deltek insight 2012: employee realization and enhanced billing features in vision 7.0

Employee Realization and Enhanced Billing Features in Vision 7.0

Deb Eastberg, Senior Designer, DeltekMike Klaus, Product Director, DeltekPS-18

©2012 Deltek, Inc. All Rights Reserved2

Agenda

Fee Allocation: How can I see accurate income on my financials? How can I see correct JTD Billings on my WBS levels on Project

Reports? Is there a way I can establish where I want income to post on fee

amounts?

Employee Realization: I want to see how much income my employee has generated. Do I have employees that generate more income or who’s hours are

worth more than other employees?

Credit Memos


Fee Income

General information and Billing Category Option


Fee Allocation: Why Do This?

On Fixed Fee jobs: You want to be able to match up income and expenses on

financials (I paid $10,000 in consultant expenses, I better have $11,000 in consultant income).

More accurate alignment of billed values on project reports (Labor, Direct Consultants, Direct Expenses)

More accurate distribution of income to Phases and Tasks

How does Vision do this? Vision lets you manually control the allocation Vision allocates based on time and expense detail


Enable Entry of Fee by Billing Category


Default Categories


If Using Revenue Categories


Billings by Configuration Revenue Categories


Income Using Billing Category

What’s different?Fee Income is posted:

To GL Accounts as determined in Configuration By Dollar amount assignments made in Billing Terms.

What’s the same?Fee Income is posted to the first Phase\Task (WBS1\WBS2).

Invoice formats are not affected.


Fee Income Allocation

Based on Transaction Detail

11 ©2012 Deltek, Inc. All Rights Reserved

Allocation Based on Transaction Detail (Billing or Cost)


Fee Allocation


Without Allocation by Transaction Detail

Full amount went to one Fee account

Full amount went to first Phase\Task (WBS2\WBS3) on the project.


Fee Revenue Allocation: $3,000 Invoice

Labor: Account 400.00

Name Hours Cost Bill Value

Tom 5 100 200

Dick 3 40 100

Harry 1 25 75

9 $165 $375

Consultant: Account 400.01

ABC Vendor $1000 $1100

Expenses: Account 400.02

$500 $550

Total $1665 $2025

Over\Under Account 1111


Income Allocation Based on Bill Value

Consultant Revenue

Expense Revenue

Labor Revenue

Over\Under Account


Income Allocation Based on Cost

Consultant Revenue

Expense Revenue

Labor Revenue

Over\Under Account


Project Detail with Multiple Phases\Tasks

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With Allocation by Transaction Detail


Income Allocation Based on Transaction Detail

What’s different?Fee Income is posted:

To GL Accounts as determined in Configuration\Billing Terms

By percentage of Cost or Billing. To the Work Breakdown Structure of the time and expense

records.

What’s the same?Invoice formats are not affected.


Straw Poll!

How many would use one of the new Fee Allocation features? Billing Category? Transaction Detail?


Employee Realization

General Information


Employee Realization: Why Do This?

Ability to see actual billed amounts by employee (rather than potential bill value)

Ability to see a “profitability” by employee

Some companies use the realization amounts or realization hours when calculating bonuses.

Vision allows you to Allocate Realization: When Invoicing Manually, By Period


What Revenue Will Be Assigned as Realization?

Vision allows you to assign specific revenue accounts to use for employee realization (Labor Income, Over\Under Account)

These revenue amounts are applied to billed time records based on Hours, Cost or Bill value.

Units can now be assigned to an employee. The unit’s bill value will be employee specific income.


How Does This Affect the GL?

It doesn’t!

This feature is for Employee reporting purposes only such as: Labor Detail Time Analysis

After the feature is enabled new time records will have default Realization Amount = Billing extension

Time records posted prior to enabling the feature will have Realization Amounts = 0.00


Configuration\Accounting\System\ Reporting

Only accounts assigned here will be used to allocate realization to time records.

Select method (Billing, Cost or Hours) and frequency.


Employee Realization

Examples of allocation calculations


Fee Revenue Allocation

Labor:

Name Hours Cost Bill Value

Tom 5 100 200

Dick 3 40 100

Harry 1 25 75

9 165 375

Consultant

ABC Vendor 1000 1100

Expenses 500 550


Fee Income Allocated by Cost (Income Allocation Feature)

Account 400.00 is included in Allocation accounts list so Realization will be 164.99.

If the Over\Under account were also included in account list the amount to be allocated would be $1,335.01 + 164.99 = 1,500.00

Consultant Revenue

Expense Revenue

Labor Revenue

Over\Under Account


Realization Allocated by Billing Value

Realization Amount to be distributed = 164.99

Total Billing value = 374.99

% of Bill value Realization Amount

99.99/374.99 = 26.66% 26.66% * 164.99 = 43.99

75/374.99 = 20.00% 20% * 164.99 = 33.00

200/374.99 = 53.34% 53.34 * 164.99 = 88.00


Realization Allocated by Cost Value


Total Cost = 164.99

% of Cost Realization Amount

39.99/164.99 = 24.23% 24.23% * 164.99 = 39.99

25/164.99 = 15.15% 15.15% * 164.99 = 25.00

100/164.99 = 60.60% 60.60% * 164.99 = 100.00


Realization Allocated by Hours


Total Hours = 9.0

% of Hours Realization Amount

3/9 = 33.33% 33.33% * 164.99 = 55.00

1/9 = 11.11% 11.11% * 164.99= 18.33

5/9 = 55.55% 55.55% * 164.99 = 91.66

Note: Hours shown are rounded, but allocation is done based on actual hours.


Realization Allocation By Invoice

When Realization Allocation occurs By Invoice:

The income from the invoice is allocated to the records billed against the invoice.

The process will occur automatically, even when using Batch Billing, or if the billing clerk does not have rights to Realization Allocation.


Employee Realization By Period

This option looks at revenue (based on Allocation Accounts from Configuration) for the accounting periods.

Time and Expenses that were posted in the period(s) that have been BILLED (regardless of billing period)


Realization Amounts can be Manually Changed (By Invoice or By Period) as Long as Total Realization = Invoice Total


Employee Specific Units


When Would You Need Employee Specific Units?

Time and Material billing

You must invoice your clients for Units such as: Lab Tests Expert Testimony Travel Day On Site

You cannot also bill for the employee hours.

You want the realization for these units to be applied to a specific employee.


Employee Specific Units

Units can be “employee specific” if using the Realization Allocation feature.

The employee receives the bill value for that unit.


Employee Specific Revenue

Employee Specific Revenue Units must use a Revenue account listed within Configuration.


Unit Transaction Entry

Employee Specific Units must be assigned to an employee (Transaction Center, Units on Time Sheets or Interactive Billing Unit Inserts)


Interactive Billing: Delete Lab Test Time Records So They Will Not Show Up on the Invoice


Phase 02\Task 0XYZ


Phase A000\Task 0XYZ

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Phase A000\Task T000


Realization Allocation and Units

When Realization Allocation occurs the realization is removed from the Units assigned to the employee and applied to time records for the employee.

If no time records exist for the employee during Realization Allocation the unit will maintain its realization.

Based on billing


Realization Allocation

Note that the Realization for phase 02\Task 0XYZ is dividing up the $200 labor based on percentage of bill value. Options:

1. Override the amounts in this screen

2. Enter time records to “Testing” project and Units to billable project.

3. Write off the labor records or use a non billable Labor Code. The hours will have zero realization but the unit realization will stay with the employee.

Based on billing


Written Off Records

When using BY INVOICE in configuration written off records are set to zero realization when Invoiced (Final Written Off status X).

When using BY PERIOD in configuration the written off records are set to zero realization when the BY PERIOD process is run (Final Written Off status X).


Reports


Realization and Reports

Labor Detail: Realization Column and Employee Specific Units

Accounts Receivable\Invoice Transaction Detail

Unit Detail: Employee Information and Unit Type

Time Analysis: Realization, Hours and Ratios


Employee Labor Detail

Employee Labor Detail shows employee specific Units and has a new column option for Realization Amount.


Employee Labor Detail When Units Billed

During the Realization Allocation process realization is removed from the Units assigned to the employee and applied to time records. Since the units have no hours, no cost and no realization they are not displayed.

If no time records exist during realization allocation the unit will maintain its Realization and will continue to display on this report.


New Accounts Receivable Report


Invoice Transaction Detail

Use this report as: Billed time and expense report To see Realization amounts for each invoice To review fee income allocation


New Report: Unit Detail

Use the options to see: Units by Employee Units by Project Units by Unit Type Units by Time Frame Unposted units included Final Totals


New Columns on Time Analysis

Realization Amount will include inserted records from Interactive Billing, values from Employee Specific Units, and expected Realization from unbilled records.

Realization Hours is calculated as Realization Amount divided by Provisional Billing Rate (from Employee Info Center)

New Ratios exist that use Realization Hours


Realization Hours on Time Analysis

Worked 15 hours.

Realization is $3,000

Provisional Bill Rate is $150.00

Realization Hours =3,000/150

20 Realization Hours

.


Credit Memos

New Vision 7.0 Feature


Why Create a Credit Memo?

You want or need to:

Provide the client with a document showing a full or partial reduction of a previous invoice.

See credit memos as a separate transaction on reports (not an invoice adjustment).

Reprint the credit memo at a later time.

Add AR Comments to the credit memo transaction as you would other invoices.


Credit Template

Create a credit memo template based on your Invoice Template and assign it in Billing Terms.

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Credit Memos

Can only be created through Interactive Billing\Invoices on File

Select the invoice

Select the Credit Memo option


Invoice Number of Credit Memo

If you allow changes to invoice numbers….

You can assign the invoice number (including alpha characters) during creating of the credit memo.


Invoice Credit Dialog


Credit Memo Report


Credit Memos and Realization — By Invoice


Credit Memos and Realization — By Period

Credit Memos posted within the Range of Account Periods will reduce the income available for realization allocation.


Credit Memo is Different than Voiding

Credit memos: Will not unflag time and expenses as billed. Can be for the full or partial amount of the invoice. Prints out a Credit Memo document to send to the customer. Can reduce realization amounts. Show as separate transactions on reports and Project Review


Voiding an Invoice

Voiding an Invoice:

Will reverse the full amount of the invoice.

Will unflag billed records and will revert Deleted and Written off records from:

Final Deleted (O) to Deleted (D) Final Written off (X) Written Off (W)

Will NOT reset realization amounts on time records. The realization amounts will be recalculated when the records are Final Billed again and:

The next final invoice process occurs (BY INVOICE) The Realization process is run manually (BY PERIOD)

67 ©2012 Deltek, Inc. All Rights Reserved

New Billing Features Fee Income Allocation By Billing Category By Transaction Detail Credit Memos

Employee Realization Realization Allocation methods Employee Specific Units Reports

Summary

Deb Eastberg

[email protected]

Mike Klaus

[email protected]

Questions?

deltek insight 2012: employee realization and enhanced billing features in vision 7.0

Technology

consultant income

fee revenue allocation

accurate income

fee allocation122012

fee income allocationbased

cost112012 deltek

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fee account