Introduction to Interim Invoicing
Article ID
ias-7152
Article Name
Introduction to Interim Invoicing
Created Date
13th November 2008
Product
IRIS Time and Fees
Problem
Introduction to interim invoicing
Resolution
Contents
- Introduction
- Introduction to interim invoices and Final invoices
- Final invoices
- Interim invoices
Introduction
This knowledge base article is part of the ‘interim invoicing articles’, which provides assistance for posting and finalising interim invoices:
KB IAS-6344 : Example of using interim invoicing
KB IAS-6924 : How to post an interim invoice
KB IAS-6928 : How to finalise interim invoices
Introduction to interim invoices and full invoices
Invoices posted to the Fees Ledger can be posted as either interim or final.
Both interims and final invoices affect the Fees Ledger in the same way as the value of the invoice will be added to the debtors list. For example an interim invoice posted for £200 will show that the practice is owed £200, and a final invoice posted for £200 will show in the fees ledger that the practice is owed £200
The difference between an interim invoice and a final invoice is how they affect the clients WIP in the Time Ledger.
Final Invoice
A final invoice is any invoice that is posted with a write out. By posting a write out will mean that you can match staff time to an invoice and so ‘clear’ outstanding WIP posting from client accounts.
For example, client A001 has £800 of unbilled staff time. A partner reviews the postings on the Time Ledger and decides that he wants to post a bill. He decides that he wants to invoice £1000 and associate all of the £800 will the invoice. To do this he posts an invoice in Fees for £1000 and enters £800 as a write out. After this bill has been posted client A001 will have a WIP balance of 0 (as the WIP has been reduced by £800) and the time would have been matched to the invoice.
KB IAS-6928 : Posting a final invoice
KB IAS-6707 : How to write out time
Interim Invoice
An interim invoice does not post a write out and so time cannot be matched to an interim invoice. Instead, an interim posts a ‘credit on account’ in the Time Ledger, which is a posting to the same value of the interim invoice. For example, if you post an invoice for £100 as interim in the Fees ledger it will show as £-100 on the Time Ledger.
Related Articles
KB IAS-6927 : Posting interim invoices
The credit on account can only be cleared by posting a final invoice.
This illustrates that posting interim invoices is a 2 step process. This includes:
- KB IAS-6927 : Post interim invoice
- KB IAS-6928 : Post a final invoice to ‘finalise’ the interim invoices
For a more detailed example of how to use interim invoices see KB IAS-6344
Share This Page
We are sorry you did not find this KB article helpful. Please use the box below to let us know how we can improve it.
