Pre-Invoices Overview

The Pre-Invoices feature allows you to produce a "request for payment" invoice that is not recorded in the general ledger.

Enabling Pre-Invoices

The Pre-Invoices feature is an optional feature that you turn on by company on the Miscellaneous tab in Configuration > Billing > General.

Invoice Templates

For projects that use pre-invoices, you use the Invoice Template Editor in Billing to create a different invoice template for each -- pre-invoices, pre-invoice cancellations, and regular invoices (final or draft).

The invoice template for each of these invoice types has a Pre-Invoice section. The Pre-Invoice section lists pre-invoices and identifies the fee amounts that have been paid, cancelled, and applied to a regular invoice.

Billing Terms

On the Pre-Invoice tab in Billing Terms for a project, you specify:

The default pre-invoice and cancellation invoice template to use for a project.
Pre-invoice notes that display in the Note column in the Pre-Invoice section of an invoice
A phase and task (WBS2/WBS3) for cash receipts that are posted to pre-invoices (if you use phases/tasks).

Processing Pre-Invoices

When you are ready to create a pre-invoice, you complete the following actions in Billing Terms for a project before you generate the pre-invoice in Interactive Billing or Batch Billing:

Set the fee method to Current unit or fee.
Select the Process Pre-Invoices check box on the Pre-Invoice tab. This check box is a toggle to turn on and off pre-invoice processing in Interactive Billing and Batch Billing for a project. When the check box is selected, Interactive Billing and Batch Billing produce pre-invoices instead of regular invoices for a project. When the check box is cleared, Interactive Billing and Batch Billing produce regular invoices. Be sure this check box is appropriately selected or not selected for a project before you produce invoices in Interactive Billing and Batch Billing.
Enter billing information and the fee amount for the pre-invoice.

Cash Receipts for Pre-Invoices

When you receive payments for pre-invoices, you apply the cash receipts to the pre-invoices in Cash Receipt Transaction Entry. You specify the default general ledger account to credit for pre-invoice cash receipts on the Miscellaneous tab in Configuration > Billing > General. This is typically a liability account.

Regular Invoices

Paid Pre-Invoices

The fee amount from paid pre-invoices is applied automatically to the next regular invoice (final or draft) that you generate for a project. It reduces the total billed amount on the regular invoice. The paid pre-invoices display in the Pre-Invoice section of a regular invoice.

Canceled Pre-Invoices

When you create a regular invoice (draft or final) in Interactive Billing or Batch Billing for projects with pre-invoices, all unpaid pre-invoices are canceled automatically. You can add the unpaid pre-invoice fee amounts to a regular invoice by entering them in the Fee field on the Fees tab in Billing Terms. The unpaid pre-invoices display in the Pre-Invoice section of a regular invoice and show that they are canceled.

Invoices on File

In Invoices on File in Interactive Billing, you can see all pre-invoices that are created for a project and print or preview them. You can also manually cancel any unpaid pre-invoices on the Invoices on File dialog box.

Reports

The AR Aged report in Reporting > Accounts Receivable has the option to include pre-invoices. Unpaid pre-invoices are included on the report.

Other accounts receivable and project reports do not include pre-invoices. Job-to-date billing and job-to-date receipt amounts on reports do not include pre-invoices or any cash receipts applied to them. Tax reports do not include pre-invoice tax amounts until they are paid.