Job charges can be managed. This is done from the job charges window that is invoked by clicking the Charges button on the Job Summary window. The functions you can perform and their effect on the job’s finances are the following.
Change the Bill at Amount
When a charge is entered, you determine the cost and as described in the previous, the amount to be billed is initially calculated by e·silentpartner. You can change this amount, if need be, when you are ready to bill – before you generate the invoice.
To change the billing amount, simply click on the line to be changed and change the amount to whatever you want it to be. If you increase the billable amount, the difference will be added to the un-billed amounts at the job and detail (item) levels. If you decrease the billable amount, the difference will be subtracted from the job and detail (item) levels.
Placing a Charge on Hold
When you bill a job, all un-billed charges will be applied to the next invoice generated for the job. However, there may be charges that you do not want billed on the next invoice. Simply place the charges on Hold.
The dollar value of the charge’s invoice amount of the charges placed on hold will be subtracted from the job and detail (item’s) un-billed amounts and added to the job’s hold amount. The charges will still be part of the job. They just won’t be billed in the next cycle.
Removing a Charge from Hold
Removing a charge from hold is a reversal of the above. The invoice amount of the charge(s) will be subtracted from the job’s hold amount. The invoice amount of the charge(s) will be added to the job’s and detail item’s un-billed amount.
Transferring Charges
Charges can be transferred between jobs and items provided they have a status of BILL OR HOLD.
If the transfer is to another job, the Un-billed amounts will be reduced on the original (from) job will be reduced by the amount of the charge at the job and detail item levels. If the charge is on hold, the job’s Hold amount will be reduced by the invoice amount of the charge. The corresponding amounts on the receiving (to) job will be added to respectively.
If you transfer external charges from a billable job to a non-billable job or from a billable to a non-billable job, you’ll be alerted.
e·silentpartner provides this warning so that you can make the necessary (if any) adjustments to your work in process or expense accounts.
For example, you entered an external charge to a billable job and the amount was posted to WIP (on the vendor invoice) window. You then transfer the charge to a non-billable job — and the job is never billed yet the amount of the charge is still included in work in process. While we allow the transfer, we do alert you so that you can determine if a journal entry needs to be entered (decreasing WIP or increasing WIP). This warning is provided only on the transfer of external charges.
If the transfer is between items and the charge is on hold, there is no change to the job’s Hold amount. If the charge status is Bill, the Un-billed amount of the original item is reduced by the charge’s invoice amount. The Un-billed amount of the item to which the charge is being transferred is increased by the invoice amount of the charge. The Un-billed amount of the job will remain the same.
Writing off a Charge
All charges to billable jobs are part of the work in process reporting unless they are billed and posted or previously written off. When a charge is written off, e·silentpartner removes the charge from WIP reporting effective on the date you indicate.
Example: If a charge is entered on August 15 (Period 8 in the 12/31 fiscal calendar) and subsequently written off on September 26 (Period 9 in the same fiscal calendar), the charge will first appear in the Period 8 WIP report and not appear in the Period 9 (or subsequent periods) WIP reports.
No journal entries are created for write offs of internal or time charges unless the charge was part of an earned but unbilled revenue process. Review the discussion of implications of earned but unbilled revenue, which is discussed in a later section of this manual.
If an external charge is to be written off is on a billable job, e·silentpartner WILL ALSO create a journal entry (crediting WIP for the charge cost and debiting the account specified as the cost of sales account for the item of the charge for the charge cost). If the external charge to be written off is on a non-billable job, no journal entry will be generated — but you will be alerted.
Billing Charges
When an invoice is generated for a job, the status of the charges linked to the invoice will be changed to DRAFT. These charges will remain a part of WIP reporting until the invoice is posted.
The charges will then be removed from WIP reporting based on the posting period of the client invoice.
- Charge entered on 9/15 – Becomes part of WIP reporting beginning with the 9th period.
- Charge billed on 10/31 – Still in WIP 9th and 10th periods.
- Client invoice posted 11/2 – Charge removed from WIP, effective November, the 11th period.
When does a Charge become part of WIP
Time charges and internal job charges become part of WIP reporting based on the fiscal period of the charge date. External charges become part of WIP based on the fiscal period in which the vendor invoice was posted.
Example: A vendor invoice was entered with an invoice date of 9/15th. The invoice is subsequently posted on 10/12th.
The charges associated with this invoice will immediately be linked to the job and the Voucher amount on the job will be updated to reflect that these charges are recorded but not yet posted to general ledger. When the vendor invoice is posted on 10/12th, the charges will now appear on WIP reporting effective the 10th period.
When are Charges never part of WIP
There are only two situations in which the initial entry of a charge does not show up on WIP:
- if the charge is against an item that is designated non-billable - at the Item Setup section or the Client Rate section or
- if the charge is applied against a job, which is flagged non-billable or
internal.