This article is an extract from the book 'Everything you need to know about Xero Practice Manager'
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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).
With this method we are invoicing based on the quote we have raised on the job. If there is no quote on the job, this method will not work. This method allows us to invoice exactly what was quoted, rather than messing around with time sheets. An example of this would be an agreed fee of $2,000 for a cash-flow forecast, we are going to bill $2,000 regardless of the time sheets. The best way to approach this is to create a quote for $2,000 and when we invoice, select the ‘Quoted method’. This will pull through exactly what was on the quote.
Because we have chosen ‘Progress Invoice’, there will be no write-up/off applied to the time sheets. Instead, the invoice will be treated as an ‘interim’ which is a negative WIP entry. If we would like to apply the invoice amount to the time sheets and recognise the respective write‑ons/offs, we can either make it a ‘Final Invoice’ or once we have completed the invoice, hit ‘Remove from Invoice List’. Both options will achieve the same result and apportion the invoice total evenly across the time sheets, thus recognising the write-ups/offs evenly across all time sheet entries relative to their billable amounts.
- Raise a quote on the job for the amount you wish to invoice
- Complete time sheets in XPM
- Raise a ‘New Progress Invoice’ if you wish to create an interim, or ‘New Final Invoice’ if you wish to recognise the write-ups/offs against the time sheet entries in this invoice
- Select ‘Quoted/Estimated Time and Cost’
- 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’ (if your quote was set up correctly you won’t need to edit anything)
- 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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