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5 Select OK to return to the Payments window.

6 Leave the check number blank.

7 Accept the date of January 14, 2000.

8 Skip to the first line item and enter or select MEAL01 (Meals) from the Item
ID lookup list.

9 Remove the sample description displayed and type Client Lunch. Then,
press e to move to the G/L Account field.

10 Enter or select account 71500 (Meals Expense).

11 Skip to the Amount field and enter 52.95 as the amount of the expense.

12 Select Post to record the check.
Normally you would print the check. For purposes of this tutorial, we
will skip that process.
For more information on entering payments in the Payments window,
see “Payments” on page 101 or the “Accounts Payable” chapter in the
User™s Guide.


Record the Company Check Issued to the Outside Printer
An outside printer needs to be paid for printing the color brochure for our
customer. They sent us a bill for $1875.00. This expense is better handled
through Peachtree Accounting™s reimbursable expense system (as discussed
earlier), but requires that there is a job set up for the customer.
1 With the Payments window still open and the check date set as January 14,
2000, enter or select MATH01 (Mathers Printing) from the vendor ID
lookup list.

2 Skip to the Description field of the first line item on the Apply to Expenses
tab. Type Print #1500 CCT Season Brochure as the description and press
e.

3 Enter or select 73000 (Outside Services Expense) as the G/L account, and
then press e until you reach the Amount field.

Enter the amount as 1875.00 and press e to move to the Job field.
4

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


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

7 Double-click the 04-Printing phase folder, and then double-click 080-
Outside Print cost code. You return to the Payments window.

8 Select Post to record the payment, and then close the window.
This payment will be available as a reimbursable expense when creating
a sales invoice for this customer.

Bill Our Customer for the Work Completed
Now that the work is completed and deliverable, we need to invoice Cherokee
Community Theater.
1 From the Tasks menu, select Sales/Invoicing. Peachtree displays the Sales/
Invoicing window.

2 Enter or select CHER01 (Cherokee Community Theater) from the Customer
ID lookup list.

3 The date should display as January 14, 2000.

4 Select the Apply Tickets/Reimbursable Expenses button.




The Apply Time Tickets/Reimbursable Expenses window appears. All of
the time and expense tickets entered earlier for this customer, as well as
the reimbursable expense for the outside printing job, are listed here.
You can now choose which of the tickets or expenses to bill to the
customer, whether to write the ticket amounts up or down, and how to
consolidate these tickets and expenses to create a sales invoice line item.




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Bill Our Customer for the Work Completed


5 Select the Time Tickets tab (if it is not already selected).




6 Make sure the “Use Ticket Description for Invoicing” check box is selected.
This option will insert the ticket description we entered earlier as the
invoice line item description.
7 Select the Use check box for the graphic design ticket.
Since the billing rate was already set up and recorded, we will accept the
invoice amount displayed ($292.50).




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8 Select the Expense Tickets tab.




Notice that our non-billable expense ticket for the employee out-of-
pocket lunch does not display.
In this window, you could select a series of tickets based on job, item, or
date range. This can speed up data entry, if several tickets display for this
customer.
9 Make sure the “Use Ticket Description for Invoicing” check box is selected.

10 Select the Use check box for both expense tickets.




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Bill Our Customer for the Work Completed


11 Select the Reimbursable Expenses tab.




Peachtree displays the $1875.00 payment transaction to Mathers
Printers. It appears here because we associated the CHER01-1 job to our
customer, Cherokee Community Theater.
12 Select the Use check box to apply the printing expense.
In order to record a profit from this item, we can write up the expense.

13 Select the Write Up button to display the Select Reimbursables to Write Up/
Down window.




In this window, you could select a series of reimbursable expenses based
on job, item, or date range. In this case, we only have one item, so the All
option should remain selected.

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14 Select the “Write lines up/down by percent” option. Next, enter a
percentage of 20.0 and select OK.
You return to the Reimbursable Expenses tab. The reimbursable
expense™s invoice amount has been written up from $1875.00 to
$2250.00.
15 Select OK to return to the Sales/Invoicing window.
Four line items have been added to the invoice.
• graphic design hours
• copies expense for the letters and forms
• printer cost for the brochures
The invoice now looks similar to the following:




16 Select Post to record the customer invoice.
When the sales invoice is posted, a General Ledger entry is created
debiting the appropriate accounts receivable account and crediting the
appropriate revenue accounts.




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Lesson X”Time & Billing
What Happens Next?


What Happens Next?
Once the tickets or reimbursable expenses are applied to a sales invoice,
they will no longer be available for creating a new sales invoice. If the
customer ever calls to question an invoiced amount, the ticket and the
reimbursable expense items used display as line items in the sales
invoice. You can refer to reports for detailed information on all the
tickets that have been applied to this particular invoice.
That™s it. Now you should have a basic understanding of how Peachtree
uses Time & Billing to manage time and expenses, whether for a
customer, for a job, or for administrative purposes.

Review of Lesson IX
Let™s review some of the things we learned in this lesson:
• Time & Billing is a process which uses time and expense tickets to
track time spent on various activities and record the use of company
resources on behalf of a customer or job. If you choose, recorded
time tickets and expense tickets can later be billed to customers on
sales invoices. If you use payroll, time tickets can be applied to an
employee™s paycheck. Time & Billing can also be used to effectively
manage administrative activities and overhead expenses for your
business.
• Either employees or vendors (contract labor) can record time tickets
and expense tickets.
• Time & Billing uses two special item classes in inventory: activity
items (used in time tickets) and charge items (used in expense
tickets).
• Activity items are used to explain what is being recorded on
employee or vendor time tickets. These items indicate how time is
spent when performing services for a customer, for a job, or for
internal administrative work. Billable activity items can later be
applied to customer invoices and even written up to record a profit.
• Charge items are expense items that are recorded by an employee or
vendor when various services are performed for a customer or job.
Charge items are also used to record administrative use of materials
or resources within the company and even employee out-of-pocket
expenses. Billable charge items can later be written up and applied to
customer invoices.
• You can enter time-ticket durations manually or have Peachtree use a
timer to actively clock the duration. You can only have one timer
running on a computer or network workstation at one time.



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• There are two methods to entering and maintaining time tickets. You
can enter individual time tickets using the Daily tab of the Time
Tickets window. Or, you can enter or display a group of employee or
vendor time tickets using the weekly time sheet (the Weekly tab of
the Time Tickets window).
• You can apply recorded time tickets in payroll entry provided the
hourly employee is set up to be paid based on time-ticket hours in
Maintain Employees. The employee will be paid based on time
tickets that were recorded during the selected payroll period.
• You can record employee out-of-pocket expenses by selecting the
Reimbursable to Employee check box in the Expense Tickets
window. This is recorded for report purposes only and is displayed in
the Reimbursable Employee Expense report. If you want to pay the
employee for the out-of-pocket expense, you can include the expense
in a paycheck or print an accounts payable disbursement check.
• When you record time and expense tickets, no General Ledger
transactions are created. However, transactions are posted in Payroll
after applying time tickets to paychecks. Transactions are also posted
to the Sales Journal when applying time and expense tickets to Sales/
Invoicing.
• You can only apply billable time or expense tickets one time in Sales/
Invoicing. You can select which tickets to use based on job, item, or
date range. You can write up tickets and reimbursable expenses to
record a profit. You can also consolidate tickets and reimbursable
expenses so that they will display as single line items on the
customer™s invoice.
This concludes the written tutorials for Peachtree Accounting. If you need
more assistance refer to the chapters throughout this manual or Peachtree
Accounting™s online Help.




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