Time & Materials Credits

How do I give a credit or refund on a Time & Materials project?

When you need to give a credit for materials used for a time & materials project in Goldenseal project billing software, the way you'll handle the credit depends on the reason for the credit.

NOTE-- Click here for credits on Draw Schedule or Progress Payment projects.

Vendor Credit or Return

If you returned items to a vendor or received some other credit from them, follow these steps:

  1. Choose Material Purchases from the Costs menu. HINT-- You can also use this for Subcontractor Costs and Other Costs.
  2. Click the New button.
  3. Enter the vendor, a description of the credit, and the amount of the credit.
  4. Click on the Apply To popup field, and choose Credit or Return.
  5. Enter Project into the Job Type popup field, and the specific project into the Job field.
  6. Fill in the invoice number and any other details about the credit (optional).
  7. Hit the Enter key to save the record.

The next time you submit a T&M bill, the credit will be included as one of the line items in the bill.

HINT-- This is the same process you'll use for a credit or return, even if it is not for a T&M project!

Unused material

If you did not use some materials purchased for a project and will add them to your inventory, follow these steps:

  1. Choose Inventory Used from the Costs menu.
  2. Click the New button.
  3. Enter an inventory account, a description of the credit, and the amount of the credit.
  4. If you want Goldenseal to track inventory quantities, enter Items into the Breakdown popup on the left side of the window. Otherwise, skip to step 6.
  5. Enter the specific Cost Items that you are returning to inventory.
  6. Click on the Apply To popup field, and choose Credit or Return.
  7. Enter Project into the Job Type popup field, and the specific project into the Job field.
  8. Hit the Enter key to save the record.

The next time you submit a T&M bill, the credit will be included as one of the line items in the bill.

HINT-- This is the same process you'll use for a return to inventory, even if it is not for a T&M project!

Miscellaneous Credit-- as change order

If you are giving a credit to the client for some reason unrelated to your actual expenses, use a Change Order to handle the refund. Follow these steps:

  1. Choose Change Orders from the Income menu.
  2. Click the New button.
  3. Enter the Project account, and details for the change.
  4. Click the More Info button, and enter Price Reduction into the Billing popup field. Click OK.
  5. Hit the Enter key to save the record.
  6. When you are ready to bill for the change, choose Billing from the Bank menu, and choose Change Orders from the submenu.
  7. Choose Billing Statements from the Bank menu to create a combined bill for the change and main project.

HINT-- This is the same process you'll use for any kind of change, on any project.

Miscellaneous Credit-- as Billing record

Another way to handle miscellanous credits is as an adjustment, in the main project billing. Follow these steps:

  1. Choose Billing Records from the Bank menu.
  2. Click the New button.
  3. Enter Project into the Account Type popup field.
  4. Enter the T&M project into the Account clairvoyant field.
  5. Enter the amount of the credit into the Amount field.
  6. Click on the Billed Item popup field, and choose Misc. Credit.
  7. Enter an explanation for the credit (optional).
  8. Hit the Enter key to save the record.
  9. Choose Print Forms from the File menu to print an invoice for the client.
  10. Choose Billing Statements from the Bank menu to create a combined bill.

HINT-- Another way to give a credit is to enter a Change Order.

Payments from Client

If the client subtracts the credit from their payment for the rest of the project, follow these steps:

  1. Choose Deposit Funds from the Bank menu.
  2. Enter Billed Projects into the Type popup field at upper right.
  3. Double-click on the T&M project.
  4. Put a checkmark next to the main invoice, and the credit invoice.
  5. Click OK.
  6. Click Deposit Funds to create a deposit.

If you write a check to the client for the credit amount, follow these steps:

  1. Choose Checking Transactions from the Bank menu, and choose an account.
  2. Click the New button.
  3. Enter Project into the Pay To popup field.
  4. Enter the T&M project into the Account clairvoyant field.
  5. Enter Billing Refund into the Transaction Paid popup field.
  6. Enter the invoice into the Reference clairvoyant field.
  7. Hit the Enter key to save the record.

Click here to return to Project Management topics.

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