To use 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.

To use cost plus invoicing:

Step 1. 

In the Contracts (tpctm1100m000) and Contract Lines (tpctm1110m000) sessions, ensure to do the following:

  • Set Contract Type to either Cost Reimbursement or Time & Materials,
  • Set Invoice Type to Cost-Plus.
  • Specify a project that is linked to the relevant contract line.
  • Register unit costs on the project. LN then registers the unit costs on the contract line.
Step 2. 

Assign the revenue codes in the Assign to Revenue Codes (tppin0810m000) session.

Step 3. 

Record the actual costs in the Cost Entry Overview (tpppc2811m000) session. The options are:

  • By element/ activity
  • By cost type
  • By control code
  • By cost object: If you define an element with the Elements (tpptc1100m000) session or an activity with the Activities (tppss2100m000) session, use the Cost Control check box to indicate whether you want to record project unit costs for the element or activity. If this check box is cleared, Project aggregates the element costs to the parent element.
Step 4. 

Confirm the unit costs in the Approve Costs (tpppc4811m000) session.

Step 5. 

Process the transactions in the Process Transactions (tpppc4802m000) session. Using this session you post the confirmed unit costs to the project history and Financials.

Note: This is relevant only for unit costs registered for a project. LN approves and processes the unit costs that are not part of the project.

Step 6. 

Set the transactions to To be Invoiced using the Cost-Plus Transactions to be Invoiced (tppin4810m000) session.

Step 7. 

Process the transactions to Invoicing using the Transfer Transactions to Invoicing (tppin4200m000) session.

In Invoicing:

  • Confirm future invoices.
  • Check invoice headers.
  • Compose, print, and post invoices to Accounts Receivable.

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

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