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 applied to specific time sheets)
With this method, we are selecting specific time sheet entries to either write-up or write-off. So if we have $1,000 of time and only want to bill $800, we can select specific time sheet entries that total to $200 to not bill. This means if we had 10 time sheet entries at $100 and we selected two time sheet entries, those two time sheet entries would both receive a $100 write-off and the other eight entries would receive no write-off.
Below are the steps required to create a time and cost invoice with write-offs to be applied on specific time sheet entries. This example assumes we have selected option A (Job or miscellaneous invoice) as our Xero integration settings, as this is the most common.
- Ensure time sheets are up to date 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’
- Click into ‘Tasks’ and review the time sheets. If there is a time sheet you do not want to bill, select ‘No’ next to the entry. This will mark that time sheet as a write-off. There is also an option to select ‘Future’ on the time sheet entry. If you select this, the time sheet entry will not be billed or written off as it will be held on the job as WIP for a future invoice
- If you would like to write-up a time sheet entry, you can overwrite the time to be more than the actual time sheet entry. This will not affect the time sheet entry, it just creates a write-up on that time entry
- Once you have made your adjustments for write-ups and write-offs, 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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