Time and expense entry notes

Time and expenses are entered in the Project Accounting module against activities that are valid for the project and job they worked on. If the activity is to be invoiced to the customer, the activity will originate on the Sales Order and automatically be tied to the order. All time and expenses entered against these activities will create the above journal entries (i.e. Cost WIP and eventually COGS). If activities are also set up for the project and job that are not to be invoiced to the customer, they originate in the Project Accounting module (vs. the Sales Order), and are not tied to the specific order. They are, however, tied to the Project in Project Accounting. No journal entries to Cost WIP or COGS are made for these activities when they are entered in Project Accounting. These costs remain in the employee's home department, but can be reported on in Project Accounting as part of the Project, allowing the dealer to get a full report of all of the costs of the Project, not just those charged to COGS.

Labor hours may be automatically pulled forward to the Payroll Interface charged to the employee's home department.

Expenses can be set up as reimbursable if the employee should be reimbursed. An AP voucher can be automatically set up. An account number is assigned to each valid Activity code (e.g. Meals, Transportation, etc.). The AP voucher will charge the employee's home department and use the account number assigned to the Activity.

Milestone Invoicing

Milestones allow the Invoicing of an Order, independently of the Order Fulfillment process. This is based upon the Invoice Method setting of ‘OES’ within the Project Order Type code. Regular Milestones may also be associated with Non-Project Orders.

Regular Milestones

These Milestones follow the same Journal Entry processes as the ‘Shipment’ method with the following exceptions

Processing Step	Journal Entry	Comments/Notes
Customer Invoicing:
● Generate Customer Invoice
● Review and Consolidate Invoices
● Update Invoices	For Deposit Amount: DR Unearned Revenue CR Accts Rec For Amount of Order lines: DR Accts Rec CR Deferred Revenue	Deposits may be used with ‘Milestone’ Invoices. Instead of crediting Revenue, Milestone invoicing Credits the ‘Deferred’ Revenue account defined in the Milestone.
● Revenue Recognition	DR Deferred Revenue CR Revenue	Revenue may be recognized automatically with Milestone Invoicing, based upon the Schedule associated with the Sales Order and/or Lines.
Clear Cost WIP:
Clear Costs		Regular Milestones require the manual clearing of Cost WIP. Users must create a Manual Clear Cost WIP batch and select the items/costs to clear at the time Revenue is recognized as part of the Milestone invoice process. **See the ‘Milestones with Cost’ for automated cost recognition.
Update Clear Costs	DR COGS CR Cost WIP

Milestones with Cost:

Milestones with Cost are a unique Milestone Type that's associated to a Milestone Schedule. While a ‘Regular’ Milestone only recognizes Revenue at time of Revenue Recognition, Milestones with Cost also recognize the same percentage of Cost of Goods Sold.

Processing Step		Journal Entry	Comments/Notes
Customer Invoicing:
● Generate Customer Invoice
● Review and Consolidate Invoices
● Update Invoices		For Deposit Amount: DR Unearned Revenue CR Accts Rec For Amount of Order lines: DR Accts Rec CR Deferred Revenue	Deposits may be used with ‘Milestone’ Invoices. Instead of crediting Revenue, Milestone invoicing Credits the ‘Deferred’ Revenue account defined in the Milestone.
● Revenue Recognition		DR Deferred Revenue CR Revenue	Revenue may be recognized automatically with Milestone Invoicing, based upon the Schedule associated with the Sales Order and/or Lines.
Clear Cost WIP:
Clear Costs			Milestones with Cost will recognize the same Percentage or Quantity of Cost of Goods during the Revenue Recognition sequence of a Milestone.
Update Clear Costs		DR COGS CR Cost WIP or Cost Accrual Offset**	** Note: If an item has not been received, but the Milestone is recognizing Cost of Goods Sold, the offset to Cost WIP will use the ‘Cost Accrual Offset’ account found in the Project Order Type code that’s tied to the associated Sales Order.
Purchase Order Receipt
Receiving - For Orders coming into dealer warehouse:
● Receive against the PO			Journal Entries made during this process are the same as ‘Shipment’ based invoicing, with the exceptions defined below.
● Update Receipts		DR Inventory CR AP Accrual DR Cost WIP or Cost Accrual Offset CR Inventory	The exception here is IF the Costs have been recognized prior to receipt, Khameleon debits the ‘Cost Accrual Offset’ account instead of WIP.
Receiving - For Drop Ship Orders:
● Receive Drop Shipments	DR COGS CR AP Accrual DR Cost WIP or Cost Accrual Offset CR COGS		The exception here is IF the Costs have been recognized prior to receipt, Khameleon debits the ‘Cost Accrual Offset’ account instead of WIP.