A user has written off time in BillQuick using Billing Review's Write-Up/Down feature. When the user looks at the project record in the Billing Review grid, under WUD column it says -100% and the Total Billable Amount = 0. However, on printing the Aging Activity report, these written off projects are showing up on this report. How does the write-off work in BillQuick?
Users may need to do write offs from time to time due to various reasons, such as if they exceed a fixed fee contract. They cannot bill for that written-off time but still need to know what actual time and expenses were incurred by the project.
There are several ways to write off service fees or expenses prior to generating an invoice. Use the method that suits your situation.
Mark Billed:
Mark Billed option is essentially writing off a time or expense entry resulting in no revenue, but there is a cost. It is not included on detailed invoices nor the Gross Margin reports because they are not tied with the invoices.
1. From the Billing Review screen, select the project's billing record in the grid and click Details > Time Details (or Expense Details).
2. Check the Mark Billed option for the desired time (or expense) entries.
Non-Billable:
Making items non-billable is recommended than marking them as billed. Non-billable time entries can be associated with an invoice and shows as ‘No Charge’. They will also display on the Gross Margin reports. If you mark the time/expense entries as non-billable, they will show on the cost side of your reports but not on the revenue side.
1. From the Billing Review screen, select the project's billing record in the grid and click Details > Time Details (or Expense Details).
2. Uncheck the Billable option for the desired time (or expense) entries.
or
1. Go to the time entry screen (Sheet View) and uncheck the “B” Billable box for the specific time entries. The best way to do this is to select all the time entries and go to the “Tools” dropdown button.
2. Select Change and check “Set Billable Flag to” False.
3. Then click “OK”.
Write-Up/Write-Down:
Writing off time entries can also be handled using the Write-Up/Down feature in the Billing Review screen. In this case you can change the bill amount of the selected time entries to $0.00. Doing this will keep it tied to the invoice, making it part of WUD as well as Gross Margin reports.
For profitability reporting, all these scenarios should be included. Mark Billed and Non-Billable options both involve costs charged to a project; thus when reporting profitability for clients, projects and employees, all costs charged to projects should be included. WUD is reflected in the net invoice amounts totaling to “Billed” (for profit reports showing billed work). This results in a truer measure of profitability. If a user wants to see the gross margins by invoice (what was billed and direct costs associated with it), then run the Profit by Invoice report in BillQuick.