About pro forma invoices

A pro forma invoice can be created only through the project invoicing process (and assigned a reference number only automatically).
You cannot manually enter new pro forma invoices in the Pro forma invoices (PM307000) window.
By default, the system creates a pro forma invoice when you invoice a project because the Create pro forma on invoicing check box is initially selected on the Summary tab of the Projects (PM301000) window.
To disable the draft invoice workflow for a project, you can clear this check box or to prevent the system from creating a pro forma invoice when you invoice the project.

For a pro forma invoice created for a project, the system records to the following tabs of the Pro forma invoices (PM307000) window the lines to be invoiced:

• Progress invoicing: The system creates these lines by using the Progress invoicing steps of invoicing rules specified in the Invoicing rules (PM207000) window.
  The lines originate from the revenue budget of the project.
• Time and material The system creates these lines by using the Time and material steps of invoicing rules; the lines originate from the project transactions.

  The Time and material steps of invoicing rules support the aggregation of project transactions by date, employee, supplier, and stock item.
  On the Time and material tab of the Pro forma invoices (PM307000) window, you can select a line and then click View transactions details in the table toolbar to drill down to the list of project transactions based on which the Invoiced quantity and Invoiced amount of the line have been calculated by the formula of the invoicing rule.

Fore more information about the invoicing process, see: About project invoicing

In the Pro forma invoices (PM307000) window, you can edit a pro forma invoice when it is On hold, including the following:

• You can delete a line of the pro forma invoice to invoice it later in the full amount.
• You can modify the pro forma invoice to invoice any lines on the Progress invoicing and Time and material tabs in a greater or smaller amount by changing the Amount to invoice as desired. The Amount to invoice is added to the customer ledger invoice when the pro forma invoice is released.

  On the Time and material tab, if a manually edited Amount to Invoice is less than the Invoiced amount, you can make a decision about the difference between the calculated Invoiced amount and the corrected Amount to invoice by selecting the needed option in the Status column of the invoice line.
  
  The difference can be postponed until the next invoice (Hold remainder) or written off by this invoice (Write off remainder).
  
  The whole amount of the pro forma invoice line can also be written off (Write off); the amount will no longer show up in future invoices.

  For a postponed amount to be added to a pro forma invoice, the sales invoice that contains the line from which this postponed amount originates must be released.
• On the Time and material tab, you can select a line and then click View transactions details in the table toolbar to drill down to the list of project transactions for which the Invoiced quantity and Invoiced amount have been calculated by the formula of the invoicing rule.
  
  These values are summed to obtain the Invoiced quantity and Invoiced amount, respectively, of the pro forma invoice line.
  
  You can remove particular transactions from this list, and they will appear in the next invoice.
• You can rearrange lines within the invoice by dragging them to the appropriate positions.
  If invoicing limit amounts are defined for the project in the Projects (PM301000) window, the system applies these limit amounts to the pro forma invoice lines as a running total, starting from the first line on the Time and material tab of the Pro forma invoices (PM307000) window.
  For each line of the invoice, the system subtracts the Amount to invoice from the Max available amount and uses the reduced amount as the available limit for the next line.
  Invoice lines for which the Over limit amount becomes non-zero exceed the limit.
  By rearranging the lines, you can make the system apply the limit amounts to the needed lines of the invoice.
• You can add to a pro forma invoice an adjustment line that does not originate from the revenue budget or project transactions.
  Such lines are also included in the limit application and can decrease or increase the limit total.

The release of a pro forma invoice does not generate project transactions or general ledger transactions directly.
When you release the pro forma invoice, the system creates a corresponding sales invoice with all information copied from the pro forma invoice.
You can release the pro forma invoices one by one in the Pro forma invoices (PM307000) window, or you can mass-process pro forma invoices to release them and produce sales invoices in the Process pro forma invoices (PM506000) window.

The pro forma invoices of a project can be released according to the following rules:

• The pro forma invoices can be released only one by one, starting from the earliest one, on the Invoices tab of the Projects (PM301000) window.
  The only exception is when multiple pro forma invoices segregated by invoice group have been generated during a single iteration of the invoicing process; in this case, the pro forma invoices can be released in any order.
• A pro forma invoice can be released only after the sales invoice of the preceding pro forma invoice has been released.

If the Detail total of a pro forma invoice is negative in the Pro forma invoices (PM307000) window (for example, if you have added a negative adjustment line in an amount greater than the total amount of invoiceable lines), the system creates a sales credit note when the pro forma invoice is released.

As a result of the release of the sales invoice, the general ledger transactions are recorded, and the revenue budget of the corresponding project is changed as follows on Revenue budget tab of the Projects (PM301000) window:

• The Actual quantity of the corresponding revenue budget line is increased by the line quantity of the released sales invoice if Task and item is the Revenue budget level of the project; otherwise, the Actual quantity is zero.
• The Actual amount of the corresponding revenue budget line is increased by the line amount of the released sales invoice.
• The Draft invoices amount of the corresponding revenue budget line is decreased by the line amount of the released sales invoice.

The document details of an unreleased customer ledger document that originates from a pro forma invoice are displayed in read-only mode in the Sales invoices (AR301000) window.
To make a correction to the customer ledger document, you need to delete this document and start over from the pro forma invoice.

In the Sales invoices (AR301000) window, you can also navigate directly to the Pro forma invoices (PM307000) window by using the View pro forma menu command and view the pro forma invoice from which the current customer ledger document originates.
This menu command becomes available on the Inquiries menu if the invoice being viewed has originated from a pro forma invoice.