Editing an Invoice to Prorate Adjustments

Use this procedure to setup a contract to allow prorating of billing adjustments made in Invoice Edit Contract (BR20.x) against the transaction level activities that make up the Invoice Edit Contract (BR20.x) adjustment line.

The setup for prorating will also allow the user to see the prorating of adjustments at the detailed level so the user can determine if adjustments allocated as expected at activity or other levels. Tax is also prorated and can be viewed at the detail level after an invoice adjustment if tax is involved. Prorating of adjustments is driven by the flag set in Contract Parameters (BR10.1).

If the Contract is set to Pro-Rate, when invoices are viewed on any of the BR20 screens, the pro-rated invoice adjustment table will be used to determine the level an adjustment was done at, and the amount involved. Calculations will then be done real time to disburse the adjustment amount in proper proportions to each of the detail lines viewed, for invoice and revenue amounts, but not tax or billing amounts for ceilings. If the preview feature in BR20 is used, or if BR121 is run in a non update mode, the pro-rating of billing amounts will also be done for the types of invoice lines pro rating is done against, and in addition tax will be calculated so they can display properly on the "sample" invoice. Pro-rated adjustments will use the same Company/Accounting Unit/Account and Activity/Account Category as the lines they are prorated to.

If the contract is not set to Pro-Rate, the adjustments would just roll up to the proper level in BR20 for viewing as they currently do. Some adjustments may display all by themselves.

Note: Pro rated adjustments will not be allowed against Invoices related to Milestone billing.

To prorate invoice billing adjustments

  1. Access Contract Parameters (BR10.1).
  2. Type or select the Contract and select the inquire form action.
  3. Select the Adjustments tab.

    Use the following guidelines to enter field values:

    Activity

    Type or select the default activity to use on invoice edit transactions. This value can be overridden on the invoice edit forms. If no activity is entered, the adjustment will use the same activity as the line they are prorated to.

    Account Category

    Type or select the default account category to use on invoice edit transactions. This value can be overridden on the invoice edit forms. If no account category is entered, the adjustment will use the same account category as the line they are prorated to.

    Company

    Type or select the default company to use on invoice edit transactions. This value can be overridden on the invoice edit forms. If no company is entered, the adjustment will use the same company as the line they are prorated to.

    Accounting Unit

    Type or select the default accounting unit to use on invoice edit transactions. This value can be overridden on the invoice edit forms. If no accounting unit is entered, the adjustment will use the same accounting unit as the line they are prorated to.

    Method

    Select the option Prorate (1). (default)

    Note: When you select prorate, then you must select an option for the Account Unit field.
    Revenue Account Unit

    Select from the following options:

    • Activity Company Acct Unit (A)

    • Trans Company Acct (T) (default)

    Revenue Transaction Detail

    Select whether individual transactions can be summarized along with other like transactions. The default is No.

  4. Select the Change form action to accept changes.

Follow-up Tasks

  • When adjustments are viewed or added on the BR20 screens a message will appear that lets the user know there are prorated adjustments and will show the new invoice amounts including the prorated adjustment amount.

  • Run Invoice print and Interface (BR121) in non-update mode to view the prorating. Run in update to process the invoice with adjustments.

  • Use Invoice Adjustment Maintenance (BR49.1) to view invoices with prorated adjustments or to deleted adjustments.