Tracking Project Costs: Expenses and Materials

Site Service Pro provides multiple ways to track costs against your projects. This guide explains the different cost tracking systems and when to use each one.

Understanding Project Cost Categories

Project costs fall into several categories, each tracked differently:

Category	What It Tracks	How to Enter
Labor	Employee hours and wages	Timesheets
Materials (Field)	Materials used during work	Timesheet materials section
Materials (Purchased)	Vendor material invoices	Material Invoices
Equipment	Company and rental equipment	Timesheet equipment section
Subcontractors	Subcontractor labor	Timesheet subcontractors section
Other Expenses	Permits, travel, supplies, etc.	Project Expenses

Timesheet Materials vs Material Invoices vs Other Expenses

It's important to understand when to use each system:

Timesheet Materials

Use for: Materials consumed during daily work from truck stock or on-hand inventory

Examples:

• Wire, conduit, fittings pulled from the truck
• Consumables used that day
• Small parts from inventory

How it works:

• Added directly to a timesheet
• Tracked with the work performed that day
• Links material usage to specific work dates

Material Invoices

Use for: Vendor invoices for materials purchased for a project

Examples:

• Supplier invoices for project materials
• Initial material purchases for a job
• Bulk material orders
• Special order materials

How it works:

• Create a material invoice record
• Add line items for each material
• Track vendor, invoice number, dates
• Flows into project material costs

Other Expenses (Project Expenses)

Use for: Non-material costs that don't fit other categories

Examples:

• Permits and licenses
• Travel expenses (hotels, flights, meals)
• Tool purchases
• Office supplies for the project
• Inspection fees
• Miscellaneous costs

How it works:

• Create an expense record
• Assign to a category
• Track approval workflow
• Can be marked as billable

Managing Project Expenses

Accessing Project Expenses

1. Navigate to Financial → Project Expenses in the main menu
2. Or access from Job Costing → click "Add" on the Other Expenses card

Creating an Expense

1. Click Add Expense

2. Fill in the required fields:

   • Project - Select the project this expense applies to
   • Category - Choose the expense category
   • Date - When the expense occurred
   • Description - What the expense was for
   • Amount - Total cost

3. Optional fields:

   • Is Billable - Check if you can bill this to the client
   • Markup % - Percentage to add for billable expenses
   • Payment Method - How it was paid
   • Receipt - Attach receipt image/PDF

4. Click Save

Expense Categories

Common expense categories include:

Category	Icon	Typical Use
Permits	📋	Building permits, inspection fees
Tools	🔧	Tool purchases, small equipment
Travel	✈️	Mileage, hotels, flights, meals
Supplies	📦	Office supplies, project consumables
Rentals	🚛	Equipment not tracked in timesheets
Other	📁	Miscellaneous expenses

Note: Categories are customizable by your administrator. Contact them to add new categories if needed.

Expense Approval Workflow

Expenses follow an approval workflow:

1. Pending - Newly created, awaiting review
2. Approved - Verified and approved for the project
3. Rejected - Not approved (with reason)

Only Approved expenses are included in job costing reports.

Marking Expenses as Billable

For expenses you want to pass through to the client:

1. Check the Is Billable checkbox when creating the expense
2. Set a Markup % (e.g., 15% to cover handling)
3. The billable amount is calculated automatically
4. Billable expenses can be added to client invoices

Example:

• Permit cost: $500
• Markup: 15%
• Billable amount: $575

Filtering and Searching Expenses

Use filters to find specific expenses:

• Project - Filter by project
• Category - Filter by expense type
• Status - Show Pending, Approved, or Rejected
• Date Range - Filter by expense date

Managing Material Invoices

Material invoices track vendor bills for materials purchased for your projects.

When to Use Material Invoices

Use material invoices for:

• Initial project material purchases - Buying materials before work starts
• Vendor invoices - Recording bills from suppliers
• Bulk orders - Large material purchases
• Special orders - Custom or project-specific materials

Creating a Material Invoice

1. Navigate to a project's materials section

2. Click Add Material Invoice

3. Enter invoice details:

   • Project - Select the project
   • Vendor Name - Supplier name
   • Invoice Number - Vendor's invoice number
   • Invoice Date - Date on the invoice
   • Due Date - Payment due date (optional)
   • Notes - Additional details

4. Add line items:

   • Description - Material name/description
   • Quantity - Amount purchased
   • Unit - Unit of measure (EA, FT, LB, etc.)
   • Unit Price - Cost per unit
   • Line Total - Calculated automatically

5. Save the invoice

Material Invoice Workflow

Material invoices have their own status workflow:

1. Pending - Newly entered, awaiting approval
2. Approved - Verified and approved
3. Paid - Invoice has been paid

Material Invoice Reports

Material invoice totals appear in:

• Job Costing → Materials section
• Project Cost Reports → Materials category
• Budget vs Actual tracking

Viewing Costs in Job Costing

All costs flow into the Job Costing view:

1. Navigate to Financial → Job Costing
2. Select a project
3. View the Cost Summary which shows:
   • Labor - From timesheets
   • Materials - Timesheet materials + Material invoices
   • Equipment - From timesheets
   • Subcontractors - From timesheets
   • Other Expenses - From Project Expenses

Understanding the Materials Card

The Materials section in Job Costing combines:

• Timesheet Materials - Field-used materials
• Material Invoices - Purchased materials

This gives you a complete picture of all material costs for the project.

Understanding the Other Expenses Card

Shows total expenses from Project Expenses:

• Total Expense Cost - Sum of approved expenses
• Billable Revenue - Amount billable to client
• Pending/Approved counts - Expense status breakdown

Click Add to quickly create a new expense for the selected project.

Real-World Cost Tracking Scenarios

Scenario 1: New Project Setup Costs

Situation: Starting a new project with upfront material purchases and permits.

Solution:

1. Create Material Invoice for the initial material order from your supplier
2. Create Project Expense for the building permit (category: Permits)
3. Create Project Expense for any tool purchases (category: Tools)
4. All costs appear in Job Costing immediately

Scenario 2: Ongoing Field Work

Situation: Daily work with materials pulled from truck stock.

Solution:

1. When submitting the Timesheet, add materials in the Materials section
2. Include description, quantity, and unit cost
3. These flow into the project's material costs automatically

Scenario 3: Travel to Remote Job Site

Situation: Crew travels to a distant project requiring hotel stays.

Solution:

1. Create Project Expense for hotel (category: Travel)
2. Create Project Expense for meals (category: Travel)
3. Mark as Billable if the contract allows
4. Set appropriate markup percentage
5. Expenses appear in Other Expenses and can be invoiced to client

Scenario 4: Mid-Project Material Order

Situation: Project needs additional materials ordered from a vendor.

Solution:

1. Create a Material Invoice when the vendor invoice arrives
2. Enter vendor name, invoice number, and date
3. Add each line item from the vendor invoice
4. Approve when verified
5. Costs appear in project Materials automatically

Scenario 5: Office Supplies for Project

Situation: Purchased office supplies needed specifically for a project.

Solution:

1. Create Project Expense (category: Supplies or Office)
2. Enter the cost and description
3. Typically not billable (overhead)
4. Flows into Other Expenses for the project

Cost Tracking Best Practices

Use the Right System

If you need to track...	Use...
Materials used from truck	Timesheet Materials
Vendor material invoices	Material Invoices
Permits, travel, tools	Project Expenses
Equipment used	Timesheet Equipment

Be Consistent with Categories

• Use the same category for similar expenses
• Helps with reporting and analysis
• Makes it easier to track spending patterns

Enter Costs Promptly

• Enter expenses when they occur
• Don't wait until month-end
• Keeps job costing accurate and current

Attach Receipts

• Upload receipt images when available
• Helps with approval process
• Creates an audit trail

Review Job Costing Regularly

• Check project costs weekly
• Identify cost overruns early
• Compare to budget if tracking

Permissions for Cost Management

Permission	What It Allows
View Job Costing	See cost reports and summaries
View Project Expenses	See expense records
Create Project Expenses	Add new expenses
Approve Project Expenses	Approve/reject pending expenses
Create Material Invoices	Add vendor material invoices

Troubleshooting

"Expense not showing in Job Costing"

• Check if expense status is Approved
• Only approved expenses appear in cost totals
• Pending expenses are excluded from reports

"Can't find the expense category I need"

• Categories are customizable
• Contact your administrator to add new categories
• Use "Other" temporarily if needed

"Material costs seem wrong"

• Check both timesheet materials AND material invoices
• Job Costing combines both sources
• Review individual entries for errors

Related Topics

• Creating and Submitting Timesheets
• Understanding Job Costing Reports
• Managing Expense Categories
• Creating Client Invoices