Prepaid Invoice - Credit & Rebill - Manage Project Billing - MiQ Training

PREPAID MiQ Training Overview Guides V.5 INVOICE Author: Waheed Khan Overview With Workday, a pre-pay invoice is created based on the contract/IO. This invoice will trigger the appropriate accounting treatment, moving the revenue into deferred revenue when the ‘prepaid’ rev...

PREPAID MiQ Training Overview Guides V.5 INVOICE Author: Waheed Khan Overview With Workday, a pre-pay invoice is created based on the contract/IO. This invoice will trigger the appropriate accounting treatment, moving the revenue into deferred revenue when the ‘prepaid’ revenue schedule is selected. At the end of the month, Lab will submit the campaign billing transactions to Workday for the prepay contract line, automatically releasing the deferral from the balance sheet. Summary of steps to raise a Prepaid Invoice 1. Find the IO in Workday where a prepayment is required. 2. Add a prepay line under the ‘Goods & Services’ section of the contract, selecting the prepaid revenue schedule. 3. Next, establish the billing schedule for the prepaid line, which specifies how and when invoices will be generated and when revenue will be recognized. 4. From the billing schedule, create the prepaid installment. 5. Finally, generate the invoice for the prepaid installment by creating the invoice according to the billing schedule. While this process may appear to involve several steps to create a prepaid invoice, it effectively eliminates the need for a manual journal entry to transfer the prepaid revenue to the deferred balance account. Additionally, for any future prepayments for the same customer/IO, you will only need to add a new installment to the existing billing schedule! Keep in mind that you don't need to create multiple prepaid lines for the same contract; simply add another installment to the existing prepaid billing schedule! Step 1. Create the prepaid line on the contract Select the Amend Customer Contract Action from the 3 dots next to contract Step 1. Create the prepaid line on the contract Go to the contract line table below, and from the Goods & Services menu, click the Plus icon to add the prepaid line. Remember not to create a line against the Usage-Based section ! Step 1. Create the prepaid line on the contract Select the Revenue Category of ‘Programmatic’ and the line type of Prepaid. Job done, now save the contract by adding the Amendment Type and Effective date. You can see now two lines, one for goods and service and one for usage; the revenue treatment is deffered Remember you do not need to enter the campaign/billable project details  Step 2. Create the Billing Schedule To create the Billing Schedule, go to the 3 dots next the contract header and select ‘Create Billing schedule’ Select the schedule type of Consolidated Billing and then Prepayment  Step 2. Create the Billing Schedule On the next screen click on ‘Manage Lines’ to pull in the prepaid contract line to billing schedule’ It’s important to remove the The Contract Usage-based will default line. Click on through; next box to the left, click on search and then Save Then remove and Continue  Step 2. Create the Billing Schedule You’ll be taken back to the schedule option screen where you click on the prepaid sub menu 1 You will get an Error which requires you to enter the Invoice Type which is Programmatic 2 Click on the Prepaid sub- menu to proceed with creating the billing Installment  Step 2. Create the Billing Schedule Next you enter the transaction date, amount and description to appear on the prepay invoice 1 Click on the plus to open the prepaid line item 2 Enter transaction date, Amount to Invoice and the line items description, then submit Step 3. Create the Invoice for the Prepaid Installment Once you submit, you’ll taken back the billing schedule main screen. Now select pre-paid sub menu again. 2 Select Create customer invoice after Billing Installment Select the 1 follow-on action (3 dots) from the second Step 3. Create the Invoice for the Prepaid Installment 1 Select the Next, you’ll be taken to the familiar create invoice screen. Invoice date and Accounting Date and press OK to create the invoice.  Step 3. Create the Invoice for the Prepaid Installment Next Print and Email the Pre-Paid Invoice to the client 1  Accounting Treatment for Prepaids From the follow-on actions of the invoice, you can view the accounting document 1 Dr 2 Trade Receivables CR Deferred Income Please note that when lab transactions flow into Workday against the usage line of the contract, the deferred income will be released automatically to revenue associated with Summary A prepaid invoice is generated by adding the contract line to the Goods & Services section; be sure not to add it to the usage section. There will only be one prepaid line for the contract, but you can generate multiple installments from the prepaid section of the billing schedule. To create another installment, go to the contract line and from the Billing Schedule, select "Edit Billing Schedule follow on action." At the end of the month, when lab billing transactions flow into Workday, the deferred revenue is automatically released to revenue along with the associated worktags (such as campaign, customer, solution, format, agency, etc.). CREDIT & MiQ Training Overview Guides V.5 REBILLS Author: Waheed Khan Overview: Managing Credit and Rebills in Work There are Multiple Options Available: The system offers various approaches to handle credit and rebill situations. Factors Influencing the Process: Key Considerations: - Client's specific request - Current stage of invoice processing in the client's system - Each scenario requires a different Common Client Scenarios: approach in Workday a) New Invoice Request (Disregarding Previous Invoice): - Important to clarify the - Applicable when original invoice was over or under-billedclient's exact - Client has not processed the previous invoice needs before proceeding - Ensure proper documentation b) New Invoice with Credit Note: of the - Client requests a new invoice reason for credit or rebill - Additionally requires a credit note Typically, when the original invoice has already been processed in their system c) Adjustment Invoice Only: - Client only needs an invoice to adjust the billing amount A. New Invoice Request & Client Disregarding Previous Invoice Cancelling the whole invoice and Rebilling Process in Workday: 1. Cancelling the Original Invoice: - Locate the invoice in the system - Use the "follow-on actions" menu Key Points: - Select "cancel" option - This process allows for complete - Note: This cancellation treats the invoice as if it never existed revision - Important: No credit note is generated in this process of incorrect invoices 2. Effect on Billing Transactions: - Ensures accurate billing without - Cancellation returns billing transactions to "Ready to Bill" status generating unnecessary credit - This allows for modifications by management accountants or A/R managers notes 3. Adjusting the Campaign: - Maintains a clear audit trail of - Refer to the "Manage Billing" section in the overview guide for detailed adjustment procedures billing - Project Billing Specialist makes necessary adjustments to the campaign adjustments 4. Moving to Ready to Bill: - After adjustments, Project Billing Specialist moves the transaction to "Ready to Bill" status 5. Rebilling Process: - A/R team handles the billing of the IO (for US/Canada) or campaign - Billing is executed through the "Create Customer Invoice from Contracts" function CREDIT & REBILLS A)NEW INVOICE REQUEST – CANCEL INVOICE CREDIT & MiQ Training Overview Guides REBILLS V.4 Step 1. Cancel Invoice Use find customer invoice report, or find the invoice from customer master record B. Locate the invoice and then goto follow A. Goto the master record then the Invoice and actions then payment section and subsection invoice Cancel Step 2. Check the contract You will see from the contract the status of campaign line which shows the amount available to bill. The cancellation has returned the billing transaction back a stage for adjustments to be made. B. The cancellation removes the billed amount A. From the cancelled invoice, go to the contract and transfers it to the 'Amount to Bill for lines section and click into the contract Scheduled, In Progress, and Ready to Bill' (blue/hyperlink) column. These amounts are now available for adjustment by the project billing specialist.  Step 3. Adjust the amount to Bill on the Billing transaction – Manage Project Billing Task Mgt. Accountant or AR manager can adjust the amount in the manage project billing task; remember impressions can only be updated once the invoice has been generated. B. Click the checkbox on the right to move the transaction to A. Find the customer or campaign from Manage Awaiting Review, allowing you to add a reason for the Project Billing workday Task change (for audit purposes). This will open the amount to bill field, where the quantity is always set to 1. After making your changes, switch the status back to Ready to Bill. It will then be available for the AR team to process. CREDIT & REBILLS B)NEW INVOICE WITH A CREDIT NOTE CREDIT & MiQ Training Overview Guides REBILLS V.4  Step 1) Raise a Credit Adjustment for the full amount The client has requested a full credit note and a new invoice with a revised amounts. To fulfill this request, a credit adjustment for the total amount is necessary. To initiate a credit note, go to the invoice, select the follow-on actions, and choose "Credit Adjustment." This credit adjustment will create a credit note, effectively canceling the invoice and moving the billing transaction back to the manage project billing stage. 1 2 Select "All lines," a full credit note would be issued.  Step 2. Find the credit adjustment The result of issuing a full credit adjustment is the generation of a credit note, and the original invoice is marked as Paid, which removes the balance from the customer’s account. From the original invoice, navigate to the follow-on actions to print the invoice. This will provide the option to print either2the original invoice or the credit adjustment 1 (credit note). Invoice is set to paid 3 Credit adjustment document  Step 3. Print the Credit Note The result of issuing a full credit adjustment is the generation of a credit note, and the original invoice is marked as Paid, which removes the balance from the customer’s account. From the original invoice, navigate to the follow-on actions to print the invoice. This will provide the option to print either the original invoice or the credit adjustment 1Print the(credit creditnote). note 2 Step 4. Confirm the status of billing transaction from the contract You will see from the contract the status of campaign line which shows the amount available to bill like it did with cancelling the invoice. The full credit adjustment has returned the billing transaction back a stage for adjustments to be made. 1 Goto the contract to confirm the billed amount is zero and amount appears in the Amount to Bill/Scheduled/In progress column of the contract line  Step 5. Adjust the amount to Bill on the Billing transaction – Manage Project Billing Task Mgt. Accountant or AR manager can adjust the amount in the manage project billing task; remember impressions can only be updated once the invoice has been generated. B. Click the checkbox on the right to move the transaction to A. Find the customer or campaign from Manage Awaiting Review, allowing you to add a reason for the Project Billing workday Task change (for audit purposes). This will open the amount to bill field, where the quantity is always set to 1. After making your changes, switch the status back to Ready to Bill. It will then be available for the AR team to process  Important considerations to note! Raising a credit adjustment for the full amount or canceling the invoice will place the billing transaction back in the "Ready to Bill" status. At this point, it's important to note that if you copy the original invoice, the billing transaction will remain active, and it could be invoiced again in the next billing run, resulting in a risk of double billing the client! To prevent this, make sure to update the campaign billing transaction accordingly. If you have already copied the original invoice, don't worry—rather than sending another credit note to the client or explaining the mistake, you can move the billing transaction to "DO NOT BILL" in the Manage Project Billing task. However, to ensure a full audit trail linking the lab billing transaction to the invoice, the best practice is to adjust the lab billing transaction in the Manage Project Billing task after you can create a new invoice from the contract. CREDIT & REBILLS C) ADJUSTMENT INVOICE ONLY CREDIT & MiQ Training Overview Guides REBILLS V.4 C. Adjustment Only The customer has agreed to receive a credit note for the difference only, rather than for the full invoice. In this situation, you can issue a credit note for the partial amount without needing to go through the full cancellation or credit adjustment process. Issuing a credit note for the difference keeps the billing transactions unchanged, so they do not revert to the Manage Project Billing stage. Find the invoice and from the follow action to go Credit Adjustment, then select from invoice lines to copy ‘none’ and reason for adjustment Step 1. Create the lines for adjustment Since you didn’t select any lines to copy, the next screen will allow you to add lines to the credit note. If you had selected "All lines," a full credit note would be issued instead.  Important to note when adding lines! By default, the header of the credit adjustment is populated with necessary worktags, such as contract, campaign, and cost center. To ensure that the campaign details appear on the printed credit note, you need to add the ‘campaign’ and ‘contract number’ to the line item, along with the ‘market’ worktag. However, doing so will trigger an error indicating that you cannot have details in both the header and the line item. Therefore, remove the campaign from the header and add it to the project field of the line item. Also, remove the contract number from the header and place it in the contract field (there's no need to include the contract line item). Similarly, add the agency grouping and market worktag by first removing them from the header. Finally, set the revenue category to ‘Programmatic,’ adjust the quantity to 1, and use ‘impressions’ as the unit of measure (note that this is not where the impressions are updated). Then, enter the amount to bill in the extended amount field. As always, the tax data will default from the customer. 1 2 Step 2. Find Customer invoice adjustment and Print You can now navigate to the follow-on actions of the original invoice, where you'll find the option to print. The next screen will give both the credit note adjustment and the original invoice. AGENCY INCORRECTLY MiQ Training Overview Guide BILLED? Overview When an agency is incorrectly billed it requires some additional steps to ensure the contract Bill To client can be changed on the contract. As invoices are generated through the contract, it’s important the correct parent (Bill-To) is associated before you change the contract in Workday Changing the local buy-point/sold to child association to parent will trigger an update to Salesforce to correct the bill-to customer associated to the Local buy-point (sold-to customer). In turn the automation will then update IO in Workday to reflect the right Bill- TO customer. However, this will only work if there is no billed invoices or billing transactions on the contract; in which case, the change of contract can only be done in Workday at this point. Changing the contract bill-to in Workday Summary of steps To update the bill-to information on the contract due to incorrect agency billing, first cancel the current bill or issue a full credit adjustment. Refer to the Credit and Rebill section for guidance. As mentioned earlier, issuing credit notes or full adjustments will revert the campaign to a previous stage, placing the billing transactions from Lab in the Ready To Bill status. Once in Ready to Bill status, change the status of the billing transaction to ‘On HOLD’ Putting campaigns to on-hold will remove the campaigns from the contract line, they will no longer show on the ‘Amount to Bill for Scheduled, In Progress, and Ready to Bill’ column of the contract You're almost there! The final step is to cancel the billing schedule associated with the line. This will enable you to change the bill- to customer directly from the follow-on actions in the contract. Please note: instead of using "Amend Contract," select "Change Contract." After updating the bill-to customer, return to the Manage Project Billing transaction task to move the campaign from On-Hold back to Ready to Bill. This action will automatically recreate the billing schedule for the campaign line. Once you've completed this, you can proceed to create the customer invoice from the contract to re-bill the customer. Keep in mind that these steps can only be performed by the AR team and AR manager, who have the necessary access to change the contract. There’s no need for support from the market management accountant to approve these changes, as billing transaction amounts aren’t being modified.  Step 2 After Cancel or full credit, move the billing transaction to On-HOLD From the manage project billing task, find the customer and campaign for the IO move this to a status of ON-HOLD 1. Find the campaigns to put on 3. Move to On-Hold status hold, search by customer 2. Filter the bill Trans by IO This will move all billing transaction out of the contract, required to ensure you can Step 3 Cancel the billing schedule on the contract lines Go to the contract to usage lines and find billing schedule to cancel. If you hover to the right of the billing schedule You see three dots to lead you to billing schedule Follow on action. Next, select the option to Cancel Do that for all the lines of the IO After this, the IO has no dependencies, so the contract can be  Step 4: Change the Bill-To From the contract follow on actions, choose the contract change follow on action 1. From the contract follow on actions, go contract change 2. The Bill To is now available for you change  Step 5: Move Billing Transactions back to Ready To Bill From the contract follow on actions, choose the contract change follow on action 1. Go-To manage Project Billing search by the new Bill-To Customer and Change the Status to Ready to Bill 2. The contract now has amounts Ready To Bill for the AR team to invoice BILLED WITH MiQ Training Overview Guide WRONG TAX  Overview The client or account manager has identified an error in the tax on the invoice. To resolve this, we need to review the contract lines in Workday, as this is where the tax code is generated and applied to the customer invoice. The incorrect tax code is likely due to incorrect tax defaults set for the customer (sold-to/local buy-point). The appropriate tax code is derived from the Sold-To customer associated with the contract (IO) line. To address this issue, the first step is to either cancel the invoice or issue a full credit adjustment. Next, navigate to the contract and select the follow-on action to amend the contract. Since the contract already has tax defaults established, go to the contract line, access the additional data, and update the tax information, including the tax code and tax applicability code. Repeat this process for each line that has incorrect tax settings. Once completed, you should be able to invoice the customer again using the "Create Customer Invoice from Contracts" option, ensuring the correct tax defaults are applied to the invoice. While this resolves the issue for this specific IO/Workday contract, we also need to implement measures to prevent similar occurrences in the future by updating the tax information on Bill-To & Sold-To (LBP) customer  Step 2) Change the Contract Line Tax data After cancelling the invoice, then navigate to the IO in Workday to amend the contract line tax defaults. 2. Then select the Usage-based section & additional info. from the sub-section. 1. Select the Amend Contract follow on actions Step 2)Change the contract line tax data Amend the lines with incorrect tax defaults. Update the tax code and tax applicability Once corrected, you can now bill the client agai 1. Update the tax code Using ‘create customer invoice from contract’ ta 2. Update the tax applicability  Step 3)Correct tax defaults on the Bill-To and Sold-To customer record To avoid this in future update the tax information on the customer master record, both on sold to and bill to. The “customer connection 1. Navigate to the customer record and check the connection map is present map” can be found in the “Address and Contacts” section of the customer master record. Make sure this is populated; if it’s not, start by adding an address in the ‘Contact Info’ section. Once you do this, you’ll be able to update the connection map. After entering the ship-to customer information, ensure that the ship-toby Key Fact: The address connection map in Workday plays a significant role in tax defaulting address ensuringis set as the default.the that the correct tax information is associated with customer addresses. The map determines applicable tax jurisdiction based on the customers billing and ship address  Step 3)Correct tax defaults on the Bill-To & Sold-To customer record The default tax code is not being used to determine the tax code. Now check for the tax status Instead, we set up tax rules that utilize the connection map and the 1. Navigate to the Tax sub section from Overview section customer’s tax status. If the tax status is blank, click "Edit" and add the tax status in the second selection option. Be sure to include the country and the transaction tax status. In all cases, select "Customer of Services"— either "VAT/GST Registered in Country" or "Not Registered." CREDIT ADJUSTMENTS TO MiQ Training Overview Guide SAP MIGRATED OPEN AR ITEMS MANAGE PROJECT MiQ Training Overview Guide BILLING Workday Integration for Lab Billing Transactions: Purpose: - Lab billing transactions are transmitted to Workday at month-end. - These transactions serve as records of revenue and essential campaign data. - The billing transaction data in Workday facilitate accurate campaign billing. Billing Transaction States: Before a campaign is billed, its transactions can be in one of two states as they are pushed from Lab: a) Awaiting Review b) Ready to Bill Trader Actions in Lab: Traders can close campaigns in the lab using two methods: a) "Closed Only" - This status corresponds to the "Awaiting Review" state in Workday b) "Closed and Invoiced" - This status indicates that the campaign is "Ready to Bill" in Workday. Manage project billing task Project Billing Specialist can make amendments to billing transactions in two states (Awaiting Review/Ready to Bill) - Amendments are performed using the Workday task: "Manage Project Billing Transactions" Campaign Structure in Workday: - Campaigns are categorized as projects within Workday - Each campaign is associated with a Project Hierarchy - Project Hierarchies are market-specific (e.g., Programmatic India) This structure allows for efficient management and organization of billing transactions across different markets and campaigns within the Workday system. Manage project billing task 1. Search for Manage project Billing Transactions in workday 2. Select the market specific Programmatic hierarchy e.g Programmatic projects IND By selecting the top-level hierarchy, workday will pull in all the campaigns for the market. Equally, you can select the specific campaign /project or by customer Manage project billing task Searching and Understanding Billing Transactions in Workday: Initial Selection Screen: - You can refine your search using the transaction date filter. Transaction Date vs. Invoice/Accounting Date: - Important: The transaction date is distinct from the invoice or accounting date. Lab Integration Process: - The lab integration imports data on a period basis. - It assigns a transaction date to each record. - This assigned date is always the last day of the month for the given period. Example: - For Period 9 (September): - All billing transactions will be recorded in Workday with a transaction date of September 30th. - This applies regardless of when the actual campaign activity occurred within the month. Manage project billing task Important Steps for Transaction Review: 1. Review Transactions by Source: - Ensure this option is selected. 2. Review Transactions in Detail: - Confirm that this option is also selected. By flagging both options, you ensure a comprehensive examination of the data from both a source perspective and at a detailed level. Review Billing Transactions The next screen shows the billing lines by campaign and the status. You can now amend the amount to bill and also select to change the status. The options for status are DO NOT BILL, ON-HOLD, Awaiting Review and Ready to Bill Click on the column The On-HOLD and DO NOT Bill remove the To further filter by customer or project/campaign billing transaction from the contract line, no longer appearing as scheduled to bill, in progress amount. Awaiting Review transactions are flagged to allow for changes to be made and will be indicated on the trader GSheet. Awaiting review transactions won’t appear as lines to bill when the AR team ‘ Create customer Invoice from contracts Task’ Review By Status – Do Not Bill or On HOLD When you select "Do Not Bill," the transactions will be removed from the list. To review them again or Second search option change their status, you can use the search option located at the top left of the review screen. This second search option, then provide a list statuses you can select from. Review By Status – Do Not Bill or On HOLD Select the additional statuses of Do Not Bill or On HOLD