You may have sub-contractors, consultants or vendors working on your projects and want to include their expenses in the contract amount. BillQuick allows you to handle this scenario easily as a part of its workflow.
Project Setup
1. While setting up a project, specify the Service and Expense Amount under Contract Details. Expenses will be related to your external consultants.
2. On the Project-Billing tab, select a budget for it.
3. On the Project-Detail tab, check the rule Exp Part of Contract. This will allow you to treat the sub-contractor's expenses as part of your overall contract.
Budget Setup
4. Set up or revise the budget linked to the project. Make sure to specify the Expense items for the sub-contractors.
Accounting
5. On receiving a bill from the sub-contractor, open the Vendor Bills (or relabelled Sub-Contractor Bills) screen from the Accounting menu.
6. Click New to create a new vendor bill. 
7. Select the sub-contractor whose bill you want to record, say ABCENGINEER.
8. Enter the invoice reference number in the Reference field as well as a Memo, if any.
9. In the grid, select the Project ID, Item ID, Units and Rate. You may enter multiple lines.
10. Click Save. When the vendor bill is saved, it creates an expense entry automatically.
Notice that the Xtra flag is not checked. This means that the value of these expense items will not add to the invoice. Also, the VB icon represents an expense entry related to a vendor bill.
Billing
11. In the Billing Review screen, notice the expense entries flowing through. Change the % Complete value, say to 50. This re-calculates the Net Bill and creates an invoice for 50% of the contract amount.
Contract Amount = $30,000
Net Bill = $15,000 + GST = $16,500
12. Check the B box and process the invoice.
This is a preview of Fixed Invoice (with Expense CR and Units). You can also check out Fixed Invoice (% Complete).
Budget Reporting
13. You can check out the Budget Comparison by Item report or view the budget versus actuals by each vendor in the Budget Comparison by Employees report.
