Describe project invoicing
Process project invoices
The project type that you choose depends on the purpose of the project. Six types of projects can be used in Project Operations: Time and Material, Fixed Price, Cost, Investment, Internal, and Time. In this section, you review the external project types that can be used for customer invoicing.
Time and material projects – The customer invoice amount based on transaction lines that are entered on projects. Transactions can be invoiced per project or per project contract.
Fixed-price projects – The customer invoice amount is based on invoice billing schedules. Invoicing is done through an on-account setup, which is also referred to as a billing schedule. Fixed-price projects can be invoiced per project or per project contract.
There are three ways to attach time and material projects and fixed-price projects to the invoice projects:
On-account invoicing – Time and material projects and fixed-price projects can be invoiced on account. Two types of on-account setup are required, one for each project type.
Invoicing in the periodic section – Through the periodic functions, transactions can be invoiced across projects. The periodic functions provide an overview of transactions that must be invoiced.
Using credit notes in invoicing – A credit note can be created for both time and material projects and fixed-price projects.
The following screenshot displays the project invoice.
Invoice proposals
Before you create a customer invoice for a project, you can create a preliminary invoice, or invoice proposal. In an invoice proposal, you can select project transactions to include in a project invoice. You can then review the invoice details before you post the project invoice and send it to the customer or other funding source.
Billing schedule
You can invoice fixed-price projects on a billing schedule. The billing schedule is defined in terms of one or more milestones for the project. For each milestone, you can define a specific date, sales currency, sales price, and activity.
For example, you can set up the following billing schedule:
Twenty percent when the project contract is signed
Thirty percent on first delivery
Fifteen percent on second delivery
Thirty-five percent on final delivery
Invoice control
You can use invoice control to track both invoiced and noninvoiced transactions, and to analyze those transactions against quotations for an end-to-end view of your projects from the quotation stage to completion. You can find which transactions have been charged to a specific project and which lines have been invoiced. You can also view individual transactions so that you can adjust them after they're posted.
Intercompany invoicing
Intercompany invoicing is also available. Your organization might use intercompany invoicing if it has multiple divisions, subsidiaries, and other legal entities that transfer products and services to each other for projects.
The following video provides more information about how to create an invoice in Project Operations.