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Posting revenue to a different GL account than the cost account for on-chargeable expenses on jobs

Posted on by 88

I have had a look around the forum and haven't found anything on this. Apologies if it has been asked already.

Scenario: add budget and billable planning lines to a job for sub contracted expenses that will be incurred, but which should be on-charged to the customer, for example, equipment hire. When invoicing the customer, the income posts to the same GL account as the expense, rather than to an income account.

On the planning line: Line Type=Both budget and Billable, Type=G/L Account, No=GL Expense account, Qty=x, Unit Cost=expected cost, Unit Price=expected customer selling price

Post a purchase order, with line linked to the job planning line - The GL Account selected on the PO line must match the GL Account on the job planning line, otherwise the required job planning line does not show in the lookup list.

Create a customer invoice from the planning line. The GL account on the Invoice line is set to the expense account. Any attempt to change the GL Account to an income account results in an error, since the invoice line has been generated from the job planning line and thus cannot be changed.

This results in both the expense and income being posted to the expense GL Account, rather than the cost to the expense account and the revenue to an income account. Having the revenue against the expense account makes it difficult to view total revenue in the income statement.

Are there any ways to make this work?

Or do we have to have separate Budget and Billable lines to achieve this?

  • Suggested answer
    JAngle Profile Picture
    JAngle 33,153 on at
    RE: Posting revenue to a different GL account than the cost account for on-chargeable expenses on jobs

    Your own suggestion is the best one. Keeping the data the same would leave less sensible options, such as post a job g/l journal after the invoice to move the value from the cost account to the income account. It would be more work than just breaking the lines in two in the first place.

    Other choices could be to try an item of type service. This will mean the general posting setup is used so that revenue and cost are broken up by the system.

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