Edits in the Billing Rule contract value
Contract value in the Billing rule can only be changed till the time a project transaction is posted to the project. Once the project transaction is posted, the contract value on the billing rule gets non-editable.
Edits in the Cost Budget
In the example below:
Cost Budget = 10,000
Contract value = 100,000
Hours transaction posted = 4,000
Hence the percent complete is 40%. Therefore when the project invoice proposal was raised, the appropriate revenue amount of 40,000 was suggested by the system to be billed to the customer.
However if the cost budget is changed / revised, after the first project invoice is posted, then the % complete calculation takes into account the new cost budget and compares the cost posted against the new budget amount.
Budget revision = 90,000
Hence total cost budget = 100,000
Hours transaction posted = 10,000
When the invoice proposal is created now, the % complete is calculated as follows:
Cost initially posted + Cost posted now = 4000 + 10,000 = 14,000
Total cost budget, after revision = 100,000
Hence the % complete = 14%
There revenue posted from the contract value of 100,000, as per the %complete should be = 14,000
But the revenue already posted on the project = 40,000.
Hence the system will suggest a credit note of 26,000, so that revenue posted on the project is in-line with the % complete.
Please refer the screenshot below:
After knowing this i did one more test to confirm this behavior and hence created a new project exactly similar to the one above and did all the steps till the budget revision. However after the budget revision of 100,000 was done, did not post any transaction. Just directly created an invoice proposal, so as to see whether the system will match the revenue with the new %complete. The system did a credit note so as to match the revenue with the new %complete because of the revised budget.
Contract value in the Billing rule can only be changed till the time a project transaction is posted to the project. Once the project transaction is posted, the contract value on the billing rule gets non-editable.
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| Contract value is read-only |
In the example below:
Cost Budget = 10,000
Contract value = 100,000
Hours transaction posted = 4,000
Hence the percent complete is 40%. Therefore when the project invoice proposal was raised, the appropriate revenue amount of 40,000 was suggested by the system to be billed to the customer.
 |
| 40% percent complete - Invoice value 40,000 |
Budget revision = 90,000
Hence total cost budget = 100,000
Hours transaction posted = 10,000
When the invoice proposal is created now, the % complete is calculated as follows:
Cost initially posted + Cost posted now = 4000 + 10,000 = 14,000
Total cost budget, after revision = 100,000
Hence the % complete = 14%
There revenue posted from the contract value of 100,000, as per the %complete should be = 14,000
But the revenue already posted on the project = 40,000.
Hence the system will suggest a credit note of 26,000, so that revenue posted on the project is in-line with the % complete.
Please refer the screenshot below:
 |
| Credit note created to match the revenue to the %complete |
After knowing this i did one more test to confirm this behavior and hence created a new project exactly similar to the one above and did all the steps till the budget revision. However after the budget revision of 100,000 was done, did not post any transaction. Just directly created an invoice proposal, so as to see whether the system will match the revenue with the new %complete. The system did a credit note so as to match the revenue with the new %complete because of the revised budget.
Cost initially posted = 4000
Total cost budget, after revision = 100,000
Hence the % complete = 4%
There revenue posted from the contract value of 100,000, as per the %complete should be = 4,000
But the revenue already posted on the project = 40,000.
Hence the system will suggest a credit note of 36,000, so that revenue posted on the project is in-line with the % complete.
Please refer the screenshot below:
Thanks
Total cost budget, after revision = 100,000
Hence the % complete = 4%
There revenue posted from the contract value of 100,000, as per the %complete should be = 4,000
But the revenue already posted on the project = 40,000.
Hence the system will suggest a credit note of 36,000, so that revenue posted on the project is in-line with the % complete.
Please refer the screenshot below:
 |
| Credit note created to match the revenue to the %complete |
Thanks
Sarang
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