This has been bothering me for three years. I am finally able to describe my dilemma.

We are an engineering firm using the Adagio Time & Billing system. I utilize four WIP accounts in our general ledger chart of accounts (the WIP account for time charges, Account 1310, will not be discussed since I do not have a problem with it). The three other WIP accounts are for three different types of expenses:

1. WIP Account 1360 – Client Charges: this account is used for outside professional fees paid on behalf of a client that we markup on an invoice (i.e.: lab fees, consultants, well drillers, etc.). Reimbursable codes are four digits, 5090 through 5170, which correspond to our general ledger account number.

2. WIP Account 1330 – Direct Reimbursables: this account is used for expenses paid on behalf of a client that we pass through to a client without markup on an invoice (i.e.: overnight delivery, car rental, publications, etc.). Reimbursable codes are four digits, 5180 through 6860, which also correspond to general ledger account numbers.

3. WIP Account 1380 – Indirect Reimbursables: this account is used to charge a client for copies, prints, faxes, telephone, and postage. Reimbursable codes are four letters, (i.e.: REPR, PRIN, FAXI, TELE, POST, etc.).

I have attached three .pdf files to illustrate my problem. They are posting journals for the following batches:

1. Page 1 of Reimbursable Batch 417 from September 2007.

2. Page 1 of Reimbursable Batch 616 from December 2007.

3. Pages 2, 4 and 5 of Reimbursable Batch 56 from January 2008.from January 2008.

4. Page 1 of Reimbursable Batch 57 from January 2008.

5. Pages 1 – 4 of Billing Batch 7 from February 2008.

The A/P system correctly assigns the correct WIP account to various expenses. The problems occur when I invoice. Most of the time, if I post a billing entry – and the line item contains only one of the three types of expenses (client charges, direct or indirect), the amount is reversed out of the correct WIP account. For instance, refer to Reimbursable Batch 56, Entry 38 (WIP Account 1380). The amount is correctly reversed out WIP Account 1380 in Billing Batch 7, Entry 1, Line 23, Item 1.

It is when I bill more than one type of expense in a line item that all hell breaks loose.

1. I call your attention to Billing Batch 7, Entry 2, Line 12, which contains five items. Line 12, Item 1 corresponds to Reimbursable Batch 56, Entry 42 (WIP Account 1380) and Line 12, Item 5 corresponds to Reimbursable Batch 57, Entry 5 (WIP Account 1330). Both of these items get reversed out of WIP Account 1330 even though Line 12, Item 1 should be reversed out of WIP Account 1380.

2. Refer to Billing Batch 7, Entry 9, Line 1, which contains nine items. Line 1, Item 5 corresponds to Reimbursable Batch 616, Entry 5 (WIP Account 1330) and Line 1, Item 8 corresponds to Reimbursable Batch 56, Entry 13 (WIP Account 1380). Both of these items get reversed out of WIP Account 1380 even though Line 1, Item 5 should be reversed out of WIP Account 1330 – the exact opposite of the first example.

3. Now take a look at Billing Batch 7, Entry 3, Line 7, which contains five items. Line 7, Item 1 corresponds to Reimbursable Batch 56, Entry 51 (WIP Account 1380) and Line 7, Item 5 corresponds to Reimbursable Batch 57, Entry 7 (WIP Account 1330). Both of these items get reversed out of WIP Account 1360 even though Line 7, Item 1 should be reversed out of WIP Account 1380 and Line 7, Item 5 should be reversed out of WIP Account 1330 – both items are wrong.

4. The most perplexing one is shown on Billing Batch 7, Entry 12, Item 2, which has three items. Remember how I said that most of the time, if I post a billing entry and the item contains only one of the three types of expenses, the amount is reversed out correctly? Well here is a case where it isn’t. Line 2, Items 1 and 2 correspond to Reimbursable Batch 417, Entries 3 and 6 (WIP Account 1360). Both of these items get reversed out of WIP Account 1330 even though they should be reversed out of WIP Account 1360!

The result of all this is that balances in the three individual general ledger WIP accounts are all screwed up. However, the total of all three accounts is correct. I am going to start posting each type of expense in a separate line item but even this is not 100% right (see the last example above). Will you please look into this matter and tell me what is going on?

Eric:

Unfortunatley none of the experts who volunteer their time to answer questions on this forum or going to want to take the time to go through you long list of questions.

You would be better off to either;
A. repost this with just a couple of the most critical questions that you need answer to,or
B. engage your Adagio reseller to assist you with researching answers to your questions.

Hello Eric,

I have been able to duplicate an issue and it has been forwarded to R&D.