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Finance

Accounting and Invoicing

Track costs of purchases, expenses, subcontracting

Overview #

Thanks to analytical accounting we can track costs of purchases, expenses and subcontracting in the accounting module.

We’ll take the following example. We sold a consulting package for a customer. The package is all inclusive meaning no extra cost can be added. We would however like to follow which cost were attached to this transaction as we need to pay for purchases, expenses, and subcontracting costs related to the project.


Configuration #

The following modules needs to be installed to track cost. Enter the app module and install the following apps:

../../../../../_images/purchase01.png

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Please note that the applications provided by these apps only allows us to track the costs. We won’t be able to automatically re invoice those costs to our customers. To track and re invoice costs you should install the Sales management app as well.

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Enable Analytical accounting #

Next step is to activate the analytical accounting. In the accounting app, select Configuration ‣ Settings and thick the Analytic accounting box.

../../../../../_images/purchase05.pngMoreover, scroll down and tick the Analytic accounting for purchases box.

../../../../../_images/purchase06.pngDon’t forget to save your changes.


Create an Analytical account. #

First of all you should create an Analytical account on which you can point all your expenses. Enter the accounting app, select Configuration ‣ Analytic Accounts. Create a new one. In this case we will call it “consulting pack” for our customer Smith&Co.

../../../../../_images/purchase07.pngWe will point all our costs to this account to keep track of them.


Record an expense #

We start by booking an expense. Our IT technician had to take a train to go see our customer. He paid for his ticket himself.

Create an expense product #

We first need to create an expense product. Enter the Expense module, Click on Configuration ‣ Expense Products. Create a new product called Train ticket and set the cost price to 15.50 euros. Make sure the Can be expensed box is ticked.

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Book the expense #

Enter the Expense module, click on My expenses ‣ Create. Select the Train ticket product and link it to the analytical account discussed above.

../../../../../_images/purchase09.pngSubmit to manager and wait for the manager to approve and post the journal entries.


Create a Purchase Order linked to the analytical account #

Purchase Product #

We also need to buy a software for our customers. In the purchase app create a purchase order for the software product. Within the line we can link the product’s cost with the analytical account. Specify the order line and select the correct analytical account. Confirm the sale.

../../../../../_images/purchase10.pngAccept the delivery and enter the invoice. Once the invoice is entered the cost price (Vendor Price field) will be booked in the analytical account.

Subcontracting #

The purchase module can be used in the same way as seen previously to handle subcontracting. if we purchase a service from another company we can re invoice this cost by linking the purchase order line to the correct analytical account. We simply need to create the correct vendors product.


Track costs in accounting #

Now that everything is booked and points to the analytical account. Simply open it to check the costs related to that account.

Enter the accounting module, click on Advisers ‣ Analytic Accounts ‣ Open Charts.

Select “consulting pack – Smith” and click on the cost and revenue button to have an overview of all cost linked to the account.

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