Client Billing Analysis report and the Billed figure
Article ID
ias-5142
Article Name
Client Billing Analysis report and the Billed figure
Created Date
11th December 2007
Problem
The billed figure on the client billing analysis billed figure is not reconciling with my other reports. For the recommended reports for reconciling in Time & Fees please refer to KB IAS-6002
Resolution
This knowledge base article will explain the purpose of the billing analysis report and provide the reasons why the billed figure on the billing analysis report cannot not reconcile.
Contents
Purpose of the billing analysis report
How Interim invoices affect the billing analysis
How Invoice reversals affect the billing analysis
Recommended report for reconciling the Billed figure: Time Ledger instructions report
Purpose of the billing analysis report
The billing analysis report is designed to show the recovery of an invoice. For example, to show an invoice posted for £1000, £800 of time is written out and that a recovery of £200 has been made.
The report is not designed to track movements of invoices. For example, to show an invoice was reversed in January and reposted in March, or the movements of interim invoices (when it was finalised). This is why it is will not reconcile with other reports which are designed to track these movements, such as the Time Ledger instructions report.
Interim Bills
The billing analysis is concerned with how much recovery the practice has made for the work done. When interim invoices are finalised they will be shown with the final bill to show the true recovery of all of the work. For example:
(i) The practice posts interim bills for Jan, Feb, March for £100 each and has £400 of WIP on the client (see below). At this point the billing analysis would show a bill value of £100 in the Jan billing analysis report, a bill value of £100 in the February billing analysis report and a bill value of £100 in the March billing analysis report.
(ii) In April the practice wants to bill the client a total of £700 and make a £300 profit. As £300 of interims have already been posted, a final bill of £400 is posted (bill value totalling £700). To make the £300 profit £400 of WIP is written out.
(iii) Posting the final bill will finalise the three previous interims and place the billed figure into the same period / date as the final invoice on the billing analysis report. The reason is so that you can see a true figure of the recovery for the work done. In the example above, the recovery of the work done would be shown in April. Below is an example of how this would look on the billing analysis report for April.
At this point, if you did run the billing analysis report for January, February or March, it would not include the original interim bills, as these have been finalised and are accounted for in April. At this point the billed figure on the billing analysis for January, February and March figures will not reconcile with the Time Ledger instructions report.
Invoice Reversals
The billing analysis is designed to show the recovery made for the work completed. When an invoice is reversed it is removed from the billing analysis report as the invoice does not exist and a recovery has not been made for that date / period. For example:
(i) The practice posts an invoice INV100 to client A001 in January (period 2008/1) for £1000 to write out £800 to make a £200 profit.
(ii) If you run the billing analysis at this point in time it will show a billed value of £1000, write out of £800 and a £200 profit.
(iii) In March (period 2008/3), the practice realises that the invoice should have been posted to client A010, not A001, so the original posting was made in error.
(iv) In March (period 2008/3), the invoice INV100 is reversed.
(v) At this point, if you run the billing analysis for January (period 2008/1), then the bill value will not be shown.
(vi) If you run the Time Ledger instructions report then the January (period 2008/1) will show a bill value of £-1000 and March (period 2008/3) will show a value of £1000 (The contra entry).
For details on reversing an invoice see KB IAS-11911 : How do I reverse an invoice that was posted incorrectly?
Recommended Report: Instructions Report
If you want to look at a particular invoice and find out the recovery for that invoice, then it is recommended that the billing analysis is used.
If you want to track the movements of invoices for reconciliation purposes then it is recommended that the instructions report is used.
(ii) In April the practice wants to bill the client a total of £700 and make a £300 profit. As £300 of interims have already been posted, a final bill of £400 is posted (bill value totalling £700). To make the £300 profit £400 of WIP is written out.
(iii) Posting the final bill will finalise the three previous interims and place the billed figure into the same period / date as the final invoice on the billing analysis report. The reason is so that you can see a true figure of the recovery for the work done. In the example above, the recovery of the work done would be shown in April. Below is an example of how this would look on the billing analysis report for April.
At this point, if you did run the billing analysis report for January, February or March, it would not include the original interim bills, as these have been finalised and are accounted for in April. At this point the billed figure on the billing analysis for January, February and March figures will not reconcile with the Time Ledger instructions report.
Invoice Reversals
The billing analysis is designed to show the recovery made for the work completed. When an invoice is reversed it is removed from the billing analysis report as the invoice does not exist and a recovery has not been made for that date / period. For example:
(i) The practice posts an invoice INV100 to client A001 in January (period 2008/1) for £1000 to write out £800 to make a £200 profit.
(ii) If you run the billing analysis at this point in time it will show a billed value of £1000, write out of £800 and a £200 profit.
(iii) In March (period 2008/3), the practice realises that the invoice should have been posted to client A010, not A001, so the original posting was made in error.
(iv) In March (period 2008/3), the invoice INV100 is reversed.
(v) At this point, if you run the billing analysis for January (period 2008/1), then the bill value will not be shown.
(vi) If you run the Time Ledger instructions report then the January (period 2008/1) will show a bill value of £-1000 and March (period 2008/3) will show a value of £1000 (The contra entry).
For details on reversing an invoice see KB IAS-11911 : How do I reverse an invoice that was posted incorrectly?
Recommended Report: Instructions Report
If you want to look at a particular invoice and find out the recovery for that invoice, then it is recommended that the billing analysis is used.
If you want to track the movements of invoices for reconciliation purposes then it is recommended that the instructions report is used.
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