Setup | Create Invoices | Tracking And Reporting | Reports
Split Billing is used to generate a percentage split invoice for multiple clients from a single project-based invoice. This is typically used when the cost to the client is to be shared between different entities.
NOTE: Each entity must be setup as a client in Workamajig.
Ex. An automobile TV commercial project will create one commercial. A number of local dealers and the manufacturer will each pay a portion of the cost to produce and run the commercial in regional markets.
Workamajig allows you to setup the agreed upon percentage each entity will need to pay.
When an invoice is generated for the project, Workamajig will automatically generate a Parent "tracking" invoice plus individual invoices for each designated client split.
Financially, the total amount billed will be tracked in the project. However, the individual split invoice Accounts Receivable amounts will be connected to the various entities. and thus affect the income amount in the Client/Project P&L.
For expenses, the net costs (Labor & Expenses) will be tracked within the designated project. and therefore be associated with the project's client.
The project's client P&L: shows income equal to the percentage split + total expenses from project.
The other entities' client P&L: shows income equal to the percentage split + 0 expenses from the project.
Menu > Admin/Manager > System Setup > Account Information > Transaction Preferences > Client
Invoice Setup > Enable Split Billing
Once selected, a new field will be available in the Project:Project Settings>Accounting area to setup the splits.
Project Settings>Billing Options>Billing Method
The project billing method can be set to either Time and Materials or Fixed-Fee. As it is not specifically connected to a project, Retainer is NOT allowed.
Split Billing Setup
Project Settings> Billing Options>Split Billing
Click on +Add a new split
Select the Client from drop down and enter Percentage of the Total Invoice the client will pay. To add additional splits, click on Insert Row.
NOTE: The percentages entered must total 100%. Be aware that the more splits you enter, the
chances of a rounding value being applied to one split is increased. The Parent/Project client does not have an entity in the split billing. Ex.
Creating the split billing invoices can fit within the normal billing workflow of Billing Worksheets, Mass Billing or directly from Project Billing Screen. However, there are some restrictions that need to be followed:
- For Billing Worksheets and Mass Billing, the setting must be One Invoice Per Project in order to create a split billing for the project.
- Split Billing will not work for projects set to Billing Method: Retainer, as Retainer billing is technically not controlled by the project.
- If you are billing by Campaign, and the campaign is set to bill by project, split billing will only occur for projects that have been setup with split billing.
- Split Billing is not available If you are billing by Campaign and billing the Campaign budget.
The billing worksheet is for the project. Follow the normal billing worksheet approval process. The splits setup in the project are not displayed on the Worksheet. When the billing worksheet is approved and Create Invoice step is done, the project setting for the Split Billing will be applied to the generated invoices.
Project Billing and Mass Billing
From the Mass Billing screen or Project Billing screen, the split billing setting on the project are not visible. Follow the normal workflow. When the invoice is generated, the project setting for the Split Billing will be applied to the generated invoices.
The invoices generated by the above billing workflows will always create the following:
- One Parent Invoice: This holds the invoice details and total amount billed. However, the invoice total is shown to be $0. There is no AR associated with this invoice and thus will not appear in AR Aging report.
- X number of Split Invoices: each individual invoice will display the line descriptions found in the Parent invoice. The invoice amount will correspond to the split percentage designated on the project. This invoice will be connected to the designated client and will be tracked in AR and AR Aging report in connection with this client not the Parent invoice client.
NOTE: If the invoice was created using Time and Materials, the actual transactions are associated with the Parent invoice. No transactions are associated with the split invoices. Only the values associated with each invoice line are displayed in the split invoices
The Parent Invoice will display the details of the transactions based on the line format selected.
The Splits tab will show the Split Invoices, along with the percentage and $ amount of each Invoice.
Click on a pencil icon to open the specific invoice
NOTE: The Split invoice will only show the connection to the receipt, credits or Advance Billing. All Line Transaction detail is contained in the Parent Invoice.
Click on the link under the Details to view the Parent Invoice
Print or Email the Invoices. The Split Invoices are to be printed/emailed to each client. The Parent Invoice can be Marked as Printed.
Editing Parent or Split Invoice
The total invoiced amount and transactions are all contained within the Parent invoice. As such, editing of the values can only be done within the Parent invoice. The individual split invoices will be adjusted according to the lines and line values of the Parent invoice. The individual split invoice value can NOT be adjusted. Once the total amount of the Parent invoice is changed, this will cascade to the split invoices. It does not matter if the split invoices are posted or not, the value of each split will be auto adjusted.
Adding additional lines to the Parent Invoice. If any additional lines are added to the Parent invoice, the total of the line will be split to the Split invoices based on the percentages.
In this example, an additional line was added to the Parent invoice for $200.
The amount was automatically split to the Split invoices based on the percentages.
Adjusting the Percentages on the Splits. The Percentages can be adjusted on the Parent Invoice under the Splits. However, the total amounts of each split invoice cannot be adjusted.
Application of Sales Tax to Split Invoices: The Split Billing Invoices will have Sales Tax applied to the individual child split invoices based upon the default Sales Tax Rate defined on the child invoice's Client company record. NOTE: The Totals displayed on the SPLITS tab of the Parent Invoice will include any applied sales tax on the child split invoice(s).
Edit Applied Sales Tax: If the correct sales tax rate was not applied to the child split invoice, the rate can be edited via the child split invoice. Click on the Edit Details icon>Other Information: Sales Tax 1 / 2 > SAVE.
Now select the individual lines of the invoice to check the appropriate Tax 1/2> SAVE
Expand the lines to apply the Sales Tax.
NOTE: If the Sales Tax box is selected and the Sales Tax = $0.00, unselect and reselect the Sales Tax checkbox to have the system auto calculate the Sales tax amount. Otherwise, a Sales Tax amount can be manually entered.
Tracking And Reporting
Approving and Posting
Each split invoice can be approved independently. If the Parent Invoice is approved, the system will automatically approve the split invoices. Each individual invoice, Parent and split invoices, need to be individually posted.
All invoices must be posted.
The Parent Invoice will have no posting information. All posting information is contained in the split invoices.
Below is an example of one of the splits. Each split will have the split amount that is pointing to the designated Accounts Receivable GL account and the lines will point to the Sales account(s) designated by the transactions contained on the Parent invoice.
NOTE: The line information will be associated with the Project as designated on the Parent invoice.
Since the individual split invoices are what will be tracked to AR Aging, only the splits will be visible in this report. As each client pays their split invoice, the invoice will be removed from the AR Aging report, just like any other normal invoice. The Parent Invoice will not appear on this report.
The Parent invoice is associated with a specific project, the Sales and Expenses are tracked to the project. This is seen as the $1700 in Total Revenue and $1000 in Expenses.
This is a bit different. The expenses are associated with the Parent invoice/Project but the revenue is associated with the split invoices. The Client P&L may appear a bit confusing:
Parent Invoice/Project Client: Client P&L
In our example, the project is associated with American Colony. The Expenses of $1,000 is associated with this client.
The Revenue (split invoice) for this client is 75% ($1,275).
Split Invoice: Client P&L
As the Expenses are tracked through the project (American Colony), the split client invoice will only show Revenue. In our example, the Revenue for Black Paw client is $25% ($425).