Adding a client invoice adjustment

You can add an invoice adjustment in either of the following ways:

If you want a nonrecurring adjustment

When you add an adjustment on a current draft invoice, it recurs on future draft invoices.

To add a nonrecurring adjustment, do one of the following:

  • Enter a flat amount adjustment through > Manage > Client Invoices.
  • Enter a maximum amount for a percent-based adjustment on the Manage tab of > Manage > Project Command Center.
  • After producing the final invoice, change the status of the adjustment to Closed ( > Manage > Project Command Center>Project Info tab > General subtab).

When to add an adjustment in the Project Command Center

You must add the adjustment through > Manage > Project Command Centerif you want to do the following:

  • Enter a tax code and tax rate for sales tax.
  • Enter a different flat amount for each draft invoice.

Adding an adjustment in Manage > Client Invoices

  1. From the > Manage menu, click Client Invoices.
  2. Click the invoice you want, and then click Edit.

Add the adjustment

  1. Click the Add Adjustment button at the bottom left of the window. If you already added an adjustment to this invoice, first click the Invoice Adjustments tab and then click the Add Adjustment button.

  1. In the Description field, type the name of the adjustment.

  2. In the Activity Type field, categorize the adjustment as a labor, expense, or consultant activity.
  3. Select the type of adjustment you want to add as follows:
To add this type of adjustment Do this
A flat amount
  1. In the Adjustment Type field, select Amount.
  2. In the Amount field, enter the amount of the adjustment.

To decrease the invoice amount with this adjustment, enter a negative number.

Note: A flat amount you enter here does not appear on future draft invoices or in the Project Command Center. The amount field is blank in the Project Command Center.
A percent of the billed amount for an activity type
  1. In the Adjustment Type field, select Percent.
  2. In the Amount field, enter the percent of the billed amount for the activity type (Labor, Expense, or Consultant) that you want Ajera to use to calculate the adjustment amount. Enter the percent without decimals, such as 25 for 25%.

For the current draft invoice and all subsequent invoices, Ajera calculates that percent and enters the resulting amount as the adjustment amount. The adjustment amount appears for the invoice in the Invoice Adjustments tab.

Ajera calculates the amount based on the billed amount for the activity type total, not the total billed amount. For example, if you entered a 10% adjustment for labor, Ajera calculates the adjustment as 10% of the billed amount for the labor associated with the invoice, not 10% of all labor, expense, and consultant amounts.

If you want to set a maximum amount for the adjustment,instructions appear later in this topic.
  1. In the Revenue Account field, select the general account where you want Ajera to make entries for the adjustment.

If you leave this field blank, Ajera uses the account you selected in > Setup > Company > Preferences > Income Statement Accounts tab > Miscellaneous field.

  1. To exclude the adjustment amount from the billed amount on project reports and inquiries, select the Exclude from billed for reporting check box. For example, you may not want a discount applied to amounts in your projects reporting, so you select this check box.
  2. Click OK.

Select how the adjustment appears on the invoice

  1. Click the Invoice Adjustments tab. It displays adjustments you added to the invoice, including the contract amount, activity type, and adjustment amount.
  2. To also list the adjustment type, contract amount, prior billed amount, total billed amount, sales tax amount, contract remaining amount, or Notes, click (Customize), make a selection, and click OK. You can enter amounts in the Total Billed Amount and Sales Tax Amount fields, as needed.
  3. If you want something other than Invoice adjustment to print on the invoice, enter it in the Notes column.

If you add more than one adjustment to the invoice, Ajera prints the total of all the adjustments along with the text you enter in the Notes column for each adjustment.

  1. Click Save.
  2. If you selected to add the adjustment as a percent and want to limit it to a maximum amount, do the following:
  • Open the project associated with the invoice adjustment (click > Manage > Project Command Center, and click the project in the project list at the top of the window).
  • Click the Manage tab.
  • Locate the adjustment phase. Adjustment phases appear in orange, usually at the bottom of the project tree.
  • On the row for the adjustment phase, in the Contract field, enter the maximum amount for this adjustment.
  • If you entered a negative amount for the adjustment, be sure to include a negative sign when you enter the amount here.
  • Click Save.
  1. If you selected to add the adjustment as a percent, you can instruct Ajera to exclude a specific phase when calculating the percent. If you have more than one adjustment, Ajera excludes the phase from all adjustments of the activity type you select (Labor, Expense, and Consultant).

To exclude the phase from calculations for the percent:

  • Open the project associated with the invoice adjustment (click > Manage > Project Command Center, and click the project in the project list at the top of the window).
  • Click the phase in the project tree.
  • Click the Project Info tab > Billing subtab.
  • In the Exclude from Adjustments area of the window, select the Labor, Expense, and Consultant check boxes, as applicable.

Adding an adjustment in the Project Command Center

  1. Open the project (click > Manage > Project Command Center, and click the project in the project list at the top of the window).
  2. If you are using invoice groups, in the project tree on the left of the window, click the invoice group where you want to add the adjustment.

If you are not using invoice groups, the placement of the adjustment has no effect; the adjustment applies to the entire project.

Add the adjustment

  1. Click the New Adjustment button at the bottom of the window.
  2. In the Description field (on the Project Info tab > General subtab), type the name of the adjustment. This name appears when you work with the adjustment on windows in Ajera. The words Invoice adjustment appear on the invoice unless you enter something else as described later in these instructions.
  3. Notice that when you add an invoice adjustment, Ajera displays it as a new phase, in orange in the project tree.
  4. Select the status of the adjustment.
Select this status To do this
Preliminary

Do not include the adjustment on current or future draft invoices.

For example, you want to set up the invoice adjustment but do not yet want to start adding it to invoices.

When you make the project active, Ajera also makes the adjustment active.
Active Include the adjustment on current and future draft invoices.
Closed

Do not include the adjustment on the current draft invoice or future draft invoices.

You do not want to delete the adjustment because you still want it to appear on project reports.

Ajera automatically enters a status of Active unless the project is currently not being billed because it has a status other than Active. If the project status is other than Active or Closed, Ajera automatically assigns the adjustment a status of Preliminary. You can change the status of the adjustment, as needed.

  1. Click the Billing subtab.

Ajera automatically assigns a billing type of Adjustment to the phase, which it uses to identify this phase as an adjustment and distinguish it from a production phase.

  1. In the Activity Type field, categorize the adjustment as a Labor, Expense, or Consultant activity.
  2. Select the type of adjustment, and enter an amount or percent, as follows:
To add this type of adjustment Do this
A flat amount
  1. In the Adjustment Type field, select Amount.
  2. In the Amount field, enter the amount of the adjustment.

If you want to decrease the invoice amount with this adjustment, enter a negative number.

If you expect the adjustment amount to change on future invoices and want to enter a different adjustment amount for each draft invoice, leave the amount field blank. You can then enter the amount to the draft invoice on the > Manage > Client Invoices > Invoice Adjustments tab.

A percent of the billed amount for an activity type
  1. In the Adjustment Type field, select Percent.
  2. In the Amount field, enter the percent of the billed amount for the activity type (labor, expense, or consultant) that you want Ajera to use to calculate the adjustment amount. Enter the percent without decimals: 25 for 25%.

For the current draft invoice and all subsequent invoices, Ajera calculates that percent and enters the resulting amount as the adjustment amount. The adjustment amount appears for the invoice in > Manage > Client Invoices > Invoice Adjustments tab.

Ajera calculates the amount based on the billed amount for the activity type total, not the total billed amount. For example, if you entered a 10% adjustment for labor, Ajera calculates the adjustment as 10% of the billed amount for the labor associated with the invoice, not 10% of all labor, expense, and consultant amounts.

  1. To set a maximum amount for the adjustment, click the Manage tab. On the row for the adjustment phase, in the Contract column, enter the amount.

If you entered a negative amount for the adjustment, be sure to include a negative sign when you enter the amount here.

  1. Click the Project Info tab > Billing subtab.
  1. In the Account field, select the general ledger account where you want Ajera to make entries for the adjustment.

If you leave this field blank, Ajera uses the account you selected in > Setup > Company > Preferences > Income Statement Accounts tab > Miscellaneous field.

  1. To exclude the adjustment amount from the billed amount on project reports and inquiries, select the Exclude from billed for reporting check box. For example, you may not want a discount to affect amounts in your project reporting, so you select this check box.

Select how the adjustment appears on the invoice

  1. To apply sales tax, select the Apply sales tax check box, and enter the tax code and tax rate. The amount of sales tax that Ajera applies to the invoice appears on the > Manage > Client Invoices > Invoice Adjustments tab, where you can then override it by entering a different amount, if needed.
  2. Complete or change information in fields on the other subtabs, as needed. Any notes you enter about the adjustment automatically appear on the client invoice.
  3. Click Save.
  4. If you selected to add an adjustment as a percent, you can instruct Ajera to exclude a specific phase when calculating the percent. If you have more than one adjustment, Ajera excludes the phase from all adjustments of the activity type you select (Labor, Expense, and Consultant).

To exclude the phase from calculations for the percent:

  • Click the phase in the project tree.
  • Click the Project Info tab > Billing subtab.
  • In the Exclude from Adjustments area of the window, select the Labor, Expense, and Consultant check boxes, as applicable.
  1. If you want to identify the invoice adjustment on the invoice with text other than Invoice adjustments, follow the instructions for Changing an invoice adjustment in Manage > Client Invoices. Ajera uses the information on the Notes subtab, not the Description field, to identify the adjustment on the client invoice.