Last Call! 1099s Must Be Sent by 01/31/18! author avatar

For those unaware, vendor payment information can be printed from our software onto 1099-MISC forms for the year 2017. To do so, please proceed with the following steps:

 

  • Obtain legal 1099-MISC forms
    • Can be purchased from most office supply retailors such as Amazon, Staples, etc.
    • Do NOT print the forms directly from the .pdf online

 

  • Determine which vendors/subcontractors should receive a 1099-MISC
    • Run a GL for the year 2017 on account 1000 grouped by vendor for transactions D - G
      • Any vendor that is not taxed as a corporation should be considered
      • Follow all applicable IRS regulations to determine which of these vendors should receive a 1099-MISC

 

 

  • Mark each applicable vendor as Y on Tab 2 of their Vendor Record
    • By default, the amounts for each vendor will print onto Box 7 – Non-employee compensation of the form
    • If the amounts for a vendor should print onto a different box of the form, place that box number into the “Business Code” field of the vendor record for that vendor (i.e. Rents – 1, Royalties – 2, Other income – 3, etc.).

 

 

  • Select the proper vendors to print from the 1099/1096 Menu
    • In the bottom left hand corner, please select the “Select” button, enter the proper Reporting Period dates (01/01/17 – 12/31/17), and hit “OK.”
    • Once the menu has updated, select the “Report” button to see if all the vendors listed match your list of vendors from Step 2 to receive 1099s.
      • Unmark any vendors that have received less than $600!
    • If they all match, select “1099s” to print your 1099s!
    • Repeat these steps for all forms (1099-MISC A,B,1,2,C).

 

  • After 1099s have been sent and reconciled, print the associated 1096 form
    • Can be printed following the same process as Step 3, replacing the “1099s” button with the “1096” button

Notes:

  • If the values from the 1099s and 1096 reports do not completely align with your forms, please email support@procas.com with a copy of a printed 1099/1096, and we can adjust where the values print.
  • We only support 1099-MISC and 1096 forms.
  • Follow the instructions on the IRS website to determine where and when each 1099 form needs to be sent (1099-MISC forms A,B,1,2,C).
  • For additional information related to printing 1099s and 1096s from our software, please read pages 299-301 of our Accounting User’s Manual.

Year-End Tips author avatar

Want to avoid feeling overwhelmed during the year-end? Get ahead now by taking care of the following tasks, so you can cuddle up with hot cocoa by the fire this year.

Your main focus should be to have new charge codes and timesheet periods set up so employees can charge their time as soon as they are back to work in January. Before you can do this, you must first establish new task numbers to increment the option year on cost type contracts that continue beyond the end of the current fiscal year. (Indirect rates are specific to your fiscal year.) This allows you to maintain the billing rates by year, so you can use PROCAS to calculate rate adjustment invoices. 

Following this step, you should complete the billing setup for the new task numbers so employees are able to charge to these new-year tasks.

Next, you should add timesheet periods for the new year, prior to the start of that year to avoid disruption of time recording. To do so, you would go to the “System” menu, then “Time and Expense,” and then “Timesheet Periods.” From here you can click “Insert,” and then would type the timesheet period beginning and end date for all the periods in the up-coming year.

Another important task to get done is entering the new accounting year, along with the accounting periods for the new year. This can be done by going to the “System” menu, then “Accounting,” then “Accounting Years” and for periods, “Accounting Periods.” From here you will hit “Insert” and type in the new accounting year/accounting period code, along with the beginning and ending dates.

The two remaining tasks to complete are just as important as the ones listed above. The first is updating mileage reimbursement rates per your company’s policy. IRS and Federal Travel Regulations (FTR) mileage rates typically change effective the first day of the calendar year.

Lastly, you will want to order 1099-MISC forms (the official red scannable forms), so you are able to print these forms out of PROCAS.

If you would like more detailed information on the Year-End Processes, check out Chapter 16 of our User’s Manual, which explains every step for each task listed. The User’s Manual can be found in the Timekeeping System under the “Help” menu (top right-hand corner). In addition, we offer a webinar on Year-End best practices, and if you don’t already have access to these webinars, you can send an email to webinars@procas.com to request access.

Alert! ICE Submissions Due Next Week! author avatar

I’d like to imagine that this blog would fall on deaf ears. I’d like to think that in a perfect world, everyone is already in the process of reviewing their completed incurred cost submissions with the thought of freedom in the back of their minds. I’d like to visualize everyone packing away those spreadsheets for the summer, kicking back on a nice hammock somewhere overlooking the ocean.

However, as much as it pains me, this is not a perfect world. Not everyone has had the chance of getting a jump start on their ICE submissions. Not everyone has had the opportunity to compile all their costs to complete that monster of a spreadsheet. If you’re like me, then the thought may not have even crossed your mind! If you fall into one of these 3 categories, or you would like to double check your work, then I have the post for you!

For those that aren’t aware, incurred cost submissions are required if you have cost reimbursable contracts and some time and materials contracts if included in solicitation. They are essentially a compilation of various schedules of your costs, presented in a specific way, and submitted to the DCAA for their review and audit, which allows the government to verify that they are paying a fair price for the services that they receive. Most contractors are required to complete these submissions by June 30th of each year, hence my alert.

The above stated schedules can be found here:

http://www.dcaa.mil/ice_model.html

 

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 some reports for specific schedules that are separated on each tab (although a couple cups of coffee wouldn’t hurt).

These reports can be found by going to Projects à Incurred Cost Submission Support within the accounting system. Once each report is printed, they can be exported to Excel using the white envelope at the top of the report, so that the data can be easily transferred to the ICE model.

Note: These reports will only give accurate numbers if…

  • Invoices are being billed out of the system
  • Costs are recorded correctly
  • Indirect rates have been calculated and applied for your fiscal year

For those interested, below is a description of each report as found in the PROCAS Users Manual. The screenshots taken are from a sample company as an example of what the reports look like.

 

 

Indirect Rate Support

Perhaps the most important, the indirect rate support reports contain the details of costs within each pool and base for the rate calculation most recently performed, regardless of the date range used when printing the reports. The reports should be used in the ICE Model Schedules A, B, C, D, and E and in PDF format as supporting documentation.

The indirect rate support reports are used to support the rate calculations performed for the year. The period date range used to run the reports are for information in the report header only and should coincide with the date range used for the most recent indirect rate calculation performed.

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 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. 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.

  • Indirect rates must be calculated and applied before printing
  • There are 6 Reports – 1 for each of the following indirect rate types
    • Fringe – ICE_SUPPORT_6_FRINGE.RPT
    • Facilities – ICE_SUPPORT_7_FACILITIES.RPT
    • Overhead – ICE_SUPPORT_8_OH.RPT
    • General & Administrative (G&A) – ICE_SUPPORT_9_G&A.RPT
    • Material Handling – ICE_SUPPORT_M_MAT_HANDLING.RPT
    • Subcontract Admin. – ICE_SUPPORT_S_SUB_ADMIN.RPT

 

 

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 reports accommodate a consolidated overhead rate structure (SCHED_H_ONE_SITE) and a two worksite overhead rate structure (SCHED_H_TWO_SITE).

  • Indirect rates must be calculated and applied before printing
  • For the report to group the contracts by cost class, an Incurred Cost Class code must be established on the project records, receivable task records, and/or the revenue task records.
  • The report is available in four roll up levels: Project, Task, Subtask, and Cost Center
  • 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 Invoice 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.

  • 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 invoice history.
  • The report is available in four roll up levels: Project, Task, Subtask, and Cost Center

 

 

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 Invoice 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.

  • 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 invoice history.
  • The report is available in four roll up levels: Project, Task, Subtask, and Cost Center

 

 

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.

  • Performing a labor reconciliation separately before beginning the ICE Model will help to ensure the information in your general ledger is accurate.
  • The account field in the report parameters will automatically default to one greater than the account code for salaries payable box of the Default Accounts form.
  • The report does not include subtotals by pool. Those must be done in Excel.

 

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 completing ICE submissions, please check out our Webinar on the subject by emailing webinars@procas.com. As mentioned above, additional explanations on the reports can also be found in the PROCAS Users Manual or by emailing consulting@procas.com.

 

Update to the PROCAS Budget Template author avatar

We recently made a change to our Budget Template that should make fringe projections more straightforward.

Originally, some of the fringe accounts were projected using productive labor hours and estimated days off instead of amounts. However, upon the request of multiple clients, we decided to make all of the fringe accounts accept a projected amount.

 

 

This new version of the fringe tab works similarly for us on the backend, however there are some noticeable changes for the end user:

  1. The fringe accounts are broken out into two different sections; Fringe Benefits – Time Off and Fringe Benefits Other. On the original budget template, the accounts listed in the Time Off section were automatically calculated based on a percentage of total labor and the time off days. While this ensured that the accounts were budgeted for, it didn’t allow the freedom for users to edit the amounts. Now, the amounts can be adjusted if you do not want them to be a factor of total employee labor (i.e. part-time employees do not receive the benefits), rather than having to back into percentages to force it to work.
  2. The manual amounts from Tab 3. Fringe should match the total listed at the bottom of the Time Off column in Tab 1. Labor. After entering your company’s totals for each fringe account, the excel file will compare your company’s numbers to the projected percentages from the labor tab to see if everything matches. If they do not, the following error message will appear:

 

Please be sure to have the Total Time Off amounts from Tab 1 and Tab 3 match so that your labor distribution projections match your fringe dollar projections for your fringe rate.

 

This most recent version of our budget template (and other documents) can be accessed from:

          PROCAS Time & Expense --> Help --> Downloads --> PROCAS Budget Template

Or if you’d like us to send you a copy, feel free to give our support line a call at (410) 730-4011 Ext.2 or shoot us an email at support@procas.com.

Welcome to the PROCAS Blog! author avatar

As many of you are aware, we try to be as open and honest with our clients as possible, so we thought, “Why not provide another means to improve the client experience?” Through our new blog and social media accounts, we aspire to foster a learning environment as well as provide a look into our everyday lives. Our intentions for this network are to provide tips for navigating our system, address common errors using our software, advise on potential roadblocks within the government contracting industry, and last, but not least, build better relationships with our clients and the people that support them.

Ultimately, our experienced team hopes to make your life a little easier!

 

Our Values         

PROCAS’s core principles are encompassed in a term we like to call ORBIT. We aim to instill these values in every article, comment, and post created on this blog.

  • Openness – share information freely
  • Respect – treat each other with care and consideration
  • Balance – strive for stability and vitality in our personal and professional lives (productive and fun)
  • Integrity – act in a manner consistent with our words and beliefs (sincere and straightforward)
  • Teamwork – support each other in achieving our common goals

As our staff provides content, we expect any users that wish to participate in the discussion to follow our core principles.

 

Meet the Team

This network will be monitored and administrated by our Support Team. When we are not answering the phones, we focus on a variety of different issues in the accounting, government contracting, and technical worlds. Based on our experiences of diving through the ins and outs of the software, we hope to provide some insight on how to utilize it to your advantage!

Get to know our team a little better:

  Ben

  • PROCAS Employee since October 2013
  • Towson University Graduate – B.S. Accounting – December 2014
  • Avid Rock Climber, Expert Whistler, Breakfast Enthusiast
  • Commonly Mistaken For: Ron Weasley

Ché 

  • PROCAS Employee since April 2015
  • University of Baltimore Graduate – B.S. Accounting – May 2015
  • Record Collector, Horror Movie Aficionado, Proud Dog Owner
  • Commonly Mistaken For: Princess Tiana

 LJ

  • PROCAS Employee since October 2014
  • Towson University Graduate – B.S. Accounting – May 2015
  • Baltimore Sports Fanatic, Devoted Gym Goer, Music Junkie (Slappin’ Da Bass!)
  • Commonly Mistaken For: Drew Carey

Taylor  

  • PROCAS Employee since June 2015
  • Towson University Student – Currently enrolled in the Accounting Program
  • Former Cheerleader, Chocolate Lover, Running Machine
  • Commonly Mistaken For: Taylor Swift

 

If you would like to be up to date with all our latest posts, pics, and tweets, please follow us on twitter @procasllc.