Track costs of items, media, and services purchased from vendors

 

Updated: November 1, 2016

Applies To: Dynamics Marketing

System_CAPS_importantImportant

Microsoft Dynamics Marketing is scheduled to be retired on May 15, 2018. After that date the service will no longer be available. Please plan accordingly. For details, see the blog post Microsoft Dynamics Marketing service will be discontinued, and learn what’s coming next.

Microsoft Dynamics Marketing lets you track the costs of items, media, and services that you purchase from vendors. In Microsoft Dynamics Marketing these transactions are called expenses.

Vendor invoices versus client invoices

Microsoft Dynamics Marketing expenses are used to track vendor invoices; invoices in Microsoft Dynamics Marketing are used to prepare client invoices. More information: Prepare invoices for clients for items, services and media

Post expenses to the general ledger

Expense transactions automatically post to the General Ledger. If the expense is for a non-inventory item it posts to the General Ledger in two accounts:

  • The expense account you specify on the expense's line items.

  • The Accounts Payables account.

Regular versus media expenses

System_CAPS_importantImportant

Media expenses contain different information than regular expenses. Expenses cannot combine media and non-media items. More information: Media

Regular versus inventory expenses
Inventory items are received into inventory via expenses. Inventory expense transactions automatically post to the General Ledger. Expenses for inventory items post to the General Ledger in two accounts:

  • The inventory account specified on the Item's dashboard.

  • The Accounts Payables account.

In addition, when an expense for an inventory item is saved, the inventory count and valuation are updated.

Regular versus inventory usage expenses
As explained above, inventory items are received into inventory via expenses. When inventory items are used, Microsoft Dynamics Marketing's Inventory Use transaction enables you to move the costs of the items used from inventory to Expense/COGS. Inventory use items post to the General Ledger in two accounts:

  • The inventory account specified on the Item's dashboard is credited.

  • The Expense or COGS account specified by the user is debited.

    In addition, when inventory items are used, the inventory count and valuation are updated.

    Inventory use transactions are displayed on the Expenses dashboard.

Users must have the appropriate privileges to work with expenses:

  • Users with the Expenses privilege can create, view and edit expenses.

  • Media buyer users with the Expenses privilege can create, view, and edit media expenses.

More information: Work with user accounts and staff contacts

Go to Budgeting > Payments > Expenses.

  1. On the Expenses page, choose the New button New button.

    Microsoft Dynamics Marketing opens the new expense page.

  2. Enter the information.

  3. Choose Save.

Field

Description

ID

Microsoft Dynamics Marketing displays a unique ID number for each expense. The ID number is displayed once the expense is saved by clicking Save.

Status

Select a status for the expense. (Optional.)

More information: Create custom drop-down values and folders

Vendor

Select a contact. (Required.)

Vendor Invoice #

Enter the vendor's invoice number or code. (Optional.)

Tracking #

Enter the tracking number or code. (Optional.)

Prepared by

Select a contact. (Optional.)

Prepared for

Select a contact. (Optional.)

Tax Rate

Select the tax rate that applies to the expense. (Optional.)

Manage taxes

Memo

Enter additional information by choosing the Memo button Edit button. (Optional.)

Date

Enter the expense date. (Required.)

Payment Due Date

Enter the date the vendor should be paid. (Optional.)

Type

Select a type from the pull-down menu. (Optional.) More information: Create custom drop-down values and folders

Ship to

Select a contact. (Optional.)

Account Payable Account

Select the Accounts Payable account for this expense. Microsoft Dynamics Marketing will default the AP account to the account selected for the vendor company on the Vendor Company Dashboard unless an advertiser has been selected, in which case Microsoft Dynamics Marketing will default the AP account to the advertiser company's default AP account. (Required.) More information: Work with Accounts payable

Default Report

Select the default report to use for this transaction. (Optional.)

Currency

If you are using the Enterprise Edition with multiple currencies, select the currency used. (Required.)

All line items for the current expense are shown in the Items grid. The total value of your expense is the sum of the various items listed here—therefore, you will almost always have at least one item for each expense and will get a warning if you submit an expense without any items. Here you can use the standard grid controls to sort, filter, and group the list; use the toolbar to add items and/or to work with existing items.

The expense item grid displays all the items included in an expense.

Item grid comprises of lots of features

To create a new expense item:

  1. Choose the New button New button.

    Microsoft Dynamics Marketing opens the New Expense Item page.

  2. Enter the information:

  3. Choose Save.

Field

Description

ID

Microsoft Dynamics Marketing assigns a unique line item ID to every item.

Account

Select a general ledger account from the pull-down menu. (Required.)

Item/Service

Enter the item or service for which you want to create the expense item. (Optional.)

Date

Enter the item date. The item date is used in budgeting as the accrual date. (Required.)

Description

Enter a description for the item (Optional.)

Company

Select the company the item is for. Typically if the item is for internal use, select or use the default company. If the item is for another company, type in the name of the company and select the company from the drop-down menu. (Required.)

Taxable

Check the box if the item is taxable. Taxes will be added at the rate specified on the Expense header.

Quantity

Enter the quantity of the item. (Required.)

Unit Cost

Enter the unit cost of the item. Use the Unit Cost Calculator to calculate the Unit Cost given the Total Cost and Quantity. (Optional.)

Credit

Enter any credits taken. (Optional.)

Shipping

Enter shipping costs if any. (Optional.)

Total

Microsoft Dynamics Marketing will calculate the total using the following formula:

Total Cost = Quantity X Unit Cost + Shipping - Credits

Details

The Details section enables you to specify additional information about the invoice item.

Company

Select a company/client from the pull-down menu. (Required.)

Division

Select a division from the pull-down menu. (Optional.)

Department

Select the department the item is for from the pull-down menu. (Required.)

Program

Select the program the item is for from the pull-down menu. (Required.)

Campaign

Select the campaign the item is for from the pull-down menu. (Required.)

Event

Select the event the item is for from the pull-down menu (Required.)

Job

Select the job the item is for from the pull-down menu. (Required.)

Task

Select the task the item is for from the pull-down menu. (Required.)

Request

Select the request the item is for from the pull-down menu. (Required.)

System_CAPS_noteNote

Choose the Edit button Edit button to change the grid into edit mode. In edit mode you can edit many of the cells at the same time to save time.

To route an expense for approval:

  1. Select the expense you want to route by choosing its check box Check box symbol.

  2. Choose the Approval button.

    Microsoft Dynamics Marketing opens the Approval Request page. More information: Manage review and approval routing

The Expenses tab displays the expenses made by each user from the Expense Reconciliation page until the user releases them.

  1. Select the invoices you want to release by choosing their check boxes Check box symbol.

  2. Choose the Release button.

    Microsoft Dynamics Marketing releases the expense from the Expense Reconciliation page.

  3. If you need to view the expenses again, go to the Invoices page.

Use the recurring copy function to copy a transaction multiple times following a recurring pattern or schedule.

  1. Select the transaction you want to copy by choosing its check box.

    System_CAPS_noteNote

    Only one transaction can be copied at a time.

  2. Choose the Recurring Copy button Update button to open the Recurring Copy pop-up.

  3. Fill out the Recurring Copy pop-up as follows:

    1. # of Copies: Specify the number of copies of the transaction that you want to make.

    2. Frequency: Choose the time interval by which to increment the date for each new copy.

    3. First Date: To set the date of your first copy relative to the item you are copying from, leave the From Original checkbox marked. To start at a custom date, clear the From Original checkbox and then specify the date for your first copy here.

    4. Copy Files: Mark this check box to include all related files (listed on the Files tab) with each new copy.

  4. Choose OK to create the copies.

  1. Select the items you want to invoice on the top of the page by choosing their check boxes Check box symbol.

  2. Choose the New button.

Microsoft Dynamics Marketing creates invoices and displays them on the Invoices tab.

  1. Select the expense you want to invoice by choosing its check box.

  2. Choose the Invoice button.

  3. Choose OK.

The Invoices tab displays the invoices made by each user from the Unbilled Expense Items page until the user 'releases' them.

Select the invoices you want to release by choosing their check boxes Check box symbol, then choose the Release button.

Microsoft Dynamics Marketing 'releases' the invoices from the View Unbilled Expense Items page. If you need to view the invoices again, go to the Invoices page.

A common billing scenario is to bill (invoice) clients for the expenses incurred in doing work for them. It's easy to miss expenses and not bill them. The Unbilled Items dashboard helps you find these items (and more) - it displays all the expense items that haven't been billed (invoiced). You can also view unbilled Purchase Order items and time slips.

Split expenses across campaigns by using the advanced product allocation feature in Microsoft Dynamics Marketing. You can allocate campaign expenses using a percentage based approach.

To use the Advanced Product Allocation function:

  1. Go to the Site Setup page.

  2. Specify Advanced Product Allocation. More information: Administer your site

  1. Open the expense you want to split.

  2. Select the expense items you want to split by selecting their check boxes.

  3. Choose the Splitter button.

    Microsoft Dynamics Marketing displays the Campaign Splitter:

    • The top of the page displays the expense items that will be split across campaigns.

    • The button of the page displays all of the active campaign product/delivery allocations in Microsoft Dynamics Marketing.

  4. Select the campaign product/delivery allocations you want to split the expenses across.

    System_CAPS_tipTip

    Use the filter to find the campaign product/delivery allocations. Once you select one or more campaign product/delivery allocations you can search again; Microsoft Dynamics Marketing retains the prior selections.

  5. Choose Submit.

    Microsoft Dynamics Marketing splits the expense items across the campaign product/delivery allocations using the actual quantities specified.

By default, Microsoft Dynamics Marketing weighs all the campaign product/delivery allocations equally. Users can apply different weights to each campaign p/delivery allocation by changing the default weight from 1 to a different value. For example, changing the weight of a campaign product/delivery allocation from 1 to 2 will double its weight.

  1. Choose the New Inventory Use button.

    Microsoft Dynamics Marketing opens the new Inventory Use page.

  2. Enter the information. More information: Manage inventory of promotional materials

Reconciliation consists of matching purchase orders and media orders with vendor invoices. The process starts when a vendor invoice is received. The Expense Reconciliation page displays information at the purchase order/media order item level of detail. The reconciliation process includes the following steps:

  • Finding the original purchase order(s) and/or media order(s).

  • Comparing the purchase order(s)/media order(s) with the vendor invoice.

  • Creating expenses including adjustments for any differences (this posts the expense to the General Ledger and creates an entry in the Accounts Payable register).

The Expense Reconciliation page displays all the line items for all the open purchase orders and media orders for a selected vendor, media outlet or client.  To view the Expense Reconciliation page, go to Budgeting > Reconciliation > Expense Reconciliation.

The Expense Reconciliation page makes it easy to reconcile purchase orders and media orders when vendor invoices are received.

There are two ways to reconcile purchase orders/media orders.  

  1. Select the item(s) you want to expense by choosing their check boxes Check box symbol.

  2. Choose the Reconcile button.

    Microsoft Dynamics Marketing makes an expense for every corresponding purchase order/media order.

    • If all the items you selected are on a single purchase order/media order, Microsoft Dynamics Marketing will display the expense.

    • if the items are on several purchase order/media orders, Microsoft Dynamics Marketing will display the expenses on the bottom of the Expense Reconciliation page on the Expenses tab.

  3. Choose any expense to display its details.

  4. Choose any expense item to view or edit its details.

  1. Select the item(s) you want to expense by choosing their check boxes Check box symbol.

  2. Choose the Reconcile and Invoice button.

    Microsoft Dynamics Marketing makes an expense for every corresponding purchase order/media order.

    • If all the items you selected are on a single purchase order/media order, Microsoft Dynamics Marketing will display the expense.

    • If the items are on several purchase order/media orders,
      Microsoft Dynamics Marketing will display the expenses on the bottom of the Expense Reconciliation page on the Expenses tab.  

  3. Choose any expense to display its details.

  4. Choose any expense Item to view or edit its details.

    Microsoft Dynamics Marketing also makes an invoice for every order using the price associated with the rate specified by the User. If any items do not  have an associated rate, Microsoft Dynamics Marketing will warn the user.

    System_CAPS_tipTip

    To view the invoices generated by the Reconcile and Invoice function, go to the Invoices dashboard.

To view all of the reconciled purchase order/media order items including the inactive and deleted, Choose the View All button Show All/Active Only button.

Microsoft Dynamics Marketing displays reconciled items in the grid. The View All button Show All/Active Only button toggles to Hide Inactive/Deleted button to indicate the button for View Active orders.

System_CAPS_importantImportant

You must have required access permissions to update the status of the Orders. You cannot update the status for the orders created by other users. Contact your administrator for more details.

To change the order status:

  1. On the Expense Reconciliation page, select the check box to choose the order for which you want to change the status.

  2. Choose the Update Order Status button Update Order Status button at the top right of the window.

    Microsoft Dynamics Marketing displays the Add Reconciliation Note/Update Order Status pop-up screen.

  3. Select the new status from the Status drop-down list box.

  4. Enter any notes and also the subject line for the notes, in the text boxes below the Status option.

  5. Choose Submit.

Petty cash is the money used for small, business-related expenses. Petty cash might be kept in a cash box, or as money that the owner, job supervisor, project manager, or bookkeeper has in his or her pocket. To track petty cash expenses you'll need to set up an account in the Chart of Accounts, add funds to it, and then record the expenses for money you take out of it.

Petty Cash and Account Payable

The idea behind petty cash is to minimize the amount of work it takes to track very small expenses. Since petty cash expenses are 'immediate' cash expenses, petty cash doesn't flow through Accounts Payable accounts unlike 'regular' expenses which do flow through Accounts Payable.

Petty Cash and Project-Related Expenses

Petty cash expenses cannot be associated with projects - programs, campaigns, events, jobs, etc. If you need to associate an expense with a project, enter them as expenses and pay them using a 'regular' bank account.

Go to the Chart of Accounts and create a new account. The petty cash account must be a bank account. More information: Chart of accounts

The petty cash account must be a bank account because it is similar to a bank account except that it is held by you instead of by an institution. By making the petty cash account a bank account you can use the Write Checks page to quickly enter expenses. The petty cash account will appear in your balance sheet in the same group as your other bank accounts.

Add Funds from the Petty Cash Account

Once you have set up a petty cash account you need to add money to it by transferring funds from a bank account into the petty cash account.

  1. Choose Budgeting.

  2. Under Payments, choose Write Check.

  3. In the Pay to the Order Of field, enter the name of the employee who will cash the check and provide the cash. Or,

    if you are cashing the check, create a new vendor ("Cash" or use the site company as the vendor).

  4. In the Item grid, select the Petty Cash Account.

  5. Choose Submit or print the check. More information: Banking

You can use Journal Entries, Write Checks, or Expenses to enter petty cash expenses. Which transaction you use depends on the information you need to track:

  • Use a Journal Entry if you only need to track the date, amount and account the petty cash expense is for.

  • Use Write Checks if you need to track the date, the payee, amount and account the petty cash expense is for. If you use Write Checks be sure to 'print' the check to process the petty cash transaction. More information: Banking

Microsoft Dynamics Marketing enables you to process and track vendor credits and refunds.

System_CAPS_noteNote

To view vendor credit memos and refunds, users must have Edit/View Vendor Credit Memo/Refund privileges. More information: Work with user accounts and staff contacts.

A Vendor Credit Memo is a transaction that documents a credit that was granted by a vendor. For example, you are unhappy with the quality of the printing of a brochure that you have paid for. The vendor agrees to give you a credit that can be applied to the next brochure that you print with them. Credit memos appear as credits that can be applied to other vendor expenses that are to be paid and displayed on the Accounts Payable dashboard in the Credits panel. When a credit memo is applied to an inventoried item, Microsoft Dynamics Marketing adjusts the value of the inventory to reflect the cost decrease (the credit). Vendor credit memos debit the specified Accounts Payable General Ledger account and credit the specified General Ledger expense account. More information: Work with Accounts payable

A Refund is a transaction that documents money that a vendor will pay you. For example, you are unhappy with the quality of the printing of a brochure that you have paid for. The vendor agrees to give you a refund for the payment that you made.  Refunds appear on the Accounts Receivable dashboard. When a refund is for an inventoried item, Microsoft Dynamics Marketing adjusts the value and quantity of inventory to reflect the quantity of items returned to the vendor as well as any changes to the cost of the returned items (using the specified inventory valuation method). Vendor refunds of non-inventory items debit the specified Accounts Receivable General Ledger account and credit the specified General Ledger Expense account. Vendor refunds of non-inventory items debit the specified Accounts Receivable General Ledger account and credit the specified General Ledger Inventory account. Vendor refunds of inventory items debit the specified Accounts Receivable General Ledger account and credit the specified General Ledger Inventory account and - if necessary - credit the inventory adjustment (expense) account to reflect the change in value of the remaining inventory. More information: Accounts receivable

System_CAPS_tipTip

Credit memos and refunds are displayed on the Expenses dashboard and tabs. More information: Track costs of items, media, and services purchased from vendors

The Vendor Credit Memo items grid displays all the items included in a credit memo or refund. To create a new credit memo or refund item:

  1. Choose the New button New button.

    Microsoft Dynamics Marketing opens the new Credit Memo item page.

  2. Enter the information.

  3. Choose Save.

Field

Description

Item

Select an item or service from the pull-down menu. (Required.) More information: Track items and services

Description

Enter a description for the item or service. (Optional.)

Quantity

Enter the quantity of the item or service. (Required.)

Total Cost/Unit Cost

Enter the total cost or the unit cost of the item. If you enter a total cost, Microsoft Dynamics Marketing will enter a unit cost for you. (Required.)

Credit

Enter any credit applied to this item. (Optional.)

Shipping

Enter shipping costs if any. (Optional.)

Total

Microsoft Dynamics Marketing will calculate the total using the following formula:

Total Cost = Quantity X Unit Cost - Credit + Shipping

Or,

Total Cost = Quantity X Unit Cost - Credit + Shipping

Taxable

Check the box if this item is taxable. If you check the taxable check box, Microsoft Dynamics Marketing will calculate the tax by multiplying the item's total cost by the tax rate selected on the credit memo, and add a tax item to the credit memo. (Optional.)

Date

Enter the item date. (Required.)

Details

The Details section enables you to specify additional information about the credit memo item.

Company

Microsoft Dynamics Marketing displays the company/client the item is for.

Division

Select the division the item is for from the pull-down menu. (Required.)

Department

Select the department the item is for from the pull-down menu. (Required.)

Program

Select the program the item is for from the pull-down menu. (Required.) Choose the Allocation button Allocation button to allocate the revenue from this item using the program's allocation defaults.

Campaign

Select the campaign the item is for from the pull-down menu (Required.)  Choose the Allocation button Allocation button to allocate the revenue from this item using the campaign's allocation defaults.

Job

Select the job the item is for from the pull-down menu. (Required.).  Choose the Allocation button Allocation button to allocate the revenue from this item using the event's allocation defaults.

Task

Select the task the item is for from the pull-down menu. (Required.)

Event

Select the event the item is for from the pull-down menu. (Required.)

To associate an item with one or more of the above:

  1. Choose the appropriate tab.

  2. Type the name of the advertisement, brand, channel, component, location, market and/or product/service in the selector field.

  3. Select the advertisement, brand, channel, component, location, market and/or product/service and choose the Add button.

  4. Enter the allocation percent. The allocation percent enables you to pro-rate an item to each brand. For example if the total price of an item was $100 and you allocate 50% of the price to Brand 1, Microsoft Dynamics Marketing will allocate $50 of the price to Brand 1.

  5. Choose Save to save your changes and keep viewing the page or choose Submit to save your changes and return to the previous page.  

Financial and general ledger accounts are designed for marketing budget management only. Financial features are restricted to the limits stated in the Security and Financial Disclaimer. Microsoft Dynamics Marketing is not designed to comply with country/region-specific laws, regulations, or common business practices.

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