Certain items must be configured at the project profile level before project data may be posted or invoiced. This page outlines those items.
Project Profile Invoice Setup
Navigate to Project Profile > Billing > Setup tab. The GENERATE UNANET INVOICE check box must be selected and Invoice Setup data for a project must be specified before an invoice can be created for the project. Absence of invoice data will not prevent a project from being included in a post process, but the unbilled transactions will be ignored by the Add Invoice process until this information is entered.
On the Setup tab, the Billing Manager can:
- Identify if an invoice is required for the project by selecting GENERATE UNANET INVOICE.
- In the INVOICING OPTIONS section, Indicate whether the project will be invoiced as a standalone, or as part of a group. If it is part of a group, specifying whether the project is Lead or Contributor will determine which project defines the invoice formats and other properties.
- In the PAYMENT/INVOICING OPTIONS section, choose from the Primary Invoice Format dropdown menu.
- Choose the Invoice Number Format to be used.
- Choose Payment Terms from the dropdown menu.
On the Contacts tab, the Billing Manager can:
- Specify Contacts who will be shown on the Invoice as the Bill To, Ship To, and Remit To contacts along with their mailing addresses.
- Specify Invoice Delivery Method: E-mail or Print.
- If E-mail is chosen, select from the E-mail Message dropdown menu (created in Admin > Setup > Miscellaneous > E-mail Messages).
- Specify email recipients in To E-mail.
Note: In order to email an invoice, an E-mail Message and To E-mail email address(es) must be specified within the Project Profile > Billing > Invoice Setup > Contacts screen. "E-mail" should be selected as the Invoice Delivery Method. An E-mail Message template and To E-mail are required. Optional Cc E-mail and Bcc E-mail addresses can be entered, as well as Delivery and Read Receipts.
It is possible to email invoices even if the Invoice Delivery Method is not set to "E-mail" as long as the E-mail Message and To E-mail address(es) have been specified.
On the Other tab, the Billing Manager can:
- Specify Optional Invoice Header Information:
- Choose options to Show Project Organization Code, Show Project Code, Show Project Title, Show Project Funded Value, Show Company Logo, Show Contract Number, or Show Order Number on the Invoice.
- Include default Invoice DESCRIPTION text (which appears below the Invoice Header and before the Invoice body), and INVOICE MEMO text (which appears before the Invoice Footer). These can be modified on an individual invoice when it is in Draft status, but the values saved on the project are not modified.
Setting up Fixed Price Items
If the Project or any of its Tasks are of "FP" Billing Type, then Fixed Price items must be configured.
The Billing Manager role can define fixed price items in a number of ways, at the project or task level. This is done from Project Profile > Billing > Fixed Price in the left menu.
Two options are provided for defining Fixed Price items:
- Adding an individual item to be billed - click the +Fixed Price Item link.
- Creating a schedule of billable items from a single total value - click the +Fixed Price Billing Schedule link.
If adding a single item, the following screen is presented:
Fixed Price Item Option
If the Fixed Price Item option is used (adding a single billable item), the Project Manager can:
- Associate the Fixed Price item with the project, or a task.
- Enter a Description for the Fixed Price item.
- Specify the Bill Date:
- Enter a fixed Bill Date for the item.
- Link the Bill Date with the Completion Date for the project or task by selecting the Bill On Completion check box. This links the item bill date to the WBS item or project.
- If the date is linked, for an item to be included in a Billing & Revenue Post as unbilled (and thus eligible to be placed on an invoice), the Completion Date must be entered on the project or task, AND the Percent Complete value must be entered at 100% (not calculated). Prior to completion, the Revised End Date of the project or task will be used for pro-forma Revenue Recognition if necessary, but the Completion Date will be used as the Bill Date in the Post process for billing.
- Enter the fixed price item Bill Amount.
- Specify how revenue will be recognized for the item:
- When Billed - Revenue will be recognized when the item is on a bill which is Completed. This approach is not favored by accounting standards but is often used by smaller organizations.
- % Complete - Revenue will be recognized when a Billing & Revenue Post process is run and calculated based on the Bill Amount and the associated project or task Percent Complete value. This will be determined based on the entered value for the project or task, or calculated by Unanet in the normal manner based on the setting on the Project Profile Budget tab. See Report Calculations including % Complete.
- Custom Schedule - This allows the revenue amount to be recognized over dates and periods specified by the user, identifying the type of periods (week, month, quarter), the number of periods, when in the period recognition should occur and in what period it should start. For example, an organization might bill its client for an annual service agreement, but recognize revenue for this item monthly, quarterly or on some other schedule. Note the schedule items can be adjusted as needed, adding or removing items from the revenue recognition schedule (the "Generate Schedule" wizard just helps speed data creation). However, the total value of the revenue recognition schedule must match the Bill Amount for the fixed price item.
Note: Unanet treats the billable amount and the corresponding revenue recognition schedule as a single item which is maintained together (i.e., via edit or delete). Where a Billing Schedule is created with multiple billable items, after data entry, these are treated as separate, unrelated items.
Fixed Price Billing Schedule Option
If the Fixed Price Billing Schedule option is used, the following screen is presented:
If adding a Fixed Price Billing Schedule, the Billing Manager can:
- Associate the Fixed Price item with the project, or a task.
- Enter a Description for the Fixed Price item
- Enter an initial Bill Date for the item
- Enter the fixed price item Bill Amount
- When Billed - Revenue will be recognized when the item is on a bill which is Completed.
- % Complete - Revenue will be recognized whenever the Post process is run, and calculated based on the bill value and associated project or task Percent Complete value.
- Specify a Billing Schedule, identifying the type of periods, the number of periods and when the period should start. In the example below, the total amount of $30,000 is being billed in three increments.
Note: When this schedule is saved, each billable item will be treated as distinct, and must be edited individually. The purpose of this Add Fixed Price Billing Schedule is to quickly create multiple items to be billed, perhaps reflecting a recurring billing schedule, such as monthly subscription fees.
If the project has any labor retainer that must be worked off, then a Pre-Billed Labor item must be set up in the project profile. (Project Profile > Billing > Pre-Billed Labor)
The final option on the Billing Menu allows a Billing Manager or Administrator to define amounts for labor to be billed in advance of work being performed.
- Click +Pre-Billed Labor to set up an item.
- Enter a BILL DATE, DESCRIPTION, and AMOUNT.
- Click Save.
One or more Pre-Billed Labor items can be entered for a project with an associated description and date for invoicing. The Pre-Billed Labor amounts are selected onto an invoice based on the Bill Date specified. Any billable labor transactions posted to the project via the Billing & Revenue Post will be offset against any remaining Pre-Billed Labor balance on the invoice until the Pre-Billed Labor balance is brought down to zero. An invoice will show pre-billed amounts, the details of labor performed, the amount of the labor charges offset against Pre-billed Labor (in the Pre-billed Labor Offset section of the invoice), and any remaining balance on the pre-bill amount. When the pre-billed amount has been completely offset, any additional labor hours posted will be billed on the invoice as usual on T&M invoices.