Progress Billing Contracts

objective

The Progress Billing Contracts option is used to manage contracts and change orders based on a progress percentage, dollar amount or unit quantity. This option creates a link between invoicing, project management and the customer.

 

prerequisites

• Project Management
• Customer Management

 

Icons

Progress Billing Contracts Icons

Icon Title Used to Insert a total row Add a total row under the selected line in the grid in the Billing Schedule and Change Order tabs. Recalculate Table (F9) Recalculate data and refresh the grid in Billing Schedule and Change Order tabs. Import Activities From Project Import activities of the identified project for which a selling budget was entered in the Billing Schedule grid. Unlock the amounts/quantities already invoiced Allow the modification of invoiced amounts and quantities. NOTE: If there is an ongoing (non-transferred) invoice for a line in the Billing Schedule or Change Order tab, this line cannot be modified. Form Configuration Create and print personalized forms. The forms will also be available in Contract Management and in Contract Management Cost plus. Only icons specific to this window are defined in the table above.

 

steps

maestro* > Invoicing > Contractual Billing > Progress > Progress Billing Contracts

 

Create a progress billing contract

1. Enter the required information:

Field Description Number The contract number is the same as the project number. This is the project number associated with the contract. NOTE: The icon is used to select a project whereas the […] button is used to select an existing contract. Description Description of the project. NOTE: If the description is modified, it is updated in Project Management. Division Project division. Status Status of the contract. Closing Date Closing date of the contract.

2. Enter the required information in the Project Description tab:
   1. Details Section:

   Field Description Site Project (contract) site from Contact Management. NOTE: By selecting a site type contact, the contact information is automatically displayed on the screen (address, province, postal code, etc.). If no site is selected, the fields that makes the address must be completed. Site Manager Name of the person responsible for the site entered in Project Management. Customer Code Customer to be invoiced from Customer Management. NOTE: If no customer is defined in the project, but one is entered in the contract, maestro* updates the project on saving. US Tax Code Code of U.S. taxes to apply to sales linked to this contract. This tax code is derived from the Define Tax Codes and applies only if the Management of US Sales Taxes is enabled, in the General Ledger configuration. Salesperson Code of the salesperson proposed by default for all invoices under the contract. This code is from Salesperson Management. NOTE: If a salesperson is registered in the project, it is proposed by default. Main Customer Main customer code from Customer Management. NOTE: Identifies the customer who provided the work to be done, but who does not receive the invoice. It is possible to print certain reports by main customer.

   2. Details sub-tab:

   Field Description Payment Terms Payment term applicable to this contract. NOTES: If no term is specified, maestro* uses the term from Customer Management. The payment term is used to calculate the due date of the invoice. The payment term can also be entered at the time of invoicing. Activity Default invoicing activity. NOTE: If no activity is specified during invoicing, maestro* uses this activity by default. Purchase Order Purchase order number for the contract. NOTE: This purchase order number is displayed on the invoicing screen and is also available when printing the Accounts Receivable List. Production No. Production number for the contract. NOTE: Available for information purposes only. Customer Project Customer’s project number. NOTE: If the Lien Management option is installed, the customer project created with this option can be selected. Cost Rate Percentage for generating an adjusting accounting entry for work in progress (WIP) if they are managed as active. Progress Progress type. Available values. Quantity Progress billing based on quantities completed. Rate Progress billing based on the rate of progress made. NOTE: If an invoice is entered for the contract, transferred or not, this field cannot be modified. Detailed Holdback If checked, the used will be able to indicate which holdbacks must be calculated for each of the detail lines in the Billing Schedule and Change Order tabs. NOTE: If checked, applicable holdback percentages must be entered on each line of the billing schedule and change orders. These percentages can be different for each line, if necessary. Group Default revenue group. Holdback % Holdback percentage applicable to all invoices for the contract. NOTES: This percentage is applicable by default when invoicing, but it is possible to change it. If a rate is entered in the Holdback Rate section in the Project, that rate is displayed. If the field Detailed Holdback is checked, it will not be possible to use the holdback percentage for the entire invoice. Chg Order Default revenue group for change orders. Start Date Project start date entered in Project Management. Delivery Date Project delivery date entered in Project Management. Provisional Date Expected invoicing date for the holdback. Invoice Form Specifies the form to be used for printing the invoice for this contract. NOTE: If a form is specified, it overrides all other forms specified in Customer Management or Configuration. If empty, maestro* uses the form specified in Customer Management. Otherwise, it uses the form specified in Configuration.

   3. G/L Accounts tab:

   If no account is entered, maestro* uses the account defined in the activity, or the account in Configuration.   Field Description Sale General ledger account to which income is posted. Change Order General ledger income account to which change orders are posted. NOTE: This can be the same account as the Sale field if no distinction is made between sales and change orders.

   4. Total section:

   Field Description Contract Original amount of the contract before taxes and change orders. Change Order Amount from the change orders entered in positive amounts in the Change Order tab. The Change Order amount, in the Project Description tab, is calculated by adding the amount of each change order line as follows: If an amount is entered in the Amount Approved column, this amount will be used; If there is no approved amount, we use the Amount Requested. NOTE: The total amounts added in the change order grid are not added to the Change Order amount. Credit Credit amounts granted. NOTE: This information is from the change orders entered in negative amounts in the Change Order tab. Total Total amount of the contract including change orders and credits. Cumulative Work in Process Cumulative amount of work in progress (WIP) for the contract. NOTE: This field cannot be changed by the user. It is only calculated if the Cost Rates field is completed. Holdback to Invoice - Contract Amount of holdbacks to be invoiced on the original contract. NOTE: This field represents the value of holdbacks that have not been posted and must be invoiced. Updated if the Transfer of Holdbacks option is set to No or Postponed. This setting is in General Settings, Contractual Billing section, under General. Holdback to Invoice - C/O Amount of holdbacks to be invoiced on change orders. NOTE: This field represents the value of holdbacks that have not been posted and must be invoiced. Updated if the Transfer of Holdbacks option is set to No or Postponed. This setting is in General Settings, Contractual Billing section, under General. Holdback to Invoice - Total Total holdbacks to be invoiced on the contract and change orders. NOTE: This field represents the value of holdbacks that have not been posted and must be invoiced. Updated if the Transfer of Holdbacks option is set to No or Postponed. This setting is in General Settings, Contractual Billing section, under General. Holdback Receipt Amount in holdbacks received. Receipt Amount cashed in receipts on the contract and change orders. Total Stored Material Total estimated quantity of stored material. NOTE: This amount is for information purposes and can be displayed on the invoicing form. Stored Material Invoiced Quantity of stored material. NOTE: This amount is updated following invoicing and can be displayed on the invoicing form.

   5. Long-Term Holdbacks - This section displays the holdback amounts summary entered in the Billing Schedule tab:

   Champ	Description
   Warranty	Displays the original amount, the invoiced amount, and the long-term holdback balance for the warranty.
   Maintenance	Displays the original amount, the invoiced amount, and the long-term holdback balance for maintenance.
   Other	Displays the original amount, the invoiced amount, and other long-term holdback balances.

3. The Additional Fields tab allows the user to personalize the Progress Billing Contracts by adding fields. Click the Configuration button to do so.
4. Enter the required information in the Billing Schedule tab:

It is possible to import activities with a selling budget in the project by clicking the Import Project Activities icon. It is possible to unlock contracts so that quantities or amounts for already invoiced lines can be changed with the Unlock the amounts/quantities already invoiced icon. It is impossible to unlock contracts if invoices will not be transferred. It is impossible to change the billing schedule if an invoice is not transferred.   Field Description Bid Item Bid Item Code that identifies the work performed. NOTES: This field is limited to 20 alphanumeric characters. This code can be the activity number or number on the estimate. It is possible to view already defined Progress Billing with the Progress Billing Templates option by pressing the F7 key. Long-Term Holdbacks Available values: Warranty Makes it possible to define a progress billing line as a long-term holdback for warranties. Maintenance Makes it possible to define a progress billing line as a long-term holdback for maintenance work. Other Makes it possible to define a progress billing line as an other type of long-term holdback. NOTE: These holdbacks are completely independent from regular holdbackcs and are therefore excluded from the treatment of the latter. Furthermore, the functionalities of additional holdbacks are not dependent of regular holdback configurations. If the column is not displayed in the Billing Schedule tab, right-click in the grid and select the Configuration option. Check the corresponding View box, then click Ok to exit the window. Project Determines the project to which income is assigned. Activity Determines the activity to which income is assigned. Revenue Group Determines the group to which income is assigned. Billing Schedule Available values. Progress It is possible to choose, for each line of the billing schedule, the type of progress: by quantity or by type. The default value is specified in the Progress field of the contract. Description Description of the work displayed on the invoice. Original Qty Allows to indicate the original quantity of each item. NOTE: This column is not displayed by default. Quantity Quantity to be invoiced. NOTE: This column is available when using the Quantity progress method. Unit Text field representing the unit to be invoiced. UP Unit price to be invoiced. NOTES: This column is available when using the Quantity progress method. This field is not mandatory. If a quantity and unit price are entered, maestro* will calculate the amount to be invoiced. If a quantity and unit price are entered and the amount to be invoiced is changed, maestro* will change the quantity, but will not change the unit price. Amount Amount to be invoiced. Invoiced to Date Available values. Progress Rate Displays the invoicing progress percentage. Progress Qty Progress quantity. Invoiced Amount invoiced to date for the change order if the invoice is posted and transferred to sales. NOTE: Available for information purposes only. To Complete Available values. Quantity Quantity to complete. NOTE: This column is available when using the Quantity progress method. Rate Percentage to complete on the item. NOTE: This column is available when using the Rate progress method. Amount Amount to complete on the item. Production Displays the quantity or the rate of production entered to date, for information purposes, according to the progress type defined in the contract. NOTE: This information is updated from the data entered in the option Production by bid item. To Print Tells maestro* to print the line on the invoice if the box is checked. NOTE: The user can define default values for the column for detail lines and total lines by clicking the Configuration icon. Total Tells maestro* to display a total only, if the box is checked. Available in MOBILE Displays the Progress billing contract in maestro*MOBILE. NOTE: Only the checked contracts will be visible in maestro*MOBILE. Comment Summary Comment on the change order. Comments Memo. NOTE: Available for information purposes. Invoicing Indicates that there is a non-transferred invoice for the contract and this specific line. If checked, the line cannot be modified.

5. Enter the required information in the Change Order tab:

It is possible to display a warning to the user if the project specified in change orders is not a sub-project of the contract project if the box is checked in Configuration. It is impossible to change the change order if an invoice is non-transferred.   Field Description Details Brief description of the customer’s change order. NOTE: This description is displayed during invoicing, if the To Print field is checked. Project Project to which the change order is posted. NOTE: The project may linked to a sub-project. Activity Invoicing activity for the change order. Revenue Group Revenue group for the change order. Change Order Available values. Progress It is possible to choose, for each line of the change order, the type of progress: by quantity or by type. The default value is specified in the Progress field of the contract. Quantity Quantity linked to the change order. NOTE: This column is available when using the Quantity progress method. Unit Text field representing the unit to be invoiced. UP Unit price of the change order to be invoiced. NOTES: This column is available when using the Quantity progress method. This field is not mandatory. If a quantity and unit price are entered, maestro* will calculate the amount to be invoiced. If a quantity and unit price are entered and the amount to be invoiced is changed, maestro* will change the quantity, but will not change the unit price. Requested Amount requested for the change order. NOTE: A change order amount in the Project Description tab is calculated from the Amount Requested and the Amount Approved. This information is included on the Invoicing Suggestion report available by clicking the Print icon. Approved Amount approved by the customer for the change order. NOTE: A change order amount in the Project Description tab is calculated from the Amount Requested and the Amount Approved. It is suggested to enter the amount approved by the customer before invoicing to see the amount requested versus the amount approved on the Invoicing Suggestion report. Invoiced to Date Available values. Progress Rate Invoicing progress percentage. Progress Qty Progress quantity for the change order. Invoiced Amount invoiced to date for the change order if the invoice is posted and transferred to sales. NOTE: Available for information purposes only. Hlbk to Bill Amount of the holdback to be invoiced on change orders if holdback accounting is set to No or Postponed. NOTE: Available for information purposes only. To Complete Available values. Quantity Quantity to complete on the change order. NOTE: This column is available when using the Quantity progress method. % Complete Percentage to complete on the change order. NOTE: This column is available when using the Rate progress method. Amount Amount to complete on the change order. Production Displays the quantity or the rate of production entered to date, for information purposes, according to the progress type defined in the contract. NOTE: This information is updated from the data entered in the option Production by bid item. To Print Indicates that the change order will be printed on the invoice, if the box is checked. Total Only indicates the total, if the box is checked. Contract Amendment Date Date of the change order. Directive No Directive number. NOTE: This information is included on the Invoicing Suggestion report. Presentation Date Date on which the directive is presented to the customer. NOTE: This information is included on the Invoicing Suggestion report. Purchase Order Used to enter the customer’s purchase order number by change order. NOTE: This information is included on the Invoicing Suggestion report. Comment Summary Comment on the change order. Comments Memo. NOTE: Available for information purposes only. Change Order Type Invoicing method for the change order. NOTES: The change order cannot be invoiced using a method other than the method selected. Two values are possible: Contract Invoicing / Progress Billing or Cost Plus Invoicing. Estimate Number Estimate number from the Quotation module. NOTE: Available for information purposes only. Change Order Number Change order number if the line was created from Change Order Management. Invoicing Indicates that there is a non-transferred invoice for the contract and this specific line. If checked, the line cannot be modified.

6. Click on Save.

 

see also

• Salesperson Management
• Prepare Progress Billing
• Progress Billing Templates
• Quotations
• Production by Bid Item

 

Last modification: September 19, 2024