Advance Billing allows you to pre-bill clients for services. If the job has an estimate, you may link the estimate to the pre-bill and bill, in advance, a percentage or all of the estimate figure (see Enter Billing Information). When you print the live bills, you may choose to print billing history on these invoices. Also, the system permanently records the advance billing information in the master files. This update process performs all journal entries to the General Ledger, updates Accounts Receivable, records any taxes that are charged, and charges the advance (pre-bill) amount against the job.
Advance Billing Rules:
When Client Billing occurs against Advance Billing that had revenue attached, the system uses a percentage formula to relieve the revenue. The percentage is based on the total billing amount of the current invoice divided by the original prebilling total. So, if the original prebilling was $90,000, and an invoice is produced for $11,000 in charges, the resulting percent would be .1222. This percent is multiplied by the amount of the original revenue entered with the prebilling.
Other Rules:
If a job is final billed or billed as "fake final", then all remaining revenue is reconciled along with the total advance bill amount.
If a job is partial billed and the percent formula above results in a revenue calculation that is more than the amount of unreconciled revenue left on the advance bill, then the formula is ignored and the remaining unreconciled revenue is used.