AXAPTAMANIAC: Project postings with Billing Rule

When Progress Billing Rules are used on the Time and Materials project, then the following things should be kept in mind:

1. The postings setup at the group level for On-accounts and Fee, does not matter. The revenue is directly posted to PNL.

Revenue is posted to à Invoiced revenue (CR)

Accounting entry is as follows:
DR Accounts Receivable

CR Invoiced revenue

CR VAT payable

2. When the billing rules are used, the revenue cannot be accrued even if the 'Accrue revenue' is checked on the 'Line property' and in the 'Project group' against individual transaction types. With use of progress billing rule on the time and materials project, there is no way one can accrue the revenue, if at all during the month end there is no billing and the user wishes to accrue the revenue. The problem with this kind of behavior is the costs are posted to PNL but the revenue cannot be accrued, if there is no billing at the month end.

3. Chargeable categories on the billing rule are of type 'Hours' and 'Item' ONLY. Not sure why but this is how standard system works. The implication of this is, that for 'Progress' billing rule if the budget is defined for hours and expenses and the transactions posted for the same, when the invoice proposal is created the revenue / invoice amount is calculated with respect to Hours transactions only. The calculation does not take into consideration the expense transaction.

The ‘Chargeable’ categories in the Billing Rule only allows Hours and Items categories. Expense categories are not allowed, rather they are not even there for selection.

With this I created a project with Budget and Billing rule as below:

Hours – 10,000 – Account Admin

Expense – 10,000 – Travel air

Total budget of 20,000.

Billing rule contract value – 100,000

I posted an expense journal of 4000 and created an invoice proposal. No invoice amount was calculated by the system as expense categories are not allowed in the chargeable categories.

I posted an hours journal of 5000 and created an invoice proposal. This time the invoice proposal is for 50,000, as the % complete is 50%. (5000 against 10000)

But this standard behavior of billing rule with respect to expense seems to be wrong as from a total budget perspective I am 45% complete (9000 against 20000).

4. When the billing rule is used on the time and materials project, then even if the transactions are posted as 'Chargeable' / 'Bill' (.i.e. line property = Chargeable), when they are actually posted on the project the invoice status changes to 'Non-chargeable'.

Hours transaction set to go to 'PNL' on project group and Line property = Bill, for a project WITH 'Billing rule'