Progress Billing
Progress Billing allows you to manage invoicing the Job’s Bid Amount (as seen on the Job Definition tab, next to the Job Name) by billing the customer in installments.
The idea here is to simplify the process. Instead of billing the customer for each inventory item shipped or each labor service performed (while attempting to reconcile those items to the overall work-in-process %), the invoice will be streamlined with one non-inventory line item. Inventory would need to be drawn out of stock using Inventory Maintenance adjustments.
Setup
To use the Progress Billing feature you must first establish a default Part Number. This must be a Non-Inventory product.
Navigate to Administration > System Configuration, select Jobs from the drop-down menu and find the setting for Default Part Number. Double-click this setting and enter the non-inventory part number you've created for this purpose.
Progress Billing
1. Create an Invoice
Navigate to Job Costing > Jobs. Open an existing Job and select Invoice Items from the drop-down menu. To create an Invoice, click the Progress Billing button.
2. Enter the Job Phase, Task and Amount
Next, you will need to enter the Job Phase and Job Task to assign the Invoice to. This is also where you'll calculate the amount of the invoice.
The User is presented a dialog showing the following:
- Bid Amount: This is manually entered on the Job Definition tab.
- Invoiced to Date: The total amount of posted invoices that have been assigned to the Job.
- Contract Balance: This is calculated as Bid Amount - Invoiced to Date. Invoices must be posted in order to be included.
- Job Phase: Enter the Job Phase that is associated with the Progress Billing.
- Job Task: Enter the Job Task that is associated with the Progress Billing.
Now you will need to calculate the amount of the billing. There are three choices. For each Progress Billing, you only need to select ONE of these options.
- % of Bid: Creates an Invoice for a specific % of the Bid Amount. Enter the % in the Bill this Percentage field.
- $ Amount: Creates an Invoice for a specific dollar amount. Enter the dollar amount in the Bill this Amount field.
- Contract Balance: Automatically creates an Invoice for the remaining Contract Balance.
3. Complete the invoice
Once you choose which method to use to calculate the Invoice Amount, the system will take you to the order entry screen. There will be a single line item on the order (the non-inventory Product that you entered in System Configuration.)
From here, you will process the invoice as usual. When the Invoice is posted, the system will update the Invoiced to Date amount.
New Order
Navigate to Job Costing > Jobs. Open an existing Job and select Invoice Items from the drop-down menu. To create an Invoice, click the New Order button.
This method of billing does not require any particular setup in order to use. Clicking this button simply opens a Sales Order entry screen for the User to enter a new order associated with the Job. The Client Name will be auto-populated from the Job record. The user must enter line items and associate those line items to the Job Phases and Tasks manually.
