What is an Invoice with Prorated Adjustments?

Invoices can have prorated adjustments when you edit either by contract, line items (summarization), activity, or activity and account category. If the contract you are viewing is set to prorate, invoice adjustments you enter will be prorated. The Contract Parameter (BR10.1) flag for defining prorating is on the Adjustment tab as the method selected. You can also put all or a portion of the billing amount on hold. Tax can be also prorated and viewed at a detail level. Invoices with the status message "Prorated adjustments not updated" will need to have the update function performed before the adjustment is complete.

Example

The invoice (PRORATEINV) to be used as an example has five transactions that make it up. All are on Contract PRORATE.

On BR20.5, it looks like this prior to adjustments:


Contract	Activity	Account Cat	Billable Amount	Invoice Amount
PRORATE	SRMI1	LABOR	50	50
PRORATE	SRMI1	MATL	75	75
PRORATE	SRMI1	STUFF	100	100
PRORATE	SRMI1	STUFF	125	125
PRORATE	SRMI2	LABOR	150	150

On BR20.1, it looks like this prior to adjustments:


Contract	Billable Amount	Invoice Amount
PRORATE	500	500

Now the customer agrees to pay $650 for the invoice. An adjustment is entered for +$150 Now BR20.1 looks like this:


Contract	Billable Amount	Invoice Amount
PRORATE	500	650

Since the contract is pro-rated, the user can immediately view pro-rating of the invoice at lower levels.

BR20.3 (Activity Level) will look like this, with the adjustment amount proportionally disbursed:


Contract	Activity	Billable Amount	Invoice Amount
PRORATE	SRM1	350	455
PRORATE	SRM2	150	195

BR20.4 (Account Category Level) will look like this:


Contract	Activity	Account Cat	Billable Amount	Invoice Amount
PRORATE	SRM1	LABOR	50	65
PRORATE	SRM1	MATL	75	97.50
PRORATE	SRM1	STUFF	225	292.50
PRORATE	SRM2	LABOR	150	195

BR20.5 (Transaction Level) will look like this:


Contract	Activity	Account Cat	Billable Amount	Invoice Amount
PRORATE	SRM1	LABOR	50	65
PRORATE	SRM1	MATL	75	97.50
PRORATE	SRM1	STUFF	100	130
PRORATE	SRM1	STUFF	125	162.50
PRORATE	SRM2	LABOR	150	195

As an example of how pro-rating at revenue level will now work with incorporation of absolute values, let’s use an example of an invoice that contains the following amounts:


	Billing	Revenue
	200-	40-
	1000	500
	100	20
	75	0
Totals (Absolute Values)	1375	560

If you perform a $100 adjustment in BR20 against an invoice line made up of these records, the revenue amount would be calculated as-

Adjustment amount ($100) * (absolute value of Revenue Amount ($560)/absolute value of Billing Amounts ($1375)) = $40.73