Project Billing Credits

How do I give a credit or refund on a Draw Schedule or Progress Billing project?

When you need to give a credit for a project that you are tracking 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 Time & Materials projects.

Credit-- as change order

Use a Change Order to handle credits or reductions in price, for any reason. 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 on a project 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 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-- A Change Order probably makes more sense when there is a project-related reason for the change, such as a change of specs or a reduction in the cost of materials. A Billing Record credit makes more sense when there is a billing-related reason for the change, such as a price reduction for early payments.

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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