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Enhanced efficiencies handling project-related purchase invoices

Written by Remco Kroes on . Posted in Exact Online

Last year, we introduced the option to ‘pass-through’ a purchase invoice on to your customer in Exact Online Professional Services. This pricing method takes the purchase invoice as a base and calculates the sales invoice amount by adding a mark-up to the purchase costs.

For example, let’s assume your company frequently uses suppliers or subcontractors on your projects. Let’s further assume that you typically charge your customer a 15% mark-up percentage on purchases made. If a supplier invoice is booked against this project (e.g. 100 euro) in the purchase module, Exact Online can automatically create a sales invoice proposal (e.g. 115 euro) based on the mark-up percentage. Per supplier invoice you can easily track whether purchases were re-billed to your customer and the current status of a sales invoice. Saving time, preventing revenue leakage and providing visibility on project costs and margins.

purchase2 What’s new?

We’ve added new restrictions on the project card to further enhance efficiencies in handling purchase invoices.

Now you can specify per project which purchase-invoice related cost types are allowed. A project manager can now set purchase re-billing restrictions per project, and F&A (or those responsible for handling supplier invoices) do not need to worry if re-billing is allowed. This will prevent incorrect generated sales invoice entries and provides more clarity to all involved.

purchase invoice

Comments (3)

  • Sebastiaan Barlo

    |

    Hi there Remco,

    Do you have any plans in passing through purchased hours or goods based on your own sales price of project rate?

    When you price a project for a customer you initially price it based on your own cost and sales price.
    If you hire a sub contractor for a job you’ll pass them through to a customer based on your own hourly sales rate or project sales rate and not really a fixed percentage on top of their purchase rate.
    That’s also possible, but less plausible.

    So for example if your hourly sales rate of consultancy is 100 euros an hour you want to sell any sub contractor for that rate as well.
    If you hire different contractors with different rates for a project than a fixed percentage doesn’t work.
    This might also be applicable to “goods” purchased for a project. You might want to pass it through based on the costs or you want to pass it through based on your own sales price.

    So ideally you would like to be able to set a price for passing through based on the sales price/project rate or a percentage.

    Thanks in advance,

    Sebastiaan Barlo

    Reply

    • Remco Kroes

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      Hi Sebastiaan,

      Thank you for your valuable feedback! You are able to override the suggested sales price based on mark-up % by adjusting the sales rate in the invoice proposal. Alternatively, you can have your subcontractors track time against the project and invoice accordingly; you can track the supplier invoice against the project to monitor margins. The subcontractor, as a timesheet user, cannot see your sales rates and using this scenario you can invoice your client before receiving the supplier invoice.

      Regards,
      Remco

      Reply

  • Sebastiaan Barlo

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    Hi there Remco,

    I’m aware of the several work arounds. Thanks for pointing them out for other users.
    So, I can draw the conclusion that there are no plans yet for implementing the requested functionalites…:-)

    Thanks,

    Sebastiaan.

    Reply

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