Page Comparison

Direct Expense

Direct Expense is incurred when an expense on a billable engagement is not charged to a client.

Operating Expense

Operating Expense is incurred when an expense is on a non-billable engagement.

Revenue

Enter the account to which revenue generated by billable work or reimbursed direct costs should be mapped.

Revenue Recognition 

Enter the account to which revenue recognition adjustments for costs should be mapped for this expense type. Revenue recognition adjustments are created when actual and projected contract revenues don't exactly match the caps in time and materials with a cap or fixed price engagements.

Soft Cost CreditEnter the account to which soft credits should be mapped. Soft cost credits are the amounts that defray the expenses an organization incurs to support infrastructure such as photocopying equipment or telephones

Keeps track of disbursed amounts on soft costs. This account is a lot like AP Clearing. It keeps track of expenses that you need to issue payment for. However, whereas AP Clearing is integrated into Projector's payment system, soft costs are not. Because of this, you'll need to manually clear your Soft Cost Credit account when you issue payment.

Why the disparity? Soft costs typically don't have a disbursed amount. Because of this there will never be a disbursed amount and thus AP is a moot point.

That isn't always the case though. In the event that you do have a disbursed amount on a soft cost, this account keeps track of it. A good example of why this method is useful is for issuing bonuses. Perhaps you want a bonus to impact project profitability. So you create a soft cost for it and assign it to the project with a disbursed amount. Now, you don't want to pay the bonus out of Projector or your accounting integration's AP system, but through your payroll system. Now you can! Just make sure that when you issue payment, you manually adjust this account so that it balances.