Invoicing Projects

Before you start

The process starts when these prerequisites are met:

• An invoicing activity is specified in the project.
• A payer is specified in 'Project. Connect Partners' (POS176).
• Parameters for invoicing are set in 'Settings - Project Invoicing' (CRS792).
• Invoice number series are specified in the order type used in 'Project Type. Open' (POS010).
• Invoice documents are connected to the project.

Follow these steps

1. Invoicing Preparation

   During the preparation, you decide the type of invoicing to use in the project.

   These are the available types:

   • Fixed Price Invoicing (with Final Invoicing)

     You can use fixed price invoicing for the whole project or for parts of the project. You can perform advance, partial, and final invoicing at the project level.

   • On Account Invoicing

     The supporting information for on account invoicing is created when outcome is generated or invoice lines are specified. Outcome is retrieved from the project elements flagged as input to on account invoicing. The invoice proposal is priced when the outcome is generated.

     The valid pricing alternatives for on account invoicing are pricing based on outcome and manual pricing in the invoice proposal.

   • Adjustment Invoicing

     You can adjust a fixed price after the final invoice is sent.

   • Pro Forma Invoicing

     Supporting information is created manually for pro forma invoicing, but does not affect project invoicing.

   • On Account Invoicing Based on Detailed Transactions

     You can invoice detailed transactions from Service Order and Time Accounting. The process is referred to as Service Projects. At the delivery of Service Order and the transfer of time reports to General Ledger, the detailed transactions are logged for on account invoicing.

     You can review and maintain the detailed transactions in 'Logged Transaction. Open' (POS488).

     Invoice lines for on account invoicing are generated from the logged transactions using the option Accumulate Details in 'Project Invoice. Open'.

     Once the invoice lines are created, the process in the same as valid for on account invoices.

   Only one type of invoicing is used for each invoicing activity. If different types of invoicing are used in the same project, you must specify a separate activity for each.

   You specify the amount to invoice in an invoice proposal. You can also change invoice line amounts generated for on account invoicing before invoicing.

   You can print invoice proposals upon creation. You can use the draft invoice printed for pro forma invoicing or to check the invoice. You can connect and monitor invoices. For more information, refer to Project Scheduling.

2. Locking Invoice Proposal

   You can lock the invoice proposal and set the status to Ready to invoice, before the invoice is printed. You cannot change the invoice proposal after locking. You can unlock the locked invoices before invoicing using the same alternative.

   If invoicing is performed directly in an invoicing activity, a separate step is not needed to lock the invoice proposal. In this case, the proposal is locked automatically when the invoice is printed.

3. Printing Invoice

   An invoice document must be connected to the project order so an invoice can be printed. The documents specified in the project order type are connected to the project when it is created.

   You can print invoices from the project's invoicing activity for each invoice at a time. You can print them from a menu so all locked invoices are printed at once.

   Either a credit or debit invoice is printed depending on whether the invoice total is negative or positive. The invoice is an internal invoice if the invoice amount is zero.

   'Project Invoice. Display' (POS350) shows the contents of each invoice and the account entries that are transferred to the general ledger.

   You can print invoice copies from a separate menu selection. If invoicing is stopped for any reason or is not finished, you can restart it from a menu selection.

   You can create a parallel invoice number for customer invoices. The rules for this are defined in 'Additional Payment Reference. Open' (CMS090). The only available 'Reference number type' is 1='Parallel invoice number'. The parallel invoice number is only added to the XML when an invoice document is created. The parallel invoice number is saved in the FSAPRN table together with the invoice number.

   After creating the invoice in 'Project Invoice. Print' (POS180), the invoice is updated in accounts receivable, displayed in 'Acc Receivable. Display' (ARS200), and an invoice document is printed.

   The parallel invoice number is displayed in 'Customer Invoice. Change' (ARS201).

4. Transfer to Accounts Receivable and General Ledger

   Account entries for invoicing are transferred to accounts receivable and the general ledger. In the invoicing parameters, you specify whether the transfer occurs when the invoice is printed or separately.

   If the payer is customer type 7 (internal customer), then accounts receivable is not updated. This applies even if the invoice amount is zero. All invoice lines and charges are included in calculating the invoice total.