This guide describes the Expense Configuration and Forecasting enhancements introduced in Kimble Release 1.23. We have also attached a .pdf version for your convenience.
In Kimble Release 1.23, Kimble introduced the ability to forecast Expense Cost and Revenue against Engagements. This represents a significant enhancement to the Kimble forecasting capability. As part of the introduction of Expense Forecasting, Kimble has extended the Expense Category templating tools. The first part of this guide will help you understand how to configure, maintain and use Expense Categories for recording Expenses on Delivery Engagements, Pre-Sales Engagements, and Other Activities.
The second part of this guide will focus on Expense Forecasting and its benefits.
When you add an Expense Claim in Kimble, you select an Expense Category from a dropdown menu. Based on this selection, the Kimble Application knows whether the Expense should be rebilled to the client, and at what rate; and whether the Expense should be reimbursed, and at what rate. And it knows whether Start and End Location or Attendees will be required to submit the Claim.
A lot went on behind the scenes to determine which Expense Categories would appear in the dropdown, and what behaviours the selected Expense Category would enforce. The diagram and table below outline how the objects pertinent to Expense Configuration relate to one another.
|Expense Category Group||Used for grouping Expense Categories for reporting purposes.||Mileage, Parking, Train, and Flights Expense Categories might be grouped and reported on as Travel.|
Defines behaviour such as:
|The Mileage Expense Category is claimed per unit. It’s Tax Code is Zero Rate Tax. Start and End Location will be required. Expense behaviour will vary based on Resource Location.|
|Expense Category Template||
Defines behaviour such as:
|Five Expense Category Templates are created within the Mileage Expense Category: one for Pre-Sales Activities, one for Other Activities, and three for Delivery Activities, each specific to a Location. One of these Delivery Templates is specifically for Resources located in New York. It specifies that the client will be rebilled, and that Resources will be reimbursed at a rate of $0.55 per mile.|
Expense Category Templates determine which Expense Categories will be available for an Activity by default. Once added to the Activity, those default Expense Categories can be amended or removed to match the terms of the client contract. New Activity Expense Categories can be added, even for Expense Categories that do not have an Expense Category Template that relates to the Resourced Activity Type in question. Multiple Activity Expense Categories that use the same Expense Category can be added.
Expense Category Groups
To create an Expense Category Group:
- Navigate to Expense Category Groups.
- To create a new Expense Category Group, click .
- In the Create Expense Category Group window, enter a Group Name.
- Click .
When creating or managing an Expense Category, you will add it to an Expense Category Group.
To create an Expense Category:
1. Navigate to Expense Categories.
2. To create a new Expense Category, click .
3. Fill in the mandatory fields in the Create Expense Category window.
a. If Expense Type is PerUnit, a Unit Type (e.g. Mile) must be selected or created.
4. In order to save the Expense Category, you must either tick the Can Edit Tax Code checkbox (which indicates that users may enter/amend the Tax Code when entering an Expense Item), or you must select a Tax Code for this Expense Category.
This determines what tax, if any, will be deducted from the Expense Gross Amount before invoicing.
- If 0%, any claims are invoiced as Gross (Gross = Net)
- If > 0%, Net amount is used
5. The remaining checkboxes in the Create Expense Category window are optional and should be ticked if needed.
6. Click .
New Expense Categories are not automatically added to existing Activities, but you can add an Expense Category to an Activity manually if required.
Care should be applied when amending attributes of existing Expense Categories, as changes have an immediate effect on all Activities using the Category. This means that if you amend the Tax Code, all subsequent expense claims created will reflect the new rate for Revenue and Invoicing purposes.
Expense Category Templates
Once an Expanse Category is created, you can add Expense Category Templates to it. Each Expense Category Template dictates the rebilling and reimbursement behaviour for a default Expense Category on an Activity.
- You should have at least one Expense Category Template for each Resourced Activity Type for which the Expense Category should be available by default.
- This will usually mean having an Expense Category Template for all three Resourced Activity Types; however, some Expense Categories will not need to have Templates created for all three (e.g. Office Supplies only requiring a Template for Other).
- If you determined that an Expense Category Is Variable by Resource Type, you should create an Expense Category Template for each Resource Type. If a Template does not exist for a Resource Type, the Category is not presented for use to those Resources.
- If you determined that an Expense Category Is Variable by Resource Location, you should create an Expense Category Template for each Location. If a Template does not exist for a Location, the Category is not presented for use to Resources located there.
- You can create Expense Category Templates that are specific to Product Domains.
In Salesforce Classic, Expense Category Templates are managed below the Expense Category Detail. To create a new Expense Category Template, click .
In Lightning, Expense Category Detail is in the Details tab and Expense Category Templates are managed from the Related tab. To create a new Expense Category Template, click .
Upon entering the Create Expense Category Template window, Expense Category is already populated.
The other required fields which must be completed are:
- Template Name
- Resourced Activity Type
- Currency – Select a Currency for this Template. You can select None; Currency will be defined at the Activity level.
- Rebilling Rule – Select one of the following:
- Not Rebilled – the Expense is not re-billed to the client
- Revenue Factor – the Net Expense is re-billed with a mark-up (e.g. x1.1)
- Revenue Gross Factor – the Gross Expense is re-billed with a mark-up (e.g. x1.1)
- Revenue Addition – a fixed amount is added to the Net Expense Amount
- Fixed Revenue Rate – the Expense Type on the Category is Per Unit
- Reimbursement Rule – Select one of the following:
- Not Reimbursed – the Expense is not reimbursed to the Resource
- Fixed Cost Rate – the Expense Type on the Category is per Unit (e.g. for Mileage)
- Cost Addition – the Expense Incurred Amount is reimbursed with a fixed amount added
- Cost Factor – the Expense Incurred Amount is reimbursed at a factor (typically 1)
The Revenue Rate, Revenue Factor, Cost Rate, and Cost Factor fields may also need to be completed depending on the Rebilling Rule and Reimbursement Rule selected.
- Revenue Rate must be completed when Rebilling Rule is set to Revenue Addition or Fixed Rate Revenue.
- Revenue Factor must be completed when Rebilling Rule is set to Revenue Factor.
- Cost Rate must be completed when Reimbursement Rule is set to Cost Addition or Fixed Cost Rate.
- Cost Factor must be completed when Reimbursement Rule is set to Cost Factor.
The remaining fields are optional.
- Product Domain – Specify that this Expense Category Template should only automatically create this Expense Category for Activities that use the selected Product Domain.
- Resource Type – Select a Resource Type if Expense Category Is Variable by Resource Type.
- Location – Select a Location if Expense Category Is Variable by Location. If you are selecting a Location, you should also complete:
- Reimbursement Currency – The Currency in which Resource’s at this Location will be reimbursed.
- Reimbursement Currency Cost Rate – The Cost Rate that will be used to determine the reimbursement amount for Resource’s at this Location.
Once all fields in the Create Expense Category Template window are filled in to your satisfaction, click .
|Amendments to existing Expense Category Templates only apply to new Activities created after the change. Expense Categories that already exist on Activities are not affected by changes to the Template.|
Managing Expense Categories on Activities
Expense Categories are added automatically to Activities if an Expense Category Template exists for that Resourced Activity Type. But keep this in mind: these are default templates that are automatically created when a new Activity is created. You can and should make changes to the resulting Activity Expense Categories, ensuring that they align with the Expense needs for that Activity.
To manage the Activity Expense Categories for an Other Activity:
- Navigate to Other Activities.
- Select the Other Activity you would like to manage.
- Click Expense Categories.
To manage the Activity Expense Categories for a Bid Team:
- Navigate to Proposals.
- Select the Proposal for which you would like to manage the Bid Team.
- In the Manage Bid Team sub-menu, click Expense Categories.
To manage the Activity Expense Categories for a Delivery Element:
- Navigate to Delivery Engagements.
- Select the Delivery Engagement you would like to manage.
- In the Activity sub-menu, click Expense Categories. If there are multiple Elements on the Engagement, you can select a specific Element.
Clicking Expense Categories opens the Expense Categories screen.
- Click to amend the behaviour of an Activity Expense Category.
- Click to delete an individual Activity Expense Category, or tick the checkboxes next to multiple Activity Expense Categories and click to delete multiple Activity Expense Categories.
- Click to add a new Activity Expense Category.
When creating a new Activity Expense Category, you must:
- Select an Expense Category from the Expense Category dropdown menu. This does not have to be an Expense Category that has an Expense Category Template for this Activity; this can be any Expense Category.
- Provide the Activity Expense Category with a Name.
- Select a Rebilling Rule from the Rebilling Rule dropdown menu.
- If NotRebilled, no further information is needed.
- If FixedRevenueRate or RevenueAddition, a Rebilling Rate is required. You can also define a Maximum Rebillable amount for Expense Claims made against this Expense Category.
- If RevenueFactor or GrossRevenueFactor, a Rebilling Factor is required. You can also define a Maximum Rebillable amount for Expense Claims made against this Expense Category.
- Select a Reimbursement Rule from the Reimbursement Rule dropdown menu.
- If NotReimbursed, no further information is needed.
- If CostAddition or FixedCostRate, a Reimbursement Rate is required.
- If CostFactor, a Reimbursement Factor is required.
- Select a Reimbursement Currency from the Reimbursement Currency dropdown menu.
- Tick the Active? Checkbox if this Activity Expense Category will be Active.
As of Kimble Release 1.23, you can forecast the Cost (through Reimbursement) and Revenue (through Rebilling) that you expect to come from Expense Claims.
- During the Sales Process, Expense Forecasts are added on the Proposal (or on the Engagement), and the resulting Expenses Contract Revenue and Expenses Contract Cost of an Element affect the overall Contract Revenue, Contract Cost, and Margin Percentage of your Proposal.
- Once an Engagement is Firm, Expense Forecasts are added exclusively on the Engagement.
- The resulting Expense Cost and Expense Revenue are forecast over the remaining duration of the Engagement, offset by one month to reflect the typical delay in submitting expenses; so, running from one month after the earliest Assignment Start Date or earliest open period on the Engagement up to one month after the latest Assignment End Date on the Engagement.
Forecasting Expenses on a Proposal
If an Element has lines for Expenses Contract Revenue and Expenses Contract Cost, you will be able to add Expense Forecasts to that Element.
To manage Expense Forecasts for an Element:
1. Open the Element burger menu and select Configure Element.
2. If the Edit Delivery Element window opens to the Assignments tab, click Expenses.
3. On the Expenses tab, click .
4. Select an Expense Category from the Expense Category dropdown menu. The available Expense Categories will be determined by the Activity Expense Categories that have been set up for that Element.
5. Once you have chosen an Expense Category and selected a Business Unit, define the Expenses you expect against the Expense Category. The Net Amount multiplied by the number of Units will automatically determine the Remaining Cost and Remaining Revenue.
In Kimble Release 1.25, a new Kimble Intelligent Insight has been added to the Expenses tab.
On Expense Categories where Expense Claims have been made, you will see to the left of Net Amount. This Insight tells you how many Expense Claims have been made for the Expense Category, and what the average Item Cost has been. This is meant to guide you as you estimate the Net Amount for the Expense Category.
6. You will not be able to edit the Remaining Cost, but you can edit the Remaining Revenue. As you can see in the below example, the Expense Forecast for Gifts and Flowers has been edited – the Remaining Revenue has been changed from the default value of 200.00 to 0. This has been done to reflect the Reimbursement Rules and Rebilling Rules of the Expense Categories – a money spent on a gift will be reimbursed to the Resource, but it will not be rebilled to the client.
The Remaining Cost of each Expense Forecast rolls up into the Expenses Contract Revenue in the Edit Delivery Element window. The Remaining Revenue of each Expense Forecast rolls up into the Expenses Contract Revenue.
7. Click to save changes made to the Delivery Element.
On the Proposal Scope screen, the Expenses Contract Revenue affects the Proposal’s Contract Revenue, and the Expenses Contract Cost affects the Proposal’s Contract Cost.
Forecasting Expenses on an Engagement
You can continue to create Expense Forecasts once an Engagement is Firm, and after its Assignments have started.
Rather than doing this from the originating Proposal (where Configure Element will no longer be accessible), you will access the Expense Forecasting screen from the Financial Management sub-menu of the Engagement Menu. (You can follow this path and add Expense Forecasts before the Engagement is Firm as well.)
If there are multiple Elements on an Engagement, select an Element.
The Expense Configuration screen displays all existing Expense Forecasts for the selected Element, with sections for Baseline Expense Forecast, Projected Expense Forecast, Actual Expense Claims, and Remaining Expense Forecasts, each broken down into Cost and Revenue. At the bottom of the table, totals for each of these sections appear.
Initially, before any Expense Claims are approved, the Projected and Remaining sections will display identical forecasts. (Baseline will as well if no changes have been made since the Element was last baselined.
Actual Expenses erode the Remaining forecast; once Expense Claims are approved, the amounts in Remaining column will be the difference between the Projected amount and the Actual amount.
To add a new Expense forecast:
- Click .
- In the New Expenses window, select an Expense Category from the Expense Category dropdown menu.
- Select a Business Unit from the Business Unit dropdown menu.
- Enter an estimated Remaining Cost amount for the Expense.
- Enter an estimated Remaining Revenue amount for the Expense.
- Click .