This Help Article will show you how to make a labor or expense item adjustment on your current invoice. Check out the quick summary or the more in-depth step-by-step guide below!
Quick Summary of Step-by-Step Guide:
- Click the 'Clients & Projects' tab→ 'Proposals & Projects' sub-tab
- Select the applicable project invoice
- Click 'Management' button
- Click 'Draft Invoice' button
- Click pen and paper icon to make applicable adjustment
- Fill in required information, click 'Save' when finished
In-Depth Step-by-Step Guide:
- When making a labor or expense adjustment, open up the project and click the 'Management' button.
- Once you've clicked the 'Management' button, you will see four button options to choose from at the top right of the screen. Click the 'Draft Invoice' button.
NOTE: Don't be confused by the 'Adjustment's button, this option will be further explained in a separate Help Article: Financial Adjustments. The 'Adjustments' button is to only be used for an adjustment on a previous invoice, not a current invoice.
- Review your invoice for any applicable labor or expense adjustments. The adjustment will be made from this page and is only for labor and expenses related to this current invoice.
NOTE: In this example we have tasks that are billed as T&M as well as Lump Sum. The process for making a labor or expense adjustment is pretty similar, but we will still show you the differences between the two. Review the steps below for labor and expense adjustments for T&M and Lump Sum, then continue the remaining steps.
Time & Materials (T&M):
- Click the pen and paper icon for the applicable line item in the 'Adjustment' section. For this example, we will make an adjustment for the 'Awesome Task'.
NOTE: Notice how the starting invoice amount before our adjustment for this task is $300.00. After we finish making the adjustment, you will see the invoice amount change.
- A new window will pop up for you to start making the labor adjustment. There are four different options to choose from when making an adjustment. Below is a brief description for each adjustment option.
- Invoice: Time will stay as is for this invoice
- Bank: You can choose to hold back time to use for a future invoice for this same project
- Write Off: This will write off time that can't be used again
- Move to Task: This allows you to move time to a different task
Select the applicable radio button(s) for the adjustment. Enter the amount of time you'll be adjusting, and then give a reason for the adjustment. When finished, click 'Save'.
In this example, we banked and wrote-off time.
NOTE: When you bank time, you will see the banked time on the next invoice for this project as an option to choose from if you wish to apply the banked time to that particular invoice.
- You can now see the adjustment on the draft invoice!
When making an adjustment for a Lump Sum task, you essentially do the exact same steps as you do when making an adjustment on a T&M task.
The difference is, you have another option for making an adjustment with a Lump Sum task, and if applicable, SQUAVA will prompt you to take an additional step to correctly allocate the time being adjusted.
- Click the pen and paper icon for the applicable line item in the 'Adjustment' section. For this example, we are going to make an adjustment on the 'Cool Task'.
NOTE: Notice how the invoice amount for this particular task is $300.00. We are going to make the adjustment from the new window that pops up after clicking the pen and paper icon, just as we do when making a T&M task adjustment.
- When the new window pops up, fill in the information required for the adjustment. In this example, we are going to bank time. Click 'Save' when finished.
- After clicking 'Save', you can see the adjustment on your draft invoice!
NOTE: At this point, you are probably wondering what the difference is between Lump Sum and T&M adjustments. Notice how the invoice amount (refer to image above) can be edited, whereas the invoice amount for a T&M task cannot.
This is the additional option which was referred to earlier for Lump Sum adjustments. As an alternative option, you can type in the new Lump Sum amount from this screen without clicking the pen and paper icon. Depending on the difference with the dollar amount, you may receive a warning message (red triangle). Below is an example of a warning message you may receive.
NOTE: The warning is prompting us to bank $100.00 of staff time because in this example we are going to be under billing the hours worked on this task. Even though this is a Lump Sum task, SQUAVA requires labor to be accurately tracked to provide awesome business intelligence like staff efficiency and revenue forecasting. Again, depending on the dollar amount being adjusted, you may or may not receive a warning message.
- Now that you've learned how to make an adjustment for T&M and Lump Sum tasks, you can finish reviewing your draft invoice and see the adjustments that were made.
NOTE: You can also view your adjustments on the 'Management' page in the 'Summary' section.
- If everything looks good, go ahead and finalize your invoice whenever you are ready by clicking the 'Finalize' button at the top of the page.
- You have now learned how to make labor and expense adjustments to a current invoice!
- If you have to make a financial adjustment on a previous invoice, check out our Help Article: Financial Adjustments.
- If you have any other questions about invoices, check out our other Help Articles outlined in the Invoices 101 section.