Auto Expenses

Navigation:    Admin Menu »» System Tools »» Auto Expenses

Applies To:    Enterprise    Plus    Basic

Overview

Auto Expenses is a function to automatically add or modify expense records in the general ledger.  These records are also used in profit/loss comparisons.  The calculations made during the Auto Expenses process are based on values and settings made in Course Sections and Auto Expenses Administration Expense records.

Details

The Auto Expenses process operates as follows:

• Date range periods for calculating expenses are determined.  These could be based on Sessions or based on date ranges.  In either case, once determined, these calculation periods should be consistently maintained.  To change calculation periods once the Auto Expenses process is being used can cause inconsistent results in Admin Level calculations.
• Values and settings in Course Sections for the covered calculation period are entered.  These values will account for the Section Level expenses.
• Values and settings in Auto Expenses records for the covered calculation period are entered.  These values will account for the Admin Level expenses.
• The Recalculation utility of the Auto Expenses function is run.  This step performs all the calculations for the covered period.  Upon completion, all automated expense calculations have been entered or modified, and any reporting or analysis can be performed.
• Only Expense records tagged as Auto Expense = Yes are added or modified during this process.  Any Expense records tagged as Auto Expense = No are ignored during this process.  Typically these records are manually entered expenses.  These expenses will not be modified during this process, but are valid still for all report calculations such as Profit/Loss.  If these manually entered expenses are not desired, they should be removed or set to a zero amount.  Otherwise, the amount recorded will be included in reporting calculations for expenses.
• Revenue records are not added, deleted or modified during this process.
• Payroll: If the instructor on a course section is changed after the Auto Expense function has been run, the next run will change all non-matching payroll Auto Expense records to zero hours. The records will display as a reference, but a user could manually delete the records, if desired.

How To Set Up Auto Expenses

Follow these steps to set up and use the Auto Expenses function.  When setting up Auto Expenses for the first time, it is important not to skip any of the steps.  As time passes, many of the initial settings may remain in effect making the use of the Auto Expenses easier to operate.

Assigning Permission to the Auto Expenses Function

Prior to setting up and using the Auto Expenses function, assign permissions to the function on a need only basis.  If more than one user is assigned permissions to use the Auto Expenses function, all assigned users should be aware of the same information about running the Auto Expenses function.  This sharing of information is most important when it comes to the calculation periods.  The Recalculation utility should never be run by more than one user simultaneously.

Determine the Calculation Periods

The range of dates for calculating expenses automatically is an important decision.  The date range has little effect on the Section Level expenses.  However, the date range has a huge effect on Admin Level expenses.  Once determined, it is recommended not to change the calculation date ranges.  Otherwise, if date ranges are not consistently used, resulting calculations will not be consistent.

When the Auto Expenses process runs, the dates selected will include all course sections with a section start date falling within and including the date range selected.  It is suggested to pick date ranges that match common reporting periods.  For many users, this could be the Session start and end dates.  For other users, it may be calendar quarters or annual dates.  Select both a start and end date for the calculation range.  If Session dates are used, make sure the start and end dates entered into each of the Session records matches the desired date range and includes all the course section start dates desired.

Setting the Section Level Expenses

There are three types of auto expenses at the Course Section Level:  Payroll, Benefits, and Other Expenses.

Payroll Expenses:  Auto expenses for payroll are set on the Schedule tab of a Course Section when in Edit mode.  Payroll expenses can be calculated for both Teacher 1 and Teacher 2.  There are four methods for calculating payroll expenses.  The method can vary from course section to course section as well as between Teacher 1 and Teacher 2 of the same course section.  When the expense is recorded, both Teacher 1 and Teacher 2 are recorded as one entry.  Payroll Expenses will be recorded with a revenue item = PayrollExp.

By Hour:  If the Teacher is paid per hour, set the following values:

• Pay Method = By Hour
• Pay Rate = Rate per Hour
• Total Scheduled Hours = total hours of course section. Or if there are two teachers and they will each get paid a different number of hours, enter the Teacher 1 Hours and Teacher 2 Hours fields.  Teacher Hours.  When teacher 1 Hours or Teacher 2 Hours fields are used, the Total Scheduled Hours are ignored.
• Optionally, set the Payroll Account code to be recorded with these expenses.
• When run, the expense will calculate as: Number of Hours * Rate

By Course:  If the Teacher is paid one flat rate for the entire course section, set the following values:

• Pay Method = By Course
• Pay Rate = Flat Rate
• Optionally, set the Payroll Account code to be recorded with these expenses.
• When run, the expense will calculate as: Rate

By Class:  If the Teacher is paid per class section, set the following values:

• Pay Method = By Class
• Pay Rate = Rate per Class
• Total Number of Classes = total number of class sessions for the course section.
• Optionally, set the Payroll Account code to be recorded with these expenses.
• When run, the expense will calculate as: Number of Classes * Rate

By Revenue:  If the Teacher is paid a percentage of the course section revenue, set the following values:

• Pay Method = By Revenue
• Pay Rate = Percentage rate (.60 = 60%, 1.00 = 100%)
• Optionally, set the Payroll Account code to be recorded with these expenses.
• When run, the expense will calculate as: (Total Revenue – Total Refunds) * Rate.  Total Revenue includes all transactions except those tagged as payment type Uncollected Funds, OnAccount Given, and Discounts or payment types tagged as Exclude.  Total Refund includes all transactions tagged as refund or payment type is Discount, OnAccount Given, or Uncollected Funds.
• Only transactions linked to Assignments that contain an Enrollment Status that is set to [Include Payroll] = Yes are included in the calculation. Set the [Incldue Payroll] field in Main Menu >> Selects >> Enrollment Status.

By Student:  If the Teacher is paid per active and completed students, set the following values:

• Pay Method = By Student
• Pay Rate = Rate per Student
• Optionally, set the Payroll Account code to be recorded with these expenses.
• When run, the expense will calculate as: Number of Students * Rate where the Number of Students = Assignments Quantity.  Only Assignments matching the Enrollment Status values tagged as "Include in Payroll" will be included.

Benefit Expenses:  Auto expenses for benefits are set on the Schedule tab of a Course Section when in Edit mode.  Benefit expenses can be calculated for both Teacher 1 and Teacher 2.  There are two methods for calculating benefit expenses.  The method can vary from course section to course section as well as between Teacher 1 and Teacher 2 of the same course section.  When the expense is recorded, both Teacher 1 and Teacher 2 are recorded as one entry.  Benefit Expenses will be recorded with a revenue item = BenefitExp.

Flat Rate:  If the benefit is based on a flat rate, set the following values:

• Benefit Method = Flat Rate
• Benefit Rate = Rate
• Optionally, set the Benefit Account code to be recorded with these expenses.
• When run, the expense will calculate as: Benefit Rate

Percentage:  If the benefit is based on a percentage of payroll, set the following values:

• Benefit Method = Percentage
• Benefit Rate = Percent  (i.e 10% = 10.00, 2.5% = 2.50)
• Optionally, set the Benefit Account code to be recorded with these expenses.
• When run, the expense will calculate as: Payroll Expense * Benefit Rate

Other Expenses:  Auto expenses for other expenses such as supplies or materials are set on the Other tab of a Course Section when in Edit mode.  There are three methods for calculating other expenses.  The method can vary from course section to course section.  Other Expenses will be recorded with a revenue item = OtherExp.

Flat Rate:  If the other expense is based on a flat rate, set the following values:

• Other Expense Method = Flat Rate
• Other Expense Rate = Rate
• Optionally, set the Other Expense Account code to be recorded with these expenses.
• When run, the expense will calculate as: Other Expense Rate

Percentage:  If the other expense is based on a percentage of revenue, set the following values:

• Other Expense Method = Percentage
• Other Expense Rate = Percent  (i.e 10% = 10.00, 2.5% = 2.50)
• Optionally, set the Other Expense Account code to be recorded with these expenses.
• When run, the expense will calculate as: Total Course Section revenue * Other Expense Rate

By Student:  If the other expense is based on a rate per student, set the following values:

• Other Expense Method = By Student
• Other Expense Rate = Rate per Student
• Optionally, set the Other Expense Account code to be recorded with these expenses.
• When run, the expense will calculate as: Number of Students * Rate where the Number of Students = Assignments Quantity.  Only Assignments matching the Enrollment Status values tagged as "Include in Payroll" will be included.

Setting the Admin Level Expenses

There are five ways to auto calculate administrative expenses:  By Category, Department, Location, Program Group, and/or Session.  More than one type can be used in combination with another type.  When recalculated, each of these administrative expenses will be recorded for every course section meeting the date range criteria based on course section start date and the auto expense table selected.

For example, there may be a flat rate of $50 per course section per Session in addition to an additional administrative expense of $15 for one Department.  All course sections within the identified Session will obtain a $40 admin expense.  The course sections within the identified Department of that same session will have $65 of administrative expenses added.

• Category Expenses will be recorded with a revenue item = AdminCatgExp.  Category is linked to course sections via the Course table.
• Department Expenses will be recorded with a revenue item = AdminDeptExp.  Department is linked to course sections via the Department field.
• Location Expenses will be recorded with a revenue item = AdminLocExp.  Location is linked to course sections via the Location field.
• Program Group Expenses will be recorded with a revenue item = AdminPGExp.  Program Group is linked to course sections via the Course Program Group and Course Section Program Group.
• Session Expenses will be recorded with a revenue item = AdminSessionExp.  Session is linked to course sections via the Session field.

Within each type, one of three methods can be used:  Distribution, Flat Rate or Percent Rate.  Numerous administrative auto expense records can be added but is restricted to one per account number or blank account number.

Distribution Method:  Distribution method is when one larger amount is distributed equally across all course sections meeting the dates range criteria.  Under Distribution, as the number of courses sections change, the expense amount per course section changes.

• Examples:
• $10,000 administrative expenses must be equally distributed across all course sections for the Spring session.  250 course sections ran so each course section has an expense added for $40.
• $2,500 administrative expenses must be equally distributed across all course sections for the Computer category.  35 course sections in that category ran so each course section has an expense added for $71.43.

To Set Up a Distribution Administrative Expense:

• Go to Admin Menu >> System Tools >> Auto Expenses
• Click the New button.
• Select one of the five expense tables and click on the Settings tab.
• Select the appropriate table as desired for the expense.
• Enter an Amount or rate for the calculation.
• Select Calculation Method = Distribution
• Enter an optional Expense Account.
• Enter a Start and End Date range for this expense.  These dates should match the exact same date range selected earlier.  If based on the Session, the dates should match the Session Start and End Dates. Course Sections that start outside this range will not be included.
  
• Save the administrative auto expense record.
• Repeat this process for any other Distribution expenses.

Flat Rate Method:  Flat Rate method is when each course section gets the same rate regardless of the number of sections running.  Under Flat Rate, as the number of courses sections change, the expense amount per course section does not change.

• Examples:
• $25.00 administrative expenses must be added for all course sections for the Spring session.  250 course sections ran so each course section has an expense added for $25.
• $15.00 administrative expenses must be added for all course sections for the Computer category.  35 course sections in that category ran so each course section has an expense added for $15.00.

To Set Up a Flat Rate Administrative Expense:

• Go to Admin Menu >> System Tools >> Auto Expenses
• Click the New button.
• Select one of the five expense tables and click on the Settings tab.
• Select the appropriate table as desired for the expense.
• Enter an Amount or rate for the calculation.
• Select Calculation Method = Flat Rate
• Enter an optional Expense Account.
• Enter a Start and End Date range for this expense.  These dates should match the exact same date range selected earlier.  If based on the Session, the dates should match the Session Start and End Dates.  Course Sections that start outside this range will not be included.
  
• Save the administrative auto expense record.
• Repeat this process for any other Flat Rate expenses.

Percent Rate Method:  The Percent Rate method is when the expense is based on a percentage of total revenue for the course section.  As total revenue per course section changes, the expense changes.

• Examples:
• 5% administrative expenses must be added for all course sections for the Spring session.  250 course sections ran so each course section has an expense added for 5% of the course section revenue.
• 10% administrative expenses must be added for all course sections for the Computer category.  35 course sections in that category ran so each course section has an expense added for 10% of course section total revenue.

To Set Up a Percent Rate Administrative Expense:

• Go to Admin Menu >> System Tools >> Auto Expenses
• Click the New button.
• Select one of the five expense tables and click on the Settings tab.
• Select the appropriate table as desired for the expense.
• Enter an Amount or rate for the calculation.
• Select Calculation Method = Percent Rate
• Enter an optional Expense Account.
• Enter a Start and End Date range for this expense.  These dates should match the exact same date range selected earlier.  If based on the Session, the dates should match the Session Start and End Dates. Course Sections that start outside this range will not be included.
  
• Save the administrative auto expense record.
• Repeat this process for any other Percent Rate expenses.

How To Recalculate Auto Expenses

The Recalculation utility of the Auto Expenses function can be run at any time and can be run repeatedly.  Each time the utility is run, the process will not create duplicate expense records.  Only expense records tagged as Auto Expense = Yes are added, modified, or deleted.  Any expense records tagged as Auto Expense = No are ignored during the recalculation process.  This allows the addition of manually entered expense records to remain without being affected by the Auto Expense Recalculation process.  Only one user should run the Recalculation process at a time.

• Go to Admin Menu >> System Tools >> Auto Expenses
• Click the Recalculation button in the blue tool bar
• Select a Session or Range Start/End Dates.  This selection would be based on the date range decisions made earlier in the process and should remain consistent.  If both a Session and Start/End Dates are entered, the Start/End Dates are ignored and Session dates are used.  Leave the Session field blank if Start/End Dates are being used.
• Record Payroll As:  Payroll recorded for Hourly paid Staff can be recorded Per Date (each day the course is held) or One Total (one aggregate total).  This value affects By Hour payroll records only.  All other methods record as aggregate by default.  Be sure to always use the same value for subsequent recalculations. To do otherwise would create extra payroll expense records.
  
• Include Prep Hours:  If selected Yes, the Prep Hours Per Day value in the Course Section will be used to add hours to the payroll record.  The value of the Prep Hours Per Day value is multiplied by the Number of Classes to obtain the additional paid hours.  This value affects By Hour payroll records only.
• Select Delete Cancelled = Yes to delete auto expense records that are entered for course sections that are cancelled.  This allows for course sections to be cancelled and the auto expense process to remove the auto expense records.  Any manually entered expense records for cancelled course sections will remain.  If Delete Cancelled = No, the auto expense records for cancelled course sections will remain.  However, they will not be modified by the recalculation process.
• Click the Submit button
• Review the settings and when ready, click the Recalc button
• Once started, the process cannot be cancelled.  The process will continue until completed.
• Upon completion, the user will receive a prompt.