How to handle?: Not invoiced time and expenses vs. Invoice status completed

[Former Member]

We have some Trouble with the following Scenario:

• Sales order with one item (Service fixed Price (Project))
• Item will be invoiced asap
• Project with a structure will becreated
• Employees maintain time and expenses for this Project

Result: We have a bunch of "not invoiced time and expenses" and we are not able to assign them to the regarding line item from the sales order(because the invoice Status is completed).

So the user get lost in this view and are not able to get an overview about the Projects which should be invoiced. Every month there are more entries in the view.

Andy ideas how to handle this?

Best Regards

Andreas

[former_member186555]

HI Andreas,

In order to better understand you issue, could you please answer the following questions.

• How many invoices are there?
• Is it only the one invoice in the beginning?
• How long do the projects run?

A few comments:

• You can change the fulfilment and invoicing status of the sales order in WoC Customer Invoicing > Project Invoicing > Sales Orders
• But once you have assigned the time recordings, e.g. to the respective SO items, the only difference would be that you now see "Time and Expenses Not Invoiced" instead of "Time and Expenses Not Assigned".
• Since the system currently does not determine the revenue contribution of individual times/expenese in the fixed price case, there is no way to consider them for reducing the "open pre-invoiced" amount.
• This would then probably lead us to a discussion on what teh revenue contribution of individual recordings is and how to consider the pre-invoicing use case. Correct?

Best regards

  Otfried

[Former Member]

Hi Otfried,

thank you for your fast reply and please excuse my late answer.

To answer your question:

Our customer has two "critical" Scenarios:

1. After creation of the sales order the invoice (fixed Price) will be created asap (on the same day). The System changes the invoice status to "completed". But they deliver their Services the next 6-12 month.

2. They have also a monthly invoicing (also fixed Price). For example the customer has a contract for "Managed Services" whichs runs about 12 month.

In both scenarios they have the same effect. After the invoicing is completed, the status  of the sales order line item Switches to "invoiced" and they are not able to assign the time and expenses.

Yes I know that I can change the invoice Status. But is this the right way?

Thanks in Advance

Andreas

[lokesh2]

Hi Andreas,

With the item type : Service - fixed price (project) then any way system will consider @ the fixed price model but in case the item type is time and material (project) then you will tell the system what amount of project of time & material is involved for the project.

When the project invoice is completed then do you still see Invoice Preparation: Not Invoiced Time and Expenses ? I assume it as no

Then when the Customer Project Expense List also posted, based on your accrual method anyway you can still hold under Deferred Items by choosing the Accrual Method that supports to defer the amount and can recognize it only when the service is delivered, so that Service Confirmation will not recognize revenue straight away when you post the invoice in the beginning.

Thanks

Lokesh Sharma

[Former Member]

Dear Lokesh,

I really appreciate your support.

Please let me clarify the Problem:

As explained before our customer invoices the projects very early and complete (fixed price). Then they "deliver" and the employees record their work time. Because of that our customer have a lot of "not invoiced time and expenses" in the WoC Project Management View "Not Invoiced Time and Expenses". Every month they get more entries and the accountant lost the overview.

So the question is: Is it possible to get rid of theses entries?

As stated, the Project is invoiced completely and so the entries will resist until the projekt will be closed.

Best Regards

Andreas

[frank_jahnigen]

Hi Andreas,

For customer projects with sales integration it is necessary to have an open SO-Item to assign expenses to. As mentioned before - the invoicing status would have to be revoked under 'Customer Invoicing / Project Invoicing: Sales Orders'. This would be the 'cleanest' way in our opinion.

Another possible workaround could involve the creation of an additional sales-order item, e.g. 1 EUR - and without invoice schedule. This would facilitate an assignment after the leading item is closed.

Without scheduling project invoice requests and by creation of manual project invoice requests the situation could also be mitigated.

It would be interesting to know whether Revenue Recognition is scoped in this scenario, since failure to assign subsequent expenses would possibly mean they cannot be realized.

Best Regards,

Frank