Invoicing Scenario Example

Invoicing Scenario Example

Suppose your company processed an order and quoted three order items for the customer. It has been agreed that the customer will be billed in three portions.

The first invoice will bill the deposit to the customer. The second invoice will return 40% of the deposit and bill the customer for two order items. After the job is complete, the final invoice will compensate the remaining deposit in total and bill for the remaining order item.

The following three procedures will walk through this scenario in detail.

Scenario Walkthroughs

Creating an invoice to reflect the customer deposit

Create a new invoice for a job. This can be done by selecting the Create Invoices link in the invoices tab, selecting New Invoice when viewing Job Details, or by other methods available. Refer to "Creating An Invoice" on page 295 for additional information on creating an invoice.

Note: If creating an invoice from the Create Invoice link, select the "Deposit" invoicing policy in the Create Invoice - Select Job to Invoice page.

In the New Invoice page, Scroll down to the Invoice Items section of the page.

If there is no Deposit line item in the Invoice Items list, click the Fill Items link and select Deposit in the popup list. Job Manager generates the deposit line item with the initial total price set to 100% of the job price.

Change the quantity of the deposit line item to "60". The total value of the line item will be immediately recalculated. Note, that the Deposit and Other Over/Under Billing value in the Job Billing Summary equals the Total for the Deposit line item in the invoice. This is because the customer is paying in advance when there are no completed or shipped order items to be reflected in the invoice.

Click Add ( ) to save the invoice in the database.

Within the days of the invoice creation, you normally will post it to the general ledger, print and send it to the customer.

The production team starts working on the job and after a while ships a part of the quoted product to the customer. The progress bill is to be issued.

Creating an invoice that will credit 40% of the deposit and bill the customer for two order items

Create a new invoice for the same job discussed above. This can be done by selecting the Create Invoices link in the invoices tab, selecting New Invoice when viewing Job Details, or by other methods. Refer to "Creating An Invoice" for additional information on creating an invoice.

Note: If creating an invoice from the Create Invoice link, select the "Progress, Itemized" invoicing policy in the Create Invoice - Select Job to Invoice page.

In the New Invoice page, Scroll down to the Invoice Items section of the page.

If there are no line items in the Invoice Items list, click the Fill Items link and select Progress, Itemized in the popup list. Job Manager generates three line items to invoice all order items associated with the job and adds additional line items for the balance of the deposit.

Select one of the three line items added to the invoice items list and click Delete ( ). The selected line item will be removed from the Invoice Items list. Note that each of the two remaining invoice items are invoiced for their total price.

Select the deposit balance line item and modify the Qty cell to display 0.40. Only 40% of the customer deposit will be credited to the current invoice.

Scroll down to the Job Billing Summary section of the page. This will show the summary information for the invoices associated with the job.

The total amount to be received from the customer (2966.40) for this invoice equals the total price of the billed order items in this invoice (8640.00 - not shown) less the portion of the deposit balanced by the current invoice (-5673.60).

Job Manager assumes that your company will eventually return the full amount of the deposit to the customer, and bill for all ordered items. Job Manager calculates the amount that remains to be invoiced (6489.60) as the sum of any unbilled ordered items (15000), minus the remaining uncredited deposit to be returned to the customer (8510.40).

Click Add ( ) to save the invoice in the database.

Open the job you are invoicing in the Job Entry & Edit window and note that the order items that have been invoiced are shown in blue color. The column "Invoiced" contains the billed amount for each order item invoiced.

Within the days of the invoice creation, you normally will post it to the general ledger, print and send it to the customer.

The final bill is to be issued after the production is complete and the job is closed.

Creating the final (type "Complete") invoice that will compensate the deposit in total and bill the remaining order item

Close the job in the Job details page of the Job Manager web client. The "Complete" invoice may be issued only for a closed job. For details on how to close a job, refer to "Closing Jobs" on page 271.
Create a new invoice for the job discussed above. This can be done by selecting the Create Invoices link in the invoices tab, selecting New Invoice when viewing Job Details, or by other methods. Refer to "Creating An Invoice" for additional information on creating an invoice.

Note: If creating an invoice from the Create Invoice link, select the "Complete (Final)" invoicing policy in the Create Invoice - Select Job to Invoice page.

In the New Invoice page, set the invoice type to Complete if it is not already set.
In the New Invoice page, scroll down to the Invoice Items section of the page.

If there are no line items in the Invoice Items list, click the Fill Items link and select Complete (Final) in the popup list. Two line items will appear to invoice the total price of the remaining order item and the part of the deposit left uncompensated.

Scroll down to the Job Billing Summary section of the page. This will show the summary information on the invoices associated with the job. The remaining amount of the deposit is compensated by the current invoice.

A zero value in the Remains to Invoice/Issue Credit row suggests that no further invoicing of the job is required

Click Add ( ) to save the invoice in the database. After the final invoice has been saved, the job status is set to "Billed", and the job cannot be modified.