| To use invoicing |  |
| If the status of the project and the budget are at least Actual, you can choose the appropriate sessions in Project Invoicing to invoice the costs. Project supports the following invoice types: Installment You can use time-phased installments to invoice contracts. If you use this method your invoice-to business partner must be of the Installment type as well. These installments are partial invoice amounts that are sent to a business partner on completion of an element, a milestone or an activity. You can assign points, percentages or a fixed amount, which represent the installment part of the contract amount to be due. Progress Invoicing Invoicing of this type is installment invoicing based on the project's progress. Each installment amount reflects the progress. The contract amount is fixed. If 30% of the project is complete at the first installment, you send an invoice for 30% of the contract amount to the customer. Record progress and costs in the Project Progress module. The Project Invoicing module allows you to create invoices based on the progress or costs that you record in the Project Progress module. Cost Plus In cost-plus invoicing there is no fixed-contract price. You base invoicing on the actual costs plus a mark up of the project. This means you invoice the business partner as you incur the costs of the project. You release these cost-plus transactions to Central Invoicing. In the Sales Invoicing module you confirm, compose, print and then post the invoices to the customer. Unit Rate The elements and activities progress and the sales prices per element unit or activity unit determine the invoice amount. You invoice when you complete a unit or a specified number of units. Derive the invoice amount by multiplying the sales price by the progress of the elements. The total amount to be invoiced is variable. Release the unit-rate data to Central Invoicing. In the Sales Invoicing module you confirm, compose, print and then send the invoices to the customer. Extension An extension is a change in the scope of a project that falls outside the initial contract with the business partner. The extension amounts can be separately invoiced to the customer. It is linked to a budget line of a cost object. If the costs exceed the budget for example, the extension will be invoiced. This depends on the type of extension you use: fluctuation settlement You can choose between a material fluctuation settlement or a price fluctuation settlement. provisional amount quantities-to-be-settled scope change There are three possible scope changes: Fixed Amount Budgeted Costs Actual Costs Advance payments Advances can be made on all of the invoice methods. If several project customers are involved, the advance must be linked to one of them. You cannot use advance payment requests for holdback. You can link an advance to an element or activity. If the invoice method of a project is Installment, you can also link the advance to an installment. You can use this installment to settle the advance. If the advance is not linked to an installment, you can settle the advance in the next invoice. To maintain an advance, you must select a revenue code that is recorded in the Standard Revenues (tppdm0515m000) session. The advance invoice line is posted to the Revenues (tpppc3501m000) session with the revenue code that you selected in the Advance Payment Requests (tppin4510m000) session. Holdback The customer pays the holdback amount after the project activities have been satisfactorily performed. Holdback can be used with every invoice method. You cannot use holdback for advance payment requests. The Holdback (tppin4140s000) session maintains and releases holdback amounts for invoicing. Print holdback records with the Print Holdback (tppin4440m000) session. Defining revenue codes Define the revenue codes for a project in the Project - Revenues (tppdm6515m000) session and for the extension in the Standard Revenues (tppdm0515m000) session. You can specify a revenue code on one of three levels: Cost Object Cost Type General For the invoice method Cost Plus and Unit Rate you are advised to enter a revenue code on one of the levels, allocate the revenues to revenue codes in either of these sessions: Assign to Revenue Codes (tppin0810m000) Assign Standard Elements to Revenue Codes (tppin0120m000) via the Assign Elements and Activities to Revenue Codes (tppin0820m000) overview session. If no revenue code exists for a cost object, you can define the revenue code for cost object, activity, and element by using: The cost type in the Assign Cost Types to Revenue Codes (tppin0110m000) session. The general revenue code in the Assign Cost Types to Revenue Codes (tppin0110m000) session. Revenue codes and extensions If an extension has a Budgeted Costs invoice method or an Actual Costs invoice method in the Project Extensions (tpptc0510m000) session, ERP LN allocates the revenue to the appropriate revenue code in the Assign Elements and Activities to Revenue Codes (tppin0820m000) session. If you select Contract Amount as an invoice method, ERP LN retrieves one of the following revenue codes: The revenue code linked to an empty item in the Settled Advance Lines (tppin0111s000) session. The revenue code linked to the item's cost type. The general revenue code. Process to Central Invoicing Project Invoicing collects invoice data and transfers it with the Transfer Project Data to Central Invoicing (tppin4200m000) session to Sales Invoicing for final editing and printing. Project Invoicing customizes invoice addresses, invoice layout, net amounts and/or gross amounts, and prints document numbers. Provisions are also made for holdbacks. After you transfer the invoice details to Sales Invoicing, you modify, finalize, and print the invoices. Finally, ERP LN sends the invoice revenues to the Project Revenue in Project Progress and to Financials. When you post an invoice, Sales Invoicing sends its status to Project Invoicing. Related topics To use advance payment requests To use installment invoicing To use progress invoicing To use holdback |