The Admin user has the ability to create a list of expenses which staff members can claim back, as well as those to be captured as disbursements.
Let's take a look at how this can be done.
- In the main menu, click on the Settings Cog and select Expense Types from the drop-down list.
- Firstly, you'll need to set up the new type of expense by clicking +Add Expense Type.
- Then, enter the Expense Type Name and select whether this expense is one that would be incurred by an Employee or the Company. Employee expenses include mileage and cellphone usage, while Company expenses may include printing and deliveries.
- The expense capturing Method depends on whether the expense is to be captured as a Direct value or as a quantity of a specified Unit at an established rate.
If set to Direct, a Markup Ratio needs to be set which will be used when the billed expense is sent as an invoice to the client.
If set to Unit, you will be asked to enter the measuring Unit as well as the Cost Rate and Billing Rate per unit.
- Then, set whether this expense type should be Reimbursable to the client by default or not. This setting can always be overridden when capturing and approving the expense claim.
- Next, specify whether the value of the captured expense type will be Exclusive, Inclusive or Exempt from VAT.
- Lastly, you will need to specify whether VAT on the billed expense should be Calculated or Excluded when raising the invoice to the client.
- The final step is to Save the new expense type before exiting.
We hope this article was helpful. If you have any questions, please do not hesitate to reach out to us. Our support team is always happy to help!