End of year Prebill Process

End of Year Prebill Process

The End of Year Prebill Process is a financial workflow used to raise revenue at the end of the financial year and later allocate that revenue to the correct project once confirmed by the client.

This process is managed primarily by the Finance team, with some input from Account Managers.

Creating the Prebill Amount at End of Financial Year

This section should be completed by the Finance team.

1. 📁 Create Prebill Job

   Open a new job specifically for the prebill amount. Make sure income recognition is enabled

2. 📄 Create a Quote/Estimate

   Prepare a Quote/Estimate against the prebill job.

3. 🧾 Create and Log Invoice

   Issue and log the invoice against the prebill job.

4. 📊 Run WIP & Accruals

   Confirm the prebill and apply it to the General Ledger (GL) to recognise the revenue for end-of-year reporting.

When the Client Wants to Use the Prebill Amount for Another Project

This occurs in the new financial year when the client decides which project the prebill applies to.

👤 Account Manager Responsibilities

1. 📁 Open a New Job

   Create a new job for the actual project.

2. 📄 Create a quote/Estimate

   Submit a quote/estimate as you would for any regular project.

Finance Team Responsibilities

3. 🧾 Create and Log Invoice

   Raise the invoice on the actual job but do not send it to the client.

4. 🔁 Create a Credit Note on the Prebill Job

   The credit note should match the amount of the new project invoice.

5. 📊 Run WIP & Accruals

   Apply the credit note and invoice adjustments.

6. 💰 Create a Receipt Journal

   Offset the credit note (prebill job) and the invoice (new job) via a receipt journal to ensure correct allocation of funds.