Profitability adjustment using Pre-Billing

Setup required before use	Who Can Use It?	Where Is It?
Create an Invoice	Project manager Director Administrator System Administrator	Project > Invoices tab > Open the Invoice

The scenario described is that a staff member has completed the required tasks for a sub project in less than the budgeted hours. Susie Olsen was able to complete the CAD/Plan preparation work in 18 hours, and the total budgeted hours were 30 for this task. By completing the work quickly the sub project chargeable value is listed at $3,300.00 instead of the expected $5,000.00 set in the sub project fixed fee.

Click the image above to view a summary of the completed work.

The invoice has already been created for the sub project and sent to the client. The 'complete %' for the sub project has been set to 100% as all the required tasks have been finished by the staff members Susie Olsen and Robert Howard.

Click the image above to view the 100% complete sub project's invoice.

When the sub project on the invoice was changed to be '100% complete' the invoice was automatically marked up for each transaction 'value' included on the invoice. The marked up values were applied to all staff members, not just Susie who completed her work ahead of schedule.

Click the image above to view the marked up transaction values.

Management have asked you to adjust the transaction invoice values to increase Susie’s staff profitability for this sub project. This can be completed using the Pre-billing and Revenue Recognition feature.

1. Open the Project > Invoices tab.
2. Double click the invoice that includes the transactions to open the invoice.
3. Select the Action menu > Pre-bill and Revenue Recognition feature.

4. We will use the pre-billing feature to adjust the original pro-rata invoice transaction values. The markup was auto-allocated across all these transactions. In this case, the markup should only have been applied to Susie's transactions as she completed her work ahead of schedule.
5. Uncheck the 'locked invoice' box in the bottom left corner to allow the invoice transactions to be amended.

Click the image above to view unlocking the invoice.

6. Select the relevant sub project the transactions are attached to, and expand that sub project group.
7. The 'Chg Value' shows the true estimated charge for each transaction which should have been used as the invoiced value. The 'Inv Value' column shows the marked up values that were applied to each transaction when the invoice was created. The markup was applied to both Susie's and Robert's transactions when it should have only been applied to Susie's.

Click the image above to view the chg vs invoice markup transaction values.

8. First reduce all of Robert's transactions to make the 'Chg Value' and 'Inv Value' match for each transaction. Do this by typing into the Invoiced value column.

Click the image above to see Robert's transactions changed to the charge $ value.

9. Click the 'Lock' box on each of the rows that you manually adjusted for Robert.

Click the image above to see the Locked transaction rows.

10. Select the sub project that you were updating in the grid, then click the 'Auto Allocate' button. This will auto increase each of Susie's transactions to have a higher invoiced value as she completed her work under budget.

Click the image above to see the Susie's transactions updated.

11. If the Transactions Total differs from the original amount invoices for that subproject, the difference is displayed as a Variance Total at the bottom of the window. Continue to update the transactions until the Variance total is $0.
12. Check the 'Locked' box at the bottom of the invoice. This stops other users from making further changes.
13. Save and Close the pre-billing function.
14. Close the open invoice.

Click the image above to view the locked invoice.

15. After the invoice has been updated this will correct the profitability shown in reports in Synergy. See below the before an after impact of this change for Susie Olsen's profitability in Synergy.

Click the image above to see Susie's profitability BEFORE.

Click the image above to see Susie's profitability AFTER.