This post is part of a series I’m creating connected with Project Service Automation (PSA) for Microsoft Dynamics 365. This time I will consider invoicing.
This is the second part of two posts explaining invoicing within Project Service. My first post covered the theory behind the elements used to calculate the invoice. You can view that post here.
This time I will cover how to actually generate and edit the invoices.
Mark Milestone as Ready for Invoicing
Within the project service you can navigate to project contract milestones to see the billing milestones. In here you can select one or more milestones and use the READY TO INVOICE BUTTON to mark that they are ready for invoicing.
Below you can see that I have changed the invoice status on one of my milestones to be “Ready for invoicing”. (Note: the project milestones shown here relate to the fixed price elements of invoicing.)
Manually Create Invoice
Assuming you are ready to create an invoice for this project you can open the project contract and use the CREATE INVOICE button to generate an invoice.
After a short pause an invoice will be created and will load. The invoice will be generated in draft status, giving you chance to review the details and make some adjustments before confirming the invoice.
Below you can see the invoice generated when I clicked CREATE INVOICE. Notice that many of the details such as bill to address will have been populated from the project contract. Also, notice that I have three lines on my invoice. The project expenses relate to the fixed price milestone that I set to be ready for invoicing. I then have the time and materials element to the invoice. Plus products have been included.
Product Invoice Lines
Whenever you generate an invoice any unbilled products will be added to the invoice. You cannot change the details of the products added into the invoice. However, you can decide to remove these from the invoice.
Note: If you remove products from invoices they will be included in the next invoice generated on the project.
Below you can see that opening the product line on my invoice shows that all fields are read-only! (FYI: You can select the EDIT PROPERTIES option but no changes will be made to the quantity or price shown on the invoice line.)
Fixed Price Invoice Lines
Whilst the invoice is in a draft state it is possible to remove fixed price project-based lines but it is not possible to edit their value.
Time and Materials Invoice Lines
Below I have shown the detail of the time and materials line in my invoice.
Firstly notice the chargeable transactions tab. The total from this tab is the value that will be rolled up to the invoice line total.
Opening a chargeable transaction shows that I can edit the price, and transaction type.
You can see below that after changing the billing type to non-chargeable the line item has moved into the non chargeable transactions tab. Notice that I do have a financial total for non-chargeable transactions but these will not be included in my invoice total.
Changing an item to complementary has a similar impact but doesn’t have an associated value.
Tip: It is also possible to add lines when the billing type is time and materials. Using the NEW toolbar button. (If you do add items keep in mind that their costs will not have been recorded in actuals, meaning your project profitability could be incorrectly stated!)
After you have made any required changes you will need to confirm the invoice. Doing so will lock it. Meaning no further changes can be made after the invoice is confirmed.
When we view the project actuals after confirming the invoice you can see that a billed sales actual is created. Along with a negative unbilled sales value, that will balance off the unbilled sales value that was created earlier.
Also, after confirming the invoice you can review the project contract performance tab to see the total billed so far etc.
Mark as Paid
Finally, on the invoice we can make the invoice as paid.
Once the MARK INVOICE AS PAID” button has been selected the status of the invoice is changed to “Paid” and the record becomes. Below you can see that the invoice view from project contract will show which invoices have been paid.
Hopefully you can see that invoicing in Project Service is very flexible and supports making most the adjustments that might be required.