In this project type the billing will be based on the progress of the project. Create a project with the project group of fee type “Progress” and when the user opens the new fee management form, the line with fee type “Progress” will get automatically created and a billing rule will be automatically created on project contract with the Fee budget amount as zero. Once the user updates “Fee budget” then a corresponding fee forecast line will be automatically created on fee forecast form and billing rule will be updated with the contract value amount.
Note – 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 Fee type
Fee management tab is added on the Projects form to manage the functionality for projects along with subprojects.
Go to Project management and accounting > Projects > All projects > Fee management
Fee management form
Fee management tab is available to define contract value for the projects which is used for forecast and billing. Once the contract value is entered, a fee forecast is created automatically and also contract value on the billing is updated with the entered contract value.
When Rollup totals by parent project parameter is marked, Parent projects that contains sub-project will be displayed with bold text, and they will be non-editable. All the values will be rolled up and displayed on the parent projects.
Customer advance is added to fee management form, enabling users to request and track customer advances from fee management form itself. Also, a new column ‘Customer advance’ is added on the fee management allowing to track the customer advances received so far.
Project statement is added to fee management form, enabling users to view the project progress details.
Go to Project management and accounting > Projects > All projects > Fee management
Details of the fields available on the Fee management form are as follows –
|Project ID||Defaults from the selected project.|
|Project name||Defaults Project name.|
|Fee type||Defaults from the attached project group.|
|Sales currency||Defaults from the project.|
|Contract value||Editable field if contract management is not turned on. Used to enter the contract value for the selected projects. This field will be disabled for projects with fee type as ‘None’.|
|Contract hours||Editable field if contract management is not turned on. Used to enter the contract hours for the selected projects. This field will be disabled for projects with fee type as ‘None’.|
|Progress%||This field will be editable for projects with fee type as ‘Progress’. This field is used to update the percentage complete value for project and based on this value the invoice proposals can be created.|
|WIP||Shows the work in progress value for the selected project.|
|Invoice proposal||Show the amount for which there is an open invoice proposal exist in the system for the selected project.|
|Invoiced||Show the amount for which there is an invoices posted for the selected projects.|
|Customer advance||Show the customer advanced recevied.|
|Revenue||Show the revenue generated so far for the selected project.|
|Actual hours||Shows the actual transactions/hours posted for the selected project.|
|Completed%||Show the actual % completed for the selected projects based on what’s already billed and work in progress.|
|Remaining revenue||This field shows the remaining revenue for the selected project. This is calculated by revenue from contract value.|
|Reimbursable expenses||Once this field is marked as yes, it will create a separate T&M billing rule on the project contract allowing us to bill the expenses as well for the project.|
|Admin fee %||This field shows the admin fee % from the billing rules.|
When the user defines Fee budget on the Fee management form, automatically fee forecast line with defined Fee budget amount will get created on fee forecast form. Users will be restricted to update or delete this forecast lines if ‘Activate contract management’ parameter is marked on the projects360 parameters form and contract agreement references are updated on the forecast lines on the general tab.
Go to Project management and accounting > Projects > All projects > Fee forecast
Billing rules on Project contract
When the user defines Fee budget on the Fee management form, automatically billing rules will be updated with defined contract value amount on project contract form. Project field will be hidden on the billing rules.
Go to Project management and accounting > Projects > Project contracts
Project invoice proposals
User defines the % Progress completed for the project on the fee management form, where system will automatically calculate the amount to be billed at the current state of the project. Also each update of the % progress can be captured and viewed for future reference.
Based on the progress % update, the process will calculate the amount to be billed and create fee journal at the time creating an invoice proposal. Look at the scenario below to understand how the process calculates the amount for fee journal creation.
Contract value of a project = 10,000
% Progress updated (first attempt) = 10%
Fee journal while IP creation = 1,000
Invoice created and posted = 1,000
% Progress updated (second attempt) = 35%
Fee journal while IP creation = 2,500 (35% – 10% = 25%)
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 the rest of the fields are auto calculated to reflect the right values. Once you sure of the adjustment values, you can update the reason description and 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.
Work breakdown structure
Work breakdown structure has been added on fee management allowing us to facilitate the setting up WBS information while setting up the budgets and contract information.