Example of using interim invoices in Time & Fees
Article ID
ias-6344
Article Name
Example of using interim invoices in Time & Fees
Created Date
30th May 2008
Product
IRIS Time and Fees
Problem
Example of using interim invoices in Time & Fees
Resolution
This knowledge Base Article provides an example of how to post interim invoices in Time & Fees
Example of the Interim Invoice Process
Interim invoices are most commonly used when you wish to post more than one invoice for a client job. For example, you may do some Accounts work for Smiths Plumbers. You may start the work on January 2009 and expect to complete the job by December 2009, and may wish to invoice the client £100 each month.
If you opt to use interim invoice you may decide to post interim invoices for £100 for each month between January 2009 and November 2009. This will mean that you will have 11 interim invoices, totalling £1100. On your Time Ledger, there is £1500 of staff time. The interim invoices will show 11 separate postings of £1100, showing a net WIP balance of £400 . (1500 less 1100 equals 400).
The interim invoices will show as ‘credits on account’ and will not be matched to any time.
An advantage of using interim invoices is that at the end of November you would be able to see all staff postings that have not been billed (£1500 in this example), all invoices sent to the client so far (£1100 in this example) and the current WIP balance owed to you (the net balance of £400. This may aid you with your billing decisions. At the beginning of December you have come to the end of the job and are ready to bill the client. By looking at the billing decisions report you can see that you’ve spent £1500 of staff, have already invoiced the client £1100 and are ready to make your billing decision. You decide that you would like to: ” invoice the client £1800 to make a £300 profit for the job ” reduce the clients WIP balance to zero. ” clear all interim invoices posted To do this you will need to post a final bill. In this example you would post a final bill of £700, as you wish the total invoice value of the accounts job to be £1800 and you have already posted £1100 of invoices (1800 less 1100 equals 700).
You may post a write out to the value of £1500, as the current balance is £1500 and you are aiming to get the value to £0 (1500 less 0 equals 1500). It is the final bill that is used to ‘finalise’ all interim invoices posted so far. (Finalising interim invoices is term used for ‘clearing the interim from the clients account).
Related Articles KB IAS-7152 : Introduction to interim invoicing KB IAS-6707 : How to reduce a client’s WIP balance with an invoice? KB IAS-6927 : How to post interim invoices? KB IAS-6928 : How to finalise an interim invoice
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