Expense schedules—Contracts

You can recognize expenses at the contract level or at the contract line level. An expense schedule shows when the deferred expense for a contract or contract line is expected to be posted during the contract term. It shows the scheduled posting date and amount to be posted for each potential journal entry. For periods that have been posted, it shows the actual posting date, the exchange rate used (if applicable), and the amount posted.

About expense schedules

When you add an expense to a contract or contract line, you will associate one or two expense templates with it, depending on your Contracts configuration. The system generates the expense schedule based on the expense amount and expense template start and end dates entered on the contract or contract line, and the amortization method of the associated expense template.

The following table shows how expense schedules for a contract line on a one-year contract may differ according to the amortization method when the expense amount field on a contract line is 1,200:

Amortization method	Expense schedule
Straight line	12 rows with 100 scheduled to post each month. Partial periods are calculated as: (total schedule amount / total number of days in the expense recognition term) * (number of days in the partial period).
Daily rate	12 rows with ((1,200 / 365) * (number of days in month)) scheduled to post each month. For example, 101.92 in January, 92.05 in February, and so on.
Predefined percentages	This method lets you define a completely custom schedule, so you could have 3 rows with 400 scheduled to post one month, six months, and eight months from the expense start date; 6 rows with 200 scheduled to post every other month; and so on.

You can choose to have the system automatically post scheduled expense recognition or you can post it manually using the Manage Revenue and Expense Recognition page. When you post an expense amount, the system creates the following journal entries:

• Debit: Recognized expense account
• Credit: Prepaid/Deferred expense account

View an expense schedule

Do one of the following:

• To view a contract-level expense schedule: Open the applicable contract, select in the Expense lines table and select View Schedule in the Expense section.
• To view a contract line-level expense schedule: Open the applicable contract, open the applicable contract line, select the Expenses tab, and select the View Schedule 1 or View Schedule 2 link in the Expense table.
• From the Manage Contracts Schedules page, enter the applicable criteria, select Preview, scroll down to the Expense Schedules section, then select the link in the Amount column for the corresponding contract line item.

Change scheduled expense amounts

You can change the expense amount for rows on the expense schedule that have not been posted. If you change the amount for a row, ensure that the sum of the scheduled amounts equals the total schedule amount.

To change the expense amount:

1. In the Expense Schedule window, select Edit.
2. Select in the Amount column next to the desired entry, type the new amount, and then do one of the following:
   • Change the Amount field for additional entries until the sum of the entries equals the Scheduled amount.
   • Add one or more rows to the schedule so that the sum of the entries equals the Scheduled amount. See Adding a row the expense schedule.
3. Select Save. If the sum of the scheduled amounts does not equal the schedule amount, an error message appears. Select Back, fix the applicable amounts, and select Save again.

   If you accessed the expense schedule from Manage Revenue and Expense Recognition, select Preview again to see any schedule changes in the filtered results.

Change scheduled posting dates

An expense schedule shows you the scheduled posting dates for the expense amortization. The actual posting date is the date the expense amount really posts, which is typically the same as the scheduled posting date when you use an expense template set to trigger automatic posting. However, you can determine the actual posting date by manually posting the expense via the Manage Revenue and Expense Recognition posting process. The date you enter in the Posting date field on that page becomes the Actual posting date on the expense schedule.

If you decide you want to change the scheduled posting dates to better align with your expense recognition process, you can change the posting date for rows on the expense schedule that have not been posted. For future viewing, make sure the date sequences are in the correct order when you save the schedule.

If the expense schedule is based on the Daily rate or Straight line revenue method, the system can automatically reallocate the expense schedule based on new dates. See Reallocate an expense schedule for more information.

To change the scheduled posting dates in a revenue schedule:

1. In the Expense Schedule window, select Edit.
2. Select in the Posting Date column next to the desired entry and either type a new date or use the calendar tool to select a date.
3. Select Save.

   If none of the scheduled expense has a Posting date before the contract or contract line start date, the system saves the schedule.

   If you accessed the expense schedule from Manage Revenue and Expense Recognition, select Preview again to see any schedule changes in the filtered results.

Add a row to the expense schedule

Adding a row to the expense schedule adds another scheduled expense posting event. However, the sum of the scheduled expense must equal the total schedule amount. You can add one or more rows to the expense schedule if desired. For future viewing, make sure the date sequences are in the correct order when you save the schedule.

To add a row to the expense schedule:

1. In the Expense Schedule window, select Edit.

   A plus sign and trash can icon appear at the end of each row that has not been posted.

2. Select the plus sign in the row above which you want the new row to be inserted. For example, if you want the new row to be inserted at the end of the schedule, select the plus sign next to the last row.

   A new row appears.

3. Type the Posting date and Amount to be posted in the applicable fields.
4. Adjust the remaining rows so that the sum of the amounts equals the total schedule amount.
5. Select Save. If the sum of the scheduled amounts does not equal the schedule amount, an error message appears. Select Back, fix the applicable amounts, and select Save again.

   If you accessed the expense schedule from Manage Contract Invoices, select Preview again to see any schedule changes in the filtered results.

Delete a row from the expense schedule

You can only delete rows that have not posted from the expense schedule. The sum of the scheduled expense recognition must equal the total schedule amount. You can delete one or more rows from the expense schedule if desired.

To delete a row from the expense schedule:

1. In the Expense Schedule window, select Edit.

   A plus sign and trash can icon appear at the end of each row that has not posted.

2. Select the trash can icon in the row that you want to delete.

   The row is deleted.

3. Adjust the remaining rows so that the sum of the amounts equals the total schedule amount.

4. Select Save. If the sum of the scheduled amounts does not equal the schedule amount, an error message appears. Select Back, fix the applicable amounts, and select Save again.

   If you accessed the expense schedule from Manage Revenue and Expense Recognition, select Preview again to see any schedule changes in the filtered results.

Clear a posted expense journal entry

Suppose you just posted recognition and realized you used the wrong posting date. You can clear the row associated with the journal entry. This action resets the status of the row in the schedule to Open. It also rolls back the applicable journal entries. You can clear rows individually within a schedule, or in bulk on the Manage Schedules page.

You cannot clear the recognition if the reporting period is closed. In this scenario, open the applicable reporting period and then try clearing the recognition.

To clear an expense journal entry:

1. In the applicable Expense Schedule window, select Edit.
2. Select the checkbox in the Clear column (the far-right column) next to the desired Posted entry or select the checkbox in the Clear header to select all Posted entries.
3. Select Clear.

Field descriptions

Expense schedules field descriptions

Field	Description
Contract	The contract ID associated with the expense schedule.
Template	The name of the expense template used by the schedule.
Amount	The total schedule amount expressed in the transaction currency.
Base amount	The total schedule amount expressed in your company's base currency. This field is only applicable to multi-currency companies.
Schedule status	Displays one of the following: Completed: all expense amounts for this schedule have been recognized. Draft: expense amounts for this schedule can't be recognized until the expense is posted. Learn how to post a draft expense. In progress: expense amounts for this schedule are available to be recognized. On hold: expense amounts for this schedule can't be recognized until the expense schedule is resumed. Learn how to resume an expense schedule. Terminated: the associated expense was canceled. Learn more about canceled expenses.
Cancellation date	Displays the cancellation date if the expense schedule was canceled.
Contract line no	Displays the contract line number with which the expense schedule is associated.
Start date	Displays the expense schedule start date.
End date	Displays the expense schedule end date.
Hold date	The effective date selected when the expense schedule was placed on hold. This date only appears when a schedule is on Hold. Use the audit trail on the contract or contract line to view hold details.

Schedule grid

Schedule grid field descriptions

Field	Description
Status	Displays one of the following: Open: the scheduled amount has not been posted. On hold: the scheduled amount is on hold and can't be recognized. Posted: the scheduled amount was posted Terminated: the scheduled amount was canceled.
Posting date	The date the scheduled expense amount is scheduled to post.
Actual posting date	If the scheduled amount was posted, displays the date the recognition posted.
Amount	The schedule amount to be posted or the amount that was posted.
Base amount	The amount expressed in your company's base currency. This field is only applicable to multi-currency companies.
Exchange rate	The exchange rate associated with the exchange rate date entered on the expense. This field is only applicable to multi-currency companies.
Posted	Displays a check in this field if an expense journal entry was created.
GL Batch	Select this link to display the journal entry in a separate window. This link only appears for Posted rows.