Advance Billing with %Spent Revenue

Question

Hi Dina,
My client has a scenario, where the commercial dept. would bill his customer based on the contract terms and conditions
For example
CV=100,000/- = Rev. Budget
and milestones are ....
M1=20% billing
M2=30% billing
M3=50% billing
i.e, billing to customer should happen either with Percent Complete Invoice (20%, 30%,80%)*Rev Budget automatically
Now Finance wants the revenue be generated based on %Spent (Cost-Cost) and the revenue be netted out at period end.
Please suggest me how to achieve this .....would be of great help
Regards,

Answer 1

Hi
I understand that the commercial contract with customer has a billing schedule of amount (percentage) per milestone, so you need to bill when milestone is completed.
For that setup the Invoice / billing method as Event.
You could upfront enter the billing events with their description and invoice amount, but don't enter the events completion dates.
As project is executed, the project manager should notify the commercial department whenever a milestone is acheived, so that department will go to the events form, select the relevant event, enter the date, and process draft invoice. i.e. run the process PRC: Generate draft invoice for single project.
For revenue setup the revenue method of the project as COST_TO_COST. Project manager should enter and baseline the Approved Cost Budget. The project should also have a Baselined Approved Revenue Budget equal the allocated funding.
Once a period you would run the process to generate draft revenue, and system will create a revenue event based on the seeded formula of percent spent, for the additional revenue earned on that project.
Dina