Before you create an invoice, or if you;re having trouble raising an invoice with all the right info, make sure the below steps are done first!
Use the project work breakdown tab to check that the project fee total is correct. The items to confirm are different for each project type.
- Simple project type - check that the project fee is correct.
- Full work breakdown project type - Check that each stage has the following details entered correctly:
- Tax rate - Is the invoice to be including or excluding tax value.
- Fee type and agreed fees - Check that the invoicing method selected is correct. The fee types of 'fixed fee', 'percent of project', 'hourly rates', and 'capped rates' allow invoicing to be completed for the stage. The details required are different for each fee type and are outlined in the list below.
- Edit the fee details if required for either the simple project fee, or the stage fee type and agreed fee. These details need to be entered correctly before you begin invoicing.
Tip: Learn more about using the project work breakdown.
Fee types and fees overview
Below is a summary of the details required to be entered against each stage which vary for each fee type.
- Fixed fee - check the 'fee' has been entered correctly against the stage.
- Percent of project - check that the stage has the 'total contract value' and the 'contract claim %' completed. These fields will calculate the 'fee' for the stage.
- Hourly rates - The work breakdown shows the 'fee' for hourly rates stages to be the sum of the 'invoiced transaction values' to date, plus the sum of any WIP transactions based on their chargeable value which have been allocated to the stage. Chargeable value for staff timesheets is the timesheet hours x the hourly rate value. For expenses this is the entered expense value, plus any applied markups from the selected expense type rates.
- Capped rates - check that the 'cap value' has been entered. This is the maximum value that can be invoiced for the stage, based of the transaction values of the timesheets and expenses allocated to this stage. This is similar to hourly rates type, however it invoices the transaction values up to a set capped value.
- Stages with the fee type of 'no billing' cannot be included on an invoice.
- Learn more about the stage fee types.
Before you can create an invoice for a project the status must be either 'active' or 'pending invoice'. Update the status to allow invoicing by:
- Open the project.
- Change the status on the details page by selecting the edit button next to the current status.
- In the status change modal the steps are different for the two project types.
- Simple project - update the project status to 'active' to allow invoicing.
- Full work breakdown project - update the project status to 'active', and the stage status to 'active' that you want to create the invoice for.
- Save and close
Tip: Learn more about the project status options.
In the project contacts tab a list of the external parties in the project team is created. Before you can create an invoice an 'invoice contact' must be defined. Additional contacts can be defined as the primary contact, or the C/O invoicing contact if required.
Assign the invoice contact by:
- Open the project contacts tab.
- Click the 'add contact' button in the top right corner.
- Select the 'contact' from the list (company or individual contact type). This is the client that you want to send the invoice to.
- Select the 'personnel' from the list. This is the person that you want to appear in the 'attention to' field on the invoice.
- Select the 'role' e.g. Client.
- Check the box for 'is invoice contact'.
- Set the 'portal access' to the full option if you want to share the invoice document with the client to the project portal.
- Make sure that the invoice contact has a valid postal address, or email address which the invoice document can be sent to.
- Learn more about using the project contacts tab.
Use the project transactions tab to check that all the required items have been entered in the staff timesheets and any required expenses.
Complete the following steps:
- Go to project > transactions tab.
- Click the 'search' button to open the filters panel.
- Click the filter 'all status types' and choose the 'WIP' option, and then click the 'search' button.
- (Optional) Sort the WIP transactions shown by clicking on any of the column heading. e.g. Click on description to see all the transactions entered by a staff member grouped together.
- Check that the staff timesheets any staff cash or travel expenses have been entered.
- Check that any required office item expenses have been entered and disbursed against this project.
- Remind your staff to enter any missing timesheets or expenses (if required).
Tip: Learn more about the project transactions tab.
After checking all the required WIP transactions have been entered against the project for the month, the next step is to decide what can be invoiced to the client. On the project transactions tab review the items to be included on the invoice and choose if you need to use either:
- WIP transfer - Use this when the transactions have been entered against the wrong project, or stage. Move the transactions the correct location with WIP transfer, which lets you bulk select transactions and move them to a different project, or a different stage in the current project.
- WIP write-off - Use this option when the transactions listed cannot be invoiced to the client, and should not be shown on the invoice table that lists out all the transactions which is sent to the client. Project manager access level and above can write off the WIP that cannot be invoiced.
- If too many hours were entered against a stage consider if you can create a new stage to be a 'variation'. You can use WIP transfer to move the additional staff hours to the newly created stage.
- Learn more about using these options available in the project transactions tab.