Reconciling Supplier Hours

OBJECTIVE

It is sometimes necessary to use a supplier for work that your employees are unable to perform. To make it easier to track the hours worked by the supplier on the projects, it is possible to create a virtual employee and link it to a supplier code. In the same way, it is possible to create virtual equipment and link it to a supplier code to indicate that it belongs to the supplier.

When the Supplier Invoice Reconciliation option is installed, linking a supplier code to an employee or equipment tells maestro* that the hours entered for this employee or equipment must not be processed by the payroll, but should instead be paid to the supplier through an invoice.

Costs for labour and equipment will be charged to the project, just like employee hours, but the offset will be charged to a project defined specifically to group the accrued expenses.

When the supplier's invoice is received, users must reconcile the hours entered in maestro* with those invoiced by the supplier by selecting the relevant transactions within the Supplier Invoice Reconciliation option. This step creates a project purchase transaction for the hours selected by the user. When the project purchase is transferred, the amount imputed to the accrued expenses project is reversed with the amount of the invoiced transactions.

One disbursement for each supplier must be issued to pay the supplier's invoice created by the Project Purchase.

For transactions that are non-billable by the supplier, the accrued expenses need to be reversed manually using the Reverse Non-Billable Transactions function in the Supplier Invoice Reconciliation option.

 

If the Supplier Invoice Reconciliation option is installed, employees linked to suppliers will not be processed by the Hours Management or Compile and Load Project Hours options of the payroll module.

 

PREREQUISITES

 

ConfigurationS

To enter hours for a supplier without affecting the payroll module, certain settings must be configured before entering hours.

 

Define a Project to Calculate Accrued Expenses for Supplier Hours

Information about the project, activity and group for the accrued expenses will be used to post the Credit portion for hours linked to a supplier on transfer. The same information will then be used to reverse the accrued expenses when the project purchase created with the Supplier Invoice Reconciliation option is transferred.

  maestro* > Projects > Maintenance > Projects > Configuration

 

  1. Click Supplier Invoice Reconciliation from the menu on the left.
  2. In the Accrual Configuration section, complete the Project, Activity and Group fields.

 

For more detail on the various fields, consult the Configuration topic.

  1. Click Save and then Exit.
  2. Associating a Supplier Code to an Employee

 

Define a Suppliers Code in an Employee's Records File

To enter hours in maestro*, it is necessary to create a record for the employee in Employee Management. To prevent a pay from being calculated or printed for this employee, the user must associate a supplier code with the employee. The supplier will be paid through a disbursement for the project purchase.

  maestro* > Time Management > Maintenance > Payroll > Employee Management

 

  1. Create or select an employee code to be linked to a supplier.
  2. Specify the supplier code from Supplier Management in the Other section of the Identification tab, in the Supplier for Invoice Reconciliation field.

 

Not to be confused with the Supplier field, which is used for dispatching purchase and work orders and does not affect the payroll.

 

If the Supplier Invoice Reconciliation option is installed, pay cheques will not be calculated or printed for employees linked to suppliers.

  1. Click Save and then Exit.
  2. Associating a Supplier Code with Equipment

 

Link an Equipment Code to a Supplier

If the supplier uses their own equipment, it is possible to link the equipment to the supplier and, this way, pay for its use the same way as for worked hours.

  maestro* > Time Management > Maintenance > Time Management > Equipment Management

 

  1. Create or select equipment code to be linked to a supplier.
  2. Specify the supplier code used for invoice reconciliation in the Supplier field.

 

If the Supplier Invoice Reconciliation option is installed, income will not be calculated for the use of equipment linked to a supplier in the Post Equipment Revenue option.

  1. Click Save and then Exit.

 

Summary

 

Steps

Enter Hours

  maestro* > Time Management > Project Time > Processing > Enter Hours

 

Hours for an employee linked to a supplier are entered in the same way as for an employee paid through the payroll module. Hours for an employee linked to a supplier must be entered for a project.

 

Employees linked to a supplier cannot be processed using the Hours Management or Compile and Load Project Hours options since these options are used to enter or compile hours for payroll calculation.

Regardless of the configuration for the transfer of hours, whether it is 1-Normal or 2-Balanced in Time Management’s Configuration, the accrued expenses will be calculated when the hours are transferred. Hours worked by suppliers are treated normally and separately from a regular employee’s hours.

 

Supplier Invoice Reconciliation

  maestro* > Projects > Project Costing > Supplier Reconciliation > Supplier Invoice Reconciliation

 

This step involves reconciling the supplier's invoice with the hour transactions for employees or equipment linked to a supplier.

After reconciling, a project purchase transaction is created.

 

For more details on how this option functions, refer to Supplier Invoice ReconciliationSupplier Invoice Reconciliation topic.

Supplier Invoice Reconciliation Report

  maestro* > Projects > Project Costing > Supplier Reconciliation > Supplier Invoice Reconciliation Report

 

It is possible to generate a report on a given date to validate transactions that are waiting to be invoiced and to compare calculated accrued expenses with the general ledger.

 

Project Purchase

  maestro* > Purchasing > Purchasing > Purchasing > Project Purchase

 

It is possible to modify the project purchase by adding breakdown lines.

 

The user must transfer the project purchase to reconcile the invoice and reverse accrued expenses for transactions that were used to generate the invoice.

 

Selected Disbursements

  maestro* > Purchasing > Purchasing > Purchasing > Selected Disbursements

 

A payment must be sent to the supplier to pay the balance due.

 

Reversing Accrued Expenses for Non Billable Transactions

Occasionally, suppliers might not invoice work for various reasons. To eliminate these accrued expenses from maestro*, the user must reverse them.

  maestro* > Projects > Project Costing > Supplier Reconciliation > Supplier Invoice Reconciliation

 

  1. Specify the period and select the desired suppliers.
  2. Display the non-billable transactions by clicking the Display non-billable transactions icon.
  3. Select the suppliers for which non-billable transactions must be reversed by checking the box in the Selected column.
  4. Click on the Reverse non-billable transactions icon.

 

A project-to-project transfer transaction is created and transferred automatically. The purpose of this transaction is to reverse the accrued expenses in the General Ledger.

Accrued expenses are reversed to a project, activity and group defined prior in the Reversal of accrued not invoiced section, under Supplier Invoice Reconciliation, in the Project’s Configuration.

  1. The status of reversed non-billable transactions is changed to Reversed. These transactions are then treated like they were invoiced and do not appear on the Supplier Invoice Reconciliation Report, unless they were reversed after the report’s date.

 

See also

 

Last modification: November 12, 2024