Page tree
Skip to end of metadata
Go to start of metadata

Title: Example of Pre-Billed Labor

Brief description:

This entry describes the recommended process for the initial recording and subsequent billing of Pre-Billed labor.

What’s covered in this document:

Overview

Pre-Billed Labor is a feature in Unanet that allows a company to bill a customer in advance for labor that will be performed in the near future. Another way to think of pre-billed labor is as a form of a retainer or a prepaid item. Only labor charges for project/tasks having a billing type of TM will be used to establish or decrement a pre-billed labor balance. The feature is not available on Fixed Price or Cost Plus Fixed Fee Contracts. One-time Charges and Expenses will not be impacted by the existence of a pre-billed labor amount.

Licensing: Project Tracking or Project Portfolio licenses are required to have access to this functionality.

Roles: A Billing Manager role is needed to be able to process and invoice pre-billed labor.

The overall process is comprised of an initial setup and periodic efforts such as invoicing and reporting. Below you will find more detailed explanations about each step in the process. 

Initial Project Setup 

  1. Create a T&M project, either from scratch or copied from a template, or utilize a currently established T&M project.

  2. Create the appropriate tasks to be worked on (if applicable).

  3. Go to Project Profile > Billing > Pre-Billed Labor.



  4. Click the +Pre-Billed Labor link to add the Pre-Billed Labor item for billing.

  5. Enter the BILL DATE, DESCRIPTION of the Pre-Bill charges, and the AMOUNT to be pre-billed.

Periodic processing based on billing schedule

As suggested earlier, there are several periodic steps that will impact the outcome of pre-billed labor.

Timesheet Charges

After the project has been set up for pre-billed work, resources assigned to the project can enter their time as incurred. 

The time entry process follows your organization's standard time entry screens flow.



Time must be submitted, approved, and completed as required by your organization's approval hierarchy.

Your organization's Billing Manager will then initiate the Billing and Invoicing process to create the invoices.

Invoice Creation

Initial Invoice
  1. To create an invoice for the Pre-Billed hours, first go to Financials > Invoicing & Posting > Billing & Revenue Post.

  2. Find the correct project, be sure the date range includes the bill date of the Pre-Bill, select List, and Post. 



  3. Now, go to Invoicing & Posting > Add Invoice.

  4. Again, find the correct project and select List.



  5. Click Generate Invoices and a List button will appear, select this and double-click on the invoice to bring up a preview. 



  6. Review and complete the invoice.
Subsequent Invoices

As hours are charged against the project, you will go through the same posting process and create a new invoice. The subsequent invoices will decrement the cost of the hours charged from the Pre-Billed labor total and show the remaining balance of Pre-Billed labor. An example of a subsequent invoice is below:




When the Pre-Billed labor amount has been exhausted, the related invoice will show a positive balance due that the customer will be responsible for paying:

Reporting

Reporting is another component of the periodic effort that accompanies this pre-billed labor process. Some of the more useful reports are described below.

Billing & Revenue Summary Reports

Generate a Billing & Revenue Summary Report by going to the Reports dashboard > Project Accounting Reports > Summary Reports > Billing & Revenue Summary.

Define the criteria specific to your organization to get to the intended results. For the example provided below, we focused on the specific project we had been working for this exercise and confined the Data Range to include the initial billing period.

Initial Billing Period


Several billing periods

Project Actuals Summary Reports

Generate a Project Actuals Summary Report by going to the Reports dashboard > Project Reports (Time & Expense Only) > Summary Reports > Actuals Summary.

Define the criteria specific to your organization to get to the intended results. For the example provided below, we focused on the specific project we had been working for this exercise and expanded the Date Range to include billing periods. 

Billing & Revenue Details Reports

Generate a Billing & Revenue Details Report by going to Reports Dashboard > Project Accounting Reports > Detailed Reports > Billing & Revenue Details.

Define the criteria specific to your organization to get to the intended results. For the example provided below, we focused on the specific project we had been working for this exercise and expanded the Date Range to include periods billed. 

Other Considerations

  • Pre-Bill is only for labor, not for expenses.
  • The balance of any unused or unworked pre-bill labor cannot be written off or refunded to clear the balance, but a negative Pre-Bill item may be created in order to refund the amount to the customer.
  • Once Pre-Billed Labor Items are Posted in the Billing process they cannot be changed, edited or deleted except using SQL script.
    • If there are many changes to the Pre-Bill amount after the initial invoice, an alternative is to create the initial invoice using an Additional Item called something like "Retainer." Once the client pays the retainer, the company creates the Pre-Bill Labor and a negative Additional Item to zero out the original item amount. 

Additional Information

KC - FAQ - Can I enter negative Fixed Price items?


  • No labels