81719

Invoice consultants as employee labor

How do I invoice consultant hours as employee labor?

Resolution: 

Set up the consultant as an employee:   

1. Go to Setup > Employees. Click New.  
2. Select the Employee type. If you use departments, select Admin for the Department. (Ajera will not use this department when processing pay, as the employee is not going to be paid through the Ajera payroll.)   
3. On the Pay Information tab, select Hourly. In the Pay Rate field, enter .0001. (Entering this rate causes Ajera to calculate it as a zero cost.)  
4. In the Pay Period field, select None to prevent Ajera from creating a payroll check.   
5. Click Save and Close.  

Set up the Consultant as Employee activity to use on consultants' vendor invoices:  

1. Go to Setup > General > Activities. Click New.  
2. Enter Consultant as Employee as the Description.    
3. Select Consultant in the Activity Type field.   
4. On the Cost/Expense Accounts tab, select accounts for the Billable, Nonbillable, Marketing, and Overhead expense fields.   
5. Click Save and Close.
   
   Note: Use this activity only when entering vendor invoices for consultant-type employees, like contract or temporary employees.  

Set up the consultant and Consultant as Employee activity in billing rate tables:

1. Go to Setup > General > Billing Rate Tables.
2. Select the rate table that you are using for projects on which you want to bill a consultant as an employee.
3. Click Edit.   
4. On the Labor tab, verify that there is a billing rate on the rate table for the employee type or for the activity on which the consultant will work.  
5. If the rates are not there, or if you want to bill the employee at a new rate, go to the next blank row.
6. In the Employee column, select the consultant and enter the billing information.   
7. On the Consultant tab, add a new row to the table.
8. For the Activity, enter Consultant as Employee.
9. Leave the billing rate at 0.000, and click Save.
10. The new row on the Consultant table causes the cost to flow to the project and phase without appearing as a billable expense.   
11. Repeat the steps for each rate table with which you are billing consultants as employees.
12. Click Close.  

Modify invoice formats:  

1. Go to Setup > General > Invoice Formats, and select an invoice format that is used for projects on which consultants are billed as employees.
2. Click Edit.   
3. On the Time & Expenses tab, select Suppress detail with zero amounts to bill. This prevents the zero dollar vendor invoices entered from appearing on the client invoices.
4. Click Save.   
5. Repeat the steps for all projects on which you bill consultants as employees.
6. Click Close.  

Recommended Workflow:  

1. Go to Manage > Time, and enter the consultant's time in a timesheet. The time will appear on the client invoice and reports as spent labor, and then later as billed labor. The time will not appear as a cost to the project.  
2. Go to Manage > Vendor Invoices, and enter the vendor invoice you received from the consultant. Use the Consultant as Employee activity.  
3. Click Yes to the message The billing amount could not be calculated. Do you want to continue?
   
   Note:  
   • Ajera applies the cost from the vendor invoice against the project and phase, but the cost amount does not appear on the client invoice. In Manage > Client Invoices, the invoice is highlighted in yellow because there is a zero billing rate for the consultant.
   • The vendor will appear on the Consultant Pay When Paid report.
   • Each consultant set up as an employee uses one employee license in Ajera.