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Options relating to the how postings made in the Fees Ledger affect the Time Ledger are stored under the Fees Ledger WIP Write Out Options.
To view or change these settings:
Log into the Fees Ledger.
From the menu select Options.
Click on Fees Ledger.
Click the WIP Write Out tab.
To make changes on this screen you will have to log in as MASTER.
Both the Time and Fees Ledgers have their own periods, this allows for independent reconciliation and closure of periods within each of the ledgers. For more information on time periods and their status click here.
Invoices and credit notes, which are posted in the Fees Ledger can have an affect on WIP in the Time Ledger. This option determines which period in the Time Ledger the postings are made in:
Same as Fees Period - Postings will be transferred into the same period in the Time Ledger as the period the posting was originally made in the Fees Ledger.
On the Basis of the Invoice Date - Invoices and credit notes will be posted into the Time Ledger period which covers the date of the posting.
This is the date entered on the posting not the date the posting was made.
Always Current Time Ledger Period - Regardless of the date of the original posting and the fees period it was made into, when the Time Ledger is updated the posting will go into the current time period. If there is more than one current time period the posing will be made into the most recent.
If the period that the posting should be made into in the Time Ledger based on the option selected above is closed the next available current period will be used.
The recommended setting for time period to which to write out WIP is on the basis of the invoice date.
If you use interim invoices, they will be finalised when a normal invoice is posted to the client account, this option determines the affect the prior interim invoice(s) will have on the write out instructions of the finalisation invoice:
Gross - the value of interim invoices are ignored, only WIP to the value of the final invoice write out instruction will be matched.
Net of Prior Interim Invoices - the total value of the interim invoices already on the client account is added to the write out instruction on the final bill.
To help explain the consequences of the two options, in the following example a client has Gross WIP of £450, two interim invoices for £100 each, is posting a final bill of £250 and wants to reduce the WIP balance to zero:
If the Gross option is selected, to write out all WIP on the client account a write out instruction of £450 is required, the interims will be finalised but their value not added to the write out instruction.
If the Net of prior interim invoices option is selected, to write out all WIP on the client account a write out instruction of £250 is required, the £100 of each interim invoice will be added to the write out instruction of the final bill as they are finalised generating a total write out instruction of £450.
If you regularly have a credit (negative) net WIP (gross WIP less any interims on the client account, thst is, from the above example net WIP would be £250) and you do not want to leave unabsorbed time on the client account when interim invoices are finalised, it is important you select the Gross option.
The recommended setting for Write Out Amounts on Final Invoices is Gross.
Invoices and credit notes, which are posted in the Feed Ledger, will usually be required to reduce (write out) or increase (write back) the value of WIP on the Time Ledger. When posting either of these items you are provided with the option to adjust WIP.
If you would like to adjust WIP with these postings by default, rather than having to select the option for each posting you make, select invoices affect WIP unless you
untick the 'affects T/L' box and credit notes affect WIP unless you deselect the 'affects T/L' box.
You can override this option at the point of posting if you do not want the posting to affect the Time Ledger WIP.
It is recommended that the option to affect Time Ledger WIP is ticked for both invoices and credit notes.
When posting invoices in the Fees Ledger you have the ability to offer your customer a discount. If you assume this discount will be taken, it is likely you will only want the discounted value of the invoice to be posted to the Time Ledger and therefore be used when calculating recoveries on invoices. If this is the case select billed amount (on which recovery is based) excluded contingent discount on bill.
For more information on discounts and setting up standard terms for invoices click here.
It is recommended that billed amount (on which recovery is based) excluded contingent discount on bill is not ticked.
If you make changes on this screen, click OK to save and close the screen. Cancel will close the screen, abandoning any changes you may have made.
Click here for the topic on setting up the Fees Posting Options.