BIL201: Manage Progress Billing

Transcription

1 BIL201: Manage Progress Billing CERTIFIED COURSE CURRICULUM SAGE UNIVERSITY

2 IMPORTANT NOTICE This document and the Sage 100 Contractor software may be used only in accordance with the Sage 100 Contractor End User License Agreement applicable to the Sage 100 Contractor software. You may not use, copy, modify, or transfer the Sage 100 Contractor software or this documentation except as expressly provided in the license agreement. Visit Sage's training services Web site at call , or us at to learn about training classes that Sage adds throughout the year. Contact your business partner to learn about local training options. Information in this document is intended solely as general information with respect to common business issues and is not to be construed as professional advice. Consult a tax or accounting professional for all tax and account related questions. THE INFORMATION HEREIN IS PROVIDED AS IS AND ALL WARRANTIES ARE EXPRESSLY DISCLAIMED, INCLUDING BUT NOT LIMITED TO ANY WARRANTY: OF MERCHANTABILITY; OF FITNESS FOR ANY PARTICULAR PURPOSE; OF NON-INFRINGEMENT OF ANY PROPRIETARY RIGHT OF ANY THIRD PARTY IN ANY COUNTRY; OTHERWISE ARISING OUT OF ANY PRODUCT, PROPOSAL, SPECIFICATION OR SAMPLE; AND ANY WARRANTY THAT THE DOCUMENT IS ERROR FREE. No license, express, implied, by estoppel or otherwise, to any intellectual property right is granted by this document. Sage Software may make changes to the information in this document at any time, without notice. Recipient is solely responsible for assessing the suitability of the information and assumes all risk of use Sage Software, Inc. All rights reserved. Sage, the Sage logos, and the Sage product and service names mentioned herein are registered trademarks or trademarks of Sage Software, Inc., or its affiliated entities. All other trademarks are the property of their respective owners. 02/2013

3 Billing Contents Contents Welcome Course Pre-Requisites Training Data for Lecture and Activities Conventions Used in This Workbook Manage Progress Billing What You Will Learn: Progress Billing for a Job About Jobs Progress Billing Overview How to Create a Progress Bill Activity 1 Import Proposal Activity 2 Import Budget Manually set up job Retention Activity 3 Calculate Retention Update Options Calculate Options Activity 4 Use Update Options Other Billing columns Submit Application Post the Application Activity 5 Post Application Create Next Application Activity 6 Recall and Create Next Application How to Change the Retention Rate for a Job Release Retention Void an Application Steps and Statuses Summary Sage Software, Inc. Online Training at 3

4 Contents Sage 100 Contractor 4 Local Training From Business Partners 2013 Sage Software, Inc.

5 Billing Welcome Welcome This handout has been designed for use in an instructor-led class for Sage 100 Contractor. Detailed instructions help you recall the procedures introduced by your instructor. Depending on how your training class is conducted, some sections may not be addressed. Refer to these sections in the future as you continue to work with the software. Course Pre-Requisites This course assumes that you have installed the Sage 100 Contractor software and opened the Sample Data. You should also have participated in the NCT102, NCT107, and NCT108 courses. Training Data for Lecture and Activities As your instructor demonstrates procedures in the software, he or she will access the training data set that has been used to capture application screens in this workbook. You will also use the training data set to complete the activities. You can download the training data sets on the Sage University Web site ( using the procedure explained on the next page. Transactions in the Training Data Set In certain cases, transactions in the data set that you use may show a different year than the illustrations in this book, or than the instructor shows in class. If your data set transactions show a different year, but all other details such as the account setup, vendor names, and jobs are identical, your data set will correspond to the materials in all respects but the date. When you complete the activities that involve dates, you may see a different year in the instructions or screen shot than in your data. Use the appropriate year based on the data you are using for activities. For example, if 2012 is the current year in your data and the activity prompts you to enter prior year information, enter a date in If the activity prompts you to enter current year information, enter a date in Sage Software, Inc. Online Training at 5

6 Welcome Sage 100 Contractor If you already have an older version of the training data installed, you can upgrade it using the directions below to download the latest training data set. If you prefer to use another data set for the activities, you may do so, but your results may not resemble the images you see in the workbook. To Download the Training Data Set 1. In an Internet browser, go to 2. In the right-hand area under QuickLinks, click Training Data. 3. Select the ReadMe File file for instructions on load the sample data. 4. Click the Download the Sample Company Training Data link. 5. Click Run to install the training data. If you see a security warning about the publisher, click Run. 6. Browse to your MB7 folder, then click Unzip, and then click OK. Menu Paths In this workbook, menu paths show you the steps required to start a task. This is a sample menu path: 4-Accounts Payable > 3-Vendor Payments > 2-Pay Vendors Many modules and tasks are also available through Sage 100 Contractor Desktop. The Desktop has a tree structure that reflects the same logical progression as the steps of a menu path. Where to Get Additional Information Application Help Files Each application contains an extensive Help system. The Help is your primary resource for reference and how-to information for all tasks. Help includes Contents, Index, and Search features that help you locate information quickly. You can start Help in two easy ways: Select About this Window from the Help menu in any application. Press the F1 key on the window in any application. Technical Support Knowledgebase The Technical Support Knowledgebase contains the latest information about application features. You must have a current service plan to access the knowledgebase. 6 Local Training From Business Partners 2013 Sage Software, Inc.

7 Billing Welcome InfoCenter Be sure to check the InfoCenter for product news, announcements, support, and training. Access the InfoCenter from Home and Resources tab > Customer Resources. Submit Enhancement Requests Do you have a suggestion for how we can improve our software? We want to hear your ideas! Open the Product Enhancement Request option from Home and Resources tab > Customer Resources. Ideas you enter will be submitted to our Product Management team. Conventions Used in This Workbook This workbook uses the following conventions: The names of screens, windows, fields, buttons, and other features displayed by the software are shown in bold type. Information you enter into the software is in bold type, as in the example below: Type Miscellaneous in the Amount Type field. Names of keys are shown in capitals; for example, ENTER, TAB. A plus sign (+) between two key names indicates that you should press both keys at the same time; for example, SHIFT + TAB. NOTE: This symbol draws your attention to information of particular interest. TIP: This symbol draws your attention to tips about using a helpful feature of the software. WARNING: This symbol draws your attention to information that is important because it can help you avoid a costly or time-consuming error. FOR MORE INFORMATION: This symbol draws your attention to a reference to another document or to another section in this document Sage Software, Inc. Online Training at 7

8 Welcome Sage 100 Contractor 8 Local Training From Business Partners 2013 Sage Software, Inc.

9 Billing Manage Progress Billing Manage Progress Billing The purpose of this course is to teach the student to use progress billing within Sage 100 Contractor. What You Will Learn: Set up, process and manage progress billing. Import a schedule of values from a budget or proposal. Create a progress bill manually. Update from job costs. Update from change orders. Enter/alter current amounts. Print a progress bill. Update to accounts receivable Sage Software, Inc. Online Training at 9

10 Manage Progress Billing Sage 100 Contractor Progress Billing for a Job The Progress Billing window provides a system for creating progress billings, with each new application building on the previous application for a job. Most progress bills are printed on AIA certificates. Under each job, the program assigns each application its own application number. Creating a progress bill requires that you to provide some basic information in the Progress Billing Setup window. You can provide the name of the architect and the architect s job number for the project, as well as the income posting account, tax district number, retention rates, and a maximum for retention. To create an application, import the cost codes or divisions from the job s budget or proposal. You can then select several ways to automatically update the cost information from the job cost records. When you select the Percent from Costs command, the program displays the actual job costs and calculates the percent of work completed by comparing the job costs against the budget. You can instead select the From Cost Amounts or From Billing Amounts command to display only the amounts for each cost code. You can also update the costs of the change work to the progress bill. You can either incorporate the changes to the costs in the cost codes or divisions, or include the total amount of the change order as a separate line item. Before you can set up a progress billing that job must be set up in 3-5. About Jobs For each job, create a record that contains the job-related information such as important contract dates, job balances, and contract terms. In addition, the Jobs window provides a variety of tools to help manage contracts. You can supply information for creating pre-liens and lien releases, and create phases or bid items to divide work into more manageable sections. 10 Local Training From Business Partners 2013 Sage Software, Inc.

11 Billing Manage Progress Billing When setting up a job, remember that required fields have asterisks. However, including optional info when setting up a job will save time later Sage Software, Inc. Online Training at 11

12 Manage Progress Billing Sage 100 Contractor Progress Billing Overview Like most of Sage 100 Contractor windows, 3-7 Progress Billing has a header portion that includes menu items and buttons that repeat many of the most frequently used menu options. The Status field, located just below the button bar, is especially important in progress billing. The progress bill s status determines what you are permitted to do with the progress bill as it moves through the processing steps. At the bottom of the Progress Billing window are fields that contain a summary of the information contained in the Progress Billing window. Also at the bottom is the Setup button. How to Create a Progress Bill 1. Open Progress Billing (menu 3-7). 2. In the header, do the following: In the Job field, enter the job number. If the job uses phases, enter the phase number in the Phase field. In the Description field, enter a brief statement about the work completed. In the Application# field, enter the number of the application you are submitting. 12 Local Training From Business Partners 2013 Sage Software, Inc.

13 Billing Manage Progress Billing In the Billing Date field, enter the date ending the period for which you are submitting the request. In the Billing Cycle field, enter the billing cycle. Under Billing Basis, select either the Bill by cost codes or Bill by cost divisions option. The next step is to enter information into the Progress Billing Setup window. Enter setup data for a progress bill 1. On the Options menu, click Setup and complete the Progress Billing Setup window 2. In the Architect field, enter the vendor number of the architect or engineer. 3. In the Architect s Job# field, enter the number the architect uses to refer to the job. 4. In the Income Account field, enter the income account. 5. If you are using subsidiary accounts, enter the account number in the Subaccount field. 6. In the Tax District field, enter the number of the sales tax district. 7. In the Primary Rate field, enter the rate of retention. 8. In the Maximum Amount field, enter the maximum amount to withhold based on the primary rate of retention. 9. In the Material Rate field, enter the rate of retention for stored materials. 10. In the Secondary Rate field, enter the rate of retention to apply when the billings exceed the primary maximum. 11. On the menu bar, click Save Sage Software, Inc. Online Training at 13

14 Manage Progress Billing Sage 100 Contractor If the job has a proposal, importing by proposal is the most common way to create a progress bill because it includes overhead and profit. On the Options menu, click Import > Import Budget, or On the Options menu, click Import > Import Proposal > Based on Cost Codes or Bid Items. Activity 1 Import Proposal Please go to your desktop and open Sage 100 Contractor (with the Sample Company selected) if you have not already done so. 1. Open 3-7 Progress Billing and enter the following information: Job: 220 Description: Job 220 Application#: 1 Billing Date: Enter today s date Billing Cycle: 10DY 2. On the Options menu, select Import > Import Proposal > Based on Cost Codes. The data from the proposal fills the grid. 3. Click Setup. The Progress Billing Setup dialog field displays. 4. Enter the following information: 5. Architect: 104- Will McKinney Architects 14 Local Training From Business Partners 2013 Sage Software, Inc.

15 Billing Manage Progress Billing 6. Income Account: 4000-Contract Income 7. Subaccount: 1-California Office 8. Click Save. The Progress Billing Setup window closes. 9. In the 3-7 Progress Billing window, on the Options menu, click Calculate. 10. Click Save to save your new progress billing record. Please return to conference when you have completed this exercise. Now we ll create a progress bill by importing from the budget. Activity 2 Import Budget Please go to your desktop and the 3-7 Progress Billing window. 1. On the File menu, select New. 2. Enter the following information: 3. Job: Sage Software, Inc. Online Training at 15

16 Manage Progress Billing Sage 100 Contractor 4. Description: Job Application#: 1 6. Billing Date: Enter today s date 7. Billing Cycle: 10DY 8. On the Options menu, select Import > Import Budget. The data from the proposal fills the grid. 9. Don t save this record. Please return to the conference when you have completed this exercise. Manually set up job 1. Click the Cost Code cell and press F8 to open the Cost Codes window. 2. Create a pick list of cost codes or divisions, and insert the list. Or simply type in the description with no cost code. 3. If a vendor is associated with the item, enter the vendor number in the Vendor cell. 4. In the Scheduled cell, enter the scheduled amount. 5. In the Current Comp. cell, you can enter the costs incurred. If you provide the costs incurred, do not provide the percent of work completed in the % Comp cell. 6. In the Ret. Rate cell, you can accept the default primary rate from the Progress Billing Setup window, or you can enter a different rate for the item. 7. In the Current Stored cell, enter the current cost of materials stored for the job. 8. In the % Comp cell, you can enter the percent of work completed. If you provide the percent of work completed, do not provide the current costs incurred in the Current Comp. cell. 9. In the Taxable cell, type Y (Yes) if the item is taxable, type N (No) if the item is non-taxable. Value of using cost codes: Costs can be updated from actual job cost records. 16 Local Training From Business Partners 2013 Sage Software, Inc.

17 Billing Manage Progress Billing Retention Many job contracts include retention. In the Progress Billing Setup window, you can set up rates and a rate maximum. When you calculate a progress bill the first time, the program inserts the primary retention rate for completed work in the Retention Rate column for all line items. If certain line items require different rates of retention, type the rates in the appropriate Retention Rate cells. If you leave a Retention Rate cell blank, the program will not compute retention for that particular line item. You can then recalculate the retention for the application. Maximum Amount of Retention Some contracts stipulate that retention should stop accruing after a certain amount of the contract has been billed. To restrict the amount of retention withheld, type the maximum amount of retention to withhold in the Maximum Amount field. When the total retention withheld, calculated from the rates for each line item, equals or exceeds the maximum, the program stops withholding retention on the printed progress billings and the posted receivable invoices. However, within the Progress Billing window, the program continues to calculate the total retention. Secondary Rate of Retention You can also set up a secondary retention rate. When the total retention withheld exceeds the amount in the Maximum Amount field, the program applies the rate in the Secondary Rate field. The program does not replace the original rates in the Retention Rate column of the progress bill with the secondary rate because it uses the original rates to compute the total retention for comparison against the 2013 Sage Software, Inc. Online Training at 17

18 Manage Progress Billing Sage 100 Contractor maximum. The secondary rate applies to each line item that has a retention rate; you cannot change the secondary rate on a line-by-line basis. Material Rate for Retention If you want to withhold retention for stored materials, type the rate in the Material Rate field. When you enter costs for stored materials in the Current Stored column, the program calculates the retention using the rate in the Material Rate field from the Progress Billing Setup window While you include retention on billings, payment is not due until you complete the project. Posting an invoice declares the gross amount of the invoice as income. However, a percentage of the gross amount is withheld as retention, so the client is actually billed for the net amount (gross invoice amount retention = net invoice amount). Therefore, retention is already declared income but is not yet due. Consequently, the program does not include retention in the invoice aging, and does not apply finance charges to it. Activity 3 Calculate Retention Please return to your desktop and the progress bill you ve been working on. 1. Click Setup. The Progress Billing Setup dialog field displays. 2. In the Primary Rate field, enter Click Save. The Progress Billing Setup field closes. 4. On the 3-7 window, click Calculate. 5. Click Calculates the Current column and then click OK. A message displays asking if you want to apply retention rate to all line items. 6. Click Yes. 7. Notice that the Ret. Rate column is now filled. 8. Change the retention rate for cost code 1000-General Requirements to Delete the retention rate for cost code 1310-Permits 10. Click Calculate. 11. Click Calculates the Current column and then click OK. 12. Click Save. Please return to the conference when you have completed this exercise. 18 Local Training From Business Partners 2013 Sage Software, Inc.

19 Billing Manage Progress Billing Update Options Update > Change Orders > Add to Existing Lines or Append as New Lines: Change orders are added to line items with the same cost codes. If cost codes or divisions have not been entered in progress bill, you can enter them manually. You can update change orders as often as you like. Update > Percent from Costs: Updates the current costs from the job costs, and computes the percent of work completed by comparing the budgeted costs to the total job costs. Update > Total Completed > From Cost Amounts: Updates current costs from job costs. Use this when a project has no budget entered in the program. Update > Total Completed > From Billing Totals: Updates current costs using billing amounts from job costs. Use this method in conjunction with time and material billing Sage Software, Inc. Online Training at 19

20 Manage Progress Billing Sage 100 Contractor Calculate Options There are two ways to calculate. Calculate the Current column: If you ve entered or manually adjusted the % Comp column, the program will calculate the Current column (dollars). Calculate the Percent column: Alternately, if you ve entered or manually adjusted the Current column, the program will calculate the % Comp column. Once a calculation method is chosen, it is important to use that method for each and every invoice until completion of the job. Changing methods can cause inconsistent billing amounts. Activity 4 Use Update Options Please return to your desktop and practice updating from costs and calculating. Update from cost amounts: 1. Return to 3-7 Progress Billing. 2. Click the Display the last record button on the data field to bring up the progress bill for Job #220 that you created in the first exercise. 3. On the Update menu, point to Total Completed and select From Cost Amounts. A reminder appears asking if you want to continue. 4. Click Yes. 20 Local Training From Business Partners 2013 Sage Software, Inc.

21 Billing Manage Progress Billing 5. A warning appears that cost codes 1540 and 2200 will not be included in this update. 6. Click OK. You ve just updated the progress bill. Calculate 1. Right-click inside the grid. The grid menu appears. 2. Click Enter Key Moves Down. 3. In the 1000-General Requirements row, go to the % Comp column and enter In the 1310-Permits row, go to the % Comp column and enter Click Options > Calculate. The Calculate Grid dialog field displays. 6. Click Calculates the Current column based on the amounts entered in the Percentage column > Calculate. 7. Look at the new amounts in the Current Comp and Total Comp. columns. 8. Click Save. Please return to the conference when you have completed this exercise. Other Billing columns Taxable Scheduled Accept the default (from the tax district table) Edit each line After saving the first application, the program does not allow any changes to the Scheduled column, unless on the Options menu the supervisor activates Allow Editing Scheduled $ Sage Software, Inc. Online Training at 21

22 Manage Progress Billing Sage 100 Contractor Changes After saving, changes can be made to values in the Changes column. Stored Material columns In the Current Stored column, you can enter the amount of material currently being stored. When you create the next application, the program moves the costs from the Current Stored column to the Prev. Stored (Previous Stored) column. As you complete work, remove the costs for items no longer being stored. To remove costs, enter the costs as a negative amount in the Current Stored column. Then enter the costs as an equal positive amount in the Current Comp. (Current Complete) column. (If this is not done, the negative amount in the Current Stored column subtracts from the actual Current Complete and reduces the invoice amount.) Submit Application Before submitting the application, be sure to print the progress bill application. To submit the progress bill application, do the following: 1. In the Submitted field, enter the date you submitted the request. If you leave the Submitted field blank, the program enters the current date for you. 2. On the Options menu, click Submit Application (or click the Submit button). 22 Local Training From Business Partners 2013 Sage Software, Inc.

23 Billing Manage Progress Billing NOTE: After submitting the progress bill, you can still modify it. Post the Application After submitting the application, you can create an invoice by posting the application. On the Options menu, click Post Application. Sage 100 Contractor computes and posts sales tax only when you create an invoice from the progress bill. You can also include sales tax as a line item in the progress bill. NOTE: If you manually enter a separate line for the sales tax in the grid, the program ignores the line and will compute and post the sales taxes if indicated on lines when you create the Invoice Sage Software, Inc. Online Training at 23

24 Manage Progress Billing Sage 100 Contractor Activity 5 Post Application Please return to your desktop and submit and post the progress bill application. 1. On the progress bill you ve been working on, click Submit. 2. Look at the bottom of the 3-7 window and notice that the Post button is now active. 3. Back in 3-7, click Post. A dialog field appears for you to enter the invoice number. 4. Click Post Billing to accept the default number. (If a message appears telling you that the transaction date does not correspond to the posting period, click No. In the 3-7 window, click the posting period icon. The Posting Period field appears. Double-click the correct period, and try posting again.) 5. A reminder appears asking if you want to continue. Click Yes. 6. A success message appears. Click OK. 7. The progress bill closes. Please return to the conference when you have completed this exercise. 24 Local Training From Business Partners 2013 Sage Software, Inc.

25 Billing Manage Progress Billing Create Next Application When you create an application, the program assigns it Status 1-Open. Once you have submitted the application, submit the record in the program by clicking the Submit button. The program then changes the application s status to 2-Submitted. When the billing is approved, post the billing by clicking the Post button. The program creates an invoice, posts it to the general ledger, and then changes the application s status to 3-Posted. When you want to create the next application, click the Next button. The program assigns the posted application status 4-Closed, moves the costs from the Current Quantity column to the Previous Quantity column, and advances the number in the Application# field Sage Software, Inc. Online Training at 25

26 Manage Progress Billing Sage 100 Contractor Activity 6 Recall and Create Next Application Please return to your desktop. 1. On the 3-7 window, click Recall to bring up the application you just posted. 2. Click Next. A reminder appears telling you that a new record will be created and this one will become Closed. 3. Click Yes to continue. 4. Click Save. Please return to the conference when you have completed this exercise. How to Change the Retention Rate for a Job In the Jobs window, you can change the retention rate for a job contract simply by entering the new rate in the Retain Rate field. Sage 100 Contractor will calculate retention for all new invoices using the new rate, while existing invoices maintain the previously calculated retention. 1. Open Jobs (menu 3-5) and select the job. 2. In the Retainage Rate field, enter the new rate. 3. If the new retention rate only applies to new invoices, go to step On the Update menu, click Recalculate Retention. 26 Local Training From Business Partners 2013 Sage Software, Inc.

27 Billing Manage Progress Billing 5. In the New due date for invoices field, enter the due date you want to assign the invoices. 6. Select one of the Recalculation Options. 7. Click Recalculate. 8. On the File menu, click Save. Release Retention When you are ready to bill the client for retention, it is not necessary to create a new invoice. The retention has already been declared income; release the retention in both progress billing and accounts receivable. You can release retention: On a specific progress billing before posting (at 3-7) For each invoice posted (at 3-2) For the entire job at one time (at 3-5) Having released the retention, you can then send the client a statement reflecting the amount that is due your company. NOTE: Upon releasing and assigning a new due date, retention becomes due and is now included in the invoice aging as well as in the calculation of finance charges based on the due date assigned. Void an Application You can void an application with a Status of 3-Posted. 1. Open Progress Billing (menu 3-7). 2. Using the data control, select the record. 3. On the Edit menu, click Void Application. This message displays when voiding a posted progress bill at menu 3-7: 2013 Sage Software, Inc. Online Training at 27

28 Manage Progress Billing Sage 100 Contractor This message displays when voiding a posted progress bill at menu 3-2: Void is not permitted: Invoice is for prior accounting year Invoice has payments posted against it Additional Considerations: Cannot change Scheduled Costs after saving first application unless on the supervisor activates Options > Allow Editing Scheduled $. Can change and save an application with a status of 1-Open as often as you wish Can change after submitting (program will warn) to accommodate revisions made by the architect or lender Posting creates an accounts receivable invoice at 3-2 Create Next Application moves Current to Previous, changes the status of application to 4-Closed and prepares for next application Voiding an application with a status of 3-Posted should be done at 3-7, will change status of 3-2 Invoice to Void, and will void any progress bill applications created after the record being voided. 28 Local Training From Business Partners 2013 Sage Software, Inc.

29 Billing Manage Progress Billing Steps and Statuses Step Create, Save = Submit = Post = Next = Status Status of Open Status of Submit Status of Posted Status of Closed TIPS: Train yourself to use the prompt at the bottom of the screen and online Help (F1). Backup often! Develop schedule for regular backups and always before performing certain tasks that affect all data, such as rebuilding indexes (menu 7-4). Summary We have covered progress billing within Sage 100 Contractor. At this point you should feel comfortable with: Setting up a progress billing. Updating from cost. Altering current application of a progress billing by entering percentages. Submitting a progress billing. Creating an accounts receivable invoice. Preparing for the next progress billing application/request for payment Sage Software, Inc. Online Training at 29

30 Manage Progress Billing Sage 100 Contractor 30 Local Training From Business Partners 2013 Sage Software, Inc.