Typically, you enter expenses in BillQuick excluding GST. GST is added to the expense amount during the billing process in the form of Main Expense Tax (MST or any other label) set for the project. To keep it simple, employees can enter the full expense amount in Expense Log without having to calculate the amount minus GST. With the Expense Includes Purchase Tax or Cost Includes Purchase Tax option checked for a GST-inclusive expense of $11.00, the employee enters $11.00. This is changed to $10.00. In Web-Suite, this value is converted to $10.00 when the Save button is clicked.
Alternatively, with this option unchecked, an employee must enter the expense amount less GST.
Expenses can be marked as Reimbursable. This flag identifies the expense entry as being reimbursable to the employee. You can also mark it as Paid, meaning having been paid to the employee. This provides a way of handling the collection and payment of reimbursable expenses. However, GST is not added to the expense in the standard reports. To enable tracking of reimbursable expenses with GST:
1. In the Expense Codes screen, show the Custom 1 field and apply a GST rate of 10% for reimbursable expenses. This does not affect the GST that is calculated in the normal billing process. Expense codes with no value in this Custom 1 field will have a GST rate of 0%.
2. Enter an expense as usual with the Cost Includes GST (or Cost Includes Purchase Tax) box checked. For example, bus fare of $5.60 including GST.
3. On saving the entry, BillQuick converts this to an amount excluding GST, i.e., $5.09.
4. For the expense to be reimbursable, check the “R” box.
5. To view this reimbursable expense in a report, click Print on the toolbar and select the Employee Expense report.
If an expense code with Custom 1 = 0 is used in the entry, then GST will not be added to the expense for reimbursement purposes. To enter a GST-free expense, the Cost Includes GST option must be unchecked so that the GST is not subtracted. The same report then shows the expense with no GST added.
6. Once the employee has been reimbursed, the Pd box must be checked and Paid Date entered in the Expense Log. If the above report is run again, the reimbursable value will now be zero as all expenses have been reimbursed.