Invoice layout for cumulative contract billing

A Cumulative Contract Billing Invoice layout is used for progress-based billing in long-term contracts. Cumulative billing enables contractors and service providers to issue invoices that reflect the total value of work completed to date, rather than invoicing only for the current-period activities. Installments and holdbacks are invoiced in the same sequence as the application for payment. The invoice format improves billing transparency and reduces manual reconciliation effort. The sequence must be maintained, until the first Invoice is invoiced completely, the second invoice cannot be invoiced.
Note: The existing invoicing composition criteria take precedence over AFP‑based invoicing.

An invoice is created for the application for payment submitted by the customer after the details are reviewed and certified. As a result, the current AFP is closed and a new AFP is created for the remaining progress.

If the Application for Payment-Based Invoicing check box is selected in the Invoicing Method for the contract line, the Status of the AFP is updated to Ready for Invoicing after the installment is created for the AFP. At the same time, a new AFP is created for the next progress. The next AFP can be processed up to the Certified status.

When the Application for Payment-based Invoicing check box is selected in the Invoicing Method(tcmcs0155s000):

  • The installments and holdbacks linked to the AFP can be transferred and printed using the Print Application for Payment Invoice (tppin6230m000) session. AFPs are selected based on the selection criteria and the Ready for Invoicing status. The installments and holdbacks are invoiced together in sequence.
  • The invoice created for the installments and holdbacks cannot be modified.

Invoicing process

Invoicing is initiated from an AFP. All billable lines of an AFP are transferred to invoicing. In this process, all related billable lines are composed and printed. The previous AFP for a contract line must be invoiced before initiating the next AFP, preventing sequencing issues.

Invoices are composed based on the AFP number, which is maintained as a composing reference in the Billable Lines (cisli8110m000) session. For the AFP based invoicing, an invoice can be created with a layout of the type Cumulative Contract Billing in the Invoicing Layouts (cisli1150m000) session. The composing reference number displays the company and AFP number, based on which all the installments and holdbacks are grouped.

The application evaluates the associated Invoicing Method when a billable line is generated. If the method indicates that the line is linked to Application for Payment (AFP) processing, the corresponding AFP Number is maintained in the Composing Reference field in the in the Billable Lines (cisli8110m000) session. As a result, multiple billable lines sharing the same AFP number is grouped into a single consolidated invoice.