As government contractors, it can be difficult to map your employee pay periods to the required billing cycles for invoicing your contracts. The most common pay periods tend to be semi-monthly or bi-weekly, which are easy for employees to understand. However, what happens when your client demands that you bill them every week? Or every 10 days? Or every full moon?

Based on your feedback, we created a feature to address off-cycle billing regiments. This new feature, importing partial timesheet periods, allows you to process labor distribution for specific contracts & projects, or full timesheets up to a certain point in time. By following the process below, you will be able to bill for any time period that is different from your pay cycle.

Accrued Salaries Setup

To start using the partial import process, you must first complete two steps:

1. Create an Accrued Salaries account in the Chart of Accounts
2. Establish this new Accrued Salaries account as the Default Account for the process

1) Create an Accrued Salaries account in the Chart of Accounts

For most PROCAS clients, an Accrued Salaries account must be created in the Chart of Accounts to accurately track the recording and reversing of the partial labor journals created. This should be separate from your typical 2200 - Salaries and Wages Payable account, so that your payroll information is not affected.

We recommend using 2205 - Accrues Salaries - Partial Timesheets if available, with the following fields completed in the Chart of Accounts:

Accounting --> Setup --> Chart of Accounts

Code --> 2205

Description --> Accrued Salaries - Partial Timesheets

Account Class --> 23 - Accrued Expenses

Financial Statement Line Item --> 212 - Accrued Compensation

Cash Flow Line Item --> 115 - Increase (Decrease) in Accrued Expenses

Cost Element --> 22 - Salaries Payable

Chargeable and Active --> Checked

All other Chart of Accounts columns can be left blank. Save the new account when finished inputting the data.

2) Establish this new Accrued Salaries account as the Default Account for the process

Now that our Accrued Salaries account has been created, let's specify for the system to use it when creating partial labor journals via the Default Accounts form.

Accounting --> Setup --> Default Accounts

On this screen, fill in the account created under the Accrued Salaries section and save the screen. At this point, all of the setup has been completed to begin using the process.

Partial Timesheet Import Process

To begin the partial import process, let's navigate to T&E Admin --> Export Timesheet Data. On this screen, we will be given the option of which timesheet period we would like to partially export.

In this example, we are going to export timesheet data tied specifically to charge codes that roll up to Invoice Task 10003.000.00.000. My timesheet periods are built semi-monthly for payroll, however my contracting officer requires that I invoice on the 7th and 22nd of each month.

By selecting, Export Partial we will be taken to a selection screen to specifically filter the timesheet data we are looking for:

Work Date From - Read-Only field, which represents the start date of the timesheet period

Work Date To - Editable field, which is overwritten to specify the last date you would like to export timesheet data through

Invoice Task(s) - Drop down list of available invoice tasks to choose from

• Selecting ALL will export all timesheet data through the Work Date To field
• Selecting a Specific Invoice Task will limit the data through the Work Date To field

Select Export to send the data over to the next step of the process, Process Timesheets.

Process Timesheets

After navigating to Accounting --> Labor --> Process Timesheets, you will notice that your specific selection has populated for labor distribution.

In the below example, 5 employees populated with their hours input through the 7th of August. At this point in time, we can review to make sure these hours are correct.

The biggest field to note in this process is the newly added Base Period Hours field, which allows for an accurate effective rate calculation to take place for Cost Plus Contracts. This field will populate with the default hours listed for the pay frequency of the timesheet period, but can be manually modified if needed. If you are billing Time & Materials, you do not need to worry as much about changing this field. It is used as the base for the hours imported for salaried employees, which is important for billing at cost.

Select Next followed by Create to process your labor distribution.

Labor Journals

Processing labor distribution has created 2 journal entries for each employee:

1) The 1st Journal is the cost breakdown for the partial period on the date recorded in the "Work Date To" field.

Debit - Direct Labor for Task 10003.001.00.105 which can now be billed as of August 7th.

Credit - Accrued Salaries - Partial Timesheets

2) The 2nd Journal is the reversal of the first entry on the following day.

Credit - Reversal of Direct Labor on August 8th

Debit - Reversal of Accrued Salaries on August 8th

The partial timesheet import process was built this way for the following reasons:

• You have all your cost information to invoice your client at the day required for billing.
  • However, this is reversed the next day so that your financials are not duplicated when you import your full period later in the month.
  • Your Direct Cost Report will tie directly to the period being invoiced, which can be used as support for your invoice.
• Accrued Salaries is separated from Salaries and Wages Payable so that your accounting records aren't muddied up as you reconcile payroll.

For additional help, you can select the Help Icon in the upper right-hand corner of each screen to receive detailed explanations for each step of the process. You can also reach our consulting team at consulting@procas.com.

Tracking employees' paid time off, vacation, and sick leave balances can be one of the most headache-inducing functions of being an accountant. For government contractors, recording accurate PTO/vacation and sick leave accruals is crucial to calculate correct indirect rates each accounting period and stay in accordance with GAAP.

At PROCAS, we've tried to simplify the process by automating as much as possible. To help our clients, we've created 2 videos breaking down the standard PTO process using PROCAS:

1. PTO Setup 
2. The PTO Accrual Process

PTO Setup

PTO Setup is the backbone of the PTO Accrual Process. It needs to be completed before you can begin tracking employee's PTO/vacation and sick leave balances in the system.

1. Intro                                                                          (0:00 - 1:17)

2. PTO Setup                                                               (1:18 - 4:17)

• Completed - During initial implementation of PTO tracking
• Modified - Only if there is substantial change to PTO policies or the chart of accounts
  • We recommend contacting your consultant before making modifications

3. PTO Accrual by Person                                         (4:18 - 5:45)    

• Completed - As you onboard employees
• Modified - When employees' default hours need to change

4. PTO Project/Task Creation                                  (5:46 - 9:23)

• Completed - Every calendar year
• Modified - Original 3 WBS levels never modified after being recorded in the general ledger
  • Can add 4th and 5th levels if needed

5. Work Authorization by Task                                 (9:24 - 11:37)

• Completed - Every calendar year
• Modified - When employees are on-boarded or terminated
• Updated - Automatically with each accrual entry as seen in next video

The PTO Accrual Process

The PTO Accrual process is the automated process you will use each timesheet period to calculate and track employees' PTO/vacation and sick leave hours. This process starts with the selection of employees, followed by the addition of newly accrued hours and updating of balances, ending with the automatic adjustment(s) made to financial statements to account for these changes.

All steps of this process are completed each timesheet period and modified routinely.

1. Intro                                                                            (0:00 - 0:43)

2. Process PTO Hours Accrual                                  (0:44 - 3:13)

3. PTO Hours Accrual Journal                                   (3:14 - 8:16)

    a. Updated Work Authorization by Task               (8:17 - 10:07)

4. PTO Accrual Report                                                (10:08 - 13:31)

5. Accrual Entry in General Journal                          (13:32 - 14:21)

For additional help, you can select the Help Icon in the upper right-hand corner of each screen. This will give you specific instructions for completing each step as well as additional definitions for what is being presented.

1. Intro Sessions                                                                     (0:00 - 1:09)

2. Accounts Receivable Report                                            (1:10 - 2:56)

3. Record Client Payments                                                    (2:57 - 6:23)    

4. Finalizing Cash Receipt Journal Entries                         (6:24 - 8:34)

Entering client receipts has been made easier than ever with our new Record Client Payments process. This process starts with a selection screen of what bills are outstanding, followed by the generation of a cash receipts journal transaction to record the amount of cash received in your bank account.

If you have experience paying vendor invoices using PROCAS, you should be familiar with the touch and feel of the new receipt forms. If not, follow along with the detailed breakdown below.

Recording Client Payments

To access Record Client Payments, go to Accounting --> Accounts Receivable --> Record Client Payments.

If you are using our integrated invoicing process for billing, or are recording revenue transactions manually, this screen will show you what bills need to be collected.

By default, the populated lines will only show outstanding amounts recorded against receivable accounts. If a receivable has already been collected and recorded, it will not appear.

This detailed information will update when you select the "Search" button and can be filtered by Receivable Account, Client, and Task.

Because there is only so much space here for a screenshot, I spliced the above image into the two key sections:

1) Descriptive Journal Information

Most columns in the first half of each row are read-only and provide descriptions for the Client, Payment Method, Account, Task (WBS), Transaction, Transaction Date, Invoice Number, and Invoice Date for each entry recorded in the system.

Select the checkboxes on the furthest left column to process the payments you have received from your client(s).

Tip 1 - You can filter or sort by each column to help find the receivable you are looking to process.

Tip 2 - You can "select all" or "deselect all" checkboxes simultaneously using the checkbox in the header.

2) Payment Amounts

Once you've selected the entries to relieve, it's time to determine how you would like to apply the cash received from your client(s). These columns on the right side of the form are more interactive and are broken down as follows:

Invoice Amt - The original invoiced amount recorded on the sales journal. (Read Only)

Open Amt - The remaining balance open to be received (Read Only).

• This amount is original invoice amount less any payments already received.

Payment Amt - The amount of cash received (Editable).

• Defaults to the Open Amt.
• Should be overwritten if a different amount of cash was received from your client.

Remaining - The remaining balance of the Open Amt less the Payment Amt entered today (Read Only).

• This amount will most often be $0.00.
• If this amount is not $0.00,
  • Do nothing, this balance will remain in your AR for your client.
  • Proceed to one of the following checkboxes: Write-Off or Reclass.

Write-Off - If selected, the Remaining Amt will be written off to your default write off account.

• Example 1 - If you do not expect to collect the remaining amount, write it off to 9803000U - Bad Debt
• Example 2 - If you collected slightly more than expected, and your client does not expect you to record the difference to unearned revenue, write it off to 49000000 - Other Revenue (Immaterial)

Reclass - If selected, the Remaining Amt will be reclassed to your default reclass account.

• Example 1 - If you received too much cash from your client, reclass to unearned revenue account 2600 - Advances from Customers on Contracts
• Example 2 - If you do not expect to collect the remaining receivable for an unknown amount of time, reclass to 1240 - Accounts Receivable - Doubtful Accounts

Once the Payment Amts have been determined for each payment being received, proceed to the "Next" button in the bottom right-hand corner of the screen.

Processing Receipts

Once you've selected the receivable entries to be relieved, the next step is to process these receipts.

Payment Date will default to today's date. The Cash, Write-off, and Reclass accounts will auto-fill with your Default Accounts established under Setup --> Account Structure --> Default Accounts. These default accounts should be established before processing receipts.

You may overwrite any of these defaults if needed, and add a Cash Receipt Transaction Description if you'd like a header description to be added to the final journal entry transaction(s).

You also have the option to create one journal entry transaction for the receipts received, or multiple broken out by client, task, or invoice. We recommend creating a receipts journal transaction for each deposit recorded by the bank.

• Example 1 - If checks are received by multiple clients and recorded on one bank deposit slip, then one cash receipts journal transaction should be recorded.
• Example 2 - If payments are received by separate EFT or ACH deposits, then multiple cash receipts transactions should be recorded.

Recording one transaction per bank deposit will simplify the Bank Reconciliation process. Select the "Next" button to proceed to the Transaction Preview screen.

Cash Receipt Journal Preview

The final step in the receipt process is the preview screen to create your entry. This screen displays your total Cash Balance as well as Total Payment Received per bank deposit. You can add descriptions by line item if preferred, or select "Back" if any information looks incorrect.

If everything appears in order, select "Create" to create your Cash Receipts Journal Transaction(s).

Cash Receipts Journal Transaction(s)

Congrats, your cash receipt journal entries have been created in PROCAS! To access them, go to Accounting --> Accounts Receivable --> Cash Receipts Journal. If you need to modify your entries in any way, they can be edited on this screen.

For further assistance using Record Client Payments, you can reach out to us at consulting@procas.com.

When purchasing new software, people always want to make sure they are making the right decision for their business. Naturally, comparative search terms are commonplace when researching what's available.

Phrases such as PROCAS vs Deltek, DCAA Compliant Quickbooks, PROCAS vs Unanet, Top DCAA Approved Accounting Systems, Unanet vs Deltek, Quickbooks vs Costpoint, etc. will generate mixed results, many of which can be outdated or inaccurate.

At PROCAS, we do not feel it is our place to rank or attack competing software packages. Rather, we would prefer to stand proud in what sets us apart as a premiere government contract accounting solution.

Therefore, this post's focus will be expanding upon the Top 10 Reasons Why to Choose PROCAS, and what makes us different. These reasons are broken down in detail below:

1) No long-term contracts or license purchases and consistent and transparent pricing for all clients

PROCAS is a subscription-based software that can be implemented or discontinued at any time. We do not require any long-term contracts or license purchases, meaning you are not stuck if there are future changes to your staff or business. Our clients are billed monthly, based on current levels of employee access.

In addition to no long-term contracts, our monthly SaaS pricing model is the same for all clients. We want our clients to know exactly what to expect to be billed, with no hidden costs. This includes software support and maintenance, which are factored into the base price.

Therefore, you do not have to worry about the added pressure of bargaining with a member of our sales team when exploring software options. The price is the price.

2) No cost upgrades and standard system improvements

We routinely perform updates to the software which include new features, menus, reports, interfaces, etc. There are no added costs for these standard system improvements because we genuinely believe in improving the lives of our clients and do not want to hinder this.

For example, we are currently going through the process of migrating our longstanding clients from an older version of our software to our most up-to-date version at no added cost. We do not believe in the idea of raising the maintenance costs for an older version of our product to drive clients to a newer one.

3) Ability to scale users and modules up/down as needed so the pricing scales with your needs

In accordance with no license purchases, if your company adds or terminates staff due to workflow, you can easily scale up or down the level of employee access you need in the software. By activating or deactivating personnel records, our monthly billing process will automatically pick up the changes and adjust your invoice to align with the new employee counts. This same logic applies for changing employees' levels of modular access in the system.

4) PROCAS Quick Start offers the most efficient implementation process, saving you up to 80% of implementation costs charged by competing software companies

One of the most daunting parts of purchasing new software is the implementation process. Typical implementations can range from five to even six figure costs and can take months, if not years, to complete.

With over 20+ years of government contract accounting experience, we believe we have built the most efficient and cost-effective implementation experience for our clients. On average, you should not have to spend more than 24 cumulative hours with a PROCAS consultant, which would cost you less than $5,000 to complete. 

You may be wondering, how have we accomplished this?

Rather than relying on implementation as a revenue stream, we have simplified the process to benefit the client. Our PROCAS Quick Start program has many out-of-the-box standards and procedures that are easy to implement and customize for your organization.

The common idea of building your company's system from the ground up is outdated in today's tech landscape, which only still exists to get more money out of the paying customer.

5) Our consulting team is focused on creating positive experiences and establishing confidence in using PROCAS, rather than meeting a billable hour quota

In accordance with having the best implementation process, our consulting team's motivation is not to draw out client work to meet a billable quota, but to help our clients out in the most efficient and effective ways possible. It is not in our business interest to nickel and dime our clients for work performed.

Our goal is to properly train and inspire our clients to be well versed in our software.

6) Implementation staff, sales, and software support team members are all degreed accountants and employees of PROCAS

Founded by a CPA in 1997, PROCAS has always emphasized the importance of having proper accounting knowledge in positions of providing expertise. All client facing roles, from consulting, to support, to sales, have the education needed to decipher your issues and truly understand the concepts being discussed. We believe that our strong knowledge in the accounting field is a competitive advantage of our organization. 

If you are calling into our support phone lines, you are guaranteed to reach an employee of PROCAS, with a background in accounting, located in the United States.

7) Implementation staff is experienced in government contract accounting and DCAA Compliance

Our implementation consultants have on average over 10+ years of experience working with government contractors. Our software is built around the concept of being DCAA compliant, which our team heavily emphasizes during the implementation process and ongoing engagements. Our tested knowledge of the FAR, Cost Principles, GAAP, and DCAA's requirements assures our clients that they are in the right hands.

8) Software support staff are trained specifically to work with government contractors

As mentioned previously, our software support staff are all degreed accountants trained to work with government contractors. Our team works hand-in-hand with our consulting staff, often assisting in projects that require additional help. Through these training exercises, our support staff learns what's important to government contractors by helping solve real world issues.

That being said, our support team does not claim to be experts in all areas of government contracting. In situations that require more expertise, our support staff is trained to get you in touch with the right person for the job.

9) Clear communication between our Operations, Development, and Infrastructure departments

While most of this post has addressed the client facing side of the company, we also hold our development and infrastructure departments to a very high standard. Constantly building new features, fixing system bugs, and improving the overall client experience, our development and IT teams play a major role in the success of our organization.

Most importantly, we are extremely proud of the open communication between these departments internally. Our turnaround time from a client reporting an issue, to our consultants conveying that issue, to our DEV team fixing the issue, and finally the consultant relaying that fix back to the client, is streamlined in the most efficient way possible to better the client experience.

10) SOC 2 Type 2 infrastructure equipment is owned by PROCAS and supported by experienced PROCAS IT professionals

Our infrastructure is audited each year by an independent third party, which is known as a SOC audit. We have passed Types 1 and 2 for calendar year 2019, with ongoing engagements planned for 2020 and beyond.

Because our infrastructure is owned by us and not an outside vendor, we are able to make sure the proper security measures are taken to ensure our clients' systems are in accordance with government contracting standards.

Decision Process

As you make your decision to purchase DCAA compliant accounting software, remember to keep these 10 items in mind.

Search results from Deltek vs PROCAS, DCAA Compliant QuickBooks, Unanet vs PROCAS, Top DCAA Compliant Accounting Systems, Alternates to Deltek, Unanet vs CostPoint, Deltek vs. JAMIS Software, Deltek vs Unanet, QuickBooks vs Deltek... will often only focus on the system specs, and not the company that supports them.

System requirements are very important, however the business practices supporting them will always factor into the overall client experience.

For more information, see how PROCAS addresses the requirements of the SF1408 and the products we offer!

What is an Incurred Cost Submission?

Incurred cost electronic submissions are compilations of various schedules of your costs, presented in a specific way, submitted to the DCAA for their review and audit. The submitted ICE model is a true up of your actual indirect costs incurred over the prior fiscal year to what was provisionally billed.

Why are incurred cost submissions important?

The federal government requires ICE submissions to help verify that the prices paid for cost reimbursable services are both fair and reasonable. A completed ICE submission typically results in an adjustment to amounts billed in the previous year (either under-billed or over-billed). DCAA will review these submissions in a process known as Incurred Cost Audits.

If this is a confusing idea, think of it like a tax return for your billed indirect costs. You always want to be prepared if the IRS shows up at your door. Likewise, it would be smart to treat this process very seriously in the case that DCAA audits your ICE submission(s).

How do I know if I have to complete an incurred cost submission?

ICE submissions are required if any of your contracts are subject to FAR 52.216-7 "Allowable Cost and Payment." This typically includes most if not all cost reimbursable contracts and some time & materials contracts.

When do I have to complete an incurred cost submission?

ICE submissions are due 6 months after the close of your fiscal year. For most contractors, this deadline is June 30^th of each year (calendar fiscal year). However, it could be a different date if your company runs on a different fiscal year.

Any additional tips?

For more information, the above stated ICE model can be found here. DCAA provides instructions for completing the ICE schedules as well as a sample submission.

Completing the ICE Model using PROCAS

If you select the above link and download the ICE model as per the DCAA’s instructions, you will notice that completing the model is no easy feat. (You know you’re in for a long day when an Excel file comes with its own User’s Manual!)

The ICE_Model spreadsheet contains a little more than 25 tabs, all of which require major brain power. To help with this, we’ve built reports for specific schedules that are separated on each tab.

Our reports can be found by going to Indirect Rates --> Incurred Cost Submission Support within the Accounting menu.

Once each report is printed, they can be downloaded as Excel or CSV files using the downloads option to easily copy and paste your company's numbers into the ICE model.

The remainder of this post will be broken down into the following sections:

1. Calculating Indirect Rates
2. Indirect Rate Support
3. Schedule H
4. Schedule I
5. Schedule K
6. Schedule L

Note: These reports will only give accurate numbers if…

• Invoices are being billed out of the system
• Costs are recorded correctly
• Rate Calculation Setup has been completed for the fiscal year being submitted
• Indirect Rates have been calculated and applied for the fiscal year being submitted (process covered in the next section)

Calculating Indirect Rates

Before we begin gathering any data from the system, we need to calculate and apply our indirect rates for the prior year being reported. This can be done by following the below process:

1.Navigate to Indirect Rates --> Calculate Indirect Rates within the Accounting menu.

2. Scroll back to the prior year using the page up button on your keyboard, or the back arrow  at the bottom of the screen.

3.  Select the "Calculate" button to the right of the screen.

1. On the pop-up menu, make sure actual rates are selected for the correct date range, then select "Calculate."
2. This will update the numbers on your indirect rates screen, timestamped for the moment they were calculated.

4. Select the "Apply Rates" button in the upper right-hand corner.

1. Again, verify the date range is correct, then confirm by selecting "Apply Rates."
2. This will give you a notification that indirect rates have been applied.

5. Navigate to the "Rate Support" button in the right hand corner.

1. Continue along to the supporting detail breakdown of your incurred indirect costs.

Indirect Rate Support

Now that rates have been calculated, let's start printing information to start completing our incurred cost submissions. Perhaps the most important, indirect rate support reports contain the details of costs within each pool and base for the rate calculation most recently performed.

The ClaimedIndirectRateSupport.rdl report should be used in completing ICE Model Schedules A, B, C, D, and E and can be downloaded in PDF format as supporting documentation. This report will take into account your indirect rate structure as originally defined under Accounting --> Setup --> Cost Application Rates --> Rate Calculation Setup, and will present data in accordance with this structure.

• On the Indirect Rate Support Report, navigate to the correct fiscal year using the back arrow .
• Print ClaimedIndirectRateSupport.rdl using the print icon .
• There are multiple pages to this report –1 for each of the following indirect rate types: 
  1. Fringe – Page 1
  2. Facilities – Page 2
  3. Overhead – Page 3
  4. General & Administrative – Page 4
  5. Material Handling & Subcontract Admin – Either combined in one of the previous four pages or split out depending on your rate structure.
  6. B&P and IR&D – Either combined in one of the first four pages or split out depending on your rate structure.
  7. Indirect Rate Setup – Final page of the document breaks down your indirect rate structure. This page is a great explanation of what is going on if you are struggling with understanding the numbers!!!
• Export the report to Excel or CSV using the download icon .

You should begin your ICE Model by inserting a new tab in the workbook, which will be used to copy your trial balance information. You should then link information within the various schedules in the ICE Model to the trial balance tab where appropriate. This will leave less room for discrepancies between information in the ICE Model compared to information in your general ledger.

Note: If general ledger adjustments are needed after you have begun the ICE Model, you will only need to update the trial balance information on the trial balance tab.

Schedule H

The ICE Model Schedule H is the “Schedule of Direct Costs by Contract/Subcontract and Indirect Expense Applied at Claimed Rates.” The standard Schedule H report accommodates a consolidated overhead rate structure and a two worksite overhead rate structure.

• Indirect Rates --> Incurred Cost Submission Support --> Schedule H
• Indirect rates must be calculated and applied before printing (shortcut located on menu).
• For the report to group the contracts by element of cost class, an Incurred Cost Class code must be established on the project records, invoice task records, and/or the revenue task records.
• The report is available in six roll up levels: Invoice Task, Project, and WBS Levels 2-5.
• The report can be filtered by Department, Division, Location, Site.

Schedule I

The ICE Model Schedule I is a “Schedule of Cumulative Direct and Indirect Costs Claimed and Billed by Contract and Subcontract.” The automated billing process records billed detail information in Billing History which maintains the inception-to-date billed hours and amounts on contracts. By default, this report will display prior years settled total costs, prior year costs, and cumulative billed amounts, by contract, grouped by incurred cost class for the date range selected. The report displays the contract billed information in cost class order.

• Indirect Rates --> Incurred Cost Submission Support --> Schedule I
  
• The Schedule I support report requires that the automated billing process is used to create invoices within the accounting system.
• The Schedule I support report in the system requires billing history.
• The report is available in six roll up levels: Invoice Task, Project, and WBS Levels 2-5.
• Select "Search" to populate the applicable task selection screen.
• The report can include or exclude specific tasks by using the checkboxes in the selection screen.

Schedule K

The ICE Model Schedule K is a “Summary of Hours and Amounts on Time and Material/Labor Hour Contracts.” The automated billing process records billed detail information in Billing History which maintains the inception-to-date billed hours and amounts on contracts. By default, this report will display the cumulative hours and amounts billed for the date range selected, regardless of the cost class. The report displays the contract billed information in cost class order. You can filter on a cost class code or a range of cost class codes to isolate the information needed.

• Indirect Rates --> Incurred Cost Submission Support --> Schedule K
  
• The Schedule K support report requires that the automated billing process is used to create invoices within the accounting system.
• The Schedule K support report in the system requires billing history.
• The report is available in six roll up levels: Invoice Task, Project, and WBS Levels 2-5.
• Select "Search" to populate the applicable task selection screen.
• The report can include or exclude specific tasks by using the checkboxes in the selection screen.

Schedule L

The ICE Model Schedule L is a “Reconciliation of Total Payroll per IRS form 941 to Total Labor Costs Distributions.” It is a reconciliation of the accrual basis labor cost per your general ledger to a cash basis labor cost per the IRS Form 941s. The Schedule L report will display the labor costs recorded in the general ledger, grouped by cost pool.

• Indirect Rates --> Incurred Cost Submission Support --> Schedule L
  
• Performing a labor reconciliation separately before beginning the ICE Model will help to ensure the information in your general ledger is accurate.

Additional Help

If you’ve made it this far, I applaud your stamina! These reports can seem intense, however they lend a helping hand in completing the associated tabs of the ICE model. For additional help getting the information you need to complete your incurred cost submissions, you can reach us at consulting@procas.com.

Related Tags - ICES, ICP, ICS, Incurred Cost Proposal, Indirect Cost Rate Submission, Final Indirect Rate Proposal

PROCAS has recently released a new mobile friendly timekeeping system! Whether you’re Team iPhone or Team Android, all users will get to utilize the new timekeeping system with the same mobile friendly end user experience.

To clarify, this is NOT a mobile application, but rather a mobile friendly web application.

• When you access it via your smart phone or tablet, the system will be aware of the device and adjust accordingly.
• Because this is not a natively installed mobile application, you will always have the most up-to-date version of our software and will not have to worry about routinely updating your timekeeping application or operating system on your mobile device.

For instructions on how to login to your PROCAS timesheet on a desktop or laptop computer, please click here.

Otherwise, follow along to engage in our new mobile timekeeping process in 2 parts:

• Part 1 - Login and Setup (Below)
  
  • Logging into PROCAS Mobile Time
  • Creating a Web Shortcut or Bookmark
  • Additional Login Notes

• Part 2 - Anatomy of a PROCAS Mobile Timesheet
  
  • PROCAS Mobile Time Overview
  • Entering Time
  • Other PROCAS Mobile Time Options

Logging into PROCAS Mobile Time

The link for our mobile timekeeping web application can be found here.

The link for the login screen is the same as the link for the desktop version of the timekeeping system. You will be automatically redirected to the mobile optimized version of the timekeeping system, which should appear as follows:

We highly recommend bookmarking this login screen to your phone's web browser or setting it as a web shortcut for easy access. Help for creating a web shortcut is broken out by device type:

Web Shortcut - Apple Devices (iOS)

The steps for creating a web shortcut on Apple devices are as follows:

1. On PROCAS Mobile Time, select the "More Options" icon
   1. iPhone - Bottom of screen
   2. iPad - Upper right-hand corner of screen
2. Scroll to the right and select "Add to Home Screen"
3. Name shortcut and hit "Add"
4. Shortcut now available on "Home Screen"

Tip - Leverage iOS' security features such as facial recognition, fingerprint, and/or pin code to store your PROCAS username and password for easier future use of the shortcut.

Web Shortcut - Android Devices (Google Chrome)

To create a web shortcut through Google Chrome on Android Devices, follow this step by step process:

1. On PROCAS Mobile Time, select the "More Options" kebab menu icon
2. From the listed options, select "Add to Home screen"
3. Name shortcut and hit "Add"
4. Touch and hold to place manually or hit "Add automatically"
5. Shortcut now available on "Home Screen"

Web Shortcut - Android Devices (Samsung Internet)

To create a web shortcut through Samsung Internet on Android Devices, follow this step by step process:

1. On PROCAS Mobile Time, select the "More Options" hamburger menu icon
2. In the upper right-hand corner of the options, select "Add Page To"
3. Add the current webpage to "Home Screen"
4. Name shortcut and hit "Add"
5. Shortcut now available on "Home Screen"

Additional Login Notes

Once your shortcut is saved, go ahead and proceed to login with your assigned username and password.

Note 1 - If you have access to multiple companies, you will first need to select which company you are attempting to log into before accessing your timesheet.

Note 2 - If you do not know your username or password, please refer to this prior post with steps related to obtaining that information, or reach out to your system administrator. However, you can always reset your password from this screen if you know the email assigned to your account. 

Note 3 - If you prefer to operate in the desktop version of the timekeeping system, please select the link "Switch to Desktop" (red arrow) under the hamburger menu (orange arrow) when logged into the system.

Once logged in, you should proceed to a screen that looks similar to the screenshot of a timesheet in the next section - PROCAS Mobile Time Overview.

To Continue to Part 2, please click here -->

For information related to logging into PROCAS Mobile Time, click here for Part 1.

PROCAS Mobile Time Overview

Once logged into the system, your timesheet will populate for the current day, with your default charge codes on display. An example can be seen below, which will be broken down piece by piece.

PROCAS Mobile Time Header

The timesheet header provides context to what is being presented in the body of the timesheet, as well as functional buttons for navigating throughout the system:

  - Hamburger Menu 

• Allows the end user to enter today's time, see their timesheet summary, submit their timesheet, or log out.
• See below section Other PROCAS Mobile Time Options for utilizing these additional functions.

  - Pay Period

• Displays current pay period and allows for the end user to toggle to any prior open period.

- Pay Period End Date

• Displays when the current pay period ends for the end user to see when they have to submit their timesheet.

- Total Time for Current Day

• Sums up the hours recorded on the current day for a total across all used charge codes.

- Date Range Slider

• Allows end user to scroll left or right across days of the available pay period with the touch of a finger.

- Sort & Filter Functions

• Sort - Toggle controls end user's preference to sort their timesheet by charge code or by charge code description.
• Filter Box - Text box limits what charge codes end user sees by typing in specific words or phrases. Helpful for searching for specific codes or descriptions from the available list of charge codes.

PROCAS Mobile Time Detail

The timesheet detail provides available charge code information as well as the ability to enter daily time. This section describes important aspects of using a DCAA compliant timekeeping system and passing DCAA timekeeping audits. 

- Consolidated Charge Code

• - Charge Code Description
  • Describes the contract/task for which work is performed.
    
    
• - Charge Code
  
  • Concatenation of Account, Task, Labor Category, & Pay Code (see breakdown below).
    
    
• - Hours Recorded
  • Total hours recorded for each charge code.
  • To add/remove/modify time, please select the number of hours recorded.
    
    
• - Drop Down Carrot
  • Expands the consolidated charge code screen into the expanded view below.

- Expanded Charge Code

Established by accounting staff, the codes below are combined to make up the overall charge code.

• Account - Type of labor performed, either direct (for a contract) or indirect (fringe, overhead or G&A)
• Task - Contract/project being completed at the work breakdown level
• Lbr Cat - Type of work performed for the contract, signified by a labor category
• Pay Code - Type of pay due to the employee (regular, overtime, straight-time overtime, leave without pay, etc.)

- Add Time

• Shows all available charge codes for the end user to select when inputting time.
• Only charge codes marked as 'default' will appear on the timesheet upon logging into the system.
  • All other available charge codes will need to be picked using this button.
  • To change your 'default' charge codes, you must access your timesheet via the desktop version of timekeeping.

Entering Time

Entering time in our new mobile optimized software can be done two ways:

1) Default Charge Codes - Simply select the hours    on the appropriate charge code.

2) Other Charge Codes - Must select the    icon to find all other charge codes not marked as default. Find the appropriate charge code in this list and select the description    in the title.

Both options will lead to the below screen for time entry.

On this screen, you will see the following two informational pieces:

- Remaining Hours on Project/Contract

• Budgeted hours set by administrative staff less hours already recorded against charge code.
• Hours remaining for employee to use for each charge code.

- Authorized Dates to charge against Project/Contract

• Dates set by administrative staff for which employees can record time against charge code.

And will have the following two functions to complete time:

- Hours Input

• Select this box and enter time worked for the day.

- Comments

• External - Optional comments for administrative staff to use on documentation being sent out of the system.
• Internal - Optional comments for approver to see specifics related to the work being performed.

Once hours (required) and any comments (optional) have been entered, select Save to record time on your timesheet. This process can be done for as many charge codes as needed per day.

Audit Trail of Changes

If previously entered hours or comments are changed or deleted, the system will require that the user add a reason for the change/deletion. This reason and the change/deletion are then added to an audit trail, which is available for supervisors, managers, and auditors to see.

Other PROCAS Mobile Time Options

By selecting the hamburger menu in the upper left hand corner, the end user will be presented with the following options:

1) Enter Time - If selected, user will be taken to today's time entry screen.

2) Timesheet Summary - Once selected, user will be presented with an expandable date view for time entered for each charge code (see below screenshot under Submit Timesheet).

3) Submit Timesheet - This menu presents the user with the view referenced in Timesheet Summary with the addition of a submit button at the bottom, which allows the user to submit their overall timesheet for the current pay period selected.

Once the submit button is selected, a notification screen will pop up to confirm that the time entered for the period is true and accurate.

At this point, the user will confirm that they want to submit their time, or if they need to make any adjustments.

4) Switch to Desktop - If selected, the user will be switched over to the original desktop version of PROCAS Timekeeping. This option is recommended if the user is looking for a menu option that is not yet available in PROCAS Mobile Time.

5) Log Off - If selected, the user will be completely logged out of the system.

• Additional ways to log out of the system include:
  • Closing out of your web browser
  • Sitting idle on the timekeeping screen for 60 minutes.

Note - Letting your phone go to the lock screen should NOT log you out of the system unless you have hit the timeout limit.

Additional Help

For any additional feature requests, please submit emails to feedback@procas.com.

As always, operating DCAA compliant timekeeping software not only incorporates the software itself, but how it is used. Please be sure to check with your administrative staff for an explanation of how your policies and procedures align with our government contract timekeeping system.

At PROCAS, it is our mission to improve the quality of life of our clients by simplifying government contract accounting. In order to accomplish this, we believe that we should provide the best solution of presenting meaningful data to our clients in the most efficient way possible. Because what good is having a DCAA compliant accounting system if it is a hassle to get data out of it?

The PROCAS Accounting Dashboard helps you manage your business with an easy to read snap shot of your company's real-time financial data, with no additional setup or configuration required.

The below video and post is broken into 7 Sections:

1. Cash
2. Accounts Receivable
3. Accounts Payable
4. Income Statement
5. Balance Sheet
6. Financial Ratios
7. Dashboard Default Controls & Troubleshooting

To access the dashboard, please go to Accounting --> Dashboard --> Accounting Dashboard in the menus.

Cash

Getting ready to process payroll? Pay vendor invoices? Deposit a client payment? This tile will give you an accurate balance of how much cash is on hand.

Graph 1 - Cash Flow over a Period of Time

• Default Date Range - Current Year Beginning Period to Current Period
  • Range can be modified using slider bar control defined under Income Statement section
• Tool Tips - Hovering over each month with mouse in the area graph will give accurate cash balance ending each period
• Color - Dark Blue (Indigo) = Assets
• Report - Selecting "Cash" title at the top will generate Statement of Cash Flows for date range
  • Report has full drill through capabilities to Account, Vendor/Client, & Transaction level details

Graph 2 - Cash Balance as of Today's Date

• Default Date - Date & Time Dashboard is generated (Today)
• Tool Tips - Hovering over each cash account (displayed by different shade of dark blue) will provide accurate balance as of today
• Colors - Shades of Dark Blue (Indigo) = Assets

Accounts Receivable

Manage your cash flow by staying on top of what’s owed to your organization. This tile will show you how many client payments still need to be collected and how long they've been outstanding.

Graph 1 - Outstanding Amounts Aged from Invoice Date

• Default Date - Date & Time Dashboard is generated (Today)
• Range - 30 day bars sorted by invoice date
  • Invoice date is stored on the sales journal where the revenue and receivable are recorded
• Tool Tips - Hovering over each bar will give accurate receivable total for specified time frame
• Color - Dark Blue (Indigo) = Assets
• Report - Selecting "Accounts Receivable" title at the top or "Total Outstanding" on the side will generate Accounts Receivable report for today's date
  
  • Report defaults to transaction level detail to be able to see all transactions that make up the totals

Graph 2 - Overdue Amounts Aged from Due Date

• Default Date - Date & Time Dashboard is generated (Today)
• Range - 30 day bars sorted by due date
  • Due date is established on the client record under "Payment Terms"
• Tool Tips - Hovering over each bar will give accurate receivable total for specified time frame
• Color - Dark Blue (Indigo) = Assets
• Report - Selecting "Total Overdue" on the side will generate Accounts Receivable report for today's date
  
  • Report defaults to transaction level detail to be able to see all transactions that make up the totals

Accounts Payable

Don't get behind on bills owed to your vendors. This tile will show you how many invoices still need to be paid and how long they've been outstanding.

Graph 1 - Outstanding Amounts Aged from Invoice Date

• Default Date - Date & Time Dashboard is generated (Today)
• Range - 30 day bars sorted by invoice date
  • Invoice date is stored on the purchases journal where the expense and liability are recorded
• Tool Tips - Hovering over each bar will give accurate payable total for specified time frame
• Color - Red = Liabilities
• Report - Selecting "Accounts Payable" title at the top or "Total Outstanding" on the side will generate Accounts Payable report for today's date
  
  • Report defaults to transaction level detail to be able to see all transactions that make up the totals

Graph 2 - Overdue Amounts Aged from Due Date

• Default Date - Date & Time Dashboard is generated (Today)
• Range - 30 day bars sorted by due date
  • Due date is established on the vendor record under "Payment Terms"
• Tool Tips - Hovering over each bar will give accurate payable total for specified time frame
• Color - Red = Liabilities
• Report - Selecting "Total Overdue" on the side will generate Accounts Payable report for today's date
  
  • Report defaults to transaction level detail to be able to see all transactions that make up the totals

Income Statement

Use the Income Statement graph to monitor the overall profitability performance of your company. This tile breaks down your organization's revenue, expenses, and net income over a period of time.

Graph 1 - Income Statement

• Default Date Range - Current Year Beginning Period to Current Period
  • Range can be modified using slider bar control below
• Tool Tips - Hovering over each income statement item will give accurate balances as of end date of period range
• Color - Light Blue = Revenue, Orange = Expenses, Green = Net Income
• Legend - Clicking Revenue, Expenses, and/or Net Income will remove or add each bar to the graph
• Report - Selecting "Income Statement" title at the top will generate Income Statement as of end date of period range
  
  • Report has full drill through capabilities to Account, Vendor/Client, & Transaction level details

Graph 2 - Revenue Area Graph

• Default Date Range - Inception-to-Date Period to Current Period
• Tool Tips - Hovering over each period will give accurate revenue numbers as of end date of period 
• Color - Light Blue = Revenue

Dashboard Date Range Selection - Slider Bar

• Beginning Period - Slide first button left or right to change the beginning date period
  
  • First possible period = Inception-to-Date Period
  • Tiles Updated when Modified - Total Cash by Month, Income Statement, Bottom 3 Financial Ratios
• Ending Period - Slide the second button left or right to change the ending date period
  • Last possible period = Current Period
  • Tiles Updated when Modified - Total Cash by Month, Income Statement, Balance Sheet, Top 3 Financial Ratios

Balance Sheet

Use the Balance Sheet graph to quickly see the distribution of your company’s resources and obligations. This tile breaks down your organization's assets, liabilities, and owner's equity.

Graph 1 - Balance Sheet

• Default Date Range - Current Year Beginning Period to Current Period
  • Range can be modified using slider bar control defined under Income Statement section
• Tool Tips - Hovering over each balance sheet item will give accurate balances as of end date of period range
• Color - Dark Blue (Indigo) = Assets, Red = Liabilities, Purple = Owner's Equity
• Report - Selecting "Balance Sheet" title at the top will generate Balance Sheet as of end date of period range
  
  • Report has full drill through capabilities to Account, Vendor/Client, & Transaction level details

Financial Ratios

Key Performance Indicators are right here at a glance to help you gauge your company's liquidity, profit margins, and growth in earnings. What is considered "Good" varies by industry and company, but some definitions and common suggestions for interpreting the ratios are provided here:

Ratio 1 - Quick Ratio

• Formula - Quick Assets divided by Current Liabilities as of the selected end date
• Colors - Dark Blue (Indigo) = Assets, Red = Liabilities
• Defined - Quick Assets are defined as Cash, Marketable Securities and Accounts Receivable
• Interpretation - A Quick Ratio should generally be ≥ 1:1
  
  • Lower ratios may indicate that the company does not have enough short-term assets to cover its short-term liabilities.

Ratio 2 - Current Ratio

• Formula - Current Assets divided by Current Liabilities as of the selected end date
• Colors - Dark Blue (Indigo) = Assets, Red = Liabilities
• Interpretation - A Current Ratio should generally be ≥ 1:1 and ≤ 3:1
  • Lower ratios may indicate that the company does not have enough short-term assets to cover its short-term liabilities.
  • Higher ratios may indicate that assets are not being used efficiently.

Ratio 3 - Debt to Equity

• Formula - Total Debt divided by Total Owner's Equity as of the selected end date
• Colors - Red = Liabilities, Purple = Owner's Equity
• Interpretation - A Debt to Equity Ratio should generally be ≤ 1.5:1
  • Higher ratios may indicate that a company is too highly leveraged with debt and may not be able to generate enough cash to satisfy its debt obligations.

Ratio 4 - Profit % of Revenue

• Formula - Net Income divided by Revenue for the selected date range
• Colors - Green = Net Income, Light Blue = Revenue
• Interpretation - Profit % of Revenue should generally be between 4% - 25%, depending on contract type(s) and the business model.

Ratio 5 - Profit % of Costs

• Formula - Net Income divided by Expenses for the selected date range
• Colors - Green = Net Income, Orange = Expenses
• Interpretation - Profit % of Costs should generally be between 4% - 33%, depending on contract type(s) and the business model.

Ratio 6 - Return on Equity

• Formula - Net Income for the period divided by Average Equity for the selected date range
• Colors - Green = Net Income, Purple = Owner's Equity
• Defined - Average Equity is defined as the sum of beginning and ending equity divided by 2.
• Interpretation - A Return on Equity Ratio should generally be ≥ 14% per year (the long-term average of the S&P 500).

Dashboard Default Controls & Troubleshooting

This item is included because it must be completed to have the dashboard populate. If you do not complete this screen, it is possible you will see the following error when clicking on the dashboard:

To access the default screens for the dashboard, please navigate to the following:

Accounting --> Dashboards--> Report Defaults  - (should be located right below the Accounting Dashboard)

In this menu, update the following 6 default fields to populate relevant data within a matter of seconds on the dashboard:

General

1.

• Established one time - beginning date for slider bar under the income statement.

2.

• Updated once a month - used for reference/informative purposes.
• Should be updated each time an accounting period is closed.

Reporting Period

3.

• Updated once a month - prior year period to compare to current year period.

4.

• Updated once a month - current year accounting period for reporting purposes.
• Ending date for the slider bar under the income statement.
• Should typically be the period after the "Books Good Through Date."

Reporting Year

5.

• Established once a year - prior accounting year for reporting purposes.

6.

• Established once a year - current accounting year for reporting purposes.

Help & Explanations -

• For more details on establishing any of the 6 defaults, please click the help icon in the upper right hand corner of the menu.
• The help icon can also be selected on the Accounting Dashboard for more explanations on how the tiles are calculated.

For any additional help utilizing the dashboard, please reach out to your PROCAS Consultant.

As always, operating DCAA compliant accounting software not only incorporates the software itself, but how it is used. Please be sure to check with your administrative staff for an explanation of how your policies and procedures align with our government contract accounting system.

EDIT - The event has been postponed to a later 2020 date (TBD) amid the COVID-19 outbreak.

We will be a sponsor of Federal Business Council's 30th Anniversary Government Procurement Conference on April 8^th in Washington, D.C.

According to FBC's website, the GPC is a national conference fostering business partnerships between the Federal Government, its prime contractors, and small, minority, service-disabled veteran-owned, veteran-owned, HUBZone, and women-owned businesses.

For our clients that identify with the above criteria, this premier event offers procurement matchmaking opportunities, educational conference sessions, and a dynamic exhibitor showcase!

A full list of the agenda can be found here.

• When - Wednesday, April 8, 2020
• Where - Walter E. Washington Convention Center, Washington, D.C.
• Time - 9 AM - 4 PM

We will have an exhibitor table setup in Booth 453 of Exhibit Hall D of the Walter E. Washington Convention Center. Feel free to stop by and say hello!

Every January, accounting staff & business owners walk into the same old confusing process as they wake up from their holiday slumbers…

*Grabs coffee and begins annual research*

“What is a 1099 again?”

“How do I determine who should receive a 1099?”

“What are the different types of 1099s that need to be reported?”

“Ok… (takes deep breath), what in the world is a 1099-NEC?

WAIT A SECOND, WHEN DID THE PROCESS CHANGE?!!

“I don’t remember ever having to split out 1099-MISC payments from 1099-NEC (sighs).”

*Completes reading new rules*

"I think I get it now, time to print these forms out.”

“THAT’s right, I can’t print them online. Need to swing by Staples to pick some up.”

*Purchases 1099-MISC & 1099-NEC forms*

“I only bought a box of 50 forms, why are there a billion papers in here.”

"Oh yeah... I need to complete 5 form types for each vendor (facepalm)."

“When are all of these due and who do I send them to?”

CAN I GET IN TROUBLE IF I MESS THIS UP??

Fear not! We will break down this process in detail below and explain how PROCAS can help you simplify the reporting requirements. So, keep the Tylenol up in the cupboard, we aren’t going to need it!

The IRS offers a comprehensive breakdown of the changes made to 1099s and all associated forms, deadlines and penalties.

Editor's Note

This post takes into account the creation of the 1099-NEC (Nonemployee Compensation) form and changes made to the 1099-MISC forms by the IRS for the 2020 fiscal year, covered under the Forms & Deadlines section.

The IRS offers a comprehensive breakdown of the changes made to 1099s and all associated forms, deadlines and penalties.

If you have been using PROCAS to produce your 1099s in the past, we have already done the work in adjusting your system to the new forms and alignment. If not, proceed to learn how the process is completed!

What is a 1099 and why is it important?

1099-NEC & 1099-MISC forms are used to track income of organizations who are not established as corporations (or LLCs taxed as C or S corps). For most companies, 1099 forms will be used to provide an accurate representation of how much non-employees, vendors, sub-contractors, and consultants have been paid throughout the prior year. Because these people and businesses do not receive W-2’s for work performed, 1099s are what the IRS depends on to know how much they owe in taxes for the calendar year.

Who receives a 1099?

Determining who receives a 1099 can be a tricky process. To help, we’ve broken the decision-making tree into the following points:

1) Is the person in question an employee of your organization?

1. YES – No need, they should have received a W-2.
2. NO – Independent contractors and consultants will most likely need a 1099, proceed to Question 3.
3. NOT SURE – Consider the following questions:
   1. Do you provide benefits to this individual?
   2. Do you provide equipment, office space, or materials for the individual to complete their job?
   3. Do you reimburse business expenses incurred by the individual?
   4. Are you the sole client or primary client of the individual? And do you completely control their weekly workflow?
4. NOT SURE – If you answered NO to all the above sub-questions, proceed to Question 3.
5. NOT SURE – If you answered YES to any of the above sub-questions, you may be considered that individual’s employer in a court of law and may need to start providing W-2 information. Consider seeking a labor lawyer’s advice.

2) Is the vendor you purchased services from a corporation?

1. YES – No need to send a 1099.
2. NO – Sole Proprietorships and Partnerships will most likely need a 1099, proceed to Question 3.
3. NOT SURE – LLC’s are the most confusing of the bunch. To determine how the company is taxed, please send a W-9 to that vendor’s accounting staff. Once returned,
   1. If taxed as S Corp or C Corp, no need to send 1099.
   2. If taxed as sole proprietorship or partnership, proceed to Question 3.

3) How much money was paid to individual or vendor?

1. Anything less than $600 total for the calendar year does not require a 1099.
2. Any payments totaling $600 or more will require a 1099.
3. Common Exceptions:
   1. $10 or more in royalties will require a 1099
   2. In general, payments made to law firms will require a 1099
   3. If paid via credit card, a 1099 is not required (even in excess of $600). The credit card company will take care of the reporting for you.
   4. Business expense reimbursements for employees will not require a 1099.

Forms & Deadlines

For fiscal year 2020, the IRS has separated out nonemployee compensation from other standard types of miscellaneous payments into two forms – 1099-NEC & 1099-MISC.

1099-NEC forms now require the following payments be submitted:

• Cash payments made to nonemployees
• Prizes and awards for services performed by nonemployees
• Cash payments for fish
• Payments by a federal executive agency for services
• Gross oil and gas payments for a working interest
• Taxable fringe benefits for nonemployees

All other types of payments will still be listed on the 1099-MISC forms. Alignment of the remaining boxes on this form has shifted, which we have already adjusted for you in PROCAS! Please see Utilizing PROCAS to complete your 1099s for how we’ve modified to the new forms.

1099 Forms

Each set of forms contain 6 parts to be filled out and sent to their appropriate recipient(s):

1. Copy A - For Internal Revenue Service Center
2. Copy 1 - For State Tax Department
3. Copy B - For Recipient
4. Copy 2 - To be Filed with Recipient's State Income Tax Return, When Required
5. Copy C - For Payer
6. 1096 - Completed with each set of 1099s

Deadlines

While these forms can be generated around the same time, they typically are sent separately at different deadlines:

1. January 31st
1. File 1099-NEC Copy A forms and 1096 with the IRS
1. DO NOT mix in 1099-MISC Copy A forms
2. Can also e-file if preferred
2. Send 1099-NEC Copy B forms to recipients
2. February 28th
1. File 1099-MISC Copy A forms and 1096 with the IRS
2. Send 1099-MISC Copy B forms to recipients
3. March 31st
1. Deadline to e-file to the IRS for 1099-MISC Copy A forms and 1096

PENALTIES

Failure to submit accurate 1099 forms by the required deadlines can be costly for businesses. The below charts are taken from the IRS's publication on potential penalties and fines for failure to submit 1099s.

Large Businesses with Gross Receipts of More Than $5 Million

Small Businesses with Gross Receipts $5 Million or Less

As you can see from the above charts, proper submission of 1099 forms to the IRS is one that should not be taken lightly.

Utilizing PROCAS to complete your 1099s & 1096s

PROCAS currently supports four types of 1099s: 1099-NEC (nonemployee compensation), 1099-MISC (all other payments), 1099-INT, and 1099-DIV, as well as 1096s. Each form can be generated out of the system by following these 3 steps:

1. Determining which vendors/subcontractors require 1099s
2. Establishing 1099 form type and box by vendor/subcontractor
3. Generating 1099/1096 forms from PROCAS

1) Determining which vendors/subcontractors require 1099s

In order to find out who you paid money to in the prior year, please go to the following:

Accounting --> General Ledger --> General Ledger

Here, use the parameters next to the orange arrows below to generate a report for cash payments made in the following year.

• If you conduct electronic batch payments (ACH or EFT), open up the account range to include AP accounts along with cash.

Once you’ve printed your report, please follow the above section “Who receives a 1099” to whittle down your list of possible vendors to those who should receive a form.

2) Establishing 1099 Form Type & Box by Vendor or Subcontractor

Now that you have your list of vendors and subcontractors, time to label their records as to which type of form they should receive. Please navigate to:

Setup --> Purchasing --> Vendors

And select the “Find” button or “F8” function key to begin searching for those vendors/subs. Once on the record of an applicable vendor/sub, select the “Payment Info” tab of the record to locate a box called “1099 Type & Box.”

If you click in this box, you can then select the “Lookup” button or “F9” function key to see the list of possible 1099 types.

From the above list, make the appropriate selection for each vendor/subcontractor as needed.

Editor's Note - 2021

If you have established this list in prior years, we have remapped your vendors to the new form & box types. 1099-MISC07 has been modified to 1099-NEC01 for Nonemployee Compensation and remaining 1099-MISC boxes have been modified for the new form alignment. You do not have to complete any extra work in remapping existing vendors!!

3) Generating 1099 & 1096 forms from PROCAS

Once all 1099 types and boxes have been determined, navigate to the final menu:

Accounting --> Accounts Payable --> Forms 1099/1096

This screen will be broken into two separate parts to get the appropriate items needed to print your forms:

The header section of Forms 1099/1096 has specific parameters to determine which items will generate in the detail grid:

• Reporting Year Date - Use the prior calendar year for as is required for reporting 1099/1096 amounts.
• Cash Account - Use the cash account recorded in the GL for payments made to each vendor/sub (if left blank, all accounts will generate).
• Batch Liability Account - If you make payments in batch from your bank account, enter the liability account used here. Leaving this area blank will populate all possible payments.
• 1099 Type - Choose applicable 1099-NEC, 1099-MISC, 1099-DIV, or 1099-INT.
• Minimum Amount - This will limit the results by taking the sum of all payments by vendor, and exclude them if the total is less than the minimum entered.
• Search - Will populate below details.

In this detailed grid, select the payments made to each vendor if you are looking to include them on your forms. When all appropriate rows have been selected, print the proper 1099 or 1096 report from the below report bar.

• Each column has the ability to sort items if you click the column header
• Each column also has the ability to filter items if you select the filter icon to the right of each column header

Extra Help & Form Alignment

For additional help completing your 1099/1096 forms using PROCAS:

• In the upper right hand corner there is a "?" symbol, which will provide in-system help for detailed instructions on any of the menus!
• Feel free to reach out to our Support Team at support@procas.com
  • We can help align your report forms to your printer specs as well as help explain the process.