Managing billing schedules in the context of Client Contracts involves configuring how and when payments should be made. Here's how it works:

There are three billing schedule types users can choose for a Client Contract:

Pay When Paid:

  • Payments are based on aggregate client-verified work and submitted pay applications

  • Users can configure the schedule to be in real-time, weekly, or monthly. For the weekly option, they can select specific days of the week. For the monthly option, they can choose to trigger invoices based on a particular day of the month or a specific date

Percent Complete (Default):

  • Payments are based on the percentage of work completion and set percentage payouts

  • Billing schedule is based on the Schedule of Values (SOV) configuration, which defines the percentage work completion, the corresponding percentage payout, and the auto-calculated payout amount

  • The sum of all % Payout values should be 100%, and there must be one 100% entry in the '% Work Complete' column

  • The system will show a friendly toast message if the sum of % Payout values is not equal to 100%

Dollar Amount:

  • Payments are based on defined work stage completion and payout amounts

  • You configure the billing schedule by specifying work stages and their respective payout amounts

  • The sum of payout amounts of all rows cannot exceed the total contract value. The system will show a friendly prompt if this occurs

Modifying Billing Schedules:

If the Billing Schedule type is modified, the user will be presented with a confirmation pop-up and the previously entered calculations will all be reset 

Deleting Rows:

  • Deleting a row alters the configuration setup. Users will be prompted for confirmation, and they may have to reconfigure the schedule

  • On deletion, the system checks if the sum of payout amounts equals the contract value. If not, the contract cannot be saved until the SOV values are set

Editing Rows:

  • If a user edits payout amounts and the total does not equal the contract value, a friendly toast message is displayed. Users will need to make necessary changes.

In summary, Billing Schedules for Client Contracts can be set up in various ways, allowing for flexibility in managing payments based on work completion, percentage values, or predefined dollar amounts. Proper validation ensures that the configuration is accurate and complete before enabling the 'Lock & Post Contract' or the ‘Route For Approval’ functionalities.

Last Updated: Dec-11-23