| Description: |
Time & Expense project, and it’s not to exceed the contract and needs to have all the project reporting available.
Resolution:
- Add a phase to the project called
- For example: Credit to Contract Maximum.
- Set the billing type of the phase to Fixed Fee, and the status to Work Hold.
- Edit the invoice format to include both billing types, and to print the Fee Type section after Time & Expenses.
- Go to the draft invoice:
- Click on Edit
- Go to the Fixed Fee tab, where the new phase to be billed will be shown
- Record a negative Billing Amount to reduce the total invoice to match the amount remaining on the contract.
- Preview the invoice check.
- Once OK, print the invoice to Final
Note:
- The invoice will show all effort expended, and will then indicate a credit to match the contract. This way, the client knows the work was completed, but no charge was required for it, to honor the contract.
- The project reporting will show the correct Labor Spent amount, and a lesser Labor Billed amount.
- The financial statements will show the net revenue for the project in Professional Fees Billed, with no write-offs. (To see it as a write-off, make a journal entry crediting Professional Fees Billed and debiting Professional Fees Write-Off.)
- Alternatively, the Cap WIP At Contract setting can be used to automatically adjust the invoice or write off new WIP entries when the contract as been exceeded. Refer to the Learning Center for more information on this option.
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