When to use Expense or Bills? How does this impact job costing?

When to Use Bills vs. Expenses

Contractor Foreman provides both Bills and Expenses for recording project costs. Choosing the appropriate transaction type helps keep project financial records organized and makes it easier to track costs.

When to Use Bills

• Use Bills when you receive a bill or invoice from a vendor or subcontractor for goods or services provided to a project.
• Bills can include costs associated with planned project work or purchases.

Examples include:

• 10 cubic yards of concrete
• Furnish and install 15 windows
• 500 square feet of vinyl plank flooring
• Subcontractor work completed on a project

When creating a Bill, you can associate it with a Project and Vendor and enter details such as the Bill #, Bill Date, and Payment Terms.

When to Use Expenses

Use Expenses to record project-related costs or purchases that need to be tracked as expenses rather than entered as a vendor or subcontractor Bill.

Examples may include:

• Fuel for equipment
• Replacement tools or supplies
• Small project-related purchases
• Other incidental project expenses

The appropriate transaction type depends on how the cost was incurred and how you want it recorded in your project financial records.

Bills and Job Costing

Bills can be associated with project costs and used to track amounts owed and paid to vendors or subcontractors.

For example, a Bill can contain costs for materials, equipment, or subcontracted work. Recording these costs against the appropriate project helps maintain accurate financial records and provides better visibility into project spending.

Expenses and Job Costing

Expenses allow you to record additional project-related spending and associate the cost with the appropriate project information.

Using the correct transaction type and assigning the appropriate Cost Code where applicable helps maintain organized job-cost records and makes it easier to understand where project money is being spent.

Why Proper Categorization Matters

Using Bills and Expenses consistently helps keep your project financial information organized. It also makes it easier to review project costs, monitor spending, and maintain accurate job-cost records.

Tip: Choose the transaction type based on how the cost was incurred. Use a Bill when recording a vendor or subcontractor bill, and use an Expense when recording a project-related expense.