Partial invoice is an invoice type designed primarily for use on Time & Material jobs. It can also be used for subsequent invoicing on a fixed price job from an approach of “closing” down the job phase by phase. A partial invoice will, once posted to the finance system, reduce Work in Process (WIP) accounts. Not all companies have the need for partial invoicing and it can enabled/disabled in system variable 106.
Use of partial invoices requires that job expenditures (hours, materials and purchases) are financially booked.
Create a partial invoice
Step 1 – Go to the “Partial invoice” tab and select the expenditures that are to be billed/settled.
Settled expenditure will be removed from Work in Process (if operating with WIP accounting). Completely similar to job closure, but only for the settled expenditure. The invoice amount will go directly to the P/L – regardless of setup in general. You can keep track of what expenditures has not been billed in report 91.
In the bottom right-hand corner totals on settled expenditure and invoice line totals can be monitored:
Step 2 – When the expenditures has been selected click the “Approve” button:
It is NOT possible to finalize a partial invoice without approving the records and this message will appear if it approval is missing:
System variable 715 defines if it possible to approve a zero-selection of expenditures. It is recommended not to allow – the risk being that the invoice amount will go to the P/L while job expenditures prevail in the WIP and hence also in the P/L.
Step 3 – Last step is to create the invoice lines that will appear on the actual invoice.
There are no rules or dependencies between invoice lines and settled expenditures. Invoice lines can hence be created completely independent of the settled expenditure – for instance by copying a price quote etc. Or – if desired – the invoice lines can also be created by copying the settled expenditure in various variants.
How to reverse a partial invoice
When you have created a partial invoice with a error and added the invoice number you need to make an elimination of the partial invoice.
This will create a credit note that takes all of the expenses on the partial invoice and make them available on the job for invoicing.