Using cost plus invoicing

You can maintain and control the invoicing of cost plus projects and extensions in Project. Invoicing amounts are based on the actual costs plus a markup, or the sales price/rate for the product or the service extended to the customer.

LN displays the billing amounts and quantities, based on the effort spent, on the contract lines of type Cost Reimbursement and Time & Materials. You can create a business partner's invoice only when you incur the actual costs.

Cost plus invoicing process:

  • Start with the Contracts (tpctm1100m000) and Contract Lines (tpctm1110m000) sessions. The Agreement Type field must be either Cost Reimbursement or Time and Materials and the Invoice Type field must have the value Cost Plus.
  • Define a project that is linked to the relevant contract line.
  • Register costs on the project. LN then registers the costs on the contract line.
  • Assign the revenue codes in the Assign to Revenue Codes (tppin0810m000) session.
  • Record the actual costs in the Costs (tpppc2811m000) session. The options are:
    • By element/ activity
    • By cost type
    • By control code
    • By cost object: If you define an element with the Element (tpptc1100s000) session or an activity with the Activities (tppss2100m000) session, use the Cost Control check box to indicate whether you want to record project costs for the element or activity. If this check box is cleared, Project aggregates the element costs to the parent element.
  • Confirm the costs in the Approve Costs (tpppc4811m000) session.
  • Process the transactions in the Process Transactions (tpppc4802m000) session. Using this session you post the confirmed costs to the project history and Financials. Note: This is relevant only for costs registered for a Project. LN approves and processes the costs that are not part of the Project.
  • Set the transactions To Be Invoiced using the Cost-Plus Transactions to be Invoiced (tppin4810m000) session.
  • Process the transactions to Invoicing using the Transfer Transactions to Invoicing (tppin4200m000) session.

In Invoicing, complete the following tasks:

The associated revenues are defaulted to Project Progress for transaction processing.