Invoice TrainingOctober/November 2015

DEPARTMENT OF TRANSPORTATION

Agenda Site Logistics Invoice Spreadsheet

Definitions Overall Improvements Step by step instructions Compiling monthly PDF Invoice Flow of information between firms

Modifications (Amendments / Revisions) Converting Older Invoicing Files Questions

Definitions Payment Methods

ACFF – Actual Cost Plus Fixed Fee: Actual costs including labor, overhead, FCCM, other direct costs and fixed fee

LSUM(A) - Lump Sum payment method but costs are derived based on ACFF.

MILE(A) - Milestone payment method but costs are derived based on ACFF.

AC - Actual Cost: Actual costs including labor, overhead, FCCM and other direct costs. No fixed fee.

LDHRLY - Loaded Hourly: Labor costs are derived based on hours and a loaded hourly rate. No overhead, FCCM or Fixed Fee applies beyond the loaded rate. ODCs may be applied.

Definitions Payment Methods - continued

UNIT - Unit Cost: Costs are based on unit rates and the number of units proposed. No overhead, no FCCM or Fixed Fee applies. ODCs may be applied.

LSUM - Lump Sum: Costs are derived as one lump sum for the entire contract

MILE - Milestone: Costs are derived as a series of lump sum payments, each made at the completion of a milestone.

Contractual Relationships PRIME firms are contracted with MDOT. TIER 1 subconsultants are contracted with the Prime firm. TIER 2 subconsultants are contracted with a Tier 1 firm.

Definitions Budget Type

As Needed - A project where the budget is set up for the contract but the JN's are unknown at the time of the proposal. Or, a project with a derived budget for one or more JN's but the services are "As-Needed" (Design Assistance During Construction, etc.). Fixed fee payments are based on the % of hours expended in a billing period.

Derived - A project where there is a derived budget for one or more JN's that are known at the time of the proposal. Fixed fee payments are based on % project completed in a billing period.

Modifications Any adjustment to the original budget (Amendment, Revision,

or Transfer).

Overall Improvements Better treatment of Tier 2 firms and firms with payment

methods other than Actual Cost Plus Fixed Fee (ACFF). Greater automation for hiding worksheets, collapsing and

expanding rows / columns, and saving to a PDF file using macros.

More centralized data entry. Enhanced guidance for usage.

Specific Changes General:

Added a one step input process that is more seamless. Added room for 20 budget modifications.

Improved the BUDGET Worksheet to help monitor budget progress for each firm by JN.

PAYMENT VOUCHER Worksheet: Added space below for MDOT approvals and final invoice

status.

Specific Changes INVOICE Worksheet:

Added subtotals for different payment methods to show properly.

Reorganized invoice summary per consultant section.

Specific Changes INVOICE Worksheet – Continued:

Moved invoice number and date information from JNA & JN1.

Added section to adjust current OH & FCCM billing rates and tracking.

Specific Changes JN SUMMARY Worksheet:

Reorganized to show more clearly and minimize confusion. Totals are on the left and all JN’s are to the right. Columns will be hidden

to only show JN’s with costs for a given billing period.

ODC SUMMARY Worksheet: Automated appearance of each item and the total.

DBE PAYMENTS Worksheet: Updated based on new form. Added cells for DBE % Proposed and % DBE attained and

reason for not attaining DBE % Proposed.

Specific Changes OVERAGES Worksheet:

“Detached” the calculation of overages from the invoice. This worksheet is a manual entry to communicate overages if

they occur by JN or overall contract. Invoice data bills up to contract limits and enter the amount over budget

on the overage worksheet. Submit worksheet with invoice.

JN(A-J) Worksheets (Derived) Invoice number and associated dates are copied from the

INVOICE Worksheet. Added % Complete (ACFF) and % Complete (Non-ACFF).

% Complete (ACFF) = % project completed during billing period (manual)

% Complete (Non-ACFF) = % of budget spent during billing period (auto)

Specific Changes As Needed JN List

New worksheet to record up to 50 As Needed JN’s in one location. Do not duplicate.

JN(1-50) Worksheets (As Needed): Invoice number and associated dates are copied from the

INVOICE Worksheet. Added % Complete (ACFF) and % Complete (Non-ACFF).

% Complete (ACFF) = % of hours spent during billing period (auto)

% Complete (Non-ACFF) = % of budget spent during billing period (auto)

Specific ChangesImplementation of this version will result in greater consistency among firms, less errors, more efficient reviews for MDOT, and potentially faster payments.

Step-by-Step Instructions Getting started

Make sure that the priced proposal information is the proper version.

Understand the budget type (As-Needed vs Derived). Have the Authorization Information available. Know the contact person responsible for billing. Make certain “Enable Editing” or “Enable Macros” is selected

when prompted or set in Excel settings.

Step-by-Step Instructions Setting up the invoice file

Priced Proposal Spreadsheet: Update the priced proposal file with the proper dates, JN’s, phases,

contract numbers, etc. before importing.

Create or obtain the “OUTPUT” file from the priced proposal.

ORIG Worksheet: Select, copy and paste the values from the OUTPUT file into the ORIG

Worksheet.

Under the “Data” menu, select “Edit Links” and “Break Links” for any files listed to remove the link.

BUDGET Worksheet: Select “Hide Orig – M-20” or “Unhide Orig-M20” macro buttons to hide

or unhide all worksheets related to the original priced proposal and subsequent modifications.

Step-by-Step Instructions Setting up the invoice file - Continued

INVOICE Worksheet: Complete all “Blue” highlighted cells.

Use the pull down menu under the firm name to select the firm.

Select the appropriate budget type.

Step-by-Step Instructions Setting up the invoice file - Continued

PAYMENT VOUCHER Worksheet: Complete all “Blue” highlighted cells representing contract dates.

Step-by-Step Instructions Setting up the invoice file - Continued

DBE PAYMENTS Worksheet: Describe services performed by each DBE firm.

AS NEEDED JN LIST Worksheet: For As Needed projects, enter all known JN’s. Add new JN’s when

necessary. Do not duplicate.

Step-by-Step Instructions Setting up the invoice file

INVOICE Worksheet: Select “Hide Unused Worksheets” macro button to hide unused

worksheets.

If you want to see all worksheets, select “Unhide All Worksheets”

Demo of Invoice Setup

Step-by-Step Instructions Monthly invoicing:

INVOICE Worksheet: Select appropriate billing period from pull down list (cell B20).

Enter invoice number, billing period begin and dates, and invoice date.

Select the “Hide Unused Worksheets” macro button.

Step-by-Step Instructions Monthly invoicing:

JN(A-50) Worksheets: Select the “COL” macro button in the upper left of the worksheet to

collapse the extraneous rows and columns.

Enter invoice data for each firm for each category.

Costs for all JN’s for a given billing period must use the same billing period number. For example, if only JN1 was billed for the first 4 billing periods before JN2 began, data for JN2 would begin in billing period 5.

After the invoice amounts have been verified and corrected as needed, “fix” the amounts for OH, FCCM and FF by copying and pasting values to overwrite the formulas. This prevents previous amounts from future changes in budget, OH rates, etc.

% Complete (ACFF) is a manual entry for derived budgets. % Complete (ACFF) for as-needed budgets and % Complete (Non-ACFF) payment methods are automatic calculations.

Step-by-Step Instructions Monthly invoicing:

ODC SUMMARY Worksheets: Add dates and costs for each appropriate ODC item totaling the amount

at the bottom.

Provide backup for any single ODC category exceeding $2,500.

Step-by-Step Instructions Monthly invoicing:

DBE PAYMENTS Worksheets: Enter amounts previously paid to DBE firms and any deductions.

Only have DBE firm sign the form if it is the final invoice.

Step-by-Step Instructions Monthly invoicing:

Save to PDF: INVOICE Worksheet, select “Hide Unused Rows, Columns & Worksheets

then Save to PDF File” macro button.

Enter filename and path when prompted.

Verify that amounts on all PDF forms match the JN Worksheet data.

Verify that all appropriate forms are included in the PDF file.

Step-by-Step Instructions Monthly invoicing

Demo of Monthly Invoicing

Compiling Monthly Invoice Signatures:

The Prime firm will be the only digitally encrypted signature on the invoice.

All subconsultants should sign digitally but print the signed PDF file to another PDF file to “rasterize” the signature before emailing to the prime firm.

Compiling Monthly Invoice Prime Firms - Create one PDF invoice:

PRIME FIRM Payment Voucher Standard Consultant Invoice JN Summary Form Labor Detail (ACFF/AC/LDHRLY) or Invoice Detail (UNIT/LSUM/MILE) ODC Summary Invoice Detail – Tier 1 Sub (UNIT/LSUM/MILE) DBE PaymentsEACH SUBCONSULTANT Standard Consultant Invoice (Tier 1 Subs - ACFF/AC/LDHRLY) JN Summary (Tier 1 Subs - ACFF/AC/LDHRLY) JN Summary (Tier 1 Subs – UNIT/LSUM/MILE) if Tier II sub is also billing Labor Detail (ACFF/AC/LDHRLY) or Invoice Detail (UNIT/LSUM/MILE) ODC Summary Invoice Detail – Tier 2 Sub (UNIT/LSUM/MILE)

Compiling Monthly Invoice Invoicing responsibility:

Prime firms must complete their own invoices. Prime firms must include all Sub’s invoice data in their invoicing

spreadsheet. All ACFF/LDHRLY/AC firms must complete their own invoicing

spreadsheet. Tier 1 UNIT/LSUM/MILE subconsultant costs may be included in

the Prime Firm’s invoice. Tier 2 UNIT/LSUM/MILE subconsultant costs may be included in

the Tier 1 Firm’s invoice. UNIT/LSUM/MILE subconsultants do not need to complete their

own invoicing spreadsheets. Company issued invoices from these organizations will be used as invoice detail.

Flow of Information Between FirmsProject Initiation

Prime Firm Subconsultants

Review, sign and forward Agreement to

Prime firm

Prepare and forward Sub Agreement and

Authorization to Subs

Execute agreement and send to Subs.

Setup invoicing fileFile agreement.

Setup invoicing file

Communicate invoicing schedule to subs.

Setup billing cycle to follow Prime Firm’s

schedule.

Authorization from MDOT

Flow of Information Between FirmsMonthly Invoicing Cycle

Prepare monthly Invoice, sign and email

to Prime firm.

Prepare monthly invoice including Subs costs.

Review, sign and upload to ProjectWise.

Prime Firm Subconsultants

MDOTPayment Process

Receive payment.Receive EFT payment

and process payments to Subs.

Changes in Overhead and FCCM Rates JN(A-50) Worksheets

If the OH, FCCM and FF amounts were not “fixed” during the billing process, do so before making any changes.

INVOICE Worksheets Change the OH or FCCM rates in accordance with MDOT

Annual Financial Prequalification Approvals

JN(A-50) Worksheets Enter invoice data.

Modifications Save a copy of the invoicing spreadsheet before

proceeding. JN(A-50) Worksheets

If the OH, FCCM and FF amounts were not “fixed” during the billing process, do so before making any changes.

PRICED PROPOSAL Spreadsheet: Make sure all firms are included in the same order as the

original INFO worksheet.

INVOICE Worksheet Select “Unhide Orig - M20” macro button.

Modifications M(1-20) Worksheets

Select, copy and paste values from OUTPUT file into the appropriate M worksheet.

BUDGET Worksheet Verify that the budget is correct and the billed amounts are

correct.

Converting Older Invoicing Files All new projects beginning December 1 will require

using the new invoicing spreadsheet. Converting to the new spreadsheet is optional.

However, it is suggested for projects that are not too far along.

Conversion Procedure: Prepare a priced proposal spreadsheet for the original contract

and each modification. Input each OUTPUT file as appropriate. Follow the instructions for setting up the invoice file.

Converting Older Invoicing Files Conversion Procedure - Continued

On the INVOICE Worksheet, In the INVOICE NUMBER and DATE INFORMATION chart, change billing period 1 to represent the last billing period invoiced. The billing period begin date should match the first billing period and the billing period end date should match the last billing period invoiced. The Invoice number and invoice date should match the last invoice.

In the JN(A-50) Worksheets, under the column representing the most recently invoiced billing period, enter the total amounts billed to date from the previous invoicing spreadsheet.

Compare the data in both versions of the spreadsheet to verify that all previously billed amounts are correct.

Continue invoicing.

Questions