Sundry Debtor Invoices & Credit Notes

Transcription

1 Cheops Task Instruction Sundry Debtor Invoices & Credit Notes File Location: Z:\Data\Altason\iCanstruct\Task Instructions - Issued\22 - Progress Claim Schedules.docx P25 Last Revised: 6-Nov-16 This Task Instruction describes the se of sundry debtor invoices, and debtor credit notes. Please also refer to Task Instructions P23 and P24 which describe the setup of the progress claim schedule and the processing of progress claims. Note that Cheops provides two revenue streams for any project. We have the monthly head contract progress claims process, and we also have the Sundry Debtor invoice, and we have debtor credit notes. These two transactions are described here. The Difference between Progress Claims and Sundry Invoices System settings allow the claimed value to be recognised and posted to the general ledger The monthly progress claim process provides for us to claim the total cumulative value of work done to date, and the system deducts the previously certified value to arrive at the current claim value. This process involves a claim which usually has no financial implication, and a certificate (certified amount) which creates the tax invoice. The Sundry Debtor invoice is a standalone transaction and is quite separate from the monthly progress claim. The Debtor credit note is a simple credit note which may be used to reverse a debtor invoice. Whilst every effort has been made to check the accuracy of this task instruction, subsequent system updates may change some features. Sundry Debtor Invoices & Credit Notes Page 1 of 11

2 Sundry Invoice Entry The first decision is is a sundry invoice the appropriate transaction in the circumstances? If the invoice is for a part of the head contract sum, then the answer will be no. The invoice (claim?) should be entered as a progress claim. If the invoice relates to a separate matter, such as an invoice for work done for a tenant, a subcontractor, or possibly an insurance claim, then a sundry invoice is likely to be appropriate. So if we are about to enter a sundry debtor invoice, then we must have decided that it is the appropriate transaction type to use. Note also that there are two methods of allocating a sundry invoice: 1. Allocate as revenue (if we have carried out productive work and earned revenue), or 2. Allocate as a credit to cost (if this is a reimbursement, etc., like an insurance claim). Logon to the company On the entry tab, Open the menu tree at Accounts Receivable and then click on Debtors Processing Double-click on Sundry Debtor Invoices Or Logon to the project On the entry tab, Open the menu tree at Progress Claims and then click on Accounts Receivable Double-click on the Sundry Debtor Invoices option Sundry Debtor Invoices & Credit Notes Page 2 of 11

3 The sundry invoice entry screen displays: Project: Debtor Code: If logged in to the company, enter the project code. If logged in to the project, the project code is displayed. The system displays the debtor code that is setup for progress claims for the project. It is very likely that another debtor is involved, and you will change this. Select the required debtor from the drop-down list. Invoice No. (Next): Click next to allocate the next invoice number in the sequence, or Manually enter the invoice number required. Copy: Invoice Date: Due date: Amount (Total): GST: Total: Delivery Date: Client Ref: Originator: Disputed: It may be useful to copy an existing invoice. Select the existing invoice by number, and click the copy button. The current date displays, or change to the date required. The due date will display, based on the payment terms for the debtor. If the total invoice amount is known, enter it here. If the total invoice amount is not known, click total and the system will add the line items as you enter them. You may enter the date that you delivered the goods to the debtor. Enter any client reference, order number, etc. You may enter the name of the originator of this transaction. In the case of a dispute, you may tick the disputed box, and use the notes tab to record the dispute details. Sundry Debtor Invoices & Credit Notes Page 3 of 11

4 The Details tab: Enter one or more line items for the invoice. Description: Quantity: Number of: Unit: Rate: Amount: Comment: Enter a description for the item. Enter a quantity, if required. Enter a number of, if required. If quantity is entered, select a unit. If quantity and unit is entered, then enter a rate, else the system takes you to the amount field. The amount will display as the quantity x rate, or if no quantity is entered, simply enter the amount. You may enter text comments. Cost Reference: The default allocation will show REV = REVENUE. It is assumed that this is the most likely allocation. Alternately, you may change the REV entry to a cost reference. In this case, the invoice will behave as a credit to cost, that is, a credit to the cost on the selected cost reference. In the case where the invoice is not revenue, but is a credit to cost, select a cost reference to receive the credit. Sundry Debtor Invoices & Credit Notes Page 4 of 11

5 The invoice entry is now complete. The Amount will show the total of the line items, the GST will calculate, and the invoice total (incl. GST) will display. Click save. The Notes tab: You may enter text notes. The GL Defaults tab: You may enter GL destinations for the credit and debit posting for this invoice. If no GL codes are entered, the GL posting will follow the defaults setup at the project and/or company. If the invoice is allocated to revenue, then - At the project, you may have a GL default for the credit side of the invoice (you may have a separate sales account for the project. The debit side will post to the debtors control account setup at the company If the invoice is allocated as a credit to cost, then the credit side of the invoice will post to the GL code setup for the cost reference (if present), else the construction cost account for the project (if present), else the construction cost account setup at the company. Sundry Debtor Invoices & Credit Notes Page 5 of 11

6 The Who tab: This keeps an audit trail of the entries Changes to Sundry Invoices You may make changes to sundry debtor invoices until posted to the GL. Credit Notes We have seen above that we have two types of debtor invoices progress claims and sundry invoices (and even two forms of the sundry invoice). The debtor credit note facility allows us to enter a credit note, and either: 1. Link to a progress claim invoice, 2. Link to a sundry invoice, or 3. Enter as a standalone credit note. Although the system provides for it, it is generally not recommended to link the credit note to a progress claim. In this circumstance, although the credit note adjusts the debtor position, it does not adjust the claimed to date value in any progress claim schedule. If a user wishes to reverse or reduce a progress claim, it is preferable to enter a negative progress claim. See page 11 below. Sundry Debtor Invoices & Credit Notes Page 6 of 11

7 Credit Note Entry We have seen above that we have two types of debtor invoices progress claims and sundry invoices (and even two forms of the sundry invoice). Logon to the company On the entry tab, Open the menu tree at Accounts Receivable and then click on Debtors Processing Double-click on Debtors Credits Or Logon to the project On the entry tab, Open the menu tree at Progress Claims and then click on Accounts Receivable Double-click on the Debtor Credit Notes option Sundry Debtor Invoices & Credit Notes Page 7 of 11

8 The credit note entry screen displays: Project: Debtor Code: Credit Note No.: Credit Type: Claim Invoice Standalone Claim/Invoice No.: Credit Date: Amount: GST: If logged in to the company, enter the project code. If logged in to the project, the project code is displayed. Select the required debtor from the drop-down list. Manually enter the credit note number required. Select this to credit a progress claim (Not recommended, see above) Select this to link the credit note to a sundry invoice. Select this to enter a standalone credit note Enter the claim or invoice number that the credit is to be linked to. Use the drop-down list to select. If standalone was selected above, leave this field blank. The current date displays, or change to the date required. In most circumstances, we recommend dating the credit note the same as the invoice. The credit then sorts in the debtors ledger screen immediately below the invoice, and is easily recognised. Enter the amount of the credit. The GST amount will calculate. If the amount entered was GST inclusive, then click the Inc. button. Outstanding Amount: Shows the amount outstanding on the invoice. Sundry Debtor Invoices & Credit Notes Page 8 of 11

9 The Details tab: Enter one or more line items for the invoice. Description: Quantity: Rate: Amount: Enter a description for the item. Enter a quantity, if required. If quantity is entered, then enter a rate, else the system takes you to the amount field. The amount will display as the quantity x rate, or if no quantity is entered, simply enter the amount. Cost Reference: The default allocation will show REV = REVENUE. It is assumed that this is the most likely allocation. Alternately, you may change the REV entry to a cost reference. In this case, the credit will behave as a debit to cost, that is, a debit to the cost on the selected cost reference. Note that in the case of a credit note against a sundry invoice, the system does not match the cost reference to that entered on the invoice. For example, it would be possible to have the invoice allocated to REV (revenue), and the credit note allocated to a cost ref. (debit to cost). Users must be vigilant and select the correct allocation. In the case where the credit is not against revenue, but is a debit to cost, select a cost reference to receive the debit. Sundry Debtor Invoices & Credit Notes Page 9 of 11

10 Rev Type: Your system may have multiple revenue types in use. If the item is allocated to REV, you may select a revenue type Select a revenue type from the drop-down list Revenue Types are setup in the company, on the Resources menu Sundry Debtor Invoices & Credit Notes Page 10 of 11

11 Negative Progress Claims We have mentioned above that we do not recommend using a debtor credit note to correct a progress claim. We explained that although the credit will adjust the debtors position, etc., the progressive claimed to date values on the claim schedule will not reflect the adjustment (a reduction in the claimed amount). Hence, our preference in adjusting a progress claim (eg. where a progress claim invoice was issued for an excessive amount), is to use a negative progress claim. Obviously in the accounting sense it amounts to the same thing, but the progress claim schedule values need to be adjusted to the reduced cumulative value, such that the next progress claim is based on the correct starting point. Simply process the next claim by entering percentages and values complete which are less than the earlier entered values. The system will warn that these values are less than the previous claim which is exactly what we want. The result will be a negative invoice amount effectively a debtor credit note. Sundry Debtor Invoices & Credit Notes Page 11 of 11