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Project Billing in Unanet Version 9.6

Instructional Guide

Version 1.4

February 8, 2013

of 47Copyright © 2013 Unanet Technologies

Table of Contents

Overview of this document............................................................................................3Administrator Data Set up..............................................................................................5

Admin >> Setup >> Accounting >> Accounts..........................................................6Admin >> Setup >> Accounting >> Billing...............................................................6Admin >> Setup >> Accounting >> Invoice Formats................................................7Admin >> Setup >> Accounting >> Invoice Number Formats..................................9Admin >> Setup >> One-Time Charge Types............................................................9Admin >> Setup >> Payment Terms.......................................................................10

Project Billing Set up....................................................................................................11Accounts...................................................................................................................11Fixed Price................................................................................................................12Invoice......................................................................................................................15Pre-Bill Labor............................................................................................................17

Project Processes.........................................................................................................18Post..........................................................................................................................19How the Post process handles different billing types:...............................................20

Cost Plus Billing Type Projects..............................................................................20Time & Materials and Fixed Price Projects............................................................22Post Process - Feedback.......................................................................................28

Unpost......................................................................................................................28Add Invoice...............................................................................................................29

Add Invoice Feedback...........................................................................................30List Invoice...............................................................................................................31Creating and Adjusting Invoice with Only One-Time Items.......................................31Revising Invoiced Amounts.......................................................................................31

(1) Changes to “total” with another invoice..........................................................32(2) Correct on the next invoice (via adjustments and/or one-time items).............32(3) External reformat combined with one-time item.............................................32(4) Reverse Invoice and Include Items on Future Invoice(s)..................................32

Reporting.....................................................................................................................33New Detail Reports:..................................................................................................33

Billing & Revenue Details......................................................................................33Fixed Price Details................................................................................................34Invoice Details......................................................................................................35Journal Details......................................................................................................36

New Summary Reports:............................................................................................37Billing & Revenue Summary.................................................................................37Journal Summary..................................................................................................37

New Status Report:...................................................................................................38Invoice Status.......................................................................................................38

Exports.........................................................................................................................39Fixed Price Schedule Export.....................................................................................39Accounts Receivable Export.....................................................................................40Journal Entry Export.................................................................................................41

Glossary for Project Billing...........................................................................................44Frequently Asked Questions.........................................................................................46Historical Data..............................................................................................................47


Overview of this documentSince inception, Unanet software has included features related to project billing and many releases have added new functionality to support the management of billable projects.

Leading market analysts, such as SPI Research, define the category of Professional Services Automation software, in which Unanet is positioned, in the following diagram:

Professional Services Automation includes support for: Engagement Management Project Accounting, and Invoicing

Customers and prospects highlighted the need for the project managers and accounting personnel to be able to identify the difference between billed and unbilled charges as well as recognized and unrecognized revenue.

This document focuses specifically on the enhancements starting with Unanet Version 9.4 and higher.


Do WorkDefine Project ItemsT&M, FP, CP

Approve Work

Run ‘Post’ - What’s Billable & Earned?

Add Invoice - place billable

items on Invoice

Exports

Complete Invoices

AR, JE

Admin SetupAccounting Data

The billing and invoicing process is shown at a high level in the following diagram:

In the 9.4 major release, the following concepts were introduced:

1. Billable expense markup – for organizations who “markup” the actual cost of certain billable expenses. Markup percentages can be specified by expense type at the system level and overridden at the project level. Where customers want to apply a ‘G&A markup’ on time and material projects to their ODCs, this feature should be used, rather than treating the project as Cost Plus.

2. Two new roles, Billing Manager and Billing Viewer

3. Administrators can define the following items related to billing, revenue recognition and invoicing Define Account Codes for use when processing billable or revenue

transactions Specify Billing Rules to determine how items are treated by the Post

process Create Standard Invoice Formats Define multiple Standard Invoice Number Formats Define valid One-Time Charge Types Define Payment Terms for Use on Invoices

4. Define schedules for billing and revenue recognition of fixed price items on a project, at the project or task level. Fixed Price Schedules can also be imported starting in Unanet 9.6.


5. Define pre-bill labor amounts on a project with the intent of billing in advance and then “earning” or “working off” the pre-billed amount through actual billable hours recorded on posted timesheets

6. Projects can have a mix of fixed price, time and materials or pre-billed labor items. Cost Plus projects cannot include these items

7. A Post Process to review those items that meet the conditions for billing or revenue recognition and calculate appropriate amounts for each item.

8. Create invoices from posted, unbilled amounts, with the ability to defer items from an invoice, and include Additional Items which may represent a discount or fee.

9. Complete Invoices.

10.Report on project revenue using Project Accounting Reports (formerly labeled Project Costing), and via seven new reports, see billing, revenue, invoicing, fixed price schedule and journal data at summary and detailed levels.

11.Export data to other systems, using new export templates for: Fixed Price Schedule Data Accounts Receivable, marking the Invoices as Extracted Journal Entries

Administrator Data Set upData entities related to billing are grouped under the Admin >> Setup >> Accounting menu.


Admin >> Setup >> Accounting >> AccountsWhen items are processed by Unanet Billing, journal Account Codes can be associated with these items representing Unbilled, Billed, Deferred Revenue, Recognized Revenue or Tax. This data can be used to export billing and revenue data to other systems, and also for reporting within Unanet based on Account Codes.

The Admin user can define valid account code values, a description, whether a Type of Asset, Liability or Income, and whether it is a project default for that category. At the project level, these defaults can be overridden, if desired by a Billing Manager. Actual account code values used by organizations may vary widely, but common examples are shown in the screen capture above.

The Type is specified so that on reports such as the Journal Summary or Journal Details, whether amounts associated with each account value are Debits and Credits can be displayed.

If these Category Defaults change, they will not automatically update the current values at the project level. If a project wishes to use the new Default values, a Billing Manager should set these again in project billing setup.

Admin >> Setup >> Accounting >> Billing This screen allows defaults to be established for use by the Unanet Post process.

The Post process will use this data as follows:


Cost Plus Bill Rate: determines which type of indirect cost pool rate (Actual, Provisional or Target) to use when calculating bill amounts on Cost Plus billing type projects. Provisional Rate is the default.

Cost Plus Recognition Rate: determine which type of indirect cost pool rate (Actual, Provisional or Target) to use when calculating recognized revenue from Cost Plus billing type projects. Actual Rate is the default. Any difference between the billed and recognized amounts from Cost Plus projects will be shown as Deferred Revenue.

Bill Labor: determines whether to use the Worked Date or Posted Date for an item when applying the ‘Include Actuals Through’ date selection condition. The default value is ‘Using Worked Date’.

Bill Expenses: determines whether to use the Line Item Date, Voucher Completion Date or Posted Date (this is the optional date that can be stamped on Expense Line Items during the expense extract process) for an item when applying the ‘Include Actuals Through’ date selection condition. The default value is ‘Using Line Item Date’.

This screen must be accessed and Saved prior to running the Post process. The Default button returns the values to the initial Unanet default settings.

Admin >> Setup >> Accounting >> Invoice FormatsAdministrators can create and maintain the set of invoice formats that will be available for use by projects. There are two types of invoice layout: Standard and Cost Plus. The Standard format supports Fixed Price, Time & Materials and Pre-bill Labor items in addition to One-Time Items. If any of these items are not included on a particular invoice for a project, sections for these items will not appear. The Cost Plus format allows One-Time Items to be added, but does not include Fixed Price, Time & Materials or Pre-Bill Labor.

These two invoice types can be customized by the Administrator to show certain fields and multiple versions of each type of layout can be defined.

Once these standard invoice formats have been defined, Billing Managers will be able to select one or more of these active formats from a list when choosing the invoice format(s) to be used for a project. For example formats which show Summary and Detail views could be selected. The formats available for selection are dependent on Project Billing Type. For example, a CP Billing Type project cannot select a Standard invoice format.

The invoice configuration screen provides a very high degree of flexibility for the information to be presented on the particular invoice format, and a visual


preview of how the invoice layout will look with various options enabled. The example shows a configuration screen for a Standard invoice format. Each of the sections on the invoice can be configured using the tabs.


Admin >> Setup >> Accounting >> Invoice Number FormatsAdministrators can create and maintain different invoice numbering schemes that will be available for use by projects. Multiple invoice number formats can be created.

Billing Managers will select a specific invoice numbering scheme when setting up project billing information on a project by project basis.Unanet invoice numbers are guaranteed to be unique but they will not necessarily be sequential without gaps. If you delete a draft invoice, that invoice number will not be reused. Common usage may be to have a single invoice number format for all projects, or to have specific formats for specific customers or your internal organizations. If a specific invoice number format is used with multiple projects, the invoice number uniqueness will be preserved across those projects and not within each project.

Not that as the format is changed, the Preview shows the new invoice number format.

Admin >> Setup >> Additional Item TypesAdministrators use the Additional Item Types setup screen to create and maintain the set of Additional Item Types that will be available for use when a Billing Manager is creating an invoice and would like to add additional one-time items, to represent items such as discounts or additional fees not defined in the project data. The Billing Manager can provide a description for each item added to an invoice, but must select one of these Additional Item Types when making that entry. Billing Managers can add one-time items when editing an existing draft invoice (accessible via the Billing >> List Invoices screen) or when initially creating a draft invoice (via the Billing >> Add Invoices screen).


When defining Additional Item Types, the Administrator will specify Debit and Credit Accounts, i.e. which journal accounts the associated item will be associated with when the invoice is complete. The list of possible value for Debit Account or Credit Account are:

Billed Deferred Revenue Recognized Revenue Tax Unbilled

Typically, for a One-Time Charge Type such as a Fee or Discount the Debit Account would be the Billed Account for the project, while the Credit Account would be Recognized Revenue.

Admin >> Setup >> Payment TermsAdministrators can also define valid payment terms for use within Unanet. A Billing Manager will select one of these valid payment terms for use on a project during project billing setup. Unanet uses the ‘Days’ value associated with a Payment Term to calculate an Invoice Due Date using the Invoice’s Creation Date.


Project Billing Set upFor each project, a Billing Manger can define various parameters related to defining fixed price schedules, project invoicing, and bill and revenue journal accounts to be associated with the project.

Project billing types of Time & Materials (including pre-billing for labor), Fixed Price and Cost Plus are supported. Projects can have a mix of Time & Materials and Fixed Price, but Cost Plus billing cannot be mixed with other billing types on the same project.

Billing information is accessible via a menu by Billing Managers or Administrators, is available for a selected project. The menu shows the following options:

Accounts - how bill and revenue data for the project is recorded against journal accounts

Fixed Price – Export or Import Fixed Price Schedules. Define bill and revenue recognition schedules for fixed price items on the project

Invoice – select from standard invoice layouts, invoice number formats, payment terms, identify whether the project will be billed standalone or as part of a group, and specify other data to appear on the invoice such as Bill to and Remit to contact information, optional header information, and optional text to appear at the top of the invoice body (Description), or at the end (Invoice Memo)

Pre-Billed Labor – for projects where labor is billed in advance of work being performed, Unanet allows one of more Pre-Billed amounts to be defined with an associated description and date for invoicing. When locked or extracted timesheets for the project are included in a Unanet Post process, the hours and associated billable amounts will be used to offset the existing pre-billed amount. When the pre-billed amount has been earned, any new labor hours posted will be billed in arrears.

To aid in project billing setup, the Copy Project feature allows data related to the following billing information to be copied to the created project:

Accounts Invoice parameters Pre-Billed Labor Fixed Price (Project level fixed price items only)

AccountsThe Billing Manager must specify a value for each account category Unbilled, Billed, Deferred Revenue, Recognized Revenue and Tax before the project can be included in a Post process. Alternatively, the Billing Manager can use the Default button to apply the system-wide values specified by an Administrator, under Admin >> Setup >> Accounting >> Accounts. Note that if the system default values are changed by an Administrator, the values stored at the project level will not be automatically updated.


As noted on the screen, account values which match system defaults are shown in light grey.

Note that Account Code values can be changed for a project when there already is posted data. The system will still create debits and credits from the appropriate current account categories and record the journal entries. For example, the Unbilled Account Code for a project was 1250 and a debit of $1000 was posted. If the Unbilled Category Account Code was then changed to 1251, when that item was billed, the 1251 account would be credited, leaving the 1250 account value unchanged.

Fixed PriceThe Billing Manager role can define fixed price items in a number of ways, at the project or task level.

Two options are provided for defining Fixed Price items: Adding an individual item to be billed, or Creating a schedule of billable items for a single total value.


If adding a single item, the following screen is presented:

In adding a single billable item, using the Project Manager can:

associate the Fixed Price item with the project, or a task enter a Description for the Fixed Price item enter a Bill Date for the item alternatively, the Completion Date for the project or task can be used by

checking the box. This links the item bill date to the WBS item. If the date is linked, for an item to be included in a Post as unbilled (and thus eligible to be placed on an invoice), the Completion Date must be entered on the project or task, AND the Percent Complete value must be entered at 100% (not calculated). Prior to item completion, the Revised End Date will be used for Revenue Recognition if necessary, but the Completion Date will determine inclusion in the Post process for billing

enter the fixed price item bill amount specify how revenue will be recognized for the item:

o When Billed – revenue will be recognized when the item is on a bill which is Completed. This approach is not favored by accounting standards but is often used by smaller organizations.

o % Complete – revenue will be recognized when a Post process is run and calculated based on the bill value and the associated project or task Percent Complete value. This will be determined based on the entered value for the project or task, or calculated by Unanet in the normal manner based on the setting on the Project Profile Budget tab.

o Custom Schedule – this allows the bill amount to recognized over dates and periods specified by the user, identifying the type of periods (week, month, quarter), the number of periods, when in the period recognition should occur and in what period it should start. For example, an organization might bill its client for an annual service agreement, but recognize revenue for this item monthly, quarterly or on some other schedule. In the example


shown below, a quarterly revenue recognition schedule is used. Note the schedule items can be adjusted as needed, adding or removing items from the revenue recognition schedule (the ‘Generate Schedule’ wizard just helps speed data creation). However, the total value of the revenue recognition schedule must match the bill value for the fixed price item.

o Note also that Unanet treats the billable amount and the

corresponding revenue recognition schedule as a single item which is maintained together (i.e. via edit or delete). Where a Billing Schedule is created with multiple billable items, after data entry, these are treated as separate, unrelated items.

If the Fixed Price Billing Schedule option is used, the Billing Manager can:

associate the Fixed Price item with the project, or a task enter a Description for the Fixed Price item enter an initial Bill Date for the item


enter the fixed price item bill amounto When Billed – revenue will be recognized when the item is on a

bill which is Completed. o % Complete – revenue will be recognized whenever the Post

process is run, and calculate based on the bill value and associated project or task Percent Complete value.

o specify a Billing Schedule, identifying the type of periods, the number of periods and when the period should start. In the example below, the total amount of $15k is being billed in three increments.

Note that when this schedule is saved, each billable item will be treated as distinct, and must be edited individually. The purpose of this Add Fixed Price Billing Schedule is to quickly create multiple items to be billed, perhaps reflecting a recurring billing schedule, such as monthly subscription fees.

InvoiceThe Invoice data for a project must be defined before an invoice can be created for the project. Absence of invoice data will not prevent a project from being included in a post process, but the unbilled data will not be placed on an invoice and become billed until this information is entered.

The Invoice menu option is where the Billing Manager can: identify if an invoice is required for the project.


indicate whether the project will be invoiced standalone, or as part of a group. If as part of a group specifying whether the project is Lead or Contributor will determine which project defines the invoice formats and other properties.

choose one or more formats from the valid active invoice formats for that project’s billing type. For example a CP project cannot select a Standard invoice format, and a FP or TM project cannot select a Cost Plus format.

choose the Invoice Number format to be used choose from the list of standard Payment Terms.

specify Contacts – who will be shown on the Invoice as the Bill To:, Ship To:, and Remit To: contacts along with their mailing address.

specify Optional Invoice Header Information:o whether to show Project Organization Code, Project Code, Project

Title, Project Funded Value, Company Logo, Contract Number or Order Number on the Invoice

o Include Description text, which appears below the Invoice Header and before the Invoice body, and Invoice Memo text which appears before the Invoice Footer. These can be modified on an individual invoice when it is in Draft status, but the values saved on the project are not modified.


Pre-Bill LaborThe final option on the Billing Menu allows a Billing Manager or Administrator to define amounts for labor to be billed in advance of work being performed. One of more Pre-Billed amounts can be defined for a project with an associated description and date for invoicing. When locked or extracted timesheets for the project are included in a Unanet Post process, the hours and associated billable amounts will be used to offset the existing pre-billed amount. An invoice will show pre-billed amounts, the labor performed and any remaining balance on the pre-bill amount. When the pre-billed amount has been earned, any new labor hours posted will be billed in arrears.


Project ProcessesOnce the relevant Admin setup has been performed and Project Billing data created, projects can have data included in a Post. This will identify time & materials items, fixed price or cost plus labor and expense that should be processed.

To ensure accurate calculation of recognized revenue for Fixed Price items using the Percent Complete method, a Budget Snapshot for the project should be performed. The Post process and billing reports will use Snapshot data if available.

The new Billing menu offers a Billing Manager or Admin four options: Post – select projects for which to process eligible items (see below for

definition of what is eligible). The process will calculate unbilled, deferred billed (for Fixed Price Items where billing has not occurred but revenue is being recognized), deferred revenue, and recognized revenue.

List Invoices – show existing invoices, whether Draft, Completed or Extracted status

Add Invoice – create invoices for the selected projects. This places data which has been Posted as unbilled, but not included on a prior invoice, on a new invoice for the project.

Unpost – backs out the Post for selected projects, provided the data has not been placed on an invoice.


PostA familiar Unanet Search screen is presented to select projects to be included in the Post.

Include Actuals Through: allows the user to identify which previously unposted items will be included, using the criteria defined under Admin >> Setup >> Accounting >> Billing screen.

Journal Date: specify what date the journal entries will show as their creation or posting date.

The Post process will validate that each item is eligible to be included. This is described in detail below, but in summary

For TM or CP projects, only extracted or locked labor and expense will be included.

For FP, the criteria used when defining the billing and revenue recognition schedules, and the Include Actuals Through Date will determine what amounts are calculated for unbilled and deferred billed, and for deferred and recognized revenue.

Having selected the projects to be included, the Billing Manager is presented with a screen which previews the amounts which will be posted. Drilldown into detail values shown by the Billing & Revenue Details report is available from


this screen. Once the Billing Manager is satisfied which data will be included, projects can be selected or excluded, and the Post process run.

The Post process can only be run if Admin >> Setup >> Accounting >> Billing has been defined for this Unanet system.

How the Post process handles different billing types:This section describes what is included in a Post, based on billing type, and what journal entries are created.

Cost Plus Billing Type ProjectsWhen the Billing manager clicks on the Post button initiating a post for one or more projects, the following measures are taken: Note that when posting cost plus, what is actually being posted is the summarized amounts by cost element (vs. any individual labor amounts). Preconditions:

1. The project must have a billing type of Cost-Plus (CP)2. The project must have a defined cost structure3. The project must have an account mapping for all of the following

account categories: Unbilled, Deferred Revenue, and Recognized Revenue.

General:

1. All labor costs are determined as hours multiplied by effective cost rate.2. All expense costs are determined as expense cost allocated to project

being posted.3. All Indirect cost calculations are based on the pool rate as currently

defined in Admin >> Setup >> Accounting >> Billing - Cost Plus Bill Rate.

4. All revenue calculations are based on the pool rate as currently defined in Admin >> Setup >> Accounting >> Billing - Cost Plus Recognition Rate.

5. Pool rate changes will result in the amount posted reflecting the balance for the period being posted. The system will check prior posted amounts and based on the current rate and direct costs calculate an amount for the period that will give the correct cumulative value.

Labor:


All qualifying labor for the project will be marked as posted. Qualifying labor must meet the following conditions:

1. Must not be previously posted2. Must be associated with a cost structure labor element3. Must be from a LOCKED or EXTRACTED timesheet4. Must NOT be a pending adjustment5. Must have a comparison date <= this Post's Actuals Through

date, where the comparison date is determined by the value currently defined in Admin >> Setup >> Accounting >> Billing - Bill Labor.

Expense:

All qualifying expenses for the project will be marked as posted. Qualifying expenses must meet the following conditions:

1. Must not be previously posted2. Must be associated with a cost structure ODC element3. Must be from a LOCKED or EXTRACTED expense report4. Must have a comparison date <= this post's actuals through date,

where the comparison date is determined by the value currently defined in Admin >> Setup >> Accounting >> Billing - Bill Expenses.

Cost Plus Summary:

Cost Plus Summary entries will be created for:1. Each distinct Labor Cost Element from the posted labor in an

amount equal to the sum of costs for labor associated with the Labor Cost Element

2. Each distinct ODC Cost Element from the posted expenses in an amount equal to the sum of costs for expenses associated with the ODC Cost element

3. Each distinct Indirect Cost Element from all cost structures associated with any of the project, labor or expenses included in the post in an amount equal to the sum of costs for the Indirect Cost Element across all included cost structures.

4. Fee, if the posted project has a defined Fee Method, in an amount determined by the calculations based on the Actuals Fee Formula and the Fee Amount

Journal Entries:

For each Labor and Expense Cost Plus Summary Entry created as a result of the post:


1. An unbilled journal entry should be created in an amount equal to the Cost Plus Summary Entry.

2. A deferred revenue journal entry should be created in an amount equal to the Cost Plus Summary Entry.

3. A deferred revenue journal entry should be created in an amount equal to the Cost Plus Summary Entry multiplied by −1.

4. A recognized revenue journal entry should be created in an amount equal to the Cost Plus Summary Entry.

For each Indirect and Fee Cost Plus summary Entry created as a result of the post:

1. An unbilled journal entry should be created in an amount equal to the Cost Plus Summary Entry.

2. A deferred revenue journal entry should be created in an amount equal to the Cost Plus Summary Entry.

3. A deferred revenue journal entry should be created in an amount equal to the revenue calculated for Cost Plus Summary Entry, using the Cost Plus Recognition Rate, multiplied by −1.

4. A recognized revenue journal entry should be created in an amount equal to the revenue calculated for Cost Plus Summary Entry using the Cost Plus Recognition Rate.

Time & Materials and Fixed Price Projects

Preconditions:

1. The project must have a billing type of Fixed-Price (FP) or Time and Materials (TM)

General:

1. All labor bill amounts are determined as hours multiplied by effective bill rate.

2. All expense bill amounts are determined as expense bill amount allocated to project being posted.

3. All eligible Pre-Billed Labor entries are posted prior to posting any eligible labor.

Pre-Billed Labor:

All qualifying Pre-Billed labor for the project will be marked as posted. Qualifying Pre-Billed labor must meet the following conditions:

1. Must not be previously posted


2. Must have a bill date <= this Post's Actuals Through date.

If the project has at least one qualifying Pre-Billed Labor item, the project must have an account mapping for Unbilled and Deferred Revenue.

Labor:

All qualifying labor for the project will be marked as posted. Qualifying labor must meet the following conditions:

1. Must not be previously posted2. Must be from a LOCKED or EXTRACTED timesheet3. Must NOT be a pending adjustment4. Must be billable — charged to a billable project type5. Must be charged at the project level and the project has a billing

type of T&M, or must be charged to a task that has a billing type of T&M or that defaults to a billing type of T&M

6. Must have a comparison date <= this Post's Actuals Through date, where the comparison date is determined by the value currently defined in Admin >> Setup >> Accounting >> Billing - Bill Labor.

Qualifying labor must first be used to retire any outstanding pre-billed labor before being considered billable.

Qualifying labor must retire outstanding pre-billed labor in a FIFO order based on comparison date.

If the project has at least one qualifying labor item, the project must have an account mapping for Unbilled and Recognized Revenue.

If the project has at least one qualifying labor item and an outstanding pre-billed labor balance, it must also have an account mapping for the account category Deferred Revenue.

Expense:

All qualifying expenses for the project will be marked as posted. Qualifying expenses must meet the following conditions:

1. Must not be previously posted2. Must be from a LOCKED or EXTRACTED expense report3. Must not be for an ADVANCE or CASH-RETURN expense4. Must be billable — charged to a billable project type5. Must be charged at the project level and the project has a billing

type of T&M, or must be charged to a task that has a billing type of T&M or that defaults to a billing type of T&M


6. Must have a comparison date <= this post's actuals through date, where the comparison date is determined by the value currently defined in Admin >> Setup >> Billing -- Bill Expenses.

If the project has at least one qualifying expense item, the project must have an account mapping for Unbilled and Recognized Revenue.

Fixed-Price:

Billable Fixed-Price: All qualifying billable fixed-price items will be marked as posted

for billing. If the qualifying billable item has never been posted, it will be marked as both posted and posted for billing.

Qualifying billable fixed-price items must meet the following conditions:

1. Must not be previously posted as billable2. If NOT a milestone fixed-price item (bill on completion),

must have a bill date <= this post's actuals through date3. If a project milestone fixed-price item, project must have a

completion date <= this post's actuals through date and project must have an entered percent complete of 100% (on the project, NOT from the budget snapshot).

4. If a task milestone fixed-price item, task must have a completion date <= this post's actuals through date and task must have an entered percent complete of 100% (on the task, NOT from the budget snapshot).

Fixed-Price Scheduled Revenue: All qualifying fixed-price scheduled revenue items will be marked

as posted. If the associated fixed-price item has never been posted, it will also be marked as posted.

Qualifying fixed-price scheduled revenue items must meet the following conditions:

1. Must not be previously posted2. Must have a revenue date <= this post's actuals through

date

Fixed-Price Percent Complete Revenue: All qualifying fixed-price percent complete revenue will be posted.

If the associated fixed-price item has never been posted, it will be marked as posted.

Qualifying fixed-price percent complete revenue items must meet the following conditions:

1. Must be using percent complete revenue recognition2. Currently postable revenue must be non-zero, where

currently postable revenue = sum of previously posted


http://www.unanet.com/unadocs/unanet94/unanet_menu/admin/setup/setup_billing.htm

revenue - (current percent complete * fixed-price item bill amount)

Budget data used to determine percent complete for the fixed-price item's associated project or task is obtained in the following manner:

1. If project/task has a budget snapshot active as of this post's actuals through date, the budget snapshot will be used

2. If no budget snapshot is active as of this post's actuals through date, the project or task's budget data will be used.

Percent complete for the fixed-price item's associated project or task is obtained in the following manner:

1. If project/task budget data has an entered percent complete, the entered value will be used

2. If project/task budget data has NO entered percent complete, the percent complete will be estimated using the percent complete estimation rule defined on the project and labor and expense actuals associated with the project/task as follows:

Time Actuals:1. Must be charged to the project/task

associated with the fixed-price item.2. Must be from a LOCKED or EXTRACTED

timesheet3. Must NOT be a pending adjustment4. Must have a comparison date <= this post's

actuals through date, where the comparison date is determined by the value currently defined in Admin >> Setup >> Billing -- Bill Labor.

Expense Actuals:

1. Must be charged to the project/task associated with the fixed-price item.

2. Must be from a LOCKED or EXTRACTED expense report

3. Must not be for an ADVANCE or CASH-RETURN expense

4. Must have a comparison date <= this post's actuals through date, where the comparison date is determined by the value currently defined in Admin >> Setup >> Billing -- Bill Expenses.




If the project has at least one qualifying fixed-price item for any of the previously defined fixed-price sections, the project must have an account mapping for Unbilled, Deferred Revenue, and Recognized Revenue.

Journal Entries:

For each Pre-Billed Labor item posted:1. An unbilled journal entry should be created in an amount equal

to the pre-billed labor amount.2. A deferred revenue journal entry should be created in an

amount equal to the pre-billed labor amount.

For each Labor item posted: If any portion of the labor item posted is used to retire an

outstanding pre-billed labor balance1. A deferred revenue journal entry should be created in an

amount equal to the portion of the labor item's bill amount that was used to retire the pre-billed labor balance multiplied by −1.

2. A recognized revenue journal entry should be created in an amount equal to the portion of the labor item's bill amount that was used to retire the pre-billed labor balance.

3. An unbilled journal entry should be created in an amount equal to the portion of the labor item's bill amount that was NOT used to retire the pre-billed labor balance.

4. A recognized revenue journal entry should be created in an amount equal to the portion of the labor item's bill amount that was NOT used to retire the pre-billed labor balance.

If the labor item posted is NOT used to retire an outstanding pre-billed labor balance

1. An unbilled journal entry should be created in an amount equal to the labor item's bill amount.

2. A recognized revenue journal entry should be created in an amount equal to the labor item's bill amount.

For each Expense item posted:1. An unbilled journal entry should be created in an amount equal

to the expense item's bill amount.2. A recognized revenue journal entry should be created in an

amount equal to the expense item's bill amount.


For each Fixed-Price related item posted: If the associated fixed-price item had not been previously

posted:1. An unbilled journal entry should be created in an amount

equal to the fixed price item's bill amount.2. A deferred revenue journal entry should be created in an

amount equal to the fixed price item's bill amount.

If posting fixed-price scheduled revenue:1. A deferred revenue journal entry should be created in an

amount equal to the fixed-price recognition schedule amount multiplied by −1.

2. A recognized revenue journal entry should be created in an amount equal to the fixed-price recognition schedule amount.

If posting fixed-price percent complete revenue:

1. A deferred revenue journal entry should be created in an amount equal to the sum of previously posted revenue - (current percent complete * fixed-price item bill amount) multiplied by −1.

2. A recognized revenue journal entry should be created in an amount equal to the sum of previously posted revenue - (current percent complete * fixed-price item bill amount).


Post Process - FeedbackOnce the post is run, the Billing Manager will see feedback written to the screen that will indicate the projects, and status of each project, included in the post. Should any unexpected issues be encountered, additional details will be written to the screen for the effected project. Note that any project that encounters an error during the Post, would result in no items being posted. Other projects within that same run that did not encounter an issue would have their data posted.

UnpostThe Unpost screen is used by a Billing Manager to undo a previous Post for one or many projects. Unposting a previous Post will permanently erase any evidence of a particular Post. When running an Unpost, there is no audit trail showing that the original Post occurred nor will there be any audit trail that an Unpost occurred.

Once the Unpost is run, the Billing Manager will see feedback written to the screen that will indicate the projects and status of each project included in the Unpost. Should any unexpected issues be encountered, additional details will be written to the screen for the effected project.


Add InvoiceThe Add Invoices screen is used by a Billing Manager to generate invoices for one or many projects. Once an invoice has been created, it can be further modified or removed via the List Invoices screens.

Note that a project can only have one draft invoice in existence at any one time. To invoice items posted after a draft invoice has been created, you can either delete the draft invoice then recreate a new draft invoice (which would pick up all eligible items) or complete the existing draft invoice and then create a new invoice (to pickup just the newly posted items).

The Through Date selection criteria can be used to narrow down the time frame for which details will be included in the output. In this control you have the option of specifying:

Through Date -- You can specify a Through Date by either typing in the date directly or using the calendar control. Specifying this option will result in all eligible posted / un-invoiced details up to and including the Through Date to be included in the draft invoices.

Named Date Range -- You can specify a named date range from the list of available built-in values. This approach may be particularly helpful if you plan to save the criteria.


The Invoice Date field is used to supply the date that will be stamped on the resulting draft invoices created during the Add Invoice process. This date, combined with the Payment Terms value for the invoice will determine the invoice due date.

The resulting list generated will be similar to the image below. Any projects which are being invoiced as a group will be annotated by a black diamond as shown below. The eyeglasses provide a popup with a view into the projects in the group and their billing data.

The Billing Manager will place a check mark next to each project to be invoiced and click on the Generate Invoice button to initiate the process. Selecting the check box at the top of the column will toggle all check box values (checked / unchecked). The values in blue can be clicked to see the detailed supporting data prior to generating an invoice for that project.

Add Invoice FeedbackOnce the Invoice Generation is run, the Billing Manager will see feedback written to the screen that will indicate the projects and status of each project included in the creation process. Should any unexpected issues be encountered, additional details will be written to the screen for the effected project.


List InvoiceThe List Invoices screen is used by Billing Managers to view, edit, delete, complete or reverse (void) existing invoices.

It is also available to Billing Viewers for the purpose of viewing invoices. The resulting list of invoices displays summary information about each invoice, including amount, payment terms, invoice date, by whom and when an invoice was created, completed and extracted. Information on any reversed or voided invoices is also included.Billing Managers can use the draft invoice edit feature to accomplish the following:

include Additional Items, such as discounts, additional fees or tax. modify header, footer, description and memo details, and defer individual items from appearing on an invoice.

If Payment terms are changed, the invoice will recalculate the due date from the invoice date.

Note that when information is changed on a project invoice (payment terms, invoice memo & what other fields), the saved project values are not changed.

When an invoice is Approved using the green check mark, it is set to complete and Unbilled (or Draft) items become Billed. Corresponding Revenue Recognition Journal entries are created where appropriate for the One Time Items and for Fixed Price Items where recognition occurs on bill completion.

Creating an Adjusting Invoice with Additional ItemsIf you wish to create a project invoice and there are no billable items, on the Add Invoice Search page, check the box at the foot of the screen for ‘Include Projects with no billable data’. Then checking the project will create a blank draft invoice for on which Additional Items can be included.

Revising Invoiced AmountsTo support the scenario when an invoice is sent to a customer and the amount is not accepted, the following options are available.


(1) Changes to “total” with another invoice Produce another invoice with Additional Item with a debit or a credit.

This may be the only item on the invoice (select the option ‘Include projects without unbilled data’ under Add Invoice to do this)

Use the memo field to indicate that this invoice is an addendum to the original invoice

This invoice will have a different number

(2) Correct on the next invoice (via adjustments and/or one-time items) Timesheets are adjusted and go through the normal process. Correcting expense reports could also be submitted, approved and

posted. The next invoice includes these and/or Additional Item with a debit or

a credit to the amount of the original invoice. This invoice will have a different number.

(3) External reformat combined with one-time item An Additional Item or adjustment on an invoice that is not sent to the

client could be used to ensure correct bill and revenue balance in Unanet.

The original invoice can be copied to Word or Excel and formatted as desired if the client requests that the original transactions are presented.

(4) Reverse Invoice and Include Items on Future Invoice(s) In Unanet 9.5 support was added to ‘reverse’ or void a specific

invoice. This is accomplished by clicking on the Void icon in the Invoice List. When an original invoice is reversed (voided) in Unanet, the

transactions included in the voided invoice are available for future billing in Unanet under one or more new invoices with different invoice numbers.

An original invoice can only be voided once. Prior to voiding an invoice the user is presented with a warning.


ReportingThe various Project Accounting reports (formerly Project Costing) that include the Revenue entity can now make use of a new Revenue field that incorporates posted data and where necessary forecasts revenue using the same methods as the Post process.

In addition to enhancements to existing reports, seven new reports have been introduced to provide information on billing, revenue, invoice and journal entry data.

New Detail Reports:

Billing & Revenue Details – can be run standalone or used as a click-through. The Post Preview, Add Invoice screens and the Billing & Revenue Summary Report all provide the ability to click on certain cells (shown in blue) to see the detail comprising a summary value.

This report provides details related to what has happened in the system with respect to billing and revenue recognition. This report does not include any projected values. This report may be helpful for investigating the details that went into a particular cost element summary number, for example, such as a labor or ODCs that appeared on an invoice. When running this report, you will need to indicate whether the resulting output should include details related to Billing or Revenue but not both at once. Details can be included based on Item Date (when the item of interest happened) or Journal Date (the date associated with the item during the Post or Invoice Completion process). When running this report for Cost Plus projects, the labor and expense will be shown at the time cell / expense data allocation level. Indirect charges and fees (i.e. discount, fringe, G&A, overhead, etc) will be shown with the appropriate cost element's description.This report is available to the Administrator, Billing Manager, Billing Viewer and their alternates.

Fixed Price Details - this report provides visibility of fixed price billing items and their associated revenue recognition schedules. The report can be


configured to optionally display Unbilled and Billed amounts, Deferred and Recognized Revenue amounts, Revenue Recognition Schedules, and can also be used to show Past Due Fixed Price items (those configured to Bill on Completion). This report is available to the Administrator, Billing Manager, Billing Viewer and their alternates.


Invoice Details - this report provides a view of the data that is included on an invoice, not necessarily at the same level as the data displayed on the invoice. The output can include invoices having a status of draft, completed and those having been marked extracted (via the Admin >> Export >> Accounts Receivable export).This report is available to the Administrator, Billing Manager, Billing Viewer and their alternates.


Journal Details - this report will provide a view of the Unanet Journal detail information that has resulted from a Post or Invoice Completion process. This may be useful if attempting to investigate the supporting detail of a number display on other billing reports.This report is available to the Administrator, Billing Manager, Billing Viewer and their alternates.


New Summary Reports:

Billing & Revenue Summary – provides one line per project, optionally showing bill data, revenue data or both. Drill-down from report cells to the Billing & Revenue Details Report with supporting data is provided.

Journal Summary – group journal transactions by date and Account Code. Optionally show Project Code, Project Organization or Owning Organization.


New Status Report:

Invoice Status - Similar to the Timesheet Status and Expense Report Status reports, this provides a Summary or Detailed View of Invoices. If the Detailed view is chosen, a page break between each invoice is provided.


ExportsThree new exports are provided: Fixed Price Schedules, Accounts Receivable, Journal Entries. With the release of Unanet 9.6, Fixed Price Schedules can also be imported.

Fixed Price Schedule ExportThe Fixed Price Schedule export screen with options and available fields are shown below.


Accounts Receivable ExportThe Accounts Receivable export screen exposes a very large number of data fields for export to downstream systems, ranging from summary data, to all the detailed transactions and associated posted journal values that comprise an invoice. This export will typically be used to feed invoiced data from Unanet to a down-stream system for Accounts Receivable. Some accounting systems, such as QuickBooks require detailed invoices to be recreated in order to drive their revenue reporting. The Accounts Receivable Export allows all the detailed transactions and fields to be exported, which can then be imported into QuickBooks to generate an invoice.


Journal Entry Export The Journal Entry export screen with options and available fields are shown below.

If required, use lookup on Journal Type to identify revenue due to reimbursable expenses on Journal Entry export and translate to a different account code.


Debits and CreditsThis section provides a brief guide how credits and debits are handled in Unanet for assets income and liabilities. The table shows how debits and credits increase or reduce assets liabilities and income.

The sign with which the charge will be included in the reports is dictated by the combination of the Credit/Debit designation and the account type (Asset, Liability, or Income).

In Unanet, the Accounts are mapped as follows: Billing transactions (Billed & Unbilled) -> Asset Deferred Revenue transactions -> Liability Recognized Revenue -> Income Tax -> Liability

When a charge is posted to a journal, two journal transactions are generated in order to “hit” both sides, the debit and the credit.

For example: Let’s say we wanted to bill a $200 labor charge with a $10 tax, and $5

discount, where discount is expected to be billed and recognized as regular labor. Following are the entries generated in the Unanet General Journal:

Date Account Debit Credit [Amount]1/1/2010(Post dt)

Post(billing) – labor charge Unbilled (asset) $200 200 Deferred Revenue (liability) $200 200

1/1/2010(Post dt)

Post(billing) – labor charge Deferred Revenue (liability) $200 -200 Recognized Revenue (income) $200 200

1/2/2010(Invoice dt)

Invoice – labor charge Unbilled (asset) $200 -200 Billed (asset) $200 200


Invoice - tax Billed $10 10 Tax (liability) $10 10


Invoice - discount Billed $5 -5 Discount (liability) $5 -5


Glossary for Project Billing

Item DescriptionBill Statuses

Deferred Represents items for which revenue has been recognized but are not yet billable, such as a fixed price item where revenue is recognized on a percent complete basis. This is a category shown on reports. Such items are actually stamped as Unbilled in the journal entries.

Unbilled Represents items that are billable and have been posted, but are not billed.

Draft Represents items on a Draft invoice on reports, including One-time items which do not yet have an associated journal entry, and items which have unbilled Journal Entries. One-time items will have a journal entry of Billed when the invoice is complete.

Billed Represents items that have been on a completed invoiceRevenue Statuses

Deferred Represents revenue that is billable, but not yet been earned.

Draft Represents the value of items on draft invoices Recognized Represents the value or work completed or earned

Unearned Revenue The terminology Deferred Revenue is used in Unanet for this.

Funded Value Authorized expenditure, equal to project budgeted revenue. Can optionally be shown in an invoice header.

Pre-Bill Labor The ability to create a billable transaction for placement on an invoice for T&M projects. When the invoice is completed this item will have journal entries for Billed and Deferred Revenue. Billlable hours which are posted will offset the deferred revenue until it has all been earned, i.e. becomes recognized revenue. Invoices show Pre-Bill amounts and remaining balance. Oncec a Pre-bIll amount has all been earned, additional posted billable hours would be billed in arrears.

Actual Indirect Cost Rate

Computed by dividing the total amount of the cost pool by the total amount of the direct cost element(s). Example would be dividing the total dollars spent on fringe benefits by the total payroll dollars of the people receiving the benefits. The actual rate is dynamic and changes with each period as costs are incurred and recorded in the General Ledger. This rate is computed in the accounting system and keyed into Unanet as required. Unanet allows the effective date for the Actual Rate calculation to be stored so that reports can show how current the rate is. Actual Rate is typically used when performing revenue recognition on CP type


projects.Provisional Indirect Cost Rate

The rate determined by budgets or forward pricing and approved by audit of an outside firm or agency. This rate is static and only changes with authorization from the outside firm or agency. This rate is normally used in proposals and in billing for Cost Type contracts. This rate is keyed in.

Target Indirect Cost Rate

The rate determined by the company as a goal rate based on budgets. This rate may be the same as the provisional rate and is usually a static rate not changing but once or twice a year. This rate is keyed. Note, some accounting systems such as GCS support only two rates (Target and Actual). In such situations Target has the same meaning as Provisional defined above.


Frequently Asked Questions

Q: What roles are required to use the new billing functionality?

A: Admin role is required to set up standard data. This is done via the Admin >> Setup >> Accounting menu. Billing Manager Role is required to define project level data including Fixed Price Schedules, run a Post process, create invoices, delete or complete invoices. A Billing Viewer role allows users to see billing reports and invoices.

Q: Which Unanet license is required to use this functionality?

A: The new functionality is only available to customers with either the Project Tracking or Project Portfolio licenses, i.e. Expense functionality is required and an equal number of time & expense licenses.

Q: How are adjustments handled?

A: Labor adjustments are treated in the same was as other billable hours. Once locked or extracted they can be posted and will appear on an invoice.

Additional Items can be added to invoices as a means to create discounts, additional fees or other transactions with desired bill or revenue transactions.


Historical DataAs the process for posting and invoicing creates many transactions, the best approach would be to post the historical data

use Actuals Through date when posting to process all data for a historical period for projects of interest.

create a single invoice and complete it for that period, resulting in all data being recognized and billed. Repeat for subsequent historical periods as desired.

one-time items could be added to invoices if necessary to adjust revenue or billed amounts. (Unanet time adjustments would be treated in the same was as other time entries and processed by the post.


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