Onboarding Process

To help with a smooth start, follow these instructions to set up your software.

Initial Setup

After purchasing CostAllocation Pro (CAP), check your email for a login link. Click the link to log into CAP for the first time.

Before you get started, let’s get your QuickBooks Online account configured to work with CAP.

Setting up Classes for Pooling Costs (optional)

  • Create a class in QuickBooks to group payroll costs. Name it something like "Payroll Expense Pool." We recommend this class be a sub-class of the administrative class.

  • If you use indirect costs, create another class to pool all relevant costs. Name this something like “Indirect Cost Pool”. It should also be a sub-class of administrative costs.

Consider a Time Keeping System

Time entries can sync directly into CAP from QuickBooks if you choose a time tracking app that syncs with QuickBooks. HourTimesheet.com and QuickBooks Time are good options, but Clockify, BigTime and other apps may also work. If you use a time system that does not sync time entries to QuickBooks, you can use the import feature to pull in your time data.

Connecting CostAllocation Pro to QuickBooks Online

The screen you’ll see after logging into CAP for the first time is the Integration page.

Click the “+ New Connection” button to start the connection to your QuickBooks company.

Sign in and connect your QuickBooks company.

Understanding How Pay Periods Work In CAP

After connecting your QuickBooks company, the first screen you’ll see is the pay period setup screen. 

Let’s get a better understanding of how pay periods work in CAP.

Payroll is typically a cash dated entry. That means payroll journal entries are typically dated using the payroll check date. CAP operates within a defined date range that encompasses the pay periods corresponding to the check dates. Accurate entry of these dates during the setup of CAP is crucial for proper functionality.

Taking the month of October as an illustration, if you paid your employees on October 12th, this could encompass the time span from September 23rd to October 6th. The second pay date on October 26th, may cover the pay period from October 7th to October 20th.

In this example, our October allocation pay period start date is Sept 23rd and the end date is Oct 20th. These are the pay period dates for spreading our payroll expenses across the two October check dates.

 After establishing your initial pay period range, CAP will consistently utilize the date information for subsequent periods. The system will automatically set the starting date for each new period as the day following the end date of the previous period.

Configurations & Account Mapping

The next page you’ll see is the configurations screen. This is where you’ll map the fields necessary for cost allocation entries. CAP will use this mapping when posting the journal entries in QuickBooks.

Under each of the main categories "Salary”, "Payroll Taxes & Fringe Benefits," and "Other," you can add up to 20 accounts for detailed categorization. These accounts will be directly mapped to corresponding QuickBooks expense accounts. CAP allows you choose the general ledger accounts that you would like to debit and credit for each category when posting the allocation journal entry. Typically, the debit and credit accounts for each category will match, but if you are using a “Payroll Clearing Account” you may choose to map the payroll clearing account as the credit account.

 Once you've added and mapped the accounts to the relevant QuickBooks expense accounts, you’ll find them as columns on the employee cost entry screen. We’ll go over the employee cost entry screen shortly

If you have an indirect rate, you can enter that rate into the field under “Allocation Settings”. Presently, CAP applies this rate solely to categories within the Salary Expense Accounts section. Given that CAP does not presently support indirect allocations to categories beyond those related to salary, if you use other categories, you’ll need to skip this step.

If you do not have an indirect rate, you can skip this step.

When you’re finished editing the configurations, click “Save & Close” at the bottom of the page.

Running your First Allocation

Now that your setup is complete, you're ready to start allocating costs.

  • Go to the Employee Costs page and enter the total costs for each category for every employee within the specified pay period range. These costs can be revised as needed throughout the process.

  • Next, go to the time activity page to view and edit (if needed) the time data that has synced into CAP from QuickBooks.
    Pro tip: You can use Custom Rules to automatically edit time entries, correct errors, or set default coding for specific employees. Click Here to learn more about Custom Rules.

After you have made any necessary edits, click “Create Timesheet” to post the time. A window will pop up and allow you to rename the time sheet if you choose. Click “Create Timesheet” to continue.

To view your allocation results, go to the Cost Allocation page. When you’re ready to post the allocation journal entry to QuickBooks, click the “Preview Journal” button at the top right of the page.

  • Confirm the posting date of the journal entry and post the journal entry by clicking the “Preview Journal” button at the bottom of the page.

Reporting

After posting cost allocations, you can run reports within CAP You’ll also be able to run project specific reports in QuickBooks now that the payroll allocation has assigned payroll costs by customer and class to QuickBooks.

To print time sheets after making edits in CAP, navigate to the Time Activities page and click on the Time Sheets tab. You can select one or more employee time sheets to print or export.

To print customer, employee, or class specific payroll cost reports, navigate to the Cost Allocations page and filter using the dropdown menus.

Click “Export as” to select the file type you wish to export.

Congratulations! You’ve successfully set up CostAllocation Pro. 

For additional tutorials and tips, explore our Video Library. If you have any questions, our support team is ready to assist you. Welcome to a smoother, more efficient cost allocation process with CostAllocation Pro!