This topic describes the specific functionality available for an Invoice in case the Enable Items of Work Type in Sales Documents option is selected on the Administration > Settings > Sales form and the Enable the Phased Revenue Recognition functionality option is selected on the Administration > Settings > General Settings form.

If the Phased Revenue Recognition functionality is not used in your system, but the Enable Items of Work Type in Sales Documents option is selected on the Administration > Settings > Sales form, you can include items of Work type in the list of sold items.

If the Phased Revenue Recognition functionality is used in your system, you can bill the customer for the works performed to fulfill all your contract liabilities including the works recognized earlier and the works currently unrecognized and specify the related costs to be recognized by this invoice as well as costs recognized earlier.

The "Invoice (create)" form. The Inventory and Services (Works and Work Costs) tab

The Inventory and Services tab includes the following two panes:

Inventory: With a list of inventory items, items of Work type, and services that were sold to the customer within the contract liabilities and were not recognized yet.
Work Costs: On the on the WIP tab, with a list of work costs and work-in-progress costs linked to work-type items and that were not yet recognized and, on the Costs Recognized for Earlier Periods tab, with a list of costs recognized earlier in the related Phased Revenue Recognition documents.

Note. If the Show Work Costs for the Selected Row check box is selected, the Work Costs table in the lower pane contains the costs only for the Work item which is selected in the Inventory table. If this check box is selected, the lower table contains all costs related to all work items listed on the Inventory (upper) pane.

The Inventory pane

Note. All materials and inventory items must be transferred to the department (that executes the project) with the corresponding Cost Object indicated before you can recognize the costs and corresponding revenues based on the costs incurred.

To add new rows, use the Add or Pick buttons (refer to Using with the pick operation).
In the Item column, select an item from the Items list. Alternatively, you can import the list of items with all the details from an Excel document. For this, click the button on the table toolbar and follow the step-by-step instructions in the appeared window.

By default, in the Content column, the item description appears.

The Characteristic column is available if the Enable Item Characteristics option is selected on the Administration > Settings > Purchasing and Warehouses form. In this column, you can specify additional properties (such as size, color, and so forth) of each listed item if the Use Characteristics option is selected for the item in its master record (see Items).

The Batch column is available, if the Enable Batches option is selected on the Purchasing and Warehouses form. In this column, you can specify the batch (lot) number for the items for which the Use Batches option is selected.

The Serial Numbers column is available if the Use Serial Numbers option is selected on the Administration > Settings > Purchasing and Warehouses form. For each serialized item (for which the Use Serial Numbers check box is selected on the Items form), click in the column to open the Serial numbers dialog box. In this dialog box, you must enter the serial numbers according to quantity of the item.

The Specification column is available if the Use Sets for Sales option is selected on the Administration > Settings > Purchasing and Warehouses form, and you can select a specification to be used for the item if item is a Set. Click the Set Components button on the toolbar to specify the components for the set.

In the Quantity column, you can specify the item quantity and in the UOM column, you can select an UOM for the item if the Multiple UOMs per Item option is selected on the Administration > Settings > Purchasing and Warehouses form.

The Price column is filled in automatically if the item was listed in the basis document or in one of the Phased Revenue Recognition documents on the Contract Assets tab.

The Discount,% and Discount (or Discount Price) columns are available if the Enable discounts and markups in sales documents option is selected on the Administration > Settings > Sales form. Use these columns to specify the manual discount granted to the customer. The default discount can be set in the customer contract. For details on discounts in invoice, refer to Creating an Invoice. The Inventory and Services tab.

The values in the Amount column are automatically calculated for each item according to the specified price, quantity, and discount.

If the VAT Applied option is selected for this invoice on the Main tab, the VAT, % and VAT Amount columns are available. The VAT amount is calculated in the currency of the document according to the amount and VAT-related settings (which are specified on the Main tab) as follows:

If the Prices Include VAT option is selected: The VAT amount is extracted from the item amount (Amount), that is,

VAT_Amount = Amount*VAT_Rate/(100+VAT_Rate).

If the Prices do not Include VAT option is selected: The VAT amount is calculated based on the item amount, that is,

VAT_Amount = Amount*VAT_Rate/100.

The Total amount is automatically calculated according to the VAT-related settings as follows:

If the Prices Include VAT option is selected: Total = Amount.
If the Prices Do Not Include VAT option is selected: Total = Amount + VAT_Amount.

The Total column shows the total amount that includes the revenue recognized in the Invoice and the revenues recognized earlier for the work in the Phased Revenue Recognition documents listed on the Contract Assets tab, and the corresponding VAT amounts.

The Already Recognized Quantity column shows the quantity of the work item recognized as completed in the Phased Revenue Recognition documents listed on the Contract Assets tab.

The Already Recognized Revenue column is populated with the amount recognized for the work in the Phased Revenue Recognition documents listed on the Contract Assets tab.

The Total Cost column is populated with the sum of costs recognized in this Invoice with costs recognized for the item earlier.

The Already Recognized Costs column is populated with the cost amount recognized for the work in the Phased Revenue Recognition documents listed on the Contract Assets tab.

The Cost Object column is populated with the cost object.

The Specification column is available if the Use Sets for Sales option is selected on the Administration > Settings > Purchasing and Warehouses form, and you can select a specification to be used for the item if item is a Set. Click the Set Components button on the toolbar to specify the components for the set.

If the Enable Project Tasks option is selected on the Administration > Settings > Project Costing form. By default, the Project Task column is available on the Inventory and Services tab. If all Work items are related to the same project task, you can move the Project Task column to the document header (the Main tab). For this, use the Settings button on the toolbar.

In the GL Accounts column, you can view the default accounts to be updated by this transaction. If needed, you can replace them with other accounts.

You can use the Income Item and Business Activity columns to specify parameters for further analysis of the sales transaction.

The Transaction Content column shows the default description of GL journal entries.

In the Comment column, you can enter some additional information about an item.

The Inventory pane toolbar buttons

Use the Up and Down ( ) buttons to rearrange the items in the list.

To populate the Work Costs pane, click the Fill button and select one of the following options:

Average Costs Price: This option is available if the Show Costs in Sales Documents option is selected on the Administration > Settings > Sales form.
Work Costs by Cost Object: This option is available if the Advanced Product Costing option is selected on the Administration > Settings > Production form. To allocate the costs associated with the specified Cost Object. If there multiple lines with the same Cost Object in the Inventory table, the costs are allocated proportionally to the line amounts.
Work Costs: To populate with costs associated with the Work item.
Already Recognized Revenue and Costs: To show the Costs Recognized for Previous Phases tab with information on already recognized revenues and costs. This option is available if the Use Phased Revenue Recognition option is selected in the customer contract.

The Set Components button on the table toolbar is disabled because Work Items cannot be sets.

The Work Costs pane

The Work Costs pane includes the following two tabs:

WIP: Shows the current costs associated with the selected work item or all items in the upper pane. The costs may be filtered as marked by Cost Object or not marked. To populate the table, click Fill and select one of its options or click the Pick Work Costs button on the pane toolbar.
Costs Recognized for Previous Phases: to bring up this tab, click Fill > Already Recognized Revenue and Costs on the upper pane toolbar. The tab shows the results of the previous phases of recognition.

If you need to view only the costs for the work item selected in the Inventory table, click the Show Work Costs for the Selected Row option at the bottom of the form. To view the costs for all work items, make sure the check box for this option is cleared.

The WIP tab

The Department column shows the department related to the cost.

The Cost Object column shows the cost object for the cost incurred.

The Cost Element column shows the object to which the costs are being recognized are related. When creating the project cost estimates, you can choose from the following levels of details (analytics parameters): Departments, Business Activities, Cost Elements (such as labor cost associated with a particular employee, material costs as cost of items, such as materials, stock items, or services, and Fixed Assets if you use special equipment or vehicles).

The Characteristic column indicates the characteristic of the item if characteristics are used for this item.

The Batch column indicates the batch if batches are used for the item.

The Quantity column shows the quantity of the item.

The Unit Cost column shows the cost per UOM of the item.

The Amount (Accounting Curr.) column shows the cost amount calculated in the accounting currency.

The Amount (Curr.) column shows the cost amount calculated in the currency of the document.

In the GL Accounts column, you can view the Work in Progress GL account to be updated by this transaction.

By default, in the Transaction Content column, a description that is used for journal entries appears.

The Costs Recognized for Previous Phases tab

The tab shows the results of the previous phases of recognition (appears if you click Fill > Already Recognized Revenue and Costs on the upper pane toolbar).

The Phased Revenue Recognition (create) form. The Revenues and Costs tab. The Costs Recognized for Previous Phases subtab

The Project Task column shows the task to which the cost is related.

The Item column shows the Work item to which the cost is related.

The Characteristic column shows the characteristic of the work item to which the cost is related.

The Cost Object column shows the cost object to which the cost is related.

The Expense item column shows the expense item to which the cost is related.

The Cost Element column shows the item, or employee, or fixed asset to which the cost is related.

The Cost Element Characteristic column shows (if applicable) the specific characteristic of the item selected as cost element.

The Cost Element Batch column shows (if applicable) the batch number of the item selected as cost element.

The Quantity column shows the quantity if the item to which the cost is related.

The Unit Cost column shows the cost per unit associated with the cost object.

The Amount (Acct. Curr.) column shows the task to which the cost is related.

The Amount (Curr.) column shows the task to which the cost is related.

The Work Costs pane toolbar buttons