Resources and presentation notes - Unanet Technologies

Billing, Invoicing andRevenue RecognitionUnanet UniversityInstructor: Kristiane Smithwww.unanet.comCopyright © 2004 Unanet Technologies11

What can I do withUnanet Billing?Identify Actual Revenue for Fixed Price, T&M and Cost Plus contracts.Recognize Revenue in Unanet• Show the Project Managers what has been Invoiced and Recognized to date.• Produce Project based reporting on billed and recognized revenue.• Send Recognized Revenue to your accounting system.Produce Invoices in Unanet• Provide access to additional users to “approve” invoices before finalizing.Report on all Revenue generated for a project.• One-Time Fees or Discounts• Mark-Up Expenses to show added Revenue.Copyright © 2011 Unanet Technologies2

Unanet BillingDo Work (EnterTime &Expense)Process OverviewExport Datato AccountingApprove DataEntry andExtractReview/Approve/Complete InvoicesPost – What’sAvailable to Bill?Create InvoicesCopyright © 2011 Unanet Technologies33

Terminology ReviewBilling Types• FP – Firm Fixed Price• Based on % complete or scheduled fixed amounts.• TM – Time & Materials• Based on “Billable” hours and expenses entered into Unanet.• Pre-Bill option available to reflect deposits.• CP – Cost Plus Fixed Fee• Based on the actual cost of labor and expenses entered intoUnanet plus Indirect cost and Applicable Fees.Accounts and Account TypesCopyright © 2011 Unanet Technologies4

What’s Included with BillingCustom InvoicesCopyright © 2011 Unanet Technologies5

One Time Charge TypesWhat’s Included with Billing• Custom Discounts• Credits• Late Fees• Any other Fee or Discount that must be applied.Copyright © 2011 Unanet Technologies6

Custom Payment Terms• 1% discount if paid in 10 days,• Net due in 30 days• On ReceiptWhat’s Included with BillingCopyright © 2011 Unanet Technologies7

What’s Included with BillingNew Unanet Exports for downstream systems• Journal Entries - bill and revenue data with account codes, in detail orsummary• Accounts Receivable – export of invoice data• Fixed Price Schedules - export to a downstream system for billing orrevenue forecastingCopyright © 2011 Unanet Technologies8

What’s Included with BillingManaging Labor Deposits or Retainers• Pre-Billed labor amounts can be set up for the project,then reduce this balance via time charged to the projecton T&M Contracts.Copyright © 2011 Unanet Technologies9

What’s Included with Billing?Revenue Recognition FlexibilityRevenue Recognition for Fixed Price, T&M and Cost Plus contracts•Project based reporting on billed and recognized revenue.•Create Fixed Price Schedules to recognize revenue of Fixed Price contractsFlexibility for you to decide when you bill, and when you recognize revenueCopyright © 2011 Unanet Technologies10

What’s Included with Billing?Revenue Recognition Flexibility• For T&M & CP, when the work is performed, accounting will consider that it has been“earned” and then it’s a matter of invoicing the client.• For Fixed Price, you define the items, specify how they will be billed, and how revenuewill be recognized (earned).• Billing Manager role creates bill and revenue recognition schedules for a project Theyalso can run Project Accounting reports for the project and see revenue according tothe defined FP scheduleCopyright © 2011 Unanet Technologies11

Participant RoundtableWhat types of contract/s does yourcompany have?Where do you currently generateinvoices?Do you have a need for ProjectManagers or others to see Invoiceamounts and Recognized Revenue?What is your primary objective forattending this class?Copyright © 2011 Unanet Technologies12

Unanet RolesBilling Introduced New Unanet RolesBilling Manager Role or Administrator• Selects Projects and ‘Posts’ data.• Adds Invoices and Finalizes Invoices• Preview Unposted amount for billing and revenue Prior toposting.Billing Viewer• Run Reports• Reviews InvoicesCopyright © 2011 Unanet Technologies13

Admin SetupDefineAccountsDefineBillingStandardsDefineInvoicesDefineInvoiceNumberFormatsDefineOne-TimeChargesDefinePaymentTermsCopyright © 2011 Unanet Technologies14

Accounts ExplainedAssets = Liabilities + Owners’ EquityDebit Credit Debit Credit Debit Credit+ - - + - +Account Type Account Category Common NameIncome Recognized Revenue Accounts ReceivableAsset Billed Accounts PayableAsset Deferred Revenue Work in ProcessLiability Deferred Revenue Deferred RevenueLiability Tax Sales Tax Payable15

Existing Project ConsiderationsData will not be included in the Unanet Post process if thereis not a Project Billing Type.• For Inactive projects or Projects that this is not required, do not set aBilling Type.• For active Projects that required Billing process, set a Billing Type.• An initial post and Invoice will be needed to set the beginning balances sothat “Inception to Date” will match your accounting system.Copyright © 2011 Unanet Technologies16

Fixed Priced ContractsIdentify the Billing Schedule or Method• Billed one time by Date• Billed on a recurring Schedule (retainers)• Billed on CompletionIdentify the Revenue Recognition Method• Based on % Complete• Recognized when Billed• Recognized on a Schedule17

Terminology ReviewPosting Process• Billing and revenue transactions are created with specified accountcodes according to project billing type as unbilled, or deferred(unearned) revenue• Increasing/Debiting Asset Account of Unbilled• Increasing /Crediting Deferred Revenue Account of LiabilityAccount• At this point, dollar values are associated with the DeferredRevenue or Unbilled accounts. This is not posting to the RecognizedRevenue.Invoicing ProcessCopyright © 2011 Unanet Technologies18

What’s Included?Post Process forFixed Price ContractsFixed Priced Contracts:• Fixed-price items based on bill date• Fixed price milestones based onProject/Task completion.• Fixed-price schedules on or past date.Copyright © 2011 Unanet Technologies19

ReportingProject Accounting Reports (formerly known as Project Costing), include FP, T&Mand CP Revenue, as well as fully burdened costs.7 new reports support Billing, Revenue and InvoicingThese reports are available to the Administrator, Billing Manager, Billing Viewerand their alternates.Copyright © 2011 Unanet Technologies20

Fixed Price DetailsShow the Revenue Recognition and Billing ScheduleOptional Configuration• Billing Schedules• Revenue• Revenue Recognition Schedule• “Past Due Completion” ItemsCopyright © 2011 Unanet Technologies21

Journal Summary ReportSummary of all billing or revenue transactions posted to journal account resulting from a postor invoice completion process.Generate project, project organization summariesThe Debit column will include:• Assets - Any positive amount• Income or Liabilities - Any negative amountThe Credit column will include:• Assets - Any negative amount• Income or Liabilities - Any positive amountThe Revenue line on this summary report equates to the revenue tag value on the Project CostSummary (JSR) report.Copyright © 2011 Unanet Technologies22

InvoicingAdd Invoices after Data is Posted.• Unanet utilizes the Project’s Invoice Settings.Add One-Time Charges as needed.• Add-on Charges• DiscountsCustomize the Invoice• Add or modify the Memo, Header, etc.Save for Review by the Billing Manager or Viewer.Copyright © 2011 Unanet Technologies23

Invoice ReviewClicking Pencil Icon presents editable version of invoice where itemscan be deferred.Check the Green Icon when the Invoice should be consideredComplete and the Revenue is Recognized.Copyright © 2011 Unanet Technologies24

Invoice Status ReportReview status of an invoice•Invoice date•Invoice number•Other summary informationOutput can include draft, completed, extractedOptionally include the Invoice•The detailed version of this report, has the option to force a printer to form feed after eachdetailed invoice (see the Include page breaks in printed output option).•This feature is often used to facilitate the mass printing after a period has been completed.Copyright © 2011 Unanet Technologies25

Invoice ProcessAdjusting Invoices• Completed Invoices in Unanet cannot be modified.• Options available within v9.4 to adjust an Invoice.Changes to “total” withanother invoiceCorrect on the nextinvoice (via adjustmentsand/or one-time items)External reformatcombined with onetimeitem• Produce another invoice with One-Time item with a debit or a credit.• Use the memo field to indicate that this invoice is an addendum to the original invoice• This invoice will have a different number• Timesheets are adjusted and go through the normal process.• Correcting expense reports could also be submitted, approved and posted.• The next invoice includes these and/or One-Time item with a debit or a credit to theamount of the original invoice.• This invoice will have a different number.• A one-time item or adjustment on an invoice that is not sent to the client could be usedto ensure correct bill and revenue balance in Unanet.• The original invoice can be copied to Word or Excel and formatted as desired if the clientrequests that the original transactions are presented.We anticipate that future versions of Unanet will support scenarios such as invoice ‘reversal’ wheredata included on a completed invoice could be ‘’backed out’ and presented on a new invoice.26

Time & Materials ContractsT&M Contracts utilize Unanet data entry values to determinethe amount invoiced.Labor• Entered into Unanet Timesheets.• Bill Rates are set at the Assignment, Labor Category or Person level.Expenses and Materials• Entered into Unanet Expense reports.• Billable Mark-ups add fees.27

Billable Expense MarkupExpense Mark-up• You can define a system-wide markup percentage by expense type• Markups at the project-level can also be specified, by expensetype, to override system-wide values• Marked up amounts will be reflected in billable expense amountson all reports that show expense bill amounts• Exported expenses include the markupCopyright © 2011 Unanet Technologies28

Pre-Billed Laboror RetainersUnanet customer in New York, NY•Commercial IT services sector.For general IT services, the Client pays a fixed amount up-front that willrepresent a number of hours of work at a negotiated billable rate.•For example, the client wants 50 hours of service at $250/hour•The retainer is setup as $12500 in services.•The client pays $12500 up front and continues to schedule services as needed.An initial invoice is created for the $12500 retainer.•In each subsequent month, a new invoice is issued that shows the amount billed in that period,the amount billed to date and the total amount of retainer remaining.•When the retainer is exhausted, a new retainer is negotiated.Copyright © 2011 Unanet Technologies29

Post Process forT&M ContractsWhat’s Included?Time and Materials Contracts:• Labor recorded in an Extracted Timesheet.• Bill Rate determined based on Assignment or Projectconfiguration.• This Labor will off-set any Pre-Billed Labor that has beenInvoiced previously.• Materials or expenses entered in an Extracted Expense Report.• Expense Type Billable Mark-up will be included.Copyright © 2011 Unanet Technologies30

Journal Summary ReportSummary of all billing or revenue transactions posted to journal account resulting from a postor invoice completion process.Generate project, project organization summariesThe Debit column will include:• Assets - Any positive amount• Income or Liabilities - Any negative amountThe Credit column will include:• Assets - Any negative amount• Income or Liabilities - Any positive amountThe Revenue line on this summary report equates to the revenue tag value on the Project CostSummary (JSR) report.Copyright © 2011 Unanet Technologies31

InvoicingAdd Invoices after Data is Posted.• Unanet utilizes the Project’s Invoice Settings.Add One-Time Charges as needed.• Add-on Charges• DiscountsCustomize the Invoice• Add or modify the Memo, Header, etc.Save for Review by the Billing Manager or Viewer.Copyright © 2011 Unanet Technologies32

Invoice ReviewClicking Pencil Icon presents editable version of invoice where itemscan be deferred.Check the Green Icon when the Invoice should be consideredComplete and the Revenue is Recognized.Copyright © 2011 Unanet Technologies33

Invoice Status ReportReview status of an invoice•Invoice date•Invoice number•Other summary informationOutput can include draft, completed, extractedOptionally include the Invoice•The detailed version of this report, has the option to force a printer to form feed after eachdetailed invoice (see the Include page breaks in printed output option).•This feature is often used to facilitate the mass printing after a period has been completed.Copyright © 2011 Unanet Technologies34

Cost Plus Fixed Fee BillingProject Costing Setup Required*• Setup Fiscal Years• Setup Cost Elements• Setup Cost Structures• Enter and Maintain Indirect Rates• Configure Job Summary Report• Configure Fee Methods• * This is not covered in detail in this course.Copyright © 2011 Unanet Technologies35

Post Process forCost Plus ContractsWhat’s Included?Labor and materials:• Labor recorded in an Extracted Timesheet.• Cost Rate determined based on Assignment or Projectconfiguration.• Indirect Rates and Fees applied as specified in the Cost StructureFormulas.• Materials or expenses entered in an Extracted Expense Report.• Indirect Rates and Fees applied as specified in the Cost StructureFormulas.Copyright © 2011 Unanet Technologies36

Job Cost Summary ReportRun this report to see the build-up of Laborand Expenses.The Revenue line on the Project Cost Summary(JSR) report will equate to the revenue line seenin the Posting and Invoicing process.Copyright © 2011 Unanet Technologies37

Journal Summary ReportSummary of all billing or revenue transactions posted to journal account resulting from a postor invoice completion process.Generate project, project organization summariesThe Debit column will include:• Assets - Any positive amount• Income or Liabilities - Any negative amountThe Credit column will include:• Assets - Any negative amount• Income or Liabilities - Any positive amountThe Revenue line on this summary report equates to the revenue tag value on the Project CostSummary (JSR) report.Copyright © 2011 Unanet Technologies38

InvoicingAdd Invoices after Data is Posted.• Unanet utilizes the Project’s Invoice Settings.Add One-Time Charges as needed.• Add-on Charges• DiscountsCustomize the Invoice• Add or modify the Memo, Header, etc.Save for Review by the Billing Manager or Viewer.Copyright © 2011 Unanet Technologies39

Invoice ReviewClicking Pencil Icon presents editable version of invoice where itemscan be deferred.Check the Green Icon when the Invoice should be consideredComplete and the Revenue is Recognized.Copyright © 2011 Unanet Technologies40

Invoice Status ReportReview status of an invoice•Invoice date•Invoice number•Other summary informationOutput can include draft, completed, extractedOptionally include the Invoice•The detailed version of this report, has the option to force a printer to form feed after eachdetailed invoice (see the Include page breaks in printed output option).•This feature is often used to facilitate the mass printing after a period has been completed.Copyright © 2011 Unanet Technologies41

Additional ReportingProject Accounting Reports (formerly known as Project Costing), include FP, T&Mand CP Revenue, as well as fully burdened costs.7 new reports support Billing, Revenue and InvoicingThese reports are available to the Administrator, Billing Manager, Billing Viewerand their alternates.Copyright © 2011 Unanet Technologies42

Journal Summary• Displays Summary of journal entries by date• Summarizes data by account• Run after Invoices are CompletedBilling and Revenue SummarySummary Reporting• Displays status of billable items and revenue for projects• Drill down to Billing and Revenue Detail reportsInvoice Status• Displays the status of the Invoice and optional Invoice Detail• Print multiple invoicesCopyright © 2011 Unanet Technologies43

Detailed ReportingBilling & Revenue Details• Displays the status of Billable items• Displays the status of Revenue itemsFixed Price Details• Displays the Fixed Price ItemsInvoice Details• Displays what was billed on a given invoice• Displays the status of the invoiceJournal Details• Displays the journal transactions by dateCopyright © 2011 Unanet Technologies44

Billing & Revenue SummaryProvides a summary of all billing and revenue transactions posted to various accountCategories.Transactions included are a result of Post or Invoice Generation processDirectly from the report click through to see additional detailsThe summary of the deferred revenue, recognized revenue, and billed charges equatedirectly to their respective journal transactions.Unbilled journal transactions may be further subcategorized by this report into unbilledand deferred billings.Copyright © 2011 Unanet Technologies45

Billing and Revenue DetailsUse to investigate the Journal Entries created byProject.Includes details related to Billing or Revenue –Save the report under different titles.Run the report based on Variable Dates• Item Date (when the item of interest happened) or• Journal Date (the date associated with the item during thePost or Invoice Completion process).Copyright © 2011 Unanet Technologies46

Billing and Revenue DetailsDisplays the origins of the data that has beenposted for the project• Revenue Recognized for a given Fixed Price item• Labor and Expense details for T&M Contracts• Labor and Expense details for a Cost Plus project.Cost Plus Details• Labor and Expense will be shown at the allocation level.• Indirect charges and fees displayed with the appropriatecost element's description.Copyright © 2011 Unanet Technologies47

Journal Details ReportReview Credits and Debits applied to Accounts by Journal Date.Include Details on:• Project• Category• Person• OthersCopyright © 2011 Unanet Technologies48

Fixed Price Schedule ExportNew Export Templates• Populate a downstream system for billing or revenue forecastingJournal Entry Export• Populate a downstream system with Crediting and Debiting JournalTransactions.Accounts Receivable (AR) Export• Populate Accounts Receivable with Invoice Transactions.Copyright © 2011 Unanet Technologies49

Where Do I get Help?Attend theCustomerAccountManagementWebinar.Visitwww.unanet.com\unadocs forthe HelpDocumentation.Visit the UnanetSupport site todownload theBilling WhitePaper.Contact youCustomerAccountManager orImplementationConsultant.50