Sage Timberline Office a.k.a. Sage 300 Construction and Real Estate allows construction and real estate firms an opportunity to streamline workflow and processes between departments to improve accounting efficiencies. This blog will provide a brief overview of the Billing module.
The Billing module allows you to create client bills based on the way the contracts are set up. For instance, time and material invoices which can also be referred to as cost-plus invoices allow you to bill clients based on the labor and materials used for the job and add a mark-up rate for your cost-based jobs. The billing module also allows you to create lump sum or progress billing bills for clients. These are for fixed price or contract-based jobs where you bill based on the contract or on the progress of the job.
For cost-based jobs, the costs entered from payroll and accounts payable are pushed into the billing module which allows you to see these within the work-in-progress (WIP) window. You can choose to hold, void or bill each individual item. Often times, there are costs that cannot be billed to a client per the contract agreement so you can delete the WIP item in this window.
Additional fees can be added within the WIP window as well. Whether it’s a contractor’s fee or any other type of general fee, they can be added here to be generated on the invoice without affecting job costs. Once the items in WIP have been verified and are ready to be billed, a draft of the invoice can be printed for review. Once the invoice is approved, a final version can be printed and sent to the client.
For contract-based or fixed price jobs, you can bill based on the progress of the job. If the job is 25% complete, you can choose to bill 25% of the contract. There are no items in WIP for these types of contracts because the bills are not based on costs. Once the contract is billed out 100% per the original contract amount, the job is no longer billable unless a contract addendum or contract change has been recorded.
Once the bills have been printed, they must be posted. After the bills are posted, you will see them show up in accounts receivable under each customer. If a modification is needed to this invoice, you can choose to void the invoice and reproduce the correct invoice or it can be adjusted in the accounts receivable module.
A client bill can be generated in less than 5 minutes once all costs have been posted into the billing module and verified for accuracy.
There are many more features of this module so please feel free to reach out to me should you have any questions on this topic.Written by: Annie Terracciano TGG Accounting