How do you record a backcharge on a project where you do not want to affect the total contract value (fixed price contract)? The ideal way of doing this would be to make the charge against the cost budget instead of the revenue budget but I also need to issue the credit to the client and I have not found a way to link a AR Memo to a Cost Budget task and cost code. Can that be done and if not does anybody have any suggestions on how to resolve?
Answer
Backcharges from Client on a Project that doesn't change contract value
Best answer by nickcerri32
I suppose if you wanted to hit the Cost Budget, you could extend the Customer as a Vendor and issue them a standalone (no PO) Bill or Credit Adjustment from Bills and Adjustments. The problem you’ll run into here is that it’ll hit the AP account instead of AR and give you an error if you try to put the AR account in where it expects the AP account (assuming they are both control accounts, which they should be.)
Let me know how it goes.
+1
I suppose if you wanted to hit the Cost Budget, you could extend the Customer as a Vendor and issue them a standalone (no PO) Bill or Credit Adjustment from Bills and Adjustments. The problem you’ll run into here is that it’ll hit the AP account instead of AR and give you an error if you try to put the AR account in where it expects the AP account (assuming they are both control accounts, which they should be.)
Let me know how it goes.
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