Fixed Price Project with Milestone Billing and multiple Funding Sources scenario

Fixed Price Project Progress Billing scenario including:

  • Milestone Billing
  • Billing Rules
  • Multiple Funding sources with Allocation percentage
  • Credit note

Setup:

1.)    Create Project Contract with Multiple Funding Sources

Project management and accounting > Common > Projects > Project contracts.

Create a New project contract and fill in required fields (Contract number, Name, Funding type, Funding source, and Currency)

                        

 

In the project contracts form, under the Funding sources tab, you can add additional Funding Sources

 

 

In the Funding rules tab, click the Allocation button to define the percentages to be billed to the appropriate funding sources. In this scenario, we will split the allocation to 75% for one Funding source (customer) and 25% for the other Funding source (customer).

 

 

2.)    Create Project with Milestones

Project management and accounting > Common > Projects > All projects

Create a New project and fill in required fields (Project type, Project name, Project group, and Contract ID)

 

In the projects form (Manage tab), in the Bill group select “On-account transactions” to create the project Milestones.

Create an on-account transaction for each milestone.

 

3.)    Create Billing rules for project contract

Project management and accounting > Common > Projects > Project contracts.

Select “Billing rule” of the Project contract action pane to create billing rules for the contract.

Create New Billing rule and choose Line type of “Milestone”

In the details tab, add milestone transactions from Available items to Selected Items.

 

               

 

Invoicing:

1.)    Create an Invoice proposal for the on-account transactions for this project

Project management and accounting > Common > Projects > All projects

Select Project ID and click New Invoice proposal (Manage tab)

An Invoice proposal is created with the eligible Milestones available to be invoiced.  Mark\Unmark the Milestones that you want invoices created for.

 


Click OK button to create the Invoice Proposal

In this scenario, since we are using multiple Funding sources, an invoice proposal is created for both customers with their applicable allocation percent that was set on the funding rules for the contract.

                

 

You can select a proposal and click the Edit button to see the details of the Invoice proposal.

In this scenario, you can see that for this customer, an invoice was created for one customer for $3750, which is ($5000 transaction * 75%) as set up in the Funding Rules on the contract.  Another invoice was created for the other customer for $1250 ($5000 transaction * 25%)

The Invoice proposals can now be posted and the customer balances will be updated accordingly.

 

 

2.)    If an amount was incorrectly billed and you need to cancel a project invoice, functionality exists for creating credit notes for posted project invoices.  

Project management and accounting > Common > Project invoices > Project invoices

 

Select the posted invoice that you would like to cancel and click the “Select for credit note” button in the action pane.

            

Mark the Select box for the invoice and click OK button

When you create an invoice proposal for this project, the credit note that you created above will appear as a credit amount that can be included in the invoice proposal.