Contractor - Foreign Currency
For information on Contractors to be paid in a "home" currency, please refer to the Contractors guide.
This guide details the setup and use of employees and/or contacts that have the Contractor option checked and are to be paid in a foreign currency. The majority of the set up is the same as the standard contractor setup, with a couple of additional items to enter.
When you enable the contractor option, this assumes you are making them a paid user (Employee or Full User Contact) in the system and are assigning them to tasks on projects for which to track time against to ultimately match their vendor invoice against.
In order to enter time into Workamajig, you must be a full paid user. This can be accomplished by making them an Employee or a Full User Contact. The difference is minimal, as you can convert them back and forth if you want to limit their access. One advantage of having them entered as a Contact is they can be made into a Free user as needed, so they can still have access, but not be able to enter time like a paid user.
- Create a Vendor company record for the contractor.
- In the Vendor Setup tab, choose the 1099 Form and Box (i.e. NEC, 01 - Nonemployee Compensation). NOTE: further information on 1099 Reporting
- Set the Vendor’s Currency and the corresponding Accounts Payable account. This will default into the Vendor Invoice and the currency the vendor is to be paid in.
- Go to the Contact tab.
- Create New Contact Record by clicking the + icon located at the top of page.
- Enter the contact information.
- Click on ...more > Contact Settings
- Click on Security Controls, and deselect Free Login. Set the User ID/password and Security Group.
- When you deselect the Free Login checkbox, the Accounting tab will display. Click on the Accounting Tab:
- Check the box: CONTRACTOR
- Enter in the Hourly Cost in your Home Currency.
See Hourly Cost section for further information.
7. Link the Vendor Record to Purchasing section.
8. By linking the Vendor record, the Vendor Cost field will be displayed. Enter the cost of the Vendor in the Foreign Currency.
NOTE: The Hourly Cost is entered in the Home currency and is the Labor Net for the time entered by the Contractor. The Vendor Cost is entered in the Foreign Currency and is defaulted as the Unit Cost in the Vendor Invoice.
NOTE: If the Contractor will not be logging into the system immediately, the Free Login checkbox can be reselected. The data entered will be retained, Deselect the Free Login checkbox when the Contractor will be working within the system.
- Create the Employee record.
- Click on Employee Details: Enter the "employee/contractor" information,
- Click on Security Controls: enter User ID, Password, and select security group.
- Click on the Accounting tab:
- Check the box: CONTRACTOR
- Enter the Hourly Cost in your Home Currency
- Under Accounting: Purchasing> Vendor: select vendor from the drop-down or create a new vendor record by clicking Create New Vendor. NOTE: Create New Vendor link will open a new Vendor Company record. Update any applicable address information, etc. >Save>Close. This will link the vendor record to the employee record.
- Enter the Vendor Cost in the Foreign Currency. This will be the cost the vendor is to be paid in their currency.
Enter in an Hourly Cost to equal the hourly rate in which you pay this contractor in the Home Currency. The Hourly Cost will set the Labor Net within the Project. This should be the cost of the vendor in your home currency.
Enter the Vendor cost with the cost in the Vendor’s currency. This will default in the Vendor Invoice as the Vendor Unit Cost to be paid to the vendor.
NOTE: The Vendor Unit Cost on the Vendor Invoice is defaulted from the Employee/Contact record. The cost can be updated on the Vendor Invoice. This will not update the Labor Net costs (Hourly Costs) in the Project.
For example: If the Vendor is to be paid $65 Canadian dollars and the cost in Home currency is $45 USD; then the Hourly Cost will be set to 45.00 (USD) and the Vendor Cost will be set to 65.00 (CAD). The Labor Net within the project will be based on $45 USD; the Vendor Invoice will default in 65.00 CAD as Unit Cost to be paid to the Vendor.
Just like any other employee, follow the same steps as if you are creating a New Employee Setup. Give them a username and password to log into Workamajig.
Assign them to tasks with a service and time allocated (this is what you plan on billing the client for). Have them enter and approve time and mark tasks done via their Creatives: Today Creatives.
TIP: Once a contractor is done with their work and no longer needs access to Workamajig until the next assignment, then feel free to make their employee record inactive. If the Contractor is set up as a Contact, then check the Free User Login checkbox.
Vendor Invoice Entry
When you receive their Vendor Invoice for the work performed, create a new Vendor Invoice. Do not enter any Project information or amounts. Only the basic information such as Vendor Invoice Number and Dates need to be entered. The currency of the Vendor will default from the Vendor record.
The only difference now is this vendor will be linked to a contractor record and a new tab for Time Entries will appear on the vendor invoice. Click on the + to link the time entries for this Vendor Invoice. You then select the time entries that correspond with this vendor invoice.
The total cost of the Vendor invoice will then be pulled from the time entries selected. The system will default the Vendor Cost from the employee/contact record as the Unit Cost for each time entry. If necessary, you can update those time entries with a Unit Cost to match the vendor invoice amount.
NOTE: If the Unit Cost on the Vendor Invoice is updated, it will not update the Labor Net cost on the project.
The billable gross of those time entries comes from the service used by default or based on how the project is set up to calculate labor rates for billing the client.
Finally, approve, post, and pay the vendor invoice.
NOTE: The vendor invoice lines will NOT include the project number since the hourly cost on those time entries has already been applied against that project. If a project number was added on this vendor invoice, it would then double-up the cost against the project.
You can modify your Employees list to have either a Grouping by the Contractor field or a separate list for all who are Contractors. And then you can use the Update Multiple buttons to make them Active or Inactive.
NOTE: Inactive employees cannot log in or enter time. If you want them to continue to have a free level of access without the ability to enter time, then you can convert the Employee to a Contact, but then be sure to check Free Login from the Contact record in Login Settings.
You can modify your Contacts list to have either a Grouping by the Contractor field or a separate list for all who are Contractors.
To make a Contact record Active/Inactive or to check Free Login, you will need to open the individual Contact record.
Mark As Paid/Unpaid
Below the Contractor checkbox is an option to Update the time entries to Mark as Paid or Unpaid.
If the user record has previous time entries that were already paid or you are having a change in the process. You can Update those prior time entries and mark them as paid. This way those time entries flagged will not show in the vendor invoice to apply.
And don't worry, if you make a mistake, you can set the time entries back to unpaid.
NOTE: If Time Entries are to be Marked as Paid and no vendor invoice is to be entered; then you will want to be sure to enter the Hourly Cost on the contractor record. This will set the Labor Net cost on the project for their time.