Project Allocated Revenue (PAR) Projects

Fixed contract projects are set up using the Project Allocated Revenue project type. Labor jobs assigned to this project use the Project Allocated Revenue billing type, and if any reimbursable expense jobs are included, they use the Project Transaction Level billing type. 

Complete these steps in the exact order shown below. Project bill codes are not added until later in the setup process. If the project contains reimbursable expenses, those bill codes will be set up before the project bill codes.

Step 1: Set up a PAR Project

You must set up a PAR project to use the Project Allocated Revenue project type.

1. Select Cards > Job Cost > Project. The Project Maintenance window opens.
2. Select a project or create a new one. In the Project Type field, select Project Allocated Revenue.
3. Save the project.

Step 2: Create Bill Codes for Reimbursable Expenses

If you are billing for reimbursable expenses on this project, create bill codes for reimbursable expenses at this time. Bill codes serve as a holding tank; no dollar amounts are required here, as actual amounts come from posted transactions. Later, you will use these bill codes to create a reimbursable job to associate with this project. This allows you to bill reimbursable expenses against the project.

1. Select Bill Codes. The Project Bill Codes window opens.
2. Complete the necessary information, and mark the Reimbursable checkbox.
3. When you are finished, select Save.

Step 3: Set up Jobs with Contract Amounts

In this step, you will create the jobs associated with the project, enter contract amounts, and set the necessary options for percentage of allocated revenue billing.

1. Select Cards > Job Cost > Job. The Job Maintenance window opens.
2. Select the Project Number for the fixed project that you set up earlier.
3. Enter the Functional Contract Amount expected for this job.
4. Complete the remaining fields, as necessary. The Contract Type is set automatically to Fixed. The Billing Type is set automatically to Project Allocated Revenue.
5. Save the job. Repeat these steps for the remaining jobs assigned to this project.

Creating Reimbursable Expense Jobs

If you are billing for reimbursable expenses, you must create a reimbursable expense job. This allows you to bill for reimbursable expenses against this project. Reimbursable expense amounts are billed each time non-labor billable expenses are posted to the job, based on the profit amount (for profit type on cost code).

When you have set up the job to be reimbursable, you can assign a cost code to this reimbursable job, then select on the Bill Codes button. This will bring in the ONE bill code you have assigned to the project as "Reimbursable."

1. Select Cards > Job Cost > Job. The Job Maintenance window opens.
2. Select the Project Number for the fixed project that you set up earlier.
3. Mark the Reimbursable checkbox. The Contract Type is set automatically to Cost Plus. The Billing Type is set automatically to Project Trx Level.
4. Save the job.
5. Create the appropriate cost codes, with profit amount, for reimbursable expenses.
6. Select the Bill Codes button. The reimbursable bill code created for the project will be copied to the Job Bill Codes window. This will be the only bill code assigned to this job and all transactions posted to the job will be calculated using the profit type/billing amount, and then the sum of the billing amounts will be added to the one bill code.

Step 4: Set up Project Bill Codes

In this step, you will set up project bill codes (for labor and other costs), and enter the percent of revenue allocated for each bill code. Later, these bill codes will be copied down to the appropriate jobs.

1. Select Cards > Job Cost > Project. The Project Maintenance window opens.
2. Select a project. Notice the Project Expected Contract field fills automatically. This amount represents the total fee for services rendered and is calculated as the sum of all contracts for all jobs that are associated with this project.
3. Select Project Level Bill Codes button. The Project Level Bill Codes window opens.
4. Fill in the initial fields, including Bill Code Number, Cost Element, and so on.
5. In the % Allocated field, enter the percent of revenue allocated to this bill code; the dollar amount fills automatically based on this percentage. For example, if this bill code is for labor, and you estimate that labor will make up 60% of the cost for this bill code, enter 60%. You can also select to enter a dollar amount in the Revenue Allocated field instead, and the % Allocated is calculated automatically.
6. Save the bill code.

Repeat the steps above to add more bill codes, as needed. The allocated revenue for all bill codes must add up to 100%.

Step 5: Allocate Revenue Percentage to Job(s) per Bill Code

In this step, you will distribute the revenue from each bill code across jobs, by entering the percentage or dollar amount allocated per bill code for that job. For example, if project bill code A is $400.00, and you want 50% of that amount to be allocated to job A, you would enter 50.00 or a dollar amount of $200.00.

1. Select Cards > Job Cost > Job. The Job Maintenance window opens.
2. Select a job.
3. Select the Bill Codes button. The Bill Codes window opens.
4. Enter either a Total Billable Amount or % Allocated. The field you do not fill in is calculated automatically.
5. Save the bill code. You will know it is 100% allocated when you see the Difference display field at $0.00.

Step 6: Enter Billable Amounts for Current Invoice per Bill Code

Once the project and job(s) are set up properly, you can create invoices. The first step is entering the billable amounts for invoices per bill code.

1. Select Cards > Job Cost > Project. The Project Maintenance window opens.
2. Select a project.
3. Enter either a percentage - in the % Complete field - or a dollar amount - in the Current Bill field, to specify the amount from this bill code to be billed to the customer each time.
4. Save the project. This billable amount will roll down to each job associated with the current project.

Billable Amounts for Reimbursable Expense Jobs

The billable amount for reimbursable expenses comes from the profit type/billing amount as defined by the profit type for the reimbursable job bill code. For billing amounts to appear on invoices, you must A) make sure the Profit Amount is filled for that cost code, and B) there are posted transactions against this job and cost code for expenses.

Step 7: Confirm Billing Amounts for Each Job

1. Select Cards > Job Cost > Job.
2. Select a job.
3. Select Bill Codes. Select a bill code. The amount to be billed on the next invoice appears in the Amount per Invoice field; the percentage appears in the Bill % field.

Invoicing

When projects and jobs have been set up, and billing amounts have been determined, you are ready to create invoices to send to the customer. You create invoices using the Project Invoice Entry window.

1. Go to Transactions > Job Cost > Project Level Billing. The Project Invoice Entry window opens.
2. Tab through and select a Project Number.
3. Enter a Batch ID and fill other fields, as necessary.
4. Select the jobs to be billed. As soon as you mark the checkbox, the Current Billing Subtotal amount fills in.
5. Make changes, if necessary. Use the expansion button next to Current Billing Subtotal to view/change individual transactions associated with this invoice, and to change the current bill amount, if necessary. 
6. Select a transaction and then the Select button. Enter a new Current Bill amount and select Save.
7. From the Project Invoice Entry window, save to batch.

Step 8: Post the Batch and View Billed Amounts

After you post the project invoice batch, you can view the updated billed totals in the project bill codes.