Project Contract Prepayment Billing

Request a prepayment from a customer for a project contract. Apply all or a portion of the prepayment as a separate negative line on a standard project contract invoice containing actual charges, billing the net amount due. Track the applied and unapplied balances of prepayments by prepayment request billing event. Billing Specialists can see and manage project contract prepayments more easily, quickly, and holistically.

Prepayment Invoicing Flow

Billing Specialists can enter prepayment request billing events for a project contract line using an invoice event type with the prepayment request option enabled, as illustrated below. The event amount in bill transaction currency for prepayment request billing events is to be positive.

Prepayment Request Billing Event

Generate Invoices process when run for the project contract will create a prepayment invoice as illustrated below. A separate prepayment invoice is generated with invoice type as Prepayment invoice for each prepayment request billing event entered for a project contract line.

Prepayment Invoice

Prepayment request billing events entered for a project contract line are invoiced without consuming funds from the billing controls set up at the project contract header or contract line level, as illustrated below.

Project Contract Billing Controls

Prepayment invoices in project contracts can undergo a review and approval process similar to a standard invoice. Prepayment invoices are processed to Receivables using the seeded prepayment transaction type ORA_PA_Prepayment.

Prepayment Invoice in Accepted Status

Billing specialists can enter prepayment application billing events for a project contract line using an invoice event type with the prepayment application option enabled, cross-referencing a prepayment request billing event only if the prepayment invoice is accepted, as illustrated below. The event amount in bill transaction currency for prepayment application billing events is to be negative. Attributes such as bill transaction currency, organization, project name or number, transaction task name or number, and conversion attributes from bill transaction currency to contract or invoice currency on the prepayment application billing events are defaulted from the cross-referencing prepayment request billing event.

Prepayment Application Billing Event

Generate Invoices process when run for the project contract will create a standard invoice with prepayment application invoice lines as illustrated below. A separate prepayment application invoice line is created for each prepayment application billing event entered for a project contract line. Also, the attributes of prepayment invoice number and prepayment invoice line number are displayed on the invoice details page for a prepayment application invoice line. The standard invoice with prepayment application invoice lines is processed to Receivables using the transaction type setup on the project contract header.

Standard Invoice with Prepayments Applied

Prepayment application billing events entered for a project contract line are invoiced without consuming funds from the billing controls set up at the project contract header or contract line level, as illustrated below. The invoiced amount on the billing controls reflects the invoice amount in contract currency from the charge invoice lines or distributions. Charge invoice lines are the labor, non-labor, or billing event lines on a standard invoice other than prepayment applications.

Project Contract Billing Controls

The Billing Specialists can review the applied and unapplied balances for a prepayment request billing event on the event details page, as illustrated below. These prepayment attributes are also added to the Event REST API.

Prepayment Request Billing Event Details

Prepayment Invoicing Credit Flow

The steps to credit and re-bill an application of prepayments are:

1. Unapply receipt for the standard invoice with prepayment application invoice lines.
2. Cancel the standard invoice with prepayment application invoice lines, which creates a new credit invoice that completely reverses the original standard invoice NOTE: The Apply Concession and Write-off crediting actions are not supported for a standard invoice with prepayment application invoice lines.
3. Process the new credit invoice through to accepted status, which sets all the transactions, including the prepayment application billing events, back to uninvoiced status.
4.  Adjust any charge transactions on the original standard invoice needing correction.
5.  Fix any billing setup data, like Bill Rate Schedules, and/or prospectively amend the applicable project contract to correctly re-bill the original standard invoice.
6.  Update the event amount and/or description of the prepayment application billing events on the original standard invoice. If you don’t want to re-bill the prepayment application, then put the prepayment application billing events on invoice hold.
7.  Run Generate Invoices for the project contract to re-bill the standard invoice with prepayment application invoice lines.

The steps to adjust the invoicing of prepayment requests are:

1. Follow steps 1 – 3 above for all applicable standard invoices with prepayment application invoice lines.
2. Unapply receipt for the prepayment invoice.
3. Cancel the prepayment invoice, which creates a new credit invoice that completely reverses the original prepayment invoice NOTE: The Apply Concession and Write-off crediting actions are not supported for a prepayment invoice.
4. Process the new credit invoice through to accepted status, which sets the prepayment request billing event back to uninvoiced status.
5. Update the event amount and/or the description of the prepayment request billing event on the original prepayment invoice.
6. Run Generate Invoices for the project contract to re-bill the prepayment invoice.
7. Follow steps 4 – 7 above (steps to credit & re-bill an application of prepayments) to re-bill the standard charges and prepayment applications.

Business benefits include:

• The end-to-end business process for prepayments from Project Contracts to Receivables is more streamlined and efficient with prepayment invoices and standard invoices with prepayments applied.

• The solution enhances the advance payments for businesses and tracks the accounting entries for prepayment activity in Receivables.

Steps to Enable

You need to set up invoice event types classified as prepayment requests or prepayment applications, as illustrated below.

You can only enable the prepayment request or prepayment application option for an invoice event type.

The allow adjustments option is disabled for an invoice event type classified as a prepayment request or prepayment application. No adjustments are allowed on the prepayment request or application billing events entered for a project contract line with invoice status as fully invoiced.

Allow item option can't be enabled for an invoice event type classified as a prepayment request or prepayment application. On a prepayment request or prepayment application billing event entered for a contract and contract line, the item-related attributes cannot be entered.

Tips And Considerations

• The invoice event types classified as prepayment requests or prepayment applications are not displayed in the default event type section on the Edit Billing Extension UI. Automatic creation of prepayment activity is not supported in the billing extensions flow.

• The invoice event types classified as prepayment requests or prepayment applications are not displayed in the transaction type list of values on the Edit Invoice Method UI. Automatic creation of prepayment activity is not supported in the project process configurator flow.

• Creation of prepayment request or application billing events for a project contract line is supported using the Manage Events or Event REST API.

• You can't enter prepayment request or application invoice billing events for an inter-company or inter-project contract.

• You can't enter prepayment request or application invoice billing events for a net invoice-enabled project contract.

• Prepayment request or application billing events entered for a project contract line with invoice status as uninvoiced are not displayed in the unbilled transactions section on the invoice details page. Manual Invoicing is not supported for prepayment activity.

• Sales credits entered on a project contract are not transferred to Receivables for Prepayment Invoices or Prepayment Application Invoice Lines as part of a standard invoice from project contracts.

• The below items are planned for an upcoming release:

  • The creation of prepayment activity using Billing Events File-Based Data Import.

  • Identifying a project contract as prepay applicable based on a prepayment transaction type attribute on the contract header and transferring the prepayment transaction type to Receivables for a prepayment invoice

  • Display prepayment measures on the associated projects for a contract line and the contract financial summary page.

Key Resources

• Refer to the Automation of Invoicing and Receipt Applications for Advance Payments Receivables 24B solution.

Access Requirements

No new access requirements.