This article is an extract from the book 'Everything you need to know about Xero Practice Manager'
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Where do I prepare my invoices?
At a high level, you invoice your time-charge agreement work from XPM and your fixed-price agreement work from Xero. In both cases we send the actual copy of the invoice from Xero.
Time-charge agreements are jobs that are invoiced either on time and cost, or on a quoted fee. We have a job in XPM, we add our time to it, and invoice based on time sheets or the quoted value of the job.
Our fixed-price agreements are not billed from XPM because it doesn’t have the ability to create repeating invoices in a job. We instead set up the repeating invoices in Xero, and have the invoice amount sent back to XPM against the job. We will discuss how we do this in this chapter.
Time-Charge Agreements vs Fixed Price Agreements
Time-charge agreements are jobs that are invoiced either on time and cost, or on a fixed fee. We have a job in XPM, we add our time to it, and invoice based on time sheets or the fixed value of the job. Time-charge agreements can be on the fixed-fee basis. We can be invoicing deposits, progress invoices or on completion. The value and timing of the invoices are determined by the delivery of the job. These engagements are typically invoiced in arrears.
Fixed price agreements include any engagement that is invoiced on a fixed fee spread over a set period on a set frequency. A practice will typically bundle all the services a customer requires into a single fee, divide it by twelve and spread these invoices monthly across the year. The timing of the invoicing is independent of the timing of the delivery of the services.
Next we are going to look at time-charge agreements and how we bill these from XPM. We will then move onto billing fixed-price agreements out of Xero and finally, how we can simplify everything using Practice Ignition.
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