New client invoice [in-depth guide] – Workamajig

This guide will provide instructions on how to manually create a new client invoice, as well as explain how to apply advances, credits, or prepayments to & from the invoice.

Typically one would generate invoices using billing worksheets, mass billing or from the individual projects' Billing screen.

Steps to manually create a client invoice

To add a new client invoice manually, please use the following steps to get started.

Go to Menu > Billing > Client invoices > to add a new invoice.
Enter a Client ID in the text box provided that this invoice is for.
In the Primary contact drop-down, you can choose a contact name that the invoice is intended for. This field also determines whether the client can view the invoice and allows you to select the contact's address for printing and their email for emailing the invoice.
Leave the Invoice number blank, the system will assign a number based on the settings in the Transaction preferences screen.
In the Project text box, enter the project number that this invoice is for. This project number will then default onto each line item. The system will also assign the account manager as the approver when the invoice is created.
In the Invoice date text box, enter the date of the invoice. This will default to the current date. This is the date used when aging an invoice.
In the Posting date text box, enter the date you would like this invoice to post to the GL.
In the Due date text box, enter the date that this invoice should be paid by the client.
In the Invoice comment text box, enter a comment if you want to print additional notes on the invoice for the client to see.
In the Template drop-down, select the template that you would like to apply to this invoice. The system will default the template from the client record. Any User-defined fields will then show up below the template name for you to enter information to print on the invoice.
Click the SAVE button to add the invoice. The system will then redirect you to the line items screen.

Adding line items

When you create line items, there are two types of line items: summary & detail. Summary line items are used to group detail line items together & summarize line items together on the printed invoice. When you create a detail line item, you can enter the amounts directly on the line item or you can link the line item to a project and select transactions onto the invoice.

Add a summary line item

In the Line type drop-down, select the 'summary line' option.
In the Line subject text box, enter the line subject that you want printed on the invoice.
If you have other summary line items added, you will be able to see the Part of summary line drop-down list. Use this drop-down to select which summary line item this line item should appear under. This will cause the line item to be indented & grouped under the related summary line item.
In the Description/comments text box, enter a longer description that will appear under the subject on the invoice.
Click the Save button to add the line item.

Add a detail line item

In the Line type drop-down, select the 'detail line' option.
In the Line subject text box, enter the line subject that you want printed on the invoice.
In the Project text box, enter the project number to link this line item to. You will need to select a project if you want to pull detailed transactions onto the line item. Once the line item is saved, you will not be able to change the project number.
In the Task ID text box, enter the task that you would like to link this line item to. This will then show this billable amount in the Budget screen on the specified task.
If you have other summary line items added, you will be able to see the Part of summary line drop-down list. Use this drop-down to select which summary line item this line item should appear under. This will cause the line item to be indented & grouped under the related summary line item.
In the Billing item drop-down, select the billing item for this line item. You only need to use the billing item if you are exporting your invoices to QuickBooks. QuickBooks requires that each invoice line item has an Item ID on the line item. The billing item ID is added to the export and must match an item ID in QuickBooks.
Use the Get billable amounts from the drop-down to select how the line amount will be put in. When you select the 'no transactions' option, you enter the amount right on the line. This would be the case in fixed fee invoices, advance billing invoices or a client credit. If you select the 'use transactions' option, you can pull transactions onto the invoice line item.

If you select No transactions
- In the Quantity text box, enter the quantity for this line item.
- In the Unit amount text box, enter the unit amount for each line item.
- In the Total amount text box, enter the total billable amount for this line item. NOTE: For credit memos, this will be a negative number.
If you select use Transactions
- Select the Expense link
  - To add a transaction to the line item, select the checkbox at the left of the screen. You can modify the gross amount on the transaction.
  - Click the [Save] button to save your changes.
  - Click the Edit invoice link above the Labor & expense tabs to get back to the invoice line that you came from.
- Select the Labor link
  - Click the Edit invoice link above the Labor & expense tabs to get back to the invoice line that you came from.
  - Click the [Save] button to save your changes. You can then click on the Expenses tab to select any expenses onto the line item or click on the Invoice number in the cookie crumb to return to the line item.
  - To add a transaction to the line item, select the checkbox at the left of the screen. You can also modify the hours, rate and total amount on each transaction.
Click the Save button. You will then see links on the screen that allow you to select from labor & expense transactions.

Select the Taxable check box to make this line taxable and to add the line item to the taxable amount. The system will then calculate the taxable amount for the invoice, based on the sales tax rate, and add it to the total for the invoice.
Select the Taxable2 check box to make this line taxable and to add the line item to the taxable amount using the second tax rate. The system will then calculate the taxable amount for the invoice, based on the sales tax 2 rate, and add it to the total for the invoice.
If you need to add additional taxes to this line item, click the Add other taxes link. You can then use the selection boxes to select the additional sales taxes needed for this line item. You can select as many additional sales taxes as you need.
Select the Post to sales using detail to have the system determine the sales accounts from the related billing items.
In the Class text box, enter the class for this line item. The class will default from the header.
Use the Item type drop-down to select the type of item you would like to link this line item to. You can only link a line item to one type of item. Once you have selected a type of item, select the specific item from the Item description drop-down.
In the Description/comments text box, enter a longer description that will appear under the subject on the invoice.

Applying advance billing invoices

When creating an invoice, you may need to reduce the invoice based on retainer payments or based on advance billings for things such as large expenses or for a down payment. When you generate the actual invoice based on work performed, you will need to reduce the invoice by the amount of the prior advance billing. Advance billings should get booked to a liability account (this is specified in the control accounts section of system settings).

To apply an advance billing, select the Apply advance billings tab.
Select the checkbox to the left of the invoice number to apply the advance billing to the invoice.
In the Amount text box, enter the amount to apply to the invoice. This amount can not exceed the open amount on the invoice.
Click the [Save] button.

Applying client credits

When you create a client credit memo (negative invoice) you can apply it to other invoices to reduce the amount open amount. To take a credit, you apply the credit directly to another invoice. To apply a credit directly to the invoice:

From the Credit memo, click on the Credit tab

Click on the to select the invoice(s) you want to apply the credit towards

Once selected, click Done.

You will see the associated invoice as a line item in the credit memo.

Post the invoice.

From the Posting details, Settings tab: Status, you see that the transaction will -Debit AR and -Credit revenue. The reduction of revenue will be seen in the project.

Creating recurring invoices

You can also schedule invoices to recur, this is useful if the same invoice needs to be created on a regular basis. See the Recurring transactions [in-depth guide] for more details.

Adding prepayments to an invoice

You may have already received a check for part of the invoice amount. You can select from payments already entered in the system but not applied to other invoices. To add a payment to an invoice, go to the Invoice tab and then click on the Payments tab. You will see any applied payments in the list. You can search for unapplied checks by clicking on the icon to the right of the check ref # box. Once the check number to apply has been entered, enter the amount to apply to this invoice. You can select multiple checks to apply to an invoice. The total amount due on the invoice will be reduced by the applied payment amount.

You can only apply posted payments to an invoice. Once applied as a prepayment, you can not unpost the payment. You can only apply up to the unapplied amount of the cash receipt.

Client statement

The client statement will show a list of invoices and receipts made for a designated timeframe. The statement is created via Menu > Reports > AR reports > Client statements.

You MUST select an invoice layout prior to creating the PDF file. The invoice layout will provide the header information, including the company logo for the statement printout. You may want to create an invoice template specifically for statements, so the word "Statement" will print out, as opposed to "Invoice".

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