As a business owner, it's crucial to have an accurate understanding of your company's financials, especially when it comes to your income and cost of goods sold (COGS). However, tracking un-billed costs (Vendor Purchase Order Acknowledgements that have not yet been invoiced) can be challenging. That's where our business management software comes in with a powerful feature - the ability to manage un-billed costs and accurately reflect them in your financial reports.
How it Works:
When you create a final invoice for your customer, the system automatically recognizes any Vendor Purchase Order Acknowledgements that have not been accounted for. Instead of leaving these costs unaccounted for, our software creates an account posting to an accrued liabilities account. This way, your final profit report reflects your true income and COGS, including the un-billed costs that are expected to be billed out in the near future.
Benefits:
Accurate Financial Reporting: By accounting for un-billed costs in your accrued liabilities account, our software ensures that your financial reports, such as profit reports, provide a clear and accurate picture of your company's financial health.
Better Cash Flow Management: Tracking un-billed costs helps you manage your cash flow effectively. Since these costs are accounted for in your accrued liabilities account, you can plan and allocate your resources accordingly, knowing that you have pending costs that will be billed in the near future. This prevents any surprises and allows you to make informed financial decisions.
Improved Vendor Invoice Management: When you finally receive the Vendor Invoice, our software makes it seamless to reconcile it with the un-billed costs. The system automatically deducts the invoiced amount from the accrued liabilities account and adds it directly to the appropriate COGS account, ensuring that your financials are updated in real-time and accurately reflect the actual costs incurred.
To activate this feature follow the instructions below:
Set up an “Accrued Liabilities” (other current liability) account in QuickBooks
Import Chart of Accounts into e-manage|ONE from the QuickBooks Integration Application (see here for additional information)
Mark account in Chart of Accounts in e-manage as “Use in e-manage”, “Receivable Account” & “Payabale Account” (see here for additional information)
Open the e-manageONE Administrator Application > In the Corporate Division Configuration window select the newly created “Accrued Liabilities” account in the “Def Accr Liab Acct”
