Charge Types

Charge Types are critical to the invoicing process.

A Charge Type is attached to each Job, and primarily determines the basis of a number of billing and Work In Progress (WIP) related issues on the job.
Billing Type dictates the sell method and calculation.
Billing Consolidation dictates the relationship between Header and Sub Jobs; where the revenue will reside and whether the invoice print is consolidated.
WIP settings determine the basis of the Work in Progress calculations.

Billing Types:

Each Charge Type has a Billing Type
The Billing Type defines the method to be used by the invoicing process. As each job can only have one Charge Type it can only have one Billing Type. This means that each job can only have one invoicing process, (bearing in mind that you can add lines manually to an invoice). Consequently there needs to be thought as to how to set up the Charge Types to achieve the invoicing results that you need.

Billing Type	Used for:-	Basis for Invoice calculation	Comment
No Charge	For jobs which will never be invoiced. E.g. overhead and admin jobs.		Job is not billable. Does not require a Billing Consolidation option.
Header	Use for Header Jobs where you want to invoice costs from the Subjobs but not the Header Job		Costs can be expensed to these jobs but cannot be sold. The Get sales button will display only the Subjobs with costs to bill.
Quoted	For billing	Manually entered invoice values	The Get Sales button will never appear for a quoted job. Invoicing will be done from the Enter Job Invoice screen by manual entry of a Job Invoice Line.
Input Based	For billing	Selling Price from the Job Cost transactions or Purchase Order Lines
Output Based	For billing	Job Outputs with a Sell Rate selected from a Contract Schedule
Input Output Based	For billing	Mix of Input and Output Based is allowed
Claim Schedule	For billing	From Schedule Outputs selected from Contract Schedules, entered in Contract Claims via the Contracts module	For billing of Contracts only
Internal	Internal Sales from one internal job (as revenue) to another internal job (as costs)	Selling Price from the Job Cost transactions or Purchase Order Lines (as for Input Based)	This job is charged internally with an internal sale.

Billing Consolidation:

When invoicing a Job, the invoice is always against the Parent Job in the header of the invoice.
The invoice will often comprise multiple invoice lines. Each line has its own Job Code.
Billing Consolidation defines how the Invoice Revenue will be treated.
The Billing Consolidation settings allow the revenue from the invoice to be matched with all revenue against either the Parent Job in the header, or split the revenue allocating it against the Subjobs on the invoice lines

The Billing Consolidation options are:

Invoice Job - Revenue on Job	For invoicing a single job (either a Header Job or Subjob) where the revenue on that single job will be matched with the costs on that single job.
Invoice Parent - Revenue on Job	For invoicing of Header Jobs with Subjobs. The invoice will be raised against the Header Job but the revenue will be allocated to the Subjobs
Invoice Parent - Revenue on Parent	For invoicing of Header Jobs with Subjobs. The invoice will be raised against the Header Job and the revenue will all be allocated to the Header Job, not to the Subjobs
Header Job with Sub Jobs	For billing off the Header Jobs and Subjobs.

Preview Options:

Normal Preview Format and Ignore Preview are two fields on the Charge Type used for Input Based, Output Based, and Input Output Based Billing Types.

Ignore preview for Billing:

if ticked, then for Input Based, Output Based, and Input Output Based jobs with this Charge Type all transactions up to the Invoice to Date on the invoice default to being billable
if not ticked, then for Input Based, Output Based, and Input Output Based jobs with this Charge Type only transactions flagged as 'Previewed' default to being billable

Normal Preview Format:
This is the default Preview Invoice print format for jobs with this Charge Type

Examples:

Type of Job	Preview Invoice	Billing Type	Consolidation
Stand alone job	PreviewInvoiceJob	Input Based	Invoice Job - Revenue on Job
Header with billable sub jobs but not itself billable	PreviewInvoiceHeader	Header	Invoice Job - Revenue on Job
Header with billable sub jobs and itself billable	PreviewInvoiceHeader	Input Based	Header Job with Sub Jobs
Sub job billed separately from header	PreviewInvoiceSubJob	Input Based	Invoice Job - Revenue on Job
Sub job billed on the header but retaining revenue for itself		Input Based	Invoice Parent - Revenue on Job
Sub job billed on the header and passing revenue to header		Input Based	Invoice Parent - Revenue on Parent

Billing from PO's:

Check this option if you wish to include outstanding Purchase Orders in your (Input Based or Input Output Based) invoicing process, to invoice the PO Line before the Suppliers invoice is received.

Internal Sales Detail:

Check this option if Internal Sales transactions are to be transferred to the "Buying Job" at the source transaction level as opposed to a single summarised transaction against the default Activity Code setup on the Internal Sales Code.

Override Sales Code:

Tick this box to allow a single manually selected Sales Code to be used when invoicing Input Based, Output Based, and Input Output Based Billing Types using the Get sales process.

Invoice Lines By:

For Input Based, Output Based, and Input Output Based Billing Types, the Job Invoice Lines created can group transactions by one of 3 options; Sales Code, Work Centre Code or Sales Code / Work Centre Code

WIP Type:

This defines the method by which Work In Progress will be calculated. Select the relevant WIP Type from the dropdown list of valid WIP Types

WIP Consolidation:

With multi-level projects this defines the Job Level at which WIP will be calculated. E.g. Level 1 ancestor option rolls the WIP calculation up to the Level 1 job for that Job and all its Subjobs

WIP GL Account:

This option may be used as part of the interface to your General Ledger. Leave Blank unless specifically required.

Percent Completion

The minimum Percent Complete for the job (cost versus budget) before any profit may be taken on a Job

Profit Retention Percent

The percentage of profit that will be withheld on a Job until the job is complete

Threshold Revenue Percent

The minimum Percent Complete for the job (cost versus budget) before any profit may be taken on a Job

Revenue Allocation and Billing Consolidation Options:

Revenue from the sale of any Header Job or SubJob can be allocated to the Header Job or the Subjob. This is determined by the Billing Consolidation on the Charge Type. The level at which you wish to allocate the revenue is determined by how you wish to view job profitability. Allocating at the Subjob level allows a view of the profitability of that Subjob. This would be the normal approach used. Allocating at the Header Job level allows a view of profitability only on the Parent Job by rolling the costs from the subjobs into the Parent Job for reporting.

Billing Consolidation: Invoice Parent – Revenue on Job

The invoice is raised on the Parent Job but the revenue is allocated at the Subjob level, so profitability can be viewed at this same level. (For SubJobs only)

Billing Consolidation: Invoice Parent – Revenue on Parent

The invoice is raised on the Parent Job and the revenue is allocated at the Parent Job level, regardless of whether it is derived from the Parent Job or the Subjob. Profitability can be viewed only at the Parent Job level by rolling all the costs up to this level

Billing Consolidation: Invoice Job – Revenue on Job

The invoice is raised on the Job and the revenue is allocated to the job (Header Job or Subjob). This applies when billing a Job by itself (with no related Parent or Subjobs being included)

Billing Consolidation: Header Job with SubJobs (for Header Jobs only)

For a Header Job where there is a Header/SubJob relationship and no necessity to have a "Get Sales" button for the Header Job. Note: A SubJob must not have "Header Job with SubJobs" as its Billing Consolidation or it will not work.

Notes:
Because it is the lowest level job in a relationship that dictates the Billing Consolidation it does not really matter what the Billing Consolidation is on the Header Job where you are invoicing the SubJobs.
The preferred Billing Consolidation for the Header Job is always "Header Job with SubJobs" unless you want to sell the Header Job as well.