Pre-Bill & Revenue Recognition

Setup required before use	Who Can Use It?	Where Is It?
Create an Invoice	Project manager Director Administrator System Administrator	Project > Invoices tab > Pre-Bill toolbar button Project > Invoice Maintenance > Pre-Bill toolbar button Open Invoice > Action Menu > Pre-Bill and Revenue Recognition

The pre-billing window has grouping for Phases and Sub Projects. On each grouping row the total invoiced value is shown for the group. Using expand and collapse can be very helpful if you have a large number of sub projects attached to an invoice. Collapse all but the one sub project you need to alter, then review the transactions available to add/remove from the invoice.

Grouping actions available:

• Expand Collapse AllUse the Expand and Collapse button in the top toolbar to expand or collapse all the groups shown on screen.
• Expand Collapse one levelUse the arrow next to the Phase or Sub Project name to expand/collapse the one group.

Click the image above to view the grouping in the pre-billing window.

To add transactions to an upfront invoice, please complete the following steps:

1. Open the Project > Invoices Tab.
2. Select the Pre-bill button in the toolbar.
3. Locate the Sub Project that requires to be updated.
4. Check the box for each WIP Transactions that you want to include (or remove) from the invoice for the Sub Project.
5. (Optional) Check the Lock box for any transactions that you want to fix at the charge-out value.
6. Select the Auto Allocate button to split the invoice value across the unlocked transactions. This is required when an outstanding invoice value is shown in red.
7. Repeat for each Sub Project as required.
8. Lock the Invoice in the bottom left corner when you have finished updating the sub project.
9. Save.

Before you can add/remove transaction from an invoice using pre-billing you need to unlock the invoice. A system setting is available to automatically lock invoices after they are created. Only Director, System Administrator, or Administrator access levels can unlock an Invoice in Synergy.  Uncheck the 'Locked' box in the bottom left corner to open the invoice transactions for edit.

After making the required changes to the invoice transactions, it is important to lock the Invoice again. Check the 'Locked' box in the left bottom to lock the invoice, and stop project managers from being able to make further adjustments. 

Unlock an Invoice and update the transactions:

1. Open the Project > Invoices Tab.
2. Open Pre-Billing by either clicking the Pre-Bill button in the top toolbar, or double click to open the Invoice.>select the Action menu > Pre-bill and Revenue Recognition. 
3. Uncheck the 'Locked' box in the bottom left corner of the window.
4. (Optional) Update the transactions attached the invoice as required.
5. (Optional) Lock the invoice after completed the required changes by checking the 'Locked' box.
6. Save.

Click the image above to view how to lock the invoice.

Add or remove transactions in bulk on an unlocked invoice. The 'Select All' and 'None' buttons will add or remove the transactions from the selected sub project. Highlight a sub project in the list, and these buttons will add or remove all the transactions from that invoice sub project only.

Add transactions to an invoice in bulk by:

1. Open the Project > Invoice Tab.
2. Open Pre-Billing by either clicking the Pre-Bill button in the top toolbar, or double click to open the Invoice.>select the Action menu > Pre-bill and Revenue Recognition.
3. Unlock the invoice for edit by un-checking the 'Locked' box.
4. Highlight the sub project in the list that transactions will be added to.
5. Click the 'Select All' button in the top toolbar. All the listed transactions have been added to the invoice for the selected sub project.
6. (Optional) Uncheck any transactions that you do not want to include on the invoice.
7. Repeat for each Sub Project on the invoice that you want to update.
8. Check the Locked box in the bottom left corner.
9. Save.

Click the image above to see the select all and deselect all buttons.

When adding or removing transactions from an unlocked invoice for a sub project the total transaction value can be greater or less than the invoice value. When this occurs there is an unallocated value for the sub project which is shown in red. The unallocated value needs to be allocated to the transactions before the pre-billing updates can be saved.

Click the image above to view the unallocated value on the sub project row.

Automatically split the unallocated value across the selected transactions for the sub project using the Auto Allocate button. The Unallocated Invoice Total for the sub project will be split across all transactions that are selected. This looks at the proportion the unallocated value to be greater for the transactions that have a higher chargeable value. Auto Allocate will not update any 'locked' transactions for the sub project.

You can also manually type the Invoice Value for the Transactions, or lock transaction rows to stop selected items from being included in the auto allocation. Manually entered invoice transaction values must add up to the sub project invoice total. 

Assign the Unallocated Value to the invoice transactions by:

1. Select the Sub Project in the list that has an Unallocated value shown in red.
2. (Optional) Lock any invoice transactions that you do not want to be altered. i.e. Lock the expense values to stop mark up/down.
3. Select the Auto Allocate button in the top right corner.
4. Repeat for each other sub project as required.
5. Save.

Click the image above to see the auto allocate button.

Auto Allocate Formula

Transaction Invoice Value = (Transaction Chargeable Value / (Total Chargeable Value- Sum of Locked Chargeable transactions for the Sub Project)) x (Sub Project Invoice Value - Sum of Locked transactions for the Sub Project).

The reset button in the top toolbar of the pre-billing window will undo any unsaved changes.

Stop the transaction value from being updated by the Auto Allocation feature by using the 'Lock' feature for a transaction. Commonly expense items are locked to stop the invoice value from being marked up or down on the invoice. This often done as the supplier expense cost is fixed, and instead the mark up/down should be applied to the staff transactions. By locking the expense rows the auto-allocation will apply the unallocated sub project invoice value to the remaining unlocked rows.

Click the image above to view a locked transaction.

Extra information can be viewed in the pre-billing window from the invoice. Use the arrow next to 'Invoice To' or 'Totals' label to expand/collapse these sections.

• The Invoice To section shows the Invoice address, attention to, note, invoice date, payment terms, invoice period.
• The Totals section shows the tax value for the invoice, and the invoice total including tax.

Click the image above to view the invoice to and totals sections.

The transaction values can be updated during the initial invoice creation, or after the invoice has been finalised using pre-billing and revenue recognition feature. Only the System Administrator, Administrator and Director access levels are able to use Pre-Billing and Revenue Recognition to change the transaction invoice values.

When transactions have been attached the incorrect invoice they can be removed using Pre-Billing and Revenue Recognition. Remove the transactions from an invoice and they will be returned WIP. Transactions that are in WIP can be amended by the users, and included on future invoices.

Remove the transactions in pre-billing by un-checking the transaction rows. The invoice value from these transactions must be allocated across other transactions before the invoice changes can be saved. The adjustment of the remaining transactions invoice value can be done by manually typing the values, or using the auto allocation feature.

Remove transactions from an invoice by:

1. Open the Project > Invoice tab.
2. Open Pre-Billing by either clicking the Pre-Bill button in the top toolbar, or double click to open the Invoice.>select the Action menu > Pre-bill and Revenue Recognition.
3. Unlock the invoice by un-checking the 'Locked' box.

Click the image above to see how to unlock the invoice.

4. Uncheck the transactions on the invoice that need to be returned to WIP.
5. Unallocated value will be shown in red against the Sub Project row. This must be resolved before the changes can be saved.

Click the image above to see the removed transactions and the unallocated value.

6. Update the remaining attached transactions to include the unallocated invoice value by either:
   1. Typing the new value against each transaction in the Invoiced Value field.
   2. Or using the Auto Allocate button to split the unallocated value across the transactions.

Click the image above to view the auto allocation of the unallocated invoice value.

7. Complete the above steps for each Sub Project that requires transactions to be removed.
8. After making all the required changed Lock the invoice by checking the 'Locked' box in the bottom left corner.
9. Save.
10. The transactions de-selected have now been returned to WIP.

Click the image above to see how to lock the invoice.

1. NameThe date of the transaction, and the name of the staff member (for time) or contact name (for expenses).
2. RateThe rate selected when entering the timesheet or expense. This rate is used to calculate the charge value.
3. TaskThe task selected on any timesheet entries.
4. # UnitsThe number of units selected for time or expenses. i.e. the charge out value represents 3 hours of work.
5. Charge ValueThe billable value to the client based on the rate shown for the transaction. i.e. Associate director rate is $200, an the number of units shown is 2. The charge value shown in this example is $400.
6. LockCheck this box if you do not want the transaction to be marked up/down by the auto-allocate feature. i.e. This allows you to lock the value of expenses, and split the outstanding value across all staff timesheet transactions.
7. Invoiced Value Ex TaxThe invoiced value for the transaction row. When this field is blank the item has either been marked down to $0, or has not been attached to the invoice. When the auto allocate feature is used the invoice value is updated for any unlocked invoice rows.

The default value of an invoice is the sum of the transactions. This is known as the transaction invoice value. When creating an invoice this value can be marked up or down to provide the client with a invoice discount or surcharge. The same invoice mark up/down can be applied in Pre-Billing and Revenue Recognition.

Example

Invoice value is $180.00 for an hourly rate sub project for a single transaction.

Default Invoice Value

	Transaction Charge. Value	Transaction Invoice Value	Invoice Total
David Rothbury 1 hour $180	180.00	180.00	180.00

Marked up/down transactions

David completed additional work that the client is not willing to pay for. This work has been marked down for the invoice value to equal $180.

	Transaction Charge Value	Transaction Invoice Value	Invoice Total
David Rothbury 1 hour $180	180.00	90.00
David Rothbury 1 hour $180	180.00	90.00
TOTAL	360.00	180.00	180.00

The following report will print a list of Invoices that are unlocked, meaning they can be edited for Pre-billing or Revenue Recognition. It is strongly recommended that all Invoices remain Locked. 

Report Category	Report title
Practice	Invoice reports
	Add the following filters: Invoice is Locked = False