This proposal covers the Proposal For Consolidated Invoicing
Proposal summary
Compusoft AS currently provides a consolidated invoice to some customers, which combines multiple estimates into one invoice. This invoice will provide all the statutory information required to be a recognised invoice and include all the line item details, with the appropriate discounts. A customer may be sent multiple consolidated invoices if they have estimates in different currencies.
The invoices provided to the customer are presented with the same level of detail as the current invoice formats, however they include a grouping at the original estimate Customer level.
Compusoft will introduce a new type of order called a ‘Consolidated Sales Order’ (CI)
Requirement
The user needs an ability to select whether a customer requires a consolidated invoice.
If the user requires a consolidated invoice for a customer, then a consolidated sales order should be created for the customer. The consolidation of the sales order should be done on the Estimate level. No individual sales order need to be created, only the consolidated sales order need to be created
The consolidated invoice/sales order should have additional information pulled from the estimate which are Estimate Customer and Estimate Number..
The consolidated order should include all the line item totals from each Estimate and present correctly on the description and the corresponding tax.
A customer may have different currencies so based on the currency consolidated invoicing should work. So that multiple invoices should be there if the customer orders in the multiple currencies. So the grouped Sales order will be created for the customer based on the currency.
The PDF layout of the invoice grouping should be updated. The new requirement for the format is to have sub totals in the body of the invoice which group the lines by which ‘Estimate Customer’.
Our Solution
Consolidated Sales Orders
A custom field “Requires Consolidated Invoicing” is created for the customer record. The field type of the field is CheckBox. This will give an ability for the user to decide whether the customer requires a consolidated invoicing.
The current Q2B customisation script will create the sales order when an Estimate record is created. This current working need to change and the script should be updated. Following are the updates on the current script:
- Estimate Customer and Estimate Number column fields should be created on the item lines.
- The script should automatically populate the Estimate Number and Estimate Customer.
- The Estimate Customer will be Estimate Company and the Estimate Number will be Estimate #.
- When a new Estimate is created, then the script will check whether a consolidated sales order is created for the corresponding customer and currency. If no sales order is present, then a new consolidated sales order needs to be created and should populate all the item lines along with the billing schedule and discounts. IF the consolidated sales order is already present for the customer and currency, then Estimate item lines should be added to the consolidated sales order along with the billing schedule and discounts.
- For the Estimate item lines, we need to consider the “Invoice Via” as the customer when creating/editing the consolidated Sales order.
- A checkbox can be created in the sales order to identify whether the sales order is consolidated or not. This field will help to identify the sales order is consolidated.
Based on the new setup, no individual sales order needs to be created and only the consolidated sales order is needed which will be created on the Estimate level.
A customer may have a different Consolidated Sales Order based on the Currency. For example if a customer has two Estimates with currency one is Euro and other one is Pound, then need to create two consolidated sales orders for the customer, one for the Euro and other for the Pound.
Effectively the customer will have one open consolidated sales order per currency which may be continuously open.
Whenever a new Estimate is created for the same customer with the same currency, the script needs to identify the consolidated sales order for the currency and should add Estimate item lines to the consolidated sales order. IF no consolidated sales order is available for the customer and the currency, then need to create a new Consolidated Sales Order.
For this process, need to update the current script for creating the sales orders.
Billing schedules of each item line should be added to the consolidated Sales Order. The order can then be billed using the native NetSuite billing functions.
For the Revenue Arrangement setup, the revenue arrangement of the consolidated sales order can be used.
Custom discount tables must be applied to the order and then the invoice as with the current custom script. The discount set will have no changes with the current updates and so all the discount should be added to the consolidated Sales Order.
A close button is already available for the Estimate record. The current action of the close button is to close all the related sales orders for the Estimate. This action needs to be updated and now for these Consolidated Sales Orders it will have to remove the item line from the order, and not close.
PDF Invoice Layout
The invoice layout will be based on the current custom solution using the local requirements. It will also use the ‘Item Description’ as the first column and level of line detail the invoice should be grouped into.
The new requirement for the format is to have sub totals in the body of the invoice which group the lines by which ‘Estimate Customer’.
In the Invoice PDF, the item lines can be grouped based on the Estimate Customer. If the Estimate Customer and the Invoice Body Customer are the same, then no grouping is needed, PDF will print only the item lines. This setup will help the user to use a common PDF for both the consolidated and non consolidated Invoice.
When the create and maintain revenue element upon close order check box is ticked when we change anything in the source document that is in SO. That case the revenue element is created as per the revenue arrangement predefined in the SO.
So any changes that we wish to make in the SO for that amount we need to pass a GL to reverse the accrued income.
GL impact is at the revenue element point of time so that time we need to perform the GL if any adjustments are done after the revenue arrangement.
The revenue element is predefined in the revenue recognition rule so that time the GL need to trigger.
Suppose a SO is for $100 and have a predefined revenue arrangement is there.
So this point of time it has the GL impact of
Revenue arrangement Dr. $100
To Deferred Revenue $100
This is Non posting
And when the period came as per the revenue recognition rule
The revenue element is created for this
Deferred Revenue A/C Dr $100
To Revenue A/C $100
When we change anything in source document that is in this case we changed the amount from $100 to $80 in line item
even if we close the SO the revenue element for $100 is created.
So we need to adjust the $20 by creating a GL
Here it will be
Revenue A/C Dr $20
To Deferred Revenue A/C $20
Suppose we are changing the SO from $100 to $120
That time the GL need to be posted when the revenue element is created and the GL will be
Deferred Revenue A/C Dr $20
To Revenue A/C $20
This is the workflow that we need to consider when any changes in approved SO happen.
Assumptions
- We will assume that the new updates will not affect the current setup of billing schedule and custom discount calculations.
- We haven’t considered the Revenue arrangement setup in the proposal. The estimate hours may change once the revenue arrangement setup is finalized
- We are assuming that when the “Invoice Via” field has value, the script will check for the consolidated sales order for the Invoice Via Customer and estimate body Currency.
- The Custom Discount based on the Discount Tables should be worked.
- The order can then be billed using the native NetSuite billing functions
- The updates on the Invoice PDF is done on the current PDF of group invoice
Risks
- Revenue arrangement should be considered
- Billing Schedule need to be considered for all the billing frequency
- New Setup won’t affect the custom discount calculation and the billing schedule creation. The script should update accordingly.