 Select the Internal Memo field and type the following: Lunch at the Red
Tomato Cafe with CCT Theater President.

Select Non-Billable as the billing status and press e.
6

7 Enter the cost of the meal as 52.95 in the Billing Amount field.

8 Select Save to record the expense ticket.
This non-billable expense ticket does not create a General Ledger entry.
However, it can be used for report purposes. When we pay the employee
back, the expense will be posted to the General Ledger.

Entering a Reimbursable Expense
Judy arranges for an outside printer to print 1500 color copies of the brochure
for our customer (a job that we cannot do internally). She pays the printer
with a company check for $1875.00 (1500 brochures at $1.25 each).
The best business practice here would be to record this as a reimbursable
expense recorded on a disbursement check in accounts payable (rather than
as an expense ticket item for the customer). We™ll get to this shortly.
Time and expense tickets are records that never impact the General Ledger.
Reimbursable expenses are accounts payable, payroll, and General Journal
transactions associated with jobs, which could affect inventory cost of sales.

Using Time and Expense Tickets
So far, no accounting (General Ledger) entries have been entered in Peachtree
Accounting as a result of entering time and expense ticket records. The
accounting tasks before us are:
• Pay our employee (payroll).
• Reimburse our employee for out-of-pocket expenses.
• Record the company check issued to the outside printer.
• Bill our customer for the work completed (time spent, expenses
incurred, and charges we want to recover).
Let™s walk through these tasks in order.


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Pay Our Employee
1 From the Tasks menu, select Payroll Entry. The Payroll Entry window
appears.

2 Enter or select JW01 (Judy White) from the lookup list in the Employee ID
field.

3 Make sure both the paycheck date and Pay Period End date are both
January 14, 2000.
Judy™s payroll information appears for the current pay period.

This message
indicates that the
employee is set up
to be paid based on
recorded time-
ticket hours.




Judy, a weekly
employee, has
recorded 38.50
hours for this pay
period.




The flag “Uses Time Ticket Hours” appears next to Judy™s employee ID.
This phrase indicates that Judy is set up in Maintain Employees to be
paid based on time-ticket hours. For more information on setting up
employees and their payment methods, refer to the “Payroll” chapter of
the User™s Guide.
The Regular pay level displays a total of 38.50 hours worked for the pay
period. This is all the hours she recorded on time tickets during the
payroll period.




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You could change the total hours worked, if necessary. For example, if
your employee inadvertently recorded 44 Regular time-ticket hours, you
might change the pay levels to display 40 hours Regular and 4 hours
Overtime.


Note: If you change the hours worked for time-ticket employees, your Time/
Expense reports will not accurately reflect what was paid to your employee.

4 Select Post to record the paycheck and close the window.
For more information on entering paychecks, refer to the “Payroll”
chapter of the User™s Guide.


Reimburse Our Employee for Out-of-Pocket Expenses
To assist Judy in preparing the official company-mandated expense report,
she can print Peachtree™s Employee Reimbursable Expense report, which
includes her tickets that have been marked to be reimbursed for the period in
question. This report shows ticket dates, charge items, descriptions, and
associations to customers or jobs. Our employee submits this report for
approval and requests a payment for these out-of-pocket expenses. We can
pay the employee either through payroll entry using a non-taxed payroll field
or through accounts payable using an expense check.

Entering an Expense Check
In this example, we will create an expense check in the Payments window.
1 From the Tasks menu, select Payments. Peachtree displays the Payments
window.

2 The cursor is located in the vendor ID field. Our employees are not set up as
vendors, so we will enter Judy™s name directly in the Pay to the Order of
field.

3 Select the Pay to the Order of button. The Pay To Address window appears.




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4 Type Judy White in the Name field.
If this expense check was going to be mailed, you could enter her address
here.

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