Three Billing Methodologies

There are three primary methods for billing sales jobs in iPoint. Each of the options functions slightly differently and as a result, cause the Billing tab to appear and function differently. Before we get started on the processes, let’s understand the differences behind each billing method.

RFP Liability ModelRFP Liability Model

RFP Liability

The Request for Payment (RFP) Liability process is the recommended method for billing. This process functions as follows:

  1. A request for payment (RFP) Invoice is created based on the payment schedule set up during the proposal process. This invoice will have one line item called RFP or Payment Request. Typically these requests are for job milestones such as a deposit, prior to equipment order, on substantial completion, or other options you might set up.
  2. The RFP invoice is pushed to QuickBooks as an invoice. *Note*: We only sync the RFP Liability invoice to QuickBooks once payment has been received. [ Read More ]
  3. In QuickBooks, the payment request hits a liability account. You now have liability to the customer and owe them either goods and services or their money back as a refund.
  4. When the customer pays the RFP, it is applied directly on the RFP invoice and synced to QuickBooks where the invoice now has a $0 balance.
  5. The payment pays off the invoice, but it hits Accounts Receivable in QuickBooks. So you still have money in the liability account you owe the customer AND you have money in Accounts Receivable.
  6. In iPoint, there is now an RFP Credit which will be applied to future Delivery Invoices. The RFP Credit will match the amount in the QuickBooks Liability account.

To recognize revenue and offset the liability created by the customer’s payment you will have to create a Delivery Invoice.

  1. Delivery Invoices are created based on goods and services actually delivered to the customer. Delivery invoices are typically created on a regular weekly or monthly schedule for all delivered goods.
  2. The Inventory Asset account and Inventory levels in QuickBooks are adjusted based on the line item details on the Delivery invoice.
  3. The payment for the Delivery Invoice is done through the application of RFP Credits in iPoint.
  4. iPoint adds a negative line item to the Delivery Invoice which pays off the delivered goods or applies the balance of the available RFP Credit.
  5. When syncing to QuickBooks, the Delivery Invoice goes in as a $0 invoice (or invoice with a balance if the credit was not enough to cover the entire invoice).
  6. The credit applied in iPoint relieves the Liability reserves in QuickBooks.

RFP A/R ModelRFP A/R Model

RFP A/R

This billing process is similar to the RFP Liability process described above except that instead of tracking the customer’s deposit in a liability account, it is entered as a negative accounts receivable on the customer’s account. What this means is that when looking at the overall Accounts Receivable account in iPoint, there will be multiple negative entries (for all the deposits you’ve received) which makes it look like outstanding A/R is less than it actually is.

  1. A request for payment (RFP) Invoice is created based on the payment schedule set up during the proposal process. This invoice will have one line item called RFP or Payment Request. Typically these requests are for job milestones such as a deposit, prior to equipment order, on substantial completion, or other options you might set up.
  2. The RFP invoice is pushed to QuickBooks as an estimate and as such has no impact on the company financials.
  3. When the customer pays the RFP, it is applied directly on the RFP invoice creating a credit on the customer’s account.
  4. The synced payment zeroes out the estimate and creates a negative accounts receivable entry on the customer’s QuickBooks account.

To recognize revenue and offset the credit created by the customer’s payment you will have to create a Delivery Invoice.

  1. Delivery Invoices are created based on goods and services actually delivered to the customer. Delivery invoices are typically created on a regular weekly or monthly schedule for all delivered goods.
  2. The Inventory Asset account and Inventory levels in QuickBooks are adjusted based on the line item details on the Delivery invoice.
  3. The payment for the Delivery Invoice is done through the application of RFP Credits in iPoint.
  4. Syncing creates a standard invoice for the customer in QuickBooks. The credit (negative A/R) is applied to the invoice reducing the amount on deposit and paying off the invoice.

Line Item InvoicingLine Item Invoicing

Line Item / Summary Invoices

The final billing process is the most simplistic and comes in two flavors – Line Item or Summary.

  1. Line Item invoices are created by manually selecting specific parts and labor items and adding them to an invoice.
  2. A standard line item invoice is synced to QuickBooks.
  3. The Inventory Asset account and Inventory levels in QuickBooks are adjusted based on the line item details.
  4. Payments made by the customer are applied directly to the invoice in iPoint and synced to QuickBooks.
  5. Invoices can be printed for customers in detail or a single summary line.

The Summary invoice option allows you to invoice customers based on a percentage of the total job but requires an additional process to adjust inventory asset.

  1. Summary invoices are created that are simply a calculated percentage of the total sales order.
  2. A summary invoice is synced to QuickBooks where revenue is captured.
  3. Inventory adjustments are made by separate inventory sync not associated with the billing process.
  4. Payments made by the customer are applied directly to the invoice in iPoint and synced to QuickBooks.
  5. Invoices are only available as a single line percentage amount.

Pick your Accounting methodology

Now that you understand the types of accounting available, choose the type you use to read the appropriate manual page for your process.

Last modified: 11 Feb 2020

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