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


  • If the values from the 1099s and 1096 reports do not completely align with your forms, please email 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.

Setting up PROCAS for SCA Employees author avatar

Do you have contracts that require you to pay service employees according to the area wage determinations (AWD) as outlined in the Service Contract Act (SCA)?


Do you have personnel that are paid different hourly rates depending on the work they are doing?

If so, you can use the AWD capabilities in PROCAS to automatically record the proper hourly wage rate as well as fringe benefits per hour.

Here’s how:

1. Add AWD fringe accounts to your Chart of Accounts. (Go to >System, >Accounting, >Chart of Accounts)

You will only need to do this if the SCA employees receive a dollar amount per hour worked for fringe. When the labor journal transaction is recorded, it will add a line with an AWD fringe expense account along with its associated direct task. The cost center for the fringe account must match the cost center of the direct task. So, you will need to add a fringe account for each appropriate cost center.  The chart of accounts in PROCAS includes AWD Fringe Expense accounts 6600000, 6600100, and 6600105 by default. These accounts are used by the system to record the earned fringe expense in the labor journal.

When SCA employees also earn fringe per hour on paid leave hours (i.e., holiday, vacation), you will need to add paid leave accounts for each cost center, as shown in the screenshot below. The reason for this will become evident later on in the setup.


2. Add the new fringe accounts to the AWD Fringe Accounts (Go to >System, >Accounting, >AWD Fringe Accounts)

If you added AWD Fringe Expense accounts in step 1, you will need to set up those accounts by department. The system uses the account setup from the AWD Fringe Accounts form to know where to record the fringe expense in the labor journals.


3. Add the AWD information to Billing Setup on the appropriate tasks. (Go to >Projects, >Billing Setup)

  • First, locate the task that your SCA employees use to record their time, and then click on Bill Rate by LC/FP Item
  • Next, for each SCA labor category, type in the minimum AWD hourly wage to be paid to the employee in the AWD Base $/Hr. When the system creates the labor journal transaction, it will compare the minimum rate for the labor category in the Billing Setup, to the employee’s hourly pay rate in their Personnel record. The system will use whichever rate is higher to record the amount due to the employee.
  • If you are also paying employees an amount for fringe per hour worked, type in the appropriate fringe dollar amount in the AWD Fringe $/Hr. box for the labor category (see the screenshot below.) When the system creates the labor journal transaction, it will add a line of detail to record the fringe expense to the accounts you set up in Step 2.


4. Update employee work authorizations. (Go to >Projects, >Work Authorization by Task)

Setting up the direct work authorization for a SCA charge code is no different than setting one up for a non-SCA charge code. However, if the SCA employees also earn a fringe amount on their paid leave hours, there is a specific setup required for the system to include the fringe earned on those hours in the labor journal transaction.

Notice in the screenshot below, Sarah Porter has a standard direct charge code for task 10003.001.00.105 using the 5000105 account and AA labor category. In addition, Sarah has a paid leave charge code for the same task and labor category. This is where the fringe account you set up in Step 1 is needed. Since the task uses cost center 105, the fringe account also needs cost center 105. So, instead of using the 6100000 account that non-SCA employees use, Sarah will be using the 6100105 account.


Here's what Sarah’s timesheet looks like after recording her time to the SCA direct charge code we set up for her. She only needs to record the hours worked.


And the screenshot below shows what Sarah’s labor journal transaction looks like. Lines 1 and 2 are for the 88 hours of direct work that Sarah recorded on her timesheet. Note that while her regular pay rate is $10/hour (as highlighted in the header), the system recorded the $12 hourly rate from the AWD information in the billing setup. The system also added the last 2 lines of detail to record the $3.80/hour fringe expense earned for the 88 hours worked and the associated liability. Since the system will record the fringe automatically, there’s no need for Sarah to record her AWD fringe “hours” on her timesheet.


Although there are several steps, the AWD setup is not difficult. Once that part is done, then the system will do the rest whether you are creating the labor journal transactions automatically, or manually creating them.


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:


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
    • 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 As mentioned above, additional explanations on the reports can also be found in the PROCAS Users Manual or by emailing