Add a draft expense line—Contracts

An expense is a cost incurred to obtain or fulfill a contract with a customer. The ASC 606 accounting rules require you to amortize contract acquisition expenses over the contract term.

You can save a contract expense as a draft without affecting the GL. When your data is ready, you or someone else can come back and post the expense.

Add a draft expense

You only need to complete the Item field to save an expense as Draft. However, if you add all of the required expense schedule data for a draft expense, Intacct creates a draft expense schedule.

For example, if you enter the amount, expense template, and expense template start and end dates, Intacct creates a draft expense schedule. You can then use the draft schedule information in custom reports based on the Contract Schedule Forecast object.

Note the following expected behavior regarding expenses:

  • For termed contracts, you can add expenses to the contract and/or to a contract line.
  • For evergreen contracts, you can only add expenses to the contract.
  • For kit contract lines, you can add expenses to the contract or to the kit component contract lines. You cannot add an expense to the kit item contract line.

Typically, a contract-level expense is a cost associated with obtaining the contract, such as sales commissions. A contract line-level expense is a cost associated with the contract line item, such as license royalties. You can report on both types of expenses at the contract level.

When determining whether to add an expense at the contract or contract line level, consider that contract line expenses are canceled if you cancel a contract line. Contract expenses are canceled if you cancel the contract. If an expense shouldn't be canceled in the event a contract line is canceled, enter the expense at the contract level.

Subscription

Contracts

Regional availability

  • Australia

  • Canada

  • South Africa

  • United Kingdom

  • United States
User type Business
Permissions

Contract: List, View, Add, Edit

To post a Draft expense line, you also need the Contract: Post permission.
Restrictions

For evergreen contracts: You can only add expenses to the contract.

For kit contract lines: You can add expenses to the contract or to the kit component contract lines. You cannot add an expense to the kit item contract line.

Add a draft expense from a contract

  1. Go to Contracts > All > Contracts.
  2. Find the contract to which you want to add a draft expense line.
  3. Select More actions > Edit at the end of the row.
  4. Do one of the following:
    • To add an expense to the contract, select Add located above the top-left corner of the Expense lines table.
    • To add an expense to a contract line, select the pencil icon in the desired contract line row, select the Expenses tab in the Contract line dialog box, then select the Add button located above the top-left corner of the Expenses table.

      The Expense detail dialog box appears.

  5. Use the Item dropdown list to select the desired expense item.
  6. Complete additional fields as desired.
  7. Select Draft.
  1. Open the desired contract in Edit mode.
  2. Do one of the following:
    • To add an expense to the contract, select Add located above the top-left corner of the Expense lines table.
    • To add an expense to a contract line, select the pencil icon in the desired contract line row, select the Expenses tab in the Contract line dialog box, then select the Add button located above the top-left corner of the Expenses table.

      The Expense detail dialog box appears.

  3. Use the Item dropdown list to select the desired expense item.
  4. Complete additional fields as desired.
  5. Select Draft.

Add a draft expense from the Expense lines list

  1. Go to Contracts > All and select Add (circle) next to Expense lines.
  2. Use the Contract dropdown list to select the desired contract.
  3. If this expense is associated with a contract line, use the Contract line dropdown list to select the desired contract line number. Otherwise, leave this field blank.
  4. Use the Item dropdown list to select the desired expense item.
  5. Complete additional fields as desired.
  6. Select Draft.

Post a draft expense

Posting a draft expense sets its state to "In progress" and creates journal entries for the expense amount.

Don't see a Post button? You need the Contract—Post permission combined with either Add or Edit to post an expense. Also, the Post button only appears when creating an expense or when the expense's state = Draft. If the expense is associated with a contract line, the contract line's state must = In progress in order to post the expense.
Posting an expense is final—you cannot change the expense back to a Draft state.

Post a draft expense from a contract

  1. Go to Contracts > All > Contracts.
  2. Find the contract containing the draft expense that you want to post.
  3. Select More actions > Edit at the end of the row.
  4. Do one of the following:
    • To post an expense for the contract, select the pencil icon in the row of the expense you want to edit in the Expense lines table.
    • To post an expense for a contract line, select the pencil icon in the desired contract line row, select the Expenses tab in the Contract line popup window, then select the pencil icon in the row of the expense you want to edit in the Expenses table.

      The Expense detail popup window appears.

  5. Verify all of the required fields contain valid data.
  6. Select Post.

    The Post Expense popup window appears.

  7. Use the calendar tool to select the desired GL posting date.

  8. Optionally, enter any comments in the Post memo field.

    You can see these comments in the audit trail.

  9. Select Post.

    Intacct validates the expense field values.

    • If there are data issues, Intacct displays the errors at the top of the page. Correct the data and try posting the expense again.

    • If there are no data issues, Intacct sets the expense to In progress and creates journal entries for the expense amount in the GL.

  1. Open the desired contract in Edit mode.

  2. Do one of the following:
    • To post an expense for the contract, select the pencil icon in the row of the expense you want to edit in the Expense lines table.
    • To post an expense for a contract line, select the pencil icon in the desired contract line row, select the Expenses tab in the Contract line popup window, then select the pencil icon in the row of the expense you want to edit in the Expenses table.

      The Expense detail popup window appears.

  3. Verify all of the required fields contain valid data.
  4. Select Post.

    The Post Expense popup window appears.

  5. Use the calendar tool to select the desired GL posting date.

  6. Optionally, enter any comments in the Post memo field.

    You can see these comments in the audit trail.

  7. Select Post. Intacct validates the expense field values.
    • If there are data issues, Intacct displays the errors at the top of the page. Correct the data and try posting the expense again.
    • If there are no data issues, Intacct sets the expense to In progress and creates journal entries for the expense amount in the GL.

Post a draft expense from the Expense lines list

  1. Go to Contracts > All > Expense lines.
  2. Find the draft expense line that you want to post.
  3. Select More actions > Edit at the end of the row.
  4. Verify all of the required fields contain valid data.
  5. Select Post.

    The Post Expense popup window appears.

  6. Use the calendar tool to select the desired GL posting date.

  7. Optionally, enter any comments in the Post memo field.

    You can see these comments in the audit trail.

  8. Select Post.

    Intacct validates the expense field values.

    • If there are data issues, Intacct displays the errors at the top of the page. Correct the data and try posting the expense again.

    • If there are no data issues, Intacct sets the expense to In progress and creates journal entries for the expense amount in the GL.