Project Management

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    Joseph Selvaraj
    Projects to generate revenue but not invoice
    Topic posted September 23, 2016 by Joseph Selvaraj, tagged Project Management 
    160 Views, 4 Comments
    Projects to generate revenue but not invoice
    How to setup Project Billing setup for projects to generate revenue but not billing

    Can I get your expertise on this. We have a scenario where for one set or one type of projects we want to generate revenue but we dont want to generate invoice. Revenue needs to be generated based on "Revenue Method Classification" "As Incurred" . How to do billing setup for this. Please advise.



    • Perry Unrau

      This scenario is not really supported.  One workaround would be to assign a bill plan with a Rate Based invoice method classification, but put the bill plan on hold, so no invoices would ever be generated.  The problem with this approach is that invoicing and revenue recognition would not agree, and therefore any such contract lines could never be closed.  We would want to know more about the business requirements of this scenario, to see if we would at some point in the future consider delivering this functionality as an enhancement request.

      Perry Unrau

      Product Manager, Project Billing

      • Federico Samyn Dowie

        One example is when a grant is received in cash and there's no need to generate invoices as the revenue is recognized.There are many cases like these (mostly related to Federal grants) when billing is not needed or required by the institution awarding the grant. 

        Let me know if you need more details.




        • Perry Unrau

          Whether an invoice is required or needed by the institution awarding the grant, you might still want to generate [but not publish] an invoice against which the payment can be applied.  Otherwise, Receivables might just have payments and would these be considered credit balances in Receivables?  You might still want the accounting to remain the same, where the payment debits the bank and credits the Trade Receivable and the invoice debits the Trade Receivable and credits a Contract Asset account.  Some of this depends on the accounting model you will be adopting and which application will be booking your revenue.  I am not a Receivables expert, so you might want to reach out to others for advice.



    • Louise Moss

      Hi, we have exactly the same requirement and are probably going to change our processes to ensure the revenue and invoicing will offset. We are looking to raise invoices for everything on Projects, and will either physically issue the invoice out with a comment "already received" or we may create an extra location within the customer where we can include an internal email address so that the invoices don't go out to the customer and create confusion.

      We only moved to Oracle at the beginning of November so we've not decided on the best approach yet.

      Kind Regards