Accounting FAQs

This is done by creating a Journal Entry for each pay period. It's then up to you to determine the amount of detail within the JE and what GL Accounts it should track to. This can be set to recur each month as well, so you just change the line amounts each time without having to enter a new JE from scratch.

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Where can I find a 1099/1096 Tax Form?

For the use with our 1099/1096 Printing, our engineers designed the US Tax forms  to match the forms we obtained from Staples.com:

 

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How should I handle Credit Cards for AP?

There are 2 ways of handling credit cards from an AP point of view:

Credit Card Connector and Charges

• This feature allows you to set up the credit card in Workamajig and process the charges daily.
• Please refer to the Credit Cards Overview guide to learn more.

Manual Tracking

• This method is outlined below in a detailed and simple process:

Manual Tracking of Credit Card Charges:

The detailed process is as follows:

1. Set up your credit card account as a cash (bank) account in GL Accounts.

2. For the charge to the credit card, enter each transaction as a vendor AP invoice for the vendor company where the purchase was actually made.

3. Select the AP GL account in the main window and the actual expense or COGS account on the line items—charging a project if applicable. Approve and post the invoice.

4. Pay it out of the credit card cash account. Approve and post the payment.

5. When you receive the credit card statement/bill, reconcile that credit card account from the statement.

6. Setup the credit card company as a vendor.

7. Enter the credit card statement/bill as a vendor AP invoice. Select the AP GL account in the main window and the credit card cash account on the line item. Approve and post the invoice.

8. Pay it out of your regular checking account. Approve and post the payment, and you're done.

The simple process is as follows:

1. Setup the credit card company as a vendor.

2. Wait until the credit card monthly statement arrives to enter the charges.

3. Enter the credit card statement/bill as a vendor AP invoice. Select the AP GL account in the main window and the actual expense or COGS account on the line items—charging a project if applicable. Approve and post the invoice.

4. Pay it out of your regular checking account. Approve and post the payment, and you're done.

NOTE: Users can also enter expense reports for credit card charges and set the vendor on the expense report to be the credit card vendor instead of themselves. You will then create the vendor invoice, as usual, and select this invoice for payment to the credit card vendor.

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How do I handle Credit Cards for AR?

If you have elected to accept credit card payments from a client, you will need to set up the Credit Card Processing features. At this time, the Workamajig system uses PayFlowPro only.

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What is a Rollup Account?

A Rollup Account is Workamajig’s definition for what might be called a Header Account or Summary Account in other systems. For example, in your Chart of Accounts, Agency Gross Revenue (400) would be the Rollup Account for 405, 410, 415, 420, etc. On your Balance Sheet, you can show the Rollup Account in summary or show it in detail with the Sub-Accounts.

• Please refer to the GL Accounts guide for more information.

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How do I post to Work in Progress (WIP)?

When you "Post WIP to the GL", approved and unbilled time will post into WIP by debiting Agency Time (Asset) and crediting Agency Time Adjustment (Income) account specified in the Control Account screen.

When labor is then billed after being posted to WIP, it will then reverse out of WIP the next time WIP is posted by crediting Agency Time and debiting Agency Time Adjustment accounts.

For Other Expenses (including approved Misc Costs and Expense Reports) left unbilled, it will post into WIP by debiting Other Expense (Asset) and crediting Rebillable Expenses (Income) accounts specified in the Control Accounts screen.

When other expenses are billed, it will reverse out of WIP the next time WIP is posted by crediting Other Expenses and debiting Rebillable Expenses accounts.

For approved production vendor Invoices that are left unbilled, during the posting of WIP to GL, it will reclass the expense by debiting the Production Invoice Accrual (Asset) and crediting the COGS account based on the Item selected on the line of the vendor invoice.

When the vendor invoice is billed, it will reverse out of WIP the next time WIP is posted by crediting the Production Invoice Accrual and debiting the COGS account based on the Item selected on the vendor invoice line.

• Please refer to the Post Work In Progress guide for more information.

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How do I create a refund check for a Client?

These steps assume that the client has an unapplied credit memo that you need to refund to the client:

1. Create a regular client invoice that debits AR and credits SUSPENSE for the amount of the open credit memo. The client invoice, by default, will target/credit your AR account. The client invoice line needs to be created with the Sales GL Account set to your desired SUSPENSE account.
2. Select the Apply Credits tab on that client invoice and apply the credit memo against it to close out both client invoices.
3. Setup the client as a vendor.
4. Create a vendor invoice for the vendor for the refund amount. The vendor invoice will need to credit AP and debit SUSPENSE. The vendor invoice, by default, will target credit your AP account. The positive value vendor invoice line needs to be created with the Expense GL Account set to the SUSPENSE account used in your credit memo in step I.
5. Go to Select Invoices for Payment under the Purchasing menu and create the payment.
6. Go to the Print Checks screen under the Purchasing menu to print the refund check.

In the case of the refund is due to an unused portion of an Advance Bill Client Invoice:

If the advanced bill was not paid and not applied:

1. Create a credit memo invoice. The client invoice credit memo, by default, will target/credit your AR account. The negative value client invoice line needs to be created with the Sales GL account set to your desired Suspense account.
2. Apply to advanced bill invoice.
3. Create a regular client invoice. The client invoice, by default, will target/credit your AR account. The positive value client invoice line needs to be created with the Sales GL account set to the same Sales GL account selected in step I.
4. Apply advanced bill invoice to that invoice
5. Post all
   This clears the open AR amount and the Unapplied Advance Bill amount from the Advance Bill client invoice.

If the advanced bill was paid by the client:

1. Create a regular client invoice
2. Apply the advance to the invoice.
3. Set up the client as a vendor
4. Create a payment to the client-vendor. Choose the option to apply to an expense account, but instead of an expense account choose the sales account from the regular invoice.
5. Print/post

In the case of the refund is due to an Unapplied Amount from a client receipt:

If you cant edit the Receipt:

1. Create a regular client invoice that debits AR and credits SUSPENSE for the amount of the open unapplied amount. The client invoice, by default, will target/credit your AR account. The positive value client invoice line needs to be created with the Sales GL Account set to your desired SUSPENSE account.
2. Select the Apply Prepayment on that client invoice and apply the unapplied amount against it to close out the client invoice and unapplied amount.
3. Setup the client as a vendor.
4. Create a vendor invoice for the vendor for the refund amount. The vendor invoice will need to credit AP and debit SUSPENSE. The vendor invoice, by default, will target/credit your AP account. The positive value vendor invoice line needs to be created with the Expense GL Account set to the SUSPENSE account used in your client invoice created in step I.
5. Go to Select Invoices for Payment under the Purchasing menu and create the payment.
6. Go to the Print Checks screen under the Purchasing menu to print the refund check.
7. Print/post

If you can edit the receipt:

1. Unpost the Receipt and choose a Suspense Account to apply to in the Sales line. Repost.
2. If you haven't already, convert the Client to also be a Vendor.
3. Create the payment, add an expense line and use the same account used from the receipt.
4. Go to your Print Check screen for processing.

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How to accept a refund from a Vendor

If it is a refund only and no billing back to the client, then enter as Journal Entry to debit cash and credit COGS/Expense account.

If you need to bill the credit back to the client, then enter Journal Entry as described above first, but then enter a Misc Cost on the related project with negative net/gross to bill back to the client.

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Where can I get a "Comparative Balance Sheet Report"?

Typically this is referring to a report in Workamajig that we call the "Statement Of Cash Flows" report in Financial Reports.

• Please refer to the Financial Reports guide for more information.

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How to hide employees' Hourly Cost/Labor at Net?

To hide employees' Hourly Cost (Labor Net) information from certain users:

• Uncheck View Labor Net Cost Per Hour in Lookups and Reports in their Security Group setup;
• In the Security Group Options tab for selected Custom Report Datasets, do not check/allow for the following datasets:
  • Time Details Data
  • Time Details Data (with Employee Custom Fields)
  • Employee Data
  • Project Summary *
  • Project Cost Transactions (Labor Net)
  • Project Summary Data with Team *

* Project Summary datasets include total labor net but not individual's hourly cost rate.

NOTE: By default, no security group starts with the rights to any of the custom report datasets.

Some reports or listing screens may show a column labeled Labor Net. The column may be hidden, however, if it is visible, the visible amount will be equal to Labor Gross.

Project Level
Project Dashboard: if selected to show Actual Profit shows Labor Net. This is an aggregate number, no detail is available
Project Budget screen: will hide the Labor Net column. If the labor net column was already selected, the Labor Net = Labor Gross
Project Transactions screen: will hide Labor Net. If Labor net column was already selected, the Labor Net = Labor Gross
Project Listing screen: there is a column Labor Net. This is an aggregate amount, no detail available

Standard Reports
Project Financial Reports
Project Budget Analysis: No Net visible
Time Productivity Report: Net Is Visible
Financial Reports: all reports under this section will show Labor at Net.

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How do I process Pro Bono work?

The typical recommendation is to bill the project for the full value of the work. Create a credit memo to apply against it. And lastly, send the client the invoice so that they can see the value of the work being done at no charge.

The credit memo would either go against the original sales account on the positive client invoice or if you set up a Charity income account and post to that account, which will make that account go negative. So when they look at their sales account balances, they would see the positive income going to agency fees, for example, and then a negative amount going to a Charity income account.

This is called a "contra-income" account. "contra" simply means that it'll hold a balance that is negative instead of being positive.

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What makes time entered Billable vs. Non-Billable?