IEM - Advanced Job Management
Design Detail: Job Contract Amounts
When a Job is used in a services situation more control is required over the contract amount. Anyway contract amounts are an important part of a Job as this determines what is being invoiced. In order to provide more control over the contract amount, as well as the related invoicing schedule, the amounts are now set in a separate table.
This allows you to create a contract amount with a starting - and ending date with the option to add new contract amounts reflecting the changes in the scope of the Job. The Job card will show the contract amount valid as per work date.
A new function, Change Contract Amount, in the contract lines page will allow you to update the invoicing schedule as per the starting date of the new contract amount. This function will recalculate the invoicing schedule with a choice between 2 methods:
- Reset progress %: Previous invoicing is ignored and the new contract amount (Contract Amount / Number of periods in the invoicing schedule) is distributed over the remaining periods. In this case it is assumed that the Job Contract Line amounts represents a, periodic, services fee.
- Do not reset progress %: Previous invoicing is recognized and the new contract amount (Contract Amount / Number of periods in the invoicing schedule) is used to complete the total contract amount, the Job is one time only. When the new contract amount is lower it means the full contract amount is completed earlier, when the new contract amount is higher the full amount is completed later (or the final term to be invoiced is larger)
A second new function for Contract Amounts is Progressive Billing in that case it is assumed that you agreed with your customer to invoice the contract amount of a Job based on the actual progress in a Job. The actual progress is the Project Manager?s best estimate supported by the Forecasting function in IEM.? The forecasting function will calculate the Cost Completion % of the project which means the completion of the Job Budget based on the actuals posted as Job Ledger Entries. This calculation can be refined by updating the Estimate To Completion and Progress % in the Forecast Lines.
When setting the Progress % in the contract lines to determine the amount to be invoiced the Forecast?s total Cost Completion % and Progress % are shown as an indicator of what the Billing Progress % should be.
| Fields | Explanation |
|---|---|
| Select the Forecast version | Drill down to the forecast version, defaults to the Active version |
| Cost Completion % | non-editable from the selected forecast |
| Progress | non-editable from the selected forecast |
| Latest Billing % | non-editable from the last, invoiced, contract line |
| New Billing % | Editable, cannot be Latest Billing % |
See also
How to: Initialize a Fixed Price contract
How to: Change a contract amount
How to: Use Progressive Billing in a Job