Update Cash Basis Bills

Cash basis projects are those that cannot be billed to a customer until payment has been made to subcontractors and suppliers.  The system applies the following rules for cash basis billing:

• Cash basis is only considered for transactions that are posted through Accounts Payable.  

• Labor is always considered paid when posted.  

• Transactions posted to a project using journals other than Accounts Payable are not considered during this process because payment cannot be evaluated.

Use cash basis on a project when you are issuing Government Form 1443 for a large business, or any time that you are required to make payment to subcontractors and suppliers before you can bill your customer.

The accounts that are treated as cash basis on a company-wide basis are the accounts that are identified in the Maintain Billing Accounts screen.  Any accounts listed in this screen will be treated as cash basis for any projects that bill on a cash basis.  No account will automatically be treated as a cash basis account.

If you have an account that can be billed as a cash basis account on one project and not as a cash basis on another, then it should not be listed in the Maintain Billing Accounts screen.  Accounts such as these should be listed individually in the Cash Basis subtask of the Project Billing Information screen (Projects\Maintain\Billing). Only non-labor accounts can be evaluated for cash basis.

Warning: Do not list accounts in both the Billing Accounts screen and the Cash Basis subtask of the Project Billing Information screen (Projects\Maintain\Billing). Use the Maintain Billing Accounts screen only if you know that the account should be a cash basis account on a company-wide basis.

When this process is executed, the application will compare the Transaction Amount in the Open Billing Detail screen to the PAID_AMT column in the VEND_CHK_VCHR table to determine whether payment has been made for the transaction.  The system will evaluate transactions as follows:

• If no payment has been made, the application will populate the Cash Basis Amount field with zero.  

• If payment has been made, the application will insert the total payment amount to the Cash Basis Amount field and the check number, check date, and check amount into the Cash Basis subtask of the Open Billing Detail screen (Projects\Maintain\Billing).  

Only projects that have been set up as cash basis projects will be evaluated. The Calculate Bills process (Projects\Process\Billing) will use amounts from the Cash Basis Amount field only when calculating the invoices for cash basis projects.  

You can select cash basis for your project in the Project Billing Information screen (Projects\Maintain\Billing). If you select the Bill Cost Incurred on a Cash Basis checkbox in the Project Billing Information screen, then the project will be considered a cash basis project.  If you do not select this screen, all transactions will be billed as usual.

Partial payments made on Accounts Payable will be included in the Cash Basis Amount field the next time the Update Cash Basis Bills process (Projects\Process\Billing) is executed.  The system includes the remaining amount of the voucher when it is paid.  The Amount Prev Billed field will be subtracted from the Cash Basis Amount field so the Amount to Bill field will reflect only the amount that has not been previously billed.

If you wish to change the status of your cash basis project to one that can be billed when transactions are posted, you must uncheck the Bill Cost Incurred on Cash Basis checkboxin the Project Billing Information screen (Projects\Maintain\Billing).  Once you have unchecked this checkbox, the Calculate Bills program (Projects\Process\Billing) will use the Transaction Amount field in the Open Billing Detail screen (Projects\Maintain\Billing) to calculate the billings instead of the Cash Basis Amount.  You will no longer need to use the Update Cash Basis Bills screen (Projects\Process\Billing).

Use the following steps to calculate cash basis billings:

• Set up the accounts that should be evaluated  for cash basis in the Maintain Billing Accounts screen.

• Select the Bill Costs Incurred on a Cash Basis field in the Project Billing Information screen (Projects\Maintain\Billing).

• Run the Update Cash Basis Bills process after all transactions have been posted and checks printed for the period.

• Run the Calculate Bills screen (Projects\Process\Billing).

Enter, or use Query to select, a parameter ID of up to 15 alphanumeric characters.  You should choose characters for your parameter ID that help identify the type of selections you made in the screen, such as “PERIOD” or “QUARTERLY.”  

When you save your record, all the selections made in the screen are stored with the parameter ID. Later, you can retrieve the parameter using Query.

You can use the parameter to produce reports and run processes more efficiently because you can select the parameter ID with its previously defined screen selections.  Once the default selections display in the screen, you can override the defaults as necessary.

Enter, or use Query to select, a parameter description of up to 30 alphanumeric characters.

This field always displays "One" because you can update for only one accounting period at a time.

Enter, or use Lookup to select, the fiscal year to update.

 Enter, or use Lookup to select, the period to update.

Enter, or use Lookup to select, the subperiod to update.

Once you have made your selections, this field displays the ending date for the selected subperiod.