Invoice Discounts and Surcharges using Office Items

Who Can Use It?	Where Is It?
Director System Administrator	Practice > Rates List

Create a new rate that is the Office Item item type that has a negative charge per unit value. This will allows you to create an Office Expense for a negative value, which can be shown on the invoice. The value is set to -$1 to allow you to easily add more units when creating the office expense, to increase the discount value by whole dollar amounts.

1. Open Practice > Rates List.
2. Click the New button in the top toolbar.
3. Select to create a new 'Office Item' rate.
4. Type a description for the rate. i.e. Discount Given.
5. Enter the Charge per unit to be set to '-$1.00'. (Negative value)
6. Click Save and Close .

Click the image above to view how this office item will look after being setup.

Create a new rate that is the Office Item item type that has a positive charge per unit value. This will be used to re-charge the discounted amount back to a later project invoice that will be sent out.

1. Open Practice > Rates List.
2. Click the New button in the top toolbar.
3. Select to create a new 'Office Item' rate.
4. Type a description for the rate. i.e. Discount Recovery.
5. Enter the Charge per unit to be set to '$1.00'. (Positive value)
6. Click Save and Close .

Click the image above to view how this office item will look after being setup.

Who Can Use It?	Where Is It?
Assist. Project Manager Project manager Director Administrator System Administrator	Projects > Project Plan > Sub Projects tab

The discount we will create can be attached to a Sub Project with a Fee Type of Hourly/Rates. The example below shows that we add an extra Sub Project called 'Discount' to make it quite visible on the invoice that a discount has been applied. Another advantage of setting up a separate Sub Project is that you can change the Cost Centre or Discipline to send the Discount information to a different account in your finance system if you are using the Connect interface.

Note: You can allocate the discount to any Sub Project that has the Fee Type of Hourly/Rates. When allocating to an existing Sub Project, please skip this step and move to Step 3.

1. Open the Project > Project Plan > Sub Projects tab.
2. Click the New button in the Sub Project tab toolbar.
3. Type the Sub Project Name to be shown on the invoice. i.e. Discount.
4. Select the Fee Type of 'Hourly/Cost Rate'.
5. Set the Sub Project Status to 'Active' to allow for invoicing.
6. Select the Practice Staff Rate of 'Standard'.
7. Select the required Sub Project Manager, Tax Rule, Practice Discipline, and Practice Cost Centre.
8. Save and Close .

Click the image above to view the new Discount Sub Project with the Hourly/Cost Rate fee type applied.

Who Can Use It?	Where Is It?
Assist. Project Manager Project manager Director Administrator System Administrator	Projects > Expenses (Office Items)

Add a office expense item for the 'Discount' Sub Project, and apply the rate created in Step 1. Enter the ‘Units’ as the amount that you want to discount. In my example below I will be giving a discount of $200 off the next invoice. (This is a ext GST value).

1. Select the Projects menu > select Expenses (Office Items)
2. Next to the symbol in the list, select the Project the discount will be applied to.
3. Select the Sub Project to discount. i.e. Choose the 'Discount' Sub Project we created in Step 2.
4. Select the 'Discount' Rate that was created in Step 1.
5. Enter the date of the discount. i.e. This date should be within the period you plan to invoice for the project that you want to apply the discount to.
6. Type the number of units to equal the dollar value you want to discount. i.e. Type Units = 200, to apply a $200 discount.
7. Type a note to describe a reason for the discount.
8. Save .

Click the image above to view the discount office expense item created.

Setup required before use	Who Can Use It?	Where Is It?
Invoice numbering and terms Invoice template	Assist. Project Manager (draft only) Project manager Director Administrator System Administrator	Projects > Invoices tab

The Discount office item created can be seen in the Project > Time and Expenses tab. This can be added to the next invoice for the project, and shown against the Discount Sub Project. This transaction will apply the discount to the invoice created for the Project.

Click the image above to see the discount transaction on the Project > Time and Expenses tab.

Add a new invoice that includes the discount transaction by:

1. Go to the Project > Invoices tab.
2. Select the 'Create Invoice' button in the toolbar.
3. Select which Sub Projects will be invoiced. Make sure you include the 'Discount' sub project created earlier.
4. Define who the invoice will be sent To using the 'Invoice To', 'Address Of', and 'Attention To' fields.
5. Select the 'Invoice Date' and 'Terms' for payment.
6. Enter the 'Invoice Period' to choose what transactions will be included on the invoice. This date range should include the office expense date for the discount created.
7. (Optional) Edit the non-discount Sub Projects if you need to alter the invoiced amount.
8. Save the draft invoice.
9. Continue with the normal process for finalising an invoice and printing the invoice document.

Click the image above to view a sample of a discounted invoice.

Who Can Use It?	Where Is It?
Assist. Project Manager Project manager Director Administrator System Administrator	Projects > Expenses (Office Items)

Add an new office expense using the rate created in Step 1 called 'Discount recovery'. Complete this task to invoice the client for the previously discounted value on a later invoice. This allows you to surcharge the later invoice sent out for the Project.

1. Select the Projects menu > select Expenses (Office Items)
2. Next to the symbol in the list, select the Project the surcharge will be applied to.
3. Select the Sub Project to apply the surcharge to. i.e. Choose the 'Discount' Sub Project we created in Step 2.
4. Select the 'Discount recovery' Rate that was created in Step 1.
5. Enter the date of the surcharge. i.e. This date should be within the period you plan to invoice for the project that you want to apply the surcharge.
6. Type the number of units to equal the dollar value you want to discount. i.e. Type Units = 200, to apply a $200 surcharge.
7. Type a note to describe a reason for the recovery or surcharge.
8. Save .

Click the image above to view the discount recovery office expense item.

Setup required before use	Who Can Use It?	Where Is It?
Invoice numbering and terms Invoice template	Assist. Project Manager (draft only) Project manager Director Administrator System Administrator	Projects > Invoices tab

The Discount Recovery office item created can be seen in the Project > Time and Expenses tab. This can be added to the next invoice for the project, and shown against the Discount Sub Project. This transaction will act as a Surcharge on the invoice.

Click the image above to view the Project > Time and Expenses tab and the Discount recovery transaction.

Add a new invoice that includes the discount recovery transaction by:

1. Go to the Project > Invoices tab.
2. Select the 'Create Invoice' button in the toolbar.
3. Select which Sub Projects will be invoiced. Make sure you include the 'Discount' sub project created earlier.
4. Define who the invoice will be sent To using the 'Invoice To', 'Address Of', and 'Attention To' fields.
5. Select the 'Invoice Date' and 'Terms' for payment.
6. Enter the 'Invoice Period' to choose what transactions will be included on the invoice. This date range should include the office expense date for the surcharge transaction created.
7. (Optional) Edit the other Sub Projects if you need to alter the invoiced amount.
8. Save the draft invoice.
9. Continue with the normal process for finalising an invoice and printing the invoice document.

Click the image above to view an invoice with a Discount Recovery Surcharge.