ℹ️ Purpose: Direct Expenses allow you to quickly record real-world project expenses that do not require a Purchase Order workflow (e.g., a quick trip to Home Depot).
These are typically incidental or immediate costs that still impact job profitability but don’t justify the full PO → AP Invoice process.
Common examples include:
✔ Store purchases (Home Depot, supply house counter sales)
✔ Subcontracted labor
✔ Taxes, fees, permits
✔ Warranties
✔ Miscellaneous job expenses
Direct Expenses roll directly into your project’s committed and actual job cost.
What Are Direct Expenses?
A Direct Expense is an AP Invoice created without an associated Purchase Order.
Instead, the cost is applied directly to:
✔ Project
✔ Cost Code
✔ Committed Cost
✔ Actual Cost
This provides a faster way to capture expenses that are already incurred.
When Should I Use Direct Expenses?
Use Direct Expenses when:
✔ The expense is already incurred
✔ A PO was never required
✔ You have a receipt or vendor invoice
✔ Speed matters more than procurement tracking
Use standard Purchase Orders when:
✔ Costs must be approved beforehand
✔ Materials need delivery tracking
✔ Committed vs remaining visibility is important
✔ Vendor billing must reconcile against ordered values
Creating a Direct Expense
From the Project Budget:
Click the Direct Expense icon
Complete the invoice information
You’ll be taken directly to the AP Invoice screen for a new Direct Expense.
Invoice Information
When creating a Direct Expense, complete the following required fields:
✔ Invoice AP Number
✔ Assigned To User
✔ Vendor / Bill From
Additional fields (optional):
Status
Invoice AP Date
Due Date
Notes
Attachments (photos, receipts, documents)
These fields function the same as standard AP Invoices, although fewer fields are required.
How Direct Expenses Differ from Standard AP Invoices
Direct Expense invoices remove procurement-related fields:
✔ No Ordered columns
✔ No Remaining values
✔ No PO references
Only invoiced values are captured.
All other invoice functionality remains the same:
✔ Vendor
✔ Invoice Number
✔ Cost Code
✔ Units & Unit Cost
✔ Attachments (receipts, photos, documents)
Recording Costs
Enter line items as usual:
Description
Unit
Unit Cost
Quantity
Cost Code
Project
Example:
Description: Traffic Cones
Unit: Each
Unit Cost: $10
Quantity: 4
Vendor: Home Depot
Cost Impact on Budget
Once saved, the Direct Expense will update:
✔ Committed Cost
✔ Actual Cost
✔ Budget totals
✔ Cost Code summaries
Because no Purchase Order exists:
Committed cost is created directly from the invoice
Values flow into both committed and actuals
Multi-Project Direct Expenses
Direct Expenses can be split across multiple projects.
This is useful when:
✔ One purchase applies to multiple jobs
✔ A single receipt covers multiple cost codes
Simply add additional rows and assign:
✔ Different projects
✔ Different cost codes
Terial will allocate costs accordingly.
Where Can I View Direct Expenses?
Direct Expenses appear in:
✔ Project Budgets
✔ Cost Code drilldowns
✔ AP Invoices list
Direct and standard AP Invoices live together in reporting.
Best Practices
✔ Use clear descriptions
✔ Attach receipts or documentation
✔ Assign the correct cost code
✔ Avoid using for planned or future purchases
Direct Expenses are designed for already-incurred expenses.
Feedback or questions on the product? Email us at [email protected]