Editions: All (Except AEC)
Plans: Growth, Pro, Enterprise
The CMap Winter 2021 release saw the introduction of the "Detailed" Time and Materials ("T&M") Invoicing, where you decide what you're going to do with Work in Progress ("WIP"). For example, you may choose to: carry forward, fully write off, partially write off or bill at the individual timesheet entry level.
We've now released the "Simple" version of T&M Invoicing, where you can simply manage an overall balance of WIP. Instead of dealing with individual timesheet entries, you’ll deal with overall values i.e. there'll be an overall WIP value. You decide an overall value you'd like to write off, and an overall value you'd like to bill. Simple.
In this article, we’ll look at:
- What the "Simple" approach is and when to choose it
- An example Invoice
- Billing Expenses and Purchases
- Invoice Creation Page
- Crediting T&M Invoices
What is the new "Simple" approach... and when do I choose to use it?
When using the "Simple" approach, CMap will tell you where your WIP is up to (based on Timesheet entries) and you can then simply type in how much you would like to Bill and/or how much you would like to Write Off.
Using this approach should speed up Billing and Write Offs on T&M projects. However, it can be less accurate, as you won't be able to include a breakdown of the exact Timesheet entries you're billing for on your Invoice.
NOTE: You can only use one approach per Project- you can't mix and match.
When you first approve a Scheduled Invoice on the Project, you will be presented with a prompt to choose between the "Simple" or "Detailed" approach to T&M Invoicing.
CMap Tip: Click What does this mean? to remind yourself of the differences between the two approaches and their pros and cons.
When selecting either of the approaches, a confirmation prompt will appear, stating the approach chosen and if you wish to Continue or Go Back to the previous selection prompt.
Once you press Continue, you will be taken to a similar Invoicing page as the “Detailed" version, but this deals with lump sum values instead of individual Timesheet entries.
Let's work through an example...
This is the value of Time that has been booked to the Project, that hasn't already been billed or written off. The calculation for this figure is:
Total value of Time Booked (charge rate) - Invoiced So Far - Write-Offs = Current WIP
WIP To Carry Forward
Before any values are entered into Amount to Bill or Amount to Write Off, the WIP To Carry Forward is valued as the same as the Current WIP.
NOTE: Once you enter Amounts to Bill or Amounts to Write Off, the WIP To Carry Forward adjusts accordingly.
Amount To Bill
Here you enter the net value of the Fees you wish to Invoice.
Amount to Write Off
Enter the desired amount to Write Off from the current WIP value.
NOTE: You will also be able to add a note to this Write Off entry, which can be reported on via the Report Builder and the 'Write Off' report type.
In the example above, we are billing £1000.00 worth of WIP and writing off £400.00, leaving £400.00 left as WIP to carry forward for potential future billing purposes.
Billing Expenses and Purchases
Expenses and Purchase Invoices within the "Simple" approach, does not differ in any way from the "Detailed" approach.
If you would like to include personal Expenses on the Invoice to the client, use the dropdown box alongside each Expense item in the Action column. If you select the items as "Charge" this will include the Expense item on the Invoice as an Additional. If you do not want to Bill the Expense item you can set the dropdown to "No Charge".
If there are Purchase Invoices that you need to bill onto the client, these will be listed at the bottom of the screen. To bill the Purchase Invoice, you simply tick the Billable box next to the item(s).
NOTE: Once a Purchase Invoice has been billed, it will no longer be available for future Invoices.
Approve For Creation
Once you are happy with all Billable and Write Off elements of the Invoice, please select "Approve for Creation" in the top right of the Approval page.
After the Approve for Creation button is selected, the below confirmation prompt will display.
Invoice Creation Page
If you have the correct Invoicing permissions, you will arrive at the Invoice Creation page. This page is exactly the same as "Detailed" T&M Invoicing, along with the Fixed Fee Invoice Creation Page.
The Invoice lines are populated with the amounts determined on the previous Approval page and if required, edits can be made to the details of these lines such as Item name, Fee/Additional and Amount.
NOTE: If the amount of the Fee lines are edited, then this will create Write Up/Off adjustments on the Project in question.
NOTE: Each Invoice requires at least one Fees line. If only one Fee line is set in the Invoice, this cannot be removed.
What’s the point of no return?
Once all details of the Invoice are correct and this can be created, this is the point of no return in regards to setting whether this Project will use the "Simple" or "Detailed" Invoicing approach. Once the Invoice number has been generated and the document has been downloaded, you will not be able to switch the approach, even if a Credit Note is raised against the Invoice.
Crediting T&M Invoices
To credit an Invoice, you will now see a “Credit” button next to a created Invoice and you can no longer add a manual Credit by entering a negative value in the Invoicing page. This means that when T&M Invoices are now credited in CMap, all transactions associated with that original Invoice are returned to the Project ready for you to be able to Invoice them again, or write them off.
Invoicing Summary & WIP Panel
The Invoicing Summary & WIP Panel works slightly differently to the "Detailed" approach. If you select the Fees Written Off link, a log of each simple Write Off recorded is displayed, unlike the "Detailed" version, where the individual written off time entries are listed.
Here you will see the following:
- Date Written Off: The date that the Write Off has occurred
- Written Off By: Who has processed the Write Off
- Amount: The overall amount of the Fees written off
You will also find a new way of creating an ad hoc Write Off record in this menu by selecting "Add a Write Off".
This menu shows the Current WIP value, a field to specify the amount you wish to Write Off and an optional notes section.
Once this ad hoc Write Off is saved, it will navigate you to the previous Write Off log menu showing you the confirmation of the new record.
Hopefully, you now understand the concept of the “Simple” approach to T&M Invoicing and are aware of its similarities and differences to the “Detailed” approach. Using this approach will no doubt save you some time when it comes to billing and writing off Time on T&M Projects- you just need to make sure it’s the most appropriate option, as once you have chosen the approach, you have to stick with it for the rest of the Project!
Want to learn more? Watch a short video here.