Prepare invoices for clients for items, services and media

 

Updated: November 1, 2016

Applies To: Dynamics Marketing

System_CAPS_importantImportant

Microsoft Dynamics Marketing is scheduled to be retired on May 15, 2018. After that date the service will no longer be available. Please plan accordingly. For details, see the blog post Microsoft Dynamics Marketing service will be discontinued, and learn what’s coming next.

Microsoft Dynamics Marketing enables you to prepare client invoices for items, services, and media.

Prerequisites

To view expenses, users must have Edit/View Invoices privileges. More information: Work with user accounts and staff contacts.

Invoices for non-inventory items automatically post to the general ledger as follows:

  • The revenue account(s) specified on the invoice's line items is credited.

  • The accounts receivable account specified on the invoice header is debited.

    System_CAPS_noteNote

    If there is only one AR account in the system, you do not need to specify one.

Invoices for inventory items automatically post to the general ledger as follows:

  • The revenue account(s) specified on the invoice's line items is credited.

  • The accounts receivable account specified on the invoice header is debited.

    System_CAPS_noteNote

    If there is only one AR account in the system, you do not need to specify one.

  • The inventory account associated with the inventory item is credited.

  • The COGS/expense account associated with the inventory item is debited.

In addition, the inventory value and available inventory count are updated. More information: Manage inventory of promotional materials

Users with Invoicing privileges can view and edit media invoices like “regular” invoices. Users must have the Media Buyer user type to be able to create new media invoices. More information: Work with user accounts and staff contacts.

Media invoices contain different information than “regular” invoices. Invoices cannot combine media and non-media items. More information: Media

Sales orders are similar to “regular” invoices, but they don't post to the general ledger. More information: Sales orders

To view invoices, go to Budgeting > Receipts > Invoices.

When you have incurred costs on the project in excess of the deposit—or when the work is complete—create an invoice.

  1. On the Invoices page, choose the New Invoice button New button.

    Microsoft Dynamics Marketing opens the new invoice page.

  2. Enter the information.

    Field

    Description

    Status

    Select a status for the invoice. (Optional.) More information: Create custom drop-down values and folders

    Bill To

    Select a contact. (Required.)

    Ship To

    Select a contact. (Optional.)

    Company

    Select the Bill To company the invoice is for from the pull-down menu. (Required.)

    PO #

    Enter the Purchase Order # from the client. (Optional.)

    Tax

    Select the tax rate that applies to the invoice. (Optional.) More information: Manage taxes

    Currency

    If you are multiple currencies, select the currency used in the invoice. (Required.)

    Memo

    Enter additional information by clicking on the Memo button Edit button. (Optional.)

    Invoice Date

    Enter the date the invoice was prepared. Required.

    Due Date

    Enter the due date for the invoice. The due date is the date payment is due from the client; if the client has terms, the due date is automatically calculated by the system but can be changed. (Required.)

    Terms

    Select the credit terms that apply from the pull-down menu. (Optional.)

    Prepared by

    Select a contact. (Required.)

    Remit To

    Select a contact. The Remit To enables you to specify an alternate remittance contact/address. (Optional.)

    Rep


    Select the sales representative contact from the pull-down menu. (Required.)

    Account Receivable Account

    Select the Accounts Receivable account for this transaction. Microsoft Dynamics Marketing will default the AR account to the account selected for the Bill  To Company on the Client Company Dashboard unless a parent has been selected, in which case Microsoft Dynamics Marketing will default the AR account to the advertiser company's default AR account. (Required.) More information: Accounts receivable

    Default Report

    Select the default report to use for this transaction. (Optional.)

  3. Choose Save.

System_CAPS_tipTip

The Items grid displays all the items included in the invoice.

  1. Choose the New invoice item button New button.

    Microsoft Dynamics Marketing opens the new invoice item page.

    Enter the information:

  2. Choose Save.

Field

Description

Status

Select a status for the invoice. (Required.) More information: Create custom drop-down values and folders

Item

Select an item or service from the pull-down menu. (Required.) More information Track items and services

Description

Enter a description for the item or service. (Optional.)

Quantity

Enter the quantity of the item or service. (Required.)

Total Cost/Unit Cost

Enter the total cost or the unit cost of the item. If you enter a total cost, Microsoft Dynamics Marketing will enter a unit cost for you. (Required.)

Credit

Enter any credit applied to this item. (Optional.)

Shipping

Enter shipping costs if any. (Optional.)

Total

Microsoft Dynamics Marketing will calculate the total using the following formula:

Total Cost = Quantity X Unit Cost - Credit + Shipping

Or,

Total Cost = Quantity X Unit Cost - Credit + Shipping

Taxable

Check the box if this item is taxable. If you check the taxable check box, Microsoft Dynamics Marketing will calculate the tax by multiplying the item's total cost by the tax rate selected on the invoice, and add a tax item to the invoice. (Optional.)

Date

Enter the item date. (Required.)

Details

The Details section enables you to specify additional information about the invoice item.

Company

Microsoft Dynamics Marketing displays the company/client the item is for.

Division

Select the division the item is for from the pull-down menu. (Required.)

Department

Select the department the item is for from the pull-down menu. (Required.)

Program

Select the program the item is for from the pull-down menu. (Required.) Choose the Allocation button Allocation button to allocate the revenue from this item using the program's allocation defaults.

Job

Select the job the item is for from the pull-down menu. (Required.)  Choose the Allocation button Allocation button to allocate the revenue from this item using the event's allocation defaults.

Campaign

Select the campaign the item is for from the pull-down menu. (Required.) Choose the Allocation button Allocation button to allocate the revenue from this item using the campaign's allocation defaults.

Task

Select the task the item is for from the pull-down menu. (Required.)

Event

Select the event the item is for from the pull-down menu. (Required.)

The Item grid is very powerful and has lots of features.

System_CAPS_tipTip

Choose the Edit button Edit button to change the grid into edit mode. In edit mode you can edit many of the cells at the same time.

To associate an item with one or more of the above:

  1. Choose the appropriate tab.

  2. Type the name of the advertisement, brand, channel, component, location, market and/or product/service in the selector field.

  3. Select the advertisement, brand, channel, component, location, market and/or product/service and choose the Add button.

  4. Enter the allocation percent. The allocation percent enables you to pro-rate an item to each brand. For example, if the total price of an item was $100 and you allocate 50% of the price to Brand 1, Microsoft Dynamics Marketing will allocate $50 of the price to Brand 1.

  5. Choose Save to save your changes and keep viewing the page or choose Submit to save your changes and return to the previous page.  

  1. Select the invoice(s) you want to route by clicking their check boxes Check box symbol.

  2. Choose the Approval button. Microsoft Dynamics Marketing opens the Approval Request page. More information: Manage review and approval routing

You can merge multiple invoices for the same company and combine into a single invoice.

  1. Select the invoices you want to merge by clicking their check boxes Check box symbol.

  2. Choose the Wizard button Wizard button.

  3. Choose OK.

  1. Select the items you want to return or give a refund for by clicking on their check boxes Check box symbol.

  2. Choose the Credit Memo/Check Refund button.

    Microsoft Dynamics Marketing creates a credit memo for the selected items.

Microsoft Dynamics Marketing handles client credits and returns via a special transaction - the Credit Memo.

How Credit Memo's Post to the General Ledger:
Credit memos post to the General Ledger differently depending on whether they are for 'regular' or 'inventory' items and whether the credit memo is for a credit or a refund.

Credits:
Credits appear on the Accounts Receivable page and can be applied to other invoices for the same client company. Credit memos decrease Accounts Receivable and Revenue.

Refunds:
Credits appear on the Accounts Payable page and can be paid to clients like any other expense. Credit memos increase Accounts Payable and revenue.

Inventory returns versus regular items:
Microsoft Dynamics Marketing will update the General Ledger AND update the Available Inventory and Inventory Value Credit Memo for returned inventory items processed via credit memos.

To create a new credit memo:

  1. Navigate to Budgeting > Receipts > Invoices.

  2. Choose the New Credit Memo/Refund button in the toolbar.

  3. Enter the information.

  4. Choose Save.

Some organizations collect fees before work is started, or have agreements with clients that specify a periodic fee. Retainers vary widely with respect to their specific terms and conditions. An advance, deposit, prepayment or retainer, is money that belongs to the client, but which the client has given to you to hold or to use to purchase supplies or labor for their project. In other words, its money you have received, but not yet earned. From an accounting point of view, an advance, prepayment, deposit or retainer is a liability even though the funds are deposited into your bank account; advances, prepayments, deposits and retainers should not be recorded as income when they are received.

Microsoft Dynamics Marketing provides a 'special' transaction - Retainer/Advance Invoices that enable users to invoice clients and post to the specified Deferred Revenue account automatically. The Deferred Revenue appears as a credit that can be applied to the 'regular' Invoices prepared for the client. Follow the steps listed below to insure that your account for retainers and deposits as accurately as possible.

The term deposit is used for advance payments by clients and for funds added to a bank account. Here we are referring to advance payments by clients. For simplicity, Microsoft Dynamics Marketing uses the term Retainer/Advance.

Retainer Liability Account in the Chart of Accounts 
Setup a Retainer account to hold prepayments, retainers and deposits. More information: Chart of accounts

Retainer Item
Create an item that will be used to invoice the client for the Retainer. More information: Track items and services

To create an invoice for the Retainer/Advance using the item(s) you created. To create a new Retainer/Advance invoice, go to Budgeting > Receipts. > Invoices and choose the New Retainer/Advance button.


When the payment arrives, go to the Receive Payment page to receive the payment. Be sure to receive the payment into the Retainer/Deposit liability account.

Go to the Receive Payment page to apply the retainer/deposit to the invoice. The retainer/deposit will appear as a credit that can be applied to the invoice. The retainer/deposit will be subtracted from the amount the customer owes you. At that point, revenue is recorded and the deposit is moved out of the liability account.

Closing:
When closing journal entries are prepared, be sure to create entries to decrease Accounts Receivables and the Retainer/Deposit liability account by the total amount of any open Retainer/Deposit invoices, to reflect the fact that the receivables haven't yet been earned.

To manage the billing process for large projects with long lead times, progress billing is often used. With progress billing, you can divide an invoice into separate increments and generate needed cash flow prior to all the work for a project being done. Common progress billing approaches include: invoicing clients based on periodic schedules, time and material usage or percentage complete. Microsoft Dynamics Marketing provides a variety of features that make progress billing easy. Choose the right approach based upon your needs and business practices.

System_CAPS_tipTip
  1. To perform progress billing using split invoices, create an invoice for each milestone when it is reached.

  2. To perform progress billing using partial payments, create a single invoice and simply indicate in the invoice what the payment schedule is. Microsoft Dynamics Marketing makes it easy to receive a partial payment for an invoice:

    • Choose Accounts Receivable and enter the payment. More information: Accounts receivable

      Microsoft Dynamics Marketing applies the payment and the invoice will remain in AR with the remaining balance due.

  • Periodic schedules: Create a standard invoice for each period.

  • Time and material usage: Invoice from the actual time slips and expenses for each client. Microsoft Dynamics Marketing tracks which time slips and expenses have already been invoiced.

  • Percentage complete: Use the progress information on the Job Analysis tab to determine the percentage complete and invoice appropriately.

Microsoft Dynamics Marketing displays the estimate vs. actual amount for each job to facilitate progress payment calculations.  Microsoft Dynamics Marketing makes it easy to invoice from the Estimate. More information: Manage estimates.

Financial and general ledger accounts are designed for marketing budget management only. Financial features are restricted to the limits stated in the Security and Financial Disclaimer. Microsoft Dynamics Marketing is not designed to comply with country/region-specific laws, regulations, or common business practices.

Show: