Pre-Invoices

Use the Pre-Invoices feature to produce billing invoices that are "requests for payment," which are not recorded in the general ledger.

Enabling the Pre-Invoices Feature

To use this feature, turn it on in Settings > Billing > Options. In the company-specific section of the Options form, set the Use Pre-Invoices option to Yes.

Pre-Invoice Templates

Use the Invoice Template Editor to create a different invoice template for each of the following: pre-invoices, pre-invoice cancellations, and regular invoices (final or draft). The invoice template for each of these invoice types has a Pre-Invoice section, which lists the pre-invoices and identifies the fee amounts that have been paid, cancelled, and applied to a regular invoice.

Billing Terms

For each project that you plan to pre-invoice, you must update the project's billing terms to specify:

• The default pre-invoice and cancellation invoice template to use for the project.
• Pre-invoice notes that display in the Note column in the Pre-Invoice section of the invoice.
• A phase and task for cash receipts that are posted to pre-invoices (if you use phases and/or tasks).

Processing Pre-Invoices

Each time that you generate a pre-invoice in Interactive Billing or Batch Billing, you must complete the following actions in the project's billing terms in Hubs > Projects > Billing Terms:

• On the Fees tab, set the Fee Method option to Current Unit or Fee.
• On the Pre-Invoice tab, select the Process Pre-Invoice check box. This check box is a toggle that enables and disables pre-invoice processing in Interactive Billing and Batch Billing for a project. Before you produce invoices, be sure that this check box is appropriately set for a project:
  • When the check box is selected, Interactive Billing and Batch Billing produce pre-invoices instead of regular invoices for a project.
  • When the check box is cleared, Interactive Billing and Batch Billing produce regular invoices.
• Enter billing information and the fee amount for the pre-invoice on the Billing Terms form.

Cash Receipts for Pre-Invoices

When you receive payments for pre-invoices, you apply the cash receipts to the pre-invoices in Transaction Center > Transaction Entry > Cash Receipts. Specify the default general ledger account to credit for pre-invoice cash receipts in the Pre-Invoice Receipt Offset field on the Options form in Settings > Billing > Options. This is typically a liability account.

Regular Invoices

Paid Pre-Invoices

The fee amount from paid pre-invoices is applied automatically to the next regular invoice (final or draft) that you generate for a project. It reduces the total billed amount on the regular invoice. The paid pre-invoices display in the Pre-Invoice section of a regular invoice.

Canceled Pre-Invoices

When you create a regular invoice (draft or final) in Interactive Billing or Batch Billing for projects with pre-invoices, all unpaid pre-invoices are canceled automatically. You can add the unpaid pre-invoice fee amounts to a regular invoice by entering them in the Fee field on the Fees tab in Billing Terms (in the Projects hub). The unpaid pre-invoices display in the Pre-Invoice section of a regular invoice as canceled.

Invoice History

On the Invoice History tab of the Interactive Billing form, you can see all pre-invoices that are created for a project and print or preview them. You can also manually cancel any unpaid pre-invoices on this tab.

Reports

You can include unpaid pre-invoices on the AR Aged report under the Accounts Receivable report type in Reporting.

Other accounts receivable and project reports do not include pre-invoices. Job-to-date billing and job-to-date receipt amounts on reports do not include pre-invoices or any cash receipts applied to them. Tax reports do not include pre-invoice tax amounts until they are paid.