This article is an extract from the book 'Everything you need to know about Xero Practice Manager'
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Methods of invoicing
There are four types of invoices you will raise in XPM:
- Time and cost invoices (with write-offs to be applied to specific time sheets)
- Time and cost invoices (with write-offs to be apportioned across all time sheets)
- Quoted invoices (with write-offs to be apportioned across all time sheets)
- Deposit invoices (write-offs are not applied at this stage).
Time and cost invoices (with write-offs to be apportioned across all time sheets)
With this method, we are apportioning the write-up or write-off over all time sheet entries. So if we have $1,000 on time and only want to bill $800, we can overwrite the $1,000 to $800, and the $200 write-off will be split evenly across all the time sheet entries. This means if we had 10 time sheet entries at $100, each time sheet entry would receive a $20 write-off.
Below are the steps required to create a time and cost invoice with write-offs to be applied across all time sheet entries.
- Complete time sheets in XPM
- Raise a ‘New Progress Invoice’
- Select ‘Actual Time and Costs’
- Select ‘Edit Invoice’ in the top right-hand corner
- Update the ‘Job Description’ to say what you would like the invoice to say when it arrives in Xero and hit ‘Save’
- At the top of the invoice, change the ‘Pricing Mode’ to ‘Fixed-price’
- In the box next to the task, change the amount shown to the amount you wish to invoice
- Once you have updated all the necessary boxes, hit ‘Approve’. This will send the invoice to Xero using the job description from the invoice as the line item description. The revenue stream will be populated from the job category in the job.
If this job is ready to be closed, hit ‘Remove from Invoice List’. This will move any unbilled WIP into a write-off. If this job is still in progress, do not hit this button.
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