Issue/Symptom/Question

What is the Manual Billing Entry window used for and how does it flow through the system?

Applies To

PENTA for Windows
Billing & Accounts Receivable >Manual Billings > Manual Billing Entry

Resolution/Fix/Answer

The Manual Billing Entry window is used to record the accounting impact of an invoice, credit memo or billing adjustment generated outside of PENTA's automated billing module:
- Customer requires a specific invoice format
- Invoice calculations are very unique and not possible within PENTA
- Customer requires the invoice to be entered/calculated in their accounting system
- The customer is controlling the amount that can be billed
- After an invoice is issued an adjustment is required based on feedback from the customer, one way to record the adjustment is via a Manual Billing entry, other adjustment options include:
  - a full reversal and regeneration of the invoice
  - a Credit Memo
    - Note - do NOT use the Credit Memo entry process for a job that includes retention. The credit memo entry window does not allow for the identification of the retention adjustment amount on the non-retention related contract line items
In these cases the User can take the already calculated invoice, credit memo or billing adjustment and record it as a Manual Billing.
Once the Manual Billing Entry batch is in balance the window can be closed and the batch will distribute, this invoice will now be in PENTA available for Cash Receipts. If the entry is a billing adjustment on a job that is otherwise billed through PENTA's automated billing module, the values entered via the Manual Billing Entry window will be included in "amounts previously invoiced" on the job and can be combined with the original invoice during Cash Receipt Entry.

The Manual Billing Entry window consists of 6 tabs:

Batch Total - PENTA requires entry of a batch # identifier to uniquely identify the set of transactions. Optionally, enter a default posting date and a batch control dollar value (Total Of Invoice Amounts)

Document - each invoice / credit memo / billing adjustment requires identification of the balance sheet (AR OU Id), the customer, invoice #, invoice date, posting date and net invoice amount. For transactions associated with a job, the entry of the Invoice Job will auto fill the AR OU Id and Customer Id fields
- Net Inv Amount - for a transaction that includes retention, this is the value of the transaction net of the retention amount, in the example below the invoice is for $10,000.00 but includes $1,000.00 of retention (net invoice = $9,000.00)
- The Distributions will consist of a positive $10,000 and a negative $1,000 (Negative indicates retention amount)

Account - the account tab is used for non-job related billing transactions, for example the sale of scrap materials where the credit is to miscellaneous revenue in lieu of a reduction of job cost:

Lump Sum/CP - use this tab to record a billing transaction for a job that consists of lump sum or cost plus contract line items:
- In Job Id will default from the Invoice Job entered on the Document tab
- Enter the line item(s) the billing transaction applies to
- Line Item Amount:
  - Enter the billing entry / adjustment for each line item
  - For a billing transaction that includes retention, create an entry to the retention line item as a negative amount (keep in mind if making a billing adjustment, this may be a positive amount if the billing entry is a negative value). See the second screen shot for an entry to the retention line item for a regular billing entry (non adjustment)
- AIA Retention Amount
  - If making an entry to a job flagged as an AIA invoice job, and the billing transaction includes an entry to the retention line item, you must allocate the retention amount across the non-retention line items. The example below includes a gross billing for $10,000.00 with a $1,000.00 entry to retention. Since this billing entry consists of a single non-retention line item, the entire $1,000.00 is entered in the AIA Retention Amount field for contract line item 20. If the gross billing amount is entered across multiple non-retention line items you would allocate the retention value across these lines items based on the job's retention rules

Unit Price - use this tab if the billing entry is for a job with contract line items defined as units at a unit price:
- The steps for entry on this tab are consistent with entries on the Lump Sum/CP tab, the only difference being in lieu of entering an amount the entry consists of the number of units that were billed and the unit price at which they were billed

Back Charges - use this tab when the billing entry is a reduction of job cost in lieu of an entry to job billing, for example a sale of scarp materials, back charge to a subcontractor for damages, etc.
- Cost Type Code and Cost Code - identify where within the job's work breakdown structure the back charge is to be applied; typically a credit or reduction of a job's cost
- Source Amount - enter the back charge amount as a positive (a positive amount will post a credit or reduction of job cost)

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