About receivable invoices

You use the 3-2 Receivable Invoices/Credits window to enter transactions that affect receivable accounts. You can create invoices or credit invoices, track retention, or view a history of payments for a specific invoice.

You can also create a simple invoice based on the percentage of work completed for the contract. This type of billing is suitable for subcontractors or small projects.

About receivable invoice status

About receivable invoice types

Entering receivable invoices

To enter a receivable invoice

1

Open 3-2 Receivable Invoices/Credits.

2

Do the following:

a

In the Invoice# text box, enter the invoice number.

b

In the Date text box, enter the date of the invoice.

c

In the Job text box, enter the job number.

d

If the job uses phases, enter the phase number in the Phase text box.

e

In the Description text box, enter a brief statement about the invoice.

f

In the Due Date text box, enter the invoice due date.

g

In the Discount Date text box, enter the due date by which you must receive payment for the client to receive the discount.

h

In the Status list, click the invoice status.

i

In the Type list, click the invoice type. The contract affects the invoiced balance when Type 1-Contract is selected. Type 2-Memo does not affect the invoiced balance.

3

In the grid, for each item on the invoice:

a

In the Description cell, enter a brief statement about the item.

b

In the Quantity cell, enter the quantity of items.

c

In the Price cell, enter the price for a single item.

d

In the Account cell, enter the ledger account number.

4

In the Discount text box, enter the discount for early payment.

5

On the File menu, click Save.

6

In the Retention text box, enter the amount of retention.

Voiding receivable invoices

If you discover an invoice was entered incorrectly, determine the best method to correct the error. For example, if the error is in the header information, you can edit the information contained in any of the text boxes, except in the Job and Tax District text boxes, and re-save the record.

When the invoice contains an incorrect job number, tax district, ledger account, or amount, void the invoice and then re-enter it with the correct information. By voiding and re-entering the invoice, you create a clear audit trail.

There are also circumstances when you cannot void the original record. For example, you cannot void a credit invoice that has been applied in full, or an invoice posted to period 0. Because you cannot void these types of transactions, it is necessary to enter an adjusting invoice.

Before voiding an invoice, reverse all the payments posted to it. You can then enter the invoice correctly and reapply the payments.

You can void a receivable invoice with an assigned status of 1-Open, 2-Review, or 3-Dispute.

When voiding an invoice that contains discretionary taxes, Sage 100 Contractor also voids the tax amount. If the voided invoice reduces the discretionary taxes below the billing maximum, Sage 100 Contractor continues to calculate the discretionary taxes until the tax maximum is met.

To void a receivable invoice

1

Open 3-2 Receivable Invoices/Credits.

2

Using the data control, select the record.

3

If an amount appears in the Paid text box, reverse the payments. How?

4

On the Edit menu, click Void Invoice.

Creating invoices based on contract balances

You can create a receivable invoice for a job based on the amount of work completed. Using the original contract amount or the new contract amount and the amount you have invoiced to date, Sage 100 Contractor determines the balance remaining on the contract.

When you supply the percentage of the contract that is completed, Sage 100 Contractor computes the amount to bill. This method is similar to progress billing, but does not provide a detailed breakdown by cost code of the progress. Instead, the invoice contains a single line describing the percentage of work completed and the invoice amount. This method of billing is best suited for subcontractors.

To create an invoice based on the contract balance

1

Open 3-2 Receivable Invoices/Credits.

2

Enter the invoice. How?

3

On the Options menu, click Contract Summary.

4

Choose the type of invoice you want to create by selecting the Percentage of Contract or Percentage of New Contract option.

5

In the Percent Complete text box, enter the total amount of the contract that is completed.

6

The Amount to Bill text box displays the computed amount. You can edit both figures if necessary.

7

Click OK.

Note: Sage 100 Contractor automatically increments the new contract amount as change orders are approved. The amount billed does not change, but the percent billed changes since it is determined from the new contract amount.

About receivable credits

Important! You cannot reverse a credit invoice after applying it to an invoice. If you apply a credit invoice to the wrong invoice, make adjusting invoice entries to correct the error.

Many situations could cause you to enter a credit invoice. Suppose a client provides a prepayment on a job, or overpays an invoice. In either case, it is necessary to reduce the accounts receivable.

When you save a credit invoice, Sage 100 Contractor reduces the job balance. However, the credit invoice retains status 1-Open until you apply it against other invoices in the 3-3-1 Cash Receipts window. After you have applied the credit balance to other invoices, Sage 100 Contractor assigns the credit invoice status 4-Paid.

You can also apply a credit invoice to an invoice at the time you save the record. If the invoice is fully paid by means of the credit invoice, Sage 100 Contractor changes the status of the invoice to 4-Paid. If the invoice still has a balance after applying the credit, the invoice status is not changed. Likewise, if the entire amount of the credit is applied, the status of the credit invoice changes to 4-Paid. If a credit invoice still has a balance after applying it to an invoice, the status of the credit invoice remains unchanged. You can then apply the remaining credit invoice balance to other invoices in the 3-3-1 Cash Receipts window.

Recalculating invoices or credits

After making changes, you can recalculate the new totals.

To recalculate an invoice or credit

To calculate the invoice balances, on the Options menu, click Calculate.

Issuing refund checks to customers

Situations arise where you might have to issue a refund check to a customer. This process progresses through several windows and multiple steps.

You begin the process to issue a refund in 3-2 Receivable Invoices, then you work in 1-3 Journal Transactions, 1-1 Checks/ Bank Charges, and you complete the process in 3-2 Receivable Invoices.

Refunding a service receivables check uses a procedure similar to refunding an accounts receivable check.

To issue a refund check to a customer:

Important! You must use transaction number 0000 in order to print the check. If you have recorded other journal transactions with the 0000 number and they are still in an open status, they will also print when you print the check.

Tip: If you need a list of accounts, double-click in the blank field.

Note: In 11-2 Service Receivables, you cannot change the Invoice #.

Managing old debts in accounts receivable

Sometimes there are situations where you have completely billed a contract, but you never receive full payment. You can post a credit invoice to the job, crediting the Bad Debt Expense account, for the uncollected amount. By not applying the credit to the open invoice, the credit invoice creates a $0 job balance but the invoice remains open. If you eventually collect the remaining contract balance, you can still post the payment to the invoice and void the credit.

At the fiscal year-end, you can close the job and remove it from the job database as long as it meets all the closing criteria.

About accounts receivable payment history

Each time you post a payment to an invoice, Sage 100 Contractor creates a separate record of the payment. To review the individual payments made to a particular invoice, you can select the invoice and display its payment history.

When you void an accounts receivable payment, Sage 100 Contractor deletes the historical record of the payment and increases the invoice balance by the amount of the voided check.

Suppose you void a payment that applies to five invoices. Sage 100 Contractor deletes the record for payment in each of the related invoice histories and increases each invoice’s balance appropriately.

When you reverse a cash receipt, Sage 100 Contractor creates an additional record in the payment history for a negative amount.

You can use the payment history to reconstruct account balances for aging reports. To do this, first determine the fiscal period for which you want to recreate the aging. Then subtract the payments made after that fiscal period from the ending balance.

To view accounts receivable payment history for an invoice

1

Open 3-2 Receivable Invoices/Credits.

2

Select the invoice for which you want to view a payment history.

3

On the Options menu, click Payment History.