Introduction

This document explains the various project invoicing methods that are available in Q360. Choosing a method for project invoicing can vary based on factors including the billing terms with individual customers, your company’s own internal billing process, and the type of project.

 

In Q360

The two common methods for project billing in Q360 are milestone billing and progress billing.

Milestone Billing

Billing occurs when project milestones are achieved such as the completion of planned project specific goals, or on agreed-upon dates. Billing is defined with the amounts to be billed for each milestone, which is usually by percentage or fixed values.

The following billing types are available for the milestone method:

• Invoicing Task
• Manual
• Retention

Progress Billing

Billing occurs periodically in relation to costs incurred. For example, this can be done on a monthly basis.

The following billing types are available for the progress method:

• Schedule of Values (SOV)
• •By Line Items
• Manual
• Retention

Important: Only one of the above billing methods are recommended for each billing project. Do not mix and match billing methods within a project without fully understanding the ramifications.

 

Billing Type Descriptions

Invoicing Task

Allows the set up a task of type INVOICE. This instructs Accounting to bill a project for a certain percentage, fixed amount, or for retainage.

Manual

A method by which you create a manual invoice on a given project, specifying desired amount to bill.

Retention

Uses the invoicing task to bill for retainage at the end of the project.

Schedule of Values (SOV)

Allows the documenting list of work products for a given project to bill against progressively. For example, materials and labor can be separate line items in an, each distinct system or location can be a line item, a customer change order can be its own line item. Alternatively, the SOV can be used to match the customer’s PO so that invoice line items correspond to line items from the PO. SOV also allows printing invoices on a form that resembles AIA billing form.

Line Items

Generates an invoice from a single or multiple project-related order line items. This is the only method that ensures your generated invoice by default has line items with exact description and total price of each corresponding order line item.

 

FAQs

What is the recommended approach for Q360 projects that do no have the Defer Revenue check box turned on in the Profit tab?
The only correct method to bill on these projects is billing by line items.

We have projects that existed prior to Q360 and were imported through Project WIP import sheet. What is the recommended approach for these?
The only correct method to bill on WIP conversion projects is manual billing.

How do I attach a bill of materials (BOM) to the invoices that has been sent to a specific customer?
Generate a BOM for a given project in Q360 using the Project form print option “Print Project BOM”.

Published: April 27, 2020