Managing Project Expenses

Project Expenses allow you to track miscellaneous costs that don't fit into timesheets or material invoices. This includes employee reimbursements, permit fees, delivery charges, and other project-related expenditures.

What Are Project Expenses?

Project Expenses capture costs that occur outside of regular labor, equipment usage, and formal material invoices:

• Employee Reimbursements: Out-of-pocket costs employees paid personally
• Permits & Fees: Building permits, inspection fees, utility connections
• Delivery Charges: Shipping and freight costs
• Small Purchases: Items too small or urgent for formal purchase orders
• Rentals: Short-term equipment or tool rentals
• Miscellaneous: Any other project-related costs

Accessing Project Expenses

1. Navigate to Financial in the left sidebar
2. Click Project Expenses
3. View the expense dashboard with:
   • Summary totals by status
   • Filter options
   • List of all expenses

Creating a New Expense

Step 1: Open the Add Expense Form

Click + Add Expense in the top-right corner.

Step 2: Enter Expense Details

Step 3: Attach Receipt (Recommended)

If you have a receipt:

1. Click Attach Receipt
2. Upload an image or PDF of the receipt
3. The receipt is stored with the expense record

Step 4: Save the Expense

Click Save to create the expense record.

Expense Categories

Project Expenses are organized by category for better reporting:

Note: Your administrator can customize expense categories to match your business needs.

Expense Status Workflow

Pending  →  Approved  →  Reimbursed (if applicable)
   ↑           ↑              ↑
 Entry     Manager        Payment
 stage     review          made

Status Descriptions

Billable vs. Non-Billable Expenses

Billable Expenses

• Will be passed through to the client
• Appear on client invoices
• Examples: Permit fees, special materials, travel for client meetings

Non-Billable Expenses

• Absorbed by the company
• Not charged to clients
• Examples: Internal meetings, office supplies, employee meals

Tip: Check your company policy on what expenses are billable before submitting.

Employee Reimbursement Workflow

When an employee pays out-of-pocket:

For the Employee:

1. Create a new expense
2. Set Paid By to "Employee"
3. Select yourself as the payee
4. Attach receipt
5. Submit for approval

For the Approver:

1. Review the expense details
2. Verify receipt matches the amount
3. Click Approve or Reject
4. If approved, expense enters the reimbursement queue

For Accounting:

1. View approved expenses pending reimbursement
2. Process payment to employee
3. Mark expense as Reimbursed

Approving Expenses

Users with approval permissions can:

1. Open a pending expense
2. Review all details including receipt
3. Click Approve to approve, or
4. Click Reject and provide a reason

Best Practice: Always verify:

• Receipt matches the claimed amount
• Expense is assigned to the correct project
• Description adequately explains the purchase
• Expense is legitimate and policy-compliant

Project Expenses vs. Other Cost Methods

How Expenses Affect Job Costing

Project Expenses appear in:

1. Job Costing Page: Under the Expenses section
2. Project Profitability Reports: Included in total costs
3. Client Invoices: Billable expenses can be added to invoices

Cost Flow:

Project Expenses → Job Costing (Expenses Section) → Profitability Analysis
                           ↓
                 Billable → Client Invoice (optional)

Filtering and Reporting

Available Filters:

• Project: Show expenses for specific project
• Category: Filter by expense type
• Status: Pending, Approved, Rejected, Reimbursed
• Date Range: Filter by expense date
• Paid By: Company, Employee, Credit Card

Export Options:

• Export to Excel for external reporting
• Include in project cost reports
• Generate reimbursement reports for payroll

Best Practices

For Employees:

1. Submit Promptly: Enter expenses within 1-2 days
2. Keep Receipts: Always photograph or scan receipts immediately
3. Be Detailed: Include clear descriptions
4. Correct Project: Double-check project assignment
5. Know Policy: Understand what's reimbursable before purchasing

For Managers:

1. Review Regularly: Don't let expenses pile up
2. Verify Receipts: Check amounts match claims
3. Provide Feedback: If rejecting, explain why
4. Watch for Patterns: Monitor unusual expense patterns

For Administrators:

1. Set Clear Policies: Document what's allowed
2. Configure Categories: Customize to your business
3. Regular Reconciliation: Match expenses to bank statements
4. Timely Reimbursement: Pay employees promptly

Common Questions

Can I edit an approved expense?

No, once approved, expenses cannot be edited to maintain audit integrity. If corrections are needed, contact your administrator.

What if I lost my receipt?

You may still submit the expense with a detailed description. Note in the comments that the receipt is unavailable. Approval is at your manager's discretion.

Can one expense be split across multiple projects?

No, each expense record is for one project. If a purchase benefited multiple projects, create separate expense records with appropriate amounts for each.

How do I track mileage?

Create an expense in the "Fuel & Mileage" category. Include the trip details (from/to, purpose) in the description and calculate the reimbursement using your company's mileage rate.

What's the difference between Project Expenses and Timesheets?

Timesheets track labor hours and equipment usage during work. Project Expenses track additional costs that occur outside of normal work activities.

Related Articles

• Understanding Cost Tracking in Site Service Pro
• How to Enter Material Invoices
• Entering Timesheet Materials
• Understanding Job Costing Reports