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.