About Progressive Billing
A progressive billing is a partial billing for regular customer orders that do not have taxes included in their price.
When progressive bills are generated at different exchange rates compared to regular (or consolidated) invoices, progressive bill amounts in domestic currency are adjusted to reflect the regular (or consolidated) invoice exchange rate. At the time of posting the regular (or consolidated) invoice, adjustment entries are created and posted to the progressive bill account and the currency gain/loss account. Prior to posting, the Invoice Transaction report displays these adjustment transactions.
If sales tax is calculated for progressive bills, sales tax amounts in domestic currency is also adjusted. These adjustment entries are posted to the sales tax account and the currency gain/loss account.
On the Progressive Billings form, the header provides summary information about the progressive billings for the line item and includes running totals of all invoicing and billings to date for the item. The body allows you to enter all of the progressive billing records associated with the item.
If you want to bill a customer using this method, you can generate one or more invoices prior to shipment.
The header summarizes the information about the Progressive Billings for a specific Customer Order. It maintains running totals of all invoicing and billings regarding the order at the present time.
When invoicing Progressive Billing records, follow the regular invoicing procedures. If you only want to print Progressive Billing Invoices, you can set the Invoice Type to Progressive Billing. (The default Invoice Type is Regular.) You can also invoice an individual order or a range of orders by specifying the order number in the order selection criteria fields.
The system invoices Progressive Billing records when each of the following conditions are true:
- Each record has an Automatic or Yes in its Invoice Flag field.
- The date entered in the Date field of each record precedes the system date.
- The orders to invoice fall within the range of orders on the Order Invoicing/Credit Memo form.
Progressive Billing Generation
You can create a progressive billing record in two ways. At the order header level, you can define the record based on a percentage of the total of all line items for an order. After defining the record, you can generate it.
At the customer order line/release level, you can set up multiple progressive billing records for each item. With this method, progressive billing records are created on an item-by-item basis. You can use this method to update or delete any progressive billing records previously generated, or you can add additional progressive billing records for the item.
On the Accounts Receivable Parameters form Miscellaneous Accounts tab, there is an account called Progressive Billing. This account records accounting transactions created when invoicing progressive billings.
If a Progressive invoice has been completely billed before shipping is completed, it will be necessary to print out a type I or regular invoice before the CO can be completed.
This method of generating a progressive billing record uses a flat percentage applied to an entire order. Thus, you can invoice a customer for a percentage of any combination of the line items (from 1 (one) to all) on an order.