What occurs or results from invoice changes or deletions is a direct result of whether or not the invoice was posted.

Posting

Posting client invoices is performed from Jobs (or Media) >> Billing >> Post Client Invoices. When this option is selected, e·silentpartner scans your database and retrieves all un-posted invoices that do not have a draft invoice number. Once you’ve identified those invoices you want posted, e·silentpartner will create a journal entry based on the posting date you enter – not the dates of the invoices selected.

The accounts affected by the posting are:

  • Accounts Receivable. Debited with the amount due on the invoice.
  • Advance Bill (using the specified control account). Debited with any advance bill amounts applied to all invoices.
  • Client Deposits (using the specified control account). Debited with any deposits applied to the invoice(s).
  • Sales Tax (using the specified control accounts). Credited with the sales tax amounts applied to the invoices.
  • The cost of the external charges. Debited to the account you specify for WIP and to the cost of sales account specified for each item.
  • The billed amount for each line item. Credited to the account you specified in the Item’s Billing Sales account.

In addition, the job charges are marked as BILLED and removed from WIP reporting based on the posting period you selected.

Deleting Invoices

Deleting client invoices only impacts general ledger if the invoice is posted. If it were, all entries described for the posting of the invoice are reversed. Irrespective of the posting status, the un- billed amounts on the job and job’s line item will be increased by the invoice line item amounts.

The status of the charges linked to this invoice will be reset to BILL and the charges if they were removed from WIP reporting will be reinstated.

Clearing WIP against Estimate Billing

The Issue: how do you remove charges from work in process when all billing against a job is based on the job’s estimate, i.e., not based on actual charges.

All charges entered against a job are automatically set to appear on the company’s work in process report if the job is billable. In addition, external charges update the general ledger work in process account balance with the cost of the external charge. Charges remain in WIP reporting and the WIP GL account until they are billed, transferred to a non-billable job, or written off.

Currently, the approach to remove these charges from WIP on jobs that were billed against estimate is to write off these charges. While this approach may resolve the WIP reporting, it is misleading to the job’s profitability and client income reporting.

What we propose is to add a new option to the job’s charges window – apply to estimate billing. The steps and the results are the following.

  1. Highlight the charges to apply to the client invoice.
    Only charges with a status of BILL can be selected.
  2. Enter the invoice number to which these charges should apply e·silentpartner will verify that invoice number is correct and was an estimate bill
  3. Enter the posting date that should be used.
    e·silentpartner will verify that the accounting period associated with this date is open and that the posting date does not precede any charge date.
  4. If there are no errors, the charges will be set to BILLED and the invoice number to which they are assigned is updated to each charge.

From an accounting perspective, the following rules will apply:

  1. Charges will be marked as closed, i.e., removed from WIP for the accounting period associated with the posting date’s accounting period.
  2. A journal entry will be created and posted to GL for all external charges selected in this cycle. The journal entry will credit WIP and debit the appropriate cost of sales account associated with each external charge.