Shipment Based Invoicing for Project Orders

Invoicing is based upon using the ‘OE’ or ‘Shipment’ method. When an order is being invoiced, using this option, the ‘items’ may not be invoiced until the Order Fulfillment process has been completed.

Processing Step	Journal Entry	Comments/Notes	Module
Enter the order in Sales Order Entry
Deposit Process:
● Users may add a Deposit Code to the order in OE (Bill/Ship tab – Deposit button)		Deposits may be either dollar or percentage based May be required if the box ‘Deposit Req’d to Process’ is checked on the Customer Location record
● Generate the Deposit invoice
● Print the Deposit invoice
● Update the Deposit invoice	DR Accts Rec CR Unearned Rev		AR
● Process Cash Receipt for Deposit payment
● Update Cash Receipts	DR Cash CR Accts Rec		AR
● Release the order from “hold” status by selecting Approve Deposit Hold Orders and entering the “Deposit Rec’d Amount”		If the ‘Deposit Req’d to Process’ box was checked, the order may need to be released. If this box is not checked, this step is not necessary.
Confirm the Sales Order		Khameleon generates necessary Purchase Orders.
Print PO’s
Receiving - For Orders coming into dealer warehouse:
● Receive against the PO
● Update Receipts	DR Inventory CR AP Accrual DR Cost WIP CR Inventory	During the receipt process, the ‘Auto-back order fill’ checkbox initiates the second set of entries to move the dollars from Inventory to Cost WIP. This happens by default.	PO IM
Order Fulfillment Process:
● Select Orders to Process
● Print Picking Ticket (optional)		Normally done for items that are pulled from Inventory vs. those ordered on a PO
● Pick items that are coming from Inventory		See the ‘Confirm’ process below for Inventory Journal Entries
● Print Delivery Ticket
● Confirm Delivery	DR Cost WIP CR Inventory	Note: This entry is made for only those items that were pulled from Inventory	IM
Receiving - For Drop Ship Orders:
● Receive Drop Shipments	DR COGS CR AP Accrual DR Cost WIP CR COGS		PO
● Confirm Shipments		Note: the Order Fulfillment process above is not required for Drop Ship Purchase Orders
Process AP Invoice:		Based upon settings in the Accounts Payable Module Control record, Khameleon allows Vendor Invoices to be processed either before or after Receipt
After Receipt of Purchase Order
● Process AP Invoice	DR AP Accrual CR AP Trade	Khameleon processes on an Accrual basis. When PO’s are received, Khameleon accrues for purchases, based upon the estimated PO cost.	AP
● If Vendor invoice price is different than the PO, and the invoice is correct, make corrections to the appropriate line	DR Cost WIP CR AP Trade OR DR AP Trade CR Cost WIP (Depending on if the invoice is adjusted up or down from the PO).		AP
Before Receipt of Purchase Order
● Process AP Invoice	DR AP Accrual CR AP Trade	If processed prior to receipt, Khameleon uses the estimated cost from the Purchase Order to create this entry.
● If Vendor invoice price is different than the PO, and the invoice is correct, make corrections to the appropriate line		Khameleon will automatically update the Sales Order and Purchase Order cost amounts. Note: After this point, changes to cost amounts are not allowed. Changes may be made using a manual sub-ledgered entry to WIP as part of a Voucher.
● AP Invoice Payment	DR AP Trade CR Cash		AP
Time and Expense entry:
● Installers track their time by project and job
● Installers / Project Managers incur Misc. Expenses to be charged to the Project / Job
● Enter time and expenses in the Project Accounting module
● Update time and expenses	DR Cost WIP CR Labor Offset Acct (employee's home dept.)	This entry is made only for time and expenses entered against activities that are tied to the Order line. See Time and Expense entry notes below.	PA
Customer Invoicing:
● Generate Customer Invoice
● Review and Consolidate Invoices
● Update Invoices	For Deposit Amount: DR Unearned Revenue CR Accts Rec For Amount of Order lines: DR Accts Rec CR Revenue		AR
Clear Cost WIP:
● Clear Costs		The costs in WIP associated with an order line item being invoiced are set to clear automatically.
● Update Clear Costs	DR COGS CR Cost WIP	This batch may be automatically updated based upon the PA Control setting to ‘Auto Post Clear Cost WIP batches’.	PA
Apply Cash	DR Cash CR Accts Rec		AR