In this project type billing will be based on the milestones completed for the project. This feature allows professional services firms to automate and determine the accurate completion of the project.
User will create new project with the project group of fee type ‘Fixed fee’ and when the user opens the fee management form, the line with fee type ‘Fixed fee’ will get created and also a billing rule will be created on project contract with the contact value amount as zero automatically. Once the user updates “contract value” then a corresponding fee forecast line will get automatically created on fee forecast form and billing rule will billing rule on project contract will be updated.
Note that if the contract management is feature is active then contract value field will disabled and contract values will come from contract management form once the agreements are approved. Refer contract management feature for more details.
Project and Milestone allocation
A button ‘Milestone allocation’ is provided on the fee management form to create schedule milestones with different project date.
|Contract value amount||Displays the total fee budget amount.|
|Total instalment amount||Displays the total fee installment created as milestones in the allocation section.|
|Add||Allows us to add the new allocation line.|
|Delete||allows us to delete the allocation line.|
|Date||Allows to enter the date for milestone or allocation.|
|Description||Allows to enter the description for the milestone.|
|Amount||Allows to enter the agreed milestone amount on the specified date.|
|Completed||Allows to complete the selected milestone. Once this is marked as complete, invoice proposal can be created for that amount.|
When the user defines contract value on the fee management form, automatically fee forecast line with defined contract value amount will get created on fee forecast form.
Go to Project management and accounting > Projects > All projects > Fee forecast
Billing rules on Project contract
When the user defines contract value on the fee management form, billing rule line with defined contract value amount will get updated on project contract form.
Go to Project management and accounting > Projects > Project contracts
Project invoice proposals
Once the user completes the milestones, fee journal is created automatically behind the scenes and will be available for billing. Once we create a invoice proposal, fee journal will come into that for the billing purpose.
Go to Project management and accounting > Projects > Project invoice proposal
Go to Project management and accounting > All Projects > Fee Management Tab -> Fee management button -> Create invoice proposal Button
Revenue adjustments capabilities has been built on top fee management allowing us to adjust the accrued revenue getting the correct total revenue as well as WIP and % complete at given point of time. There could be scenarios where the actual work completed is more or less than then what’s been already billed to the client, in this case you can use the revenue adjustment capabilities bring back the project values to what’s expected.
There are two type of the adjustments namely – percentage complete adjustment and NTE adjustment each catering to different fee types. Percentage complete adjustment is applicable to the projects with the fee type of progress or fixed fee where NTE adjustment is applicable to projects with the fee type of time and expense NTE.
Go to Project management and accounting > All Projects > Fee management -> Percentage complete adjustment
Once user select progress fee type project, Percentage complete adjustment button is enabled allowing users to perform revenue adjustment.
While performing the adjustments, there are 3 different methods to adjust the project values.
- From total revenue – In this case an adjustment record is created considering the total revenue earned vs total contract value of the project as on the day of adjustment. A record is created on the revenue adjustments form.
- From Invoice revenue – In this case an adjustment record is created considering the posted revenue vs the total contract of the project as on the day of adjustment. A record is created on the revenue adjustments form.
- From total hours – In this case an adjustment record is created considering the posted hours vs the hour budget the project as on the day of adjustment. A record is created on the revenue adjustments form.
Once an adjustment record is created, user the update the ‘Adjustment amount’ and ‘Adjusted % completed’ to adjust the project balances. On the update previously mentioned fields and the rest of the fields are auto calculated to reflect the right values. Once you sure of the adjustment values, you can post the revenue adjustments using button provided at the menu.
On posting a fee journal is created in system. The fee journal uses the category define on projects360 parameters.
Once the revenue adjustments are posted and complete, you can see the right values updated on the fee management based on the adjustment.