Is there a way in PCLaw we can track soft expenses before
billing but without it having any accounting effect until Billing time whilst keeping track of what has been
billed and what has not been billed (something like a Memorandum account)? We are on Accruals.
Using the Expense Recovery function creates a credit in the
income statement and that means all ‘soft’ disbursements recognized as WIP has income
effect even before the bill has gone out to the client. Apart from Accounting
concerns this creates a VAT/Tax exposure with our authorities. This forces
us to create Expense Recoveries during billing but the problem is that at that point
we can only guestimate as we cannot possibly remember the consumables.
We want to be able to track such costs but we want the ‘accounting
effect’ to happen only at time of raising the invoices.