Pro Forma Invoice: Generated Transactions
The release of a pro forma invoice does not generate general ledger transactions or project transactions directly. When you release the pro forma invoice, the system creates a corresponding accounts receivable invoice with all the information copied from the pro forma invoice. On release of the accounts receivable invoice, the system generates the general ledger transactions and project transactions described in the following sections.
GL Transactions Generated on Release of an AR Invoice
When an accounts receivable invoice that has been created based on a pro forma invoice is released, the system generates a batch of the general ledger transactions shown in the table below.
The system uses the following accounts as the source accounts in the GL batch it creates:
- The asset account, which is specified in the AR Account box on the Financial tab (Link to GL section) of the Invoices and Memos (AR301000) form.
- The income account, which is specified for each line in the Account column on the Details tab of the Invoices and Memos form. The system populates the income account from the corresponding pro forma invoice; the income account was determined by billing rules during the creation of the pro forma invoice.
| Account | Source of Account | Debit | Credit |
|---|---|---|---|
| Accounts receivable account | The asset account | Amount | 0.00 |
| Sales account | The income account | 0.00 | Amount |
You can view the details of the batch associated with the release of an invoice by clicking the link in the Batch Nbr. box on the Financial tab (Link to GL section) of the Invoices and Memos form. The system opens the batch on the Journal Transactions (GL301000) form.
Project Transactions Generated on Release of the GL Batch
On release of the batch of general ledger transactions, the system generates a corresponding batch of the project transactions shown in the following table.
| Project and Project Task | Debit Account | Account Group | Amount |
|---|---|---|---|
| Project and project task in the GL batch line | Sales account in the GL batch line | Account group mapped to Sales account | –(Amount) |
You can review the created transactions on the Project Transaction Details (PM401000) form. In the Selection area of this form, you select the project in the Project box. In the table, you can find the project transactions created on release of the accounts receivable invoice by the reference number of the AR invoice in the Orig. Doc. Nbr. column.
Project Transactions Generated for an Unbilled Remainder
If an amount has been postponed in a pro forma invoice and the corresponding accounts receivable invoice (which contains the line from which this postponed amount originates) is released, the system generates the project transaction shown in the following table.
| Billable | Billed | Amount | Orig. Doc. Type | Orig. Doc. Nbr. |
|---|---|---|---|---|
| Selected | Cleared | Postponed amount | Unbilled Remainder | The AR invoice in which the amount was postponed |
The main attributes of the created transaction—such as the project, project task, and inventory item—are the same as those of the original project transaction from which this unbilled remainder originates.
The system uses the following accounts as the debit and credit accounts in the project transaction it creates:
- If the project transaction to which the unbilled remainder relates was not posted to the general ledger, the system copies the debit and credit accounts (the specified accounts or empty values) of the corresponding project transaction from which the unbilled remainder originates.
- If the project transaction to which the unbilled remainder relates was posted to the general
ledger, the system copies the accounts that are specified in the GL Settings for
Unbilled Remainders section of the General tab of the Projects Preferences (PM101000) form. If no accounts are specified in the GL
Settings for Unbilled Remainders section, the system copies the debit and credit
accounts of the corresponding project transaction from which the unbilled remainder originates.
In the line, the system also specifies the account group that is mapped to the debit
account.
On release of the project transaction generated for the unbilled remainder, the system also generates a batch of general ledger transactions. For details, see Project Transactions: Generated Transactions.
When the accounts receivable invoice that contains the unbilled remainder is released, the system generates the reversing project transaction for the unbilled remainder that is shown in the following table.
| Billable | Amount | Orig. Doc. Type | Orig. Doc. Nbr. |
|---|---|---|---|
| Cleared | –(Postponed amount) | Unbilled Remainder Reversal | The AR invoice in which the postponed amount was billed |
The main attributes of the created transaction—such as the project, project task, inventory item, account group, debit account, and credit account—are the same as those of the original project transaction of the unbilled remainder.
You can review the created transactions on the Project Transaction Details (PM401000) form. In the Selection area of this form, you select the project in the Project box. In the table, you can find the project transactions by the original document type in the Orig. Doc. Type column.