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Partial Invoices

← About Invoices

Certain business use cases, like projects or services that extend over a large period of time, require merchants or suppliers to distribute the corresponding payment requests over multiple invoices. To this end, JustOn Billing & Invoice Management allows for creating partial invoices.

Understanding Partial Invoices

Businesses issue partial invoices after particular, tangible portions of a larger project are completed. The amount of a partial invoice covers the exact value of the involved goods or rendered service. That is, a partial invoice is usually issued after the partial delivery. The applicable taxes usually become due once the partial invoice is issued.

Once the complete project is finished, the business issues the final invoice. This invoice summarizes all deliverables of the entire project as well as all related partial invoices and the received payments.

Partial Invoices in JustOn

JustOn Billing & Invoice Management implements partial invoices using the sub invoice type Partial. The related functionality is available when billing arbitrary objects, but not for subscription billing.

The partial invoice is subject to the usual invoice proceedings and business processes, including

Info

The support for partial invoices and the related final invoices in JustOn Billing & Invoice Management is primarily designed to comply with German legal provisions.

Implementation Details

Basically, the creation of a partial invoice is controlled using the ON field ON_Type on the invoice source object. It defines the type of the produced invoice. If this field is set to Partial, JustOn generates a partial invoice.

In addition, partial invoices that relate to one project must hold the same sub invoice assignment key. Using this key, JustOn Billing & Invoice Management associates the partial invoices to the related final invoice. To support this association, the invoice source object must also set the ON field ON_SubInvoiceAssignmentKey.

Implementation constraints

The PDF output of partial invoices and final invoices (as outlined below) is supported with Liquid templates.

Workflow

The following sections describe how to work with partial invoices, outlining their behavior and life cycle.

Partial Invoice Creation

Using a properly configured generic invoice run, JustOn Billing & Invoice Management generates a partial invoice if the field ON_Type on the invoice source record is set to Partial.

There is no restriction on how many partial invoices you create to be summarizes with one final invoice – this solely depends on the "project portions" you intend to bill separately. As long as the involved partial invoices include the same sub invoice assignment key, they will relate to the same final invoice. This key is usually passed from the ON field ON_SubInvoiceAssignmentKey on the invoice source record.

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Creating partial invoices

Partial invoice creation restrictions

  • You must create all relevant partial invoices before creating the final invoice. It is not possible to add a new partial invoice to an existing final invoice, even if the final invoice is still Draft.
  • It is not possible to change the sub invoice assignment key of a partial invoice once it is associated to a final invoice, even if the final invoice is still Draft.

Final Invoice Creation

Using a (second) properly configured generic invoice run, JustOn Billing & Invoice Management generates the final invoice if the field ON_Type on the invoice source record is set to Final. Using the sub invoice assignment key (as passed from the ON field ON_SubInvoiceAssignmentKey on the invoice source record), the software will relate all previously created (and finalized) partial invoices with the same key.

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Creating the final invoice for multiple partial invoices

Typically, the final invoice summarizes all deliverables of the entire project. If configured accordingly, the relevant invoice run consequently includes all source records as processed by the related partial invoices, producing the same invoice line items. It may, however, involve other invoice line items as well. This way, the final invoice will charge the exact amount of the project.

Any payments made for the related partial invoices are included as specific invoice line items of the type Sub Invoice. They will reduce the final invoice's grand total, producing a remaining amount left to pay. Consequently, the remaining amount will be the calculation basis for all subsequent processes, including

The following example invoice explains the final invoice calculation:

Pos. Title Tax Rate Tax Amount Pos Price Net Description
1 Catering: Food 7% 140,00 2000,00 reduced tax, not covered with partial invoice
2 Catering: Service 19% 285,00 1500,00 regular tax, covered with partial invoice
3 Location 19% 190,00 1000,00 regular tax, covered with partial invoice
Subtotal Net 4500,00 sum of Pos Price Net
Tax 19% 475,00 sum of Tax Amount for regular tax
Tax 7% 140,00 sum of Tax Amount for reduced tax
Grand Total 5115,00 sum of Subtotal Net and tax lines
Received Payments
Status Type Grand Total Gross Payment
Issued sub invoice #1 Paid Partial 1190,00 -1190,00 received (gross) payment for partial invoice #1 for pos. 3 (Location)
Tax 19% -190,00 tax on partial invoice #1
Issued sub invoice #2 Paid Partial 1785,00 -1785,00 received (gross) payment for partial invoice #2 for pos. 2 (Service)
Tax 19% -285,00 tax on partial invoice #2
Sub invoice payments -2975,00 sum of received sub invoice payments
Outstanding
Subtotal Net 2000,00 difference between final invoice Subtotal Net and the net sum of received payments
Tax 7% 140,00 difference between final invoice tax and received payment tax
Payment Amount 2140,00 sum of Grand Total and received sub invoice payments

Final invoice calculation specifics

  • If there is no payment registered for an issued sub invoice, the software will not create a sub invoice line for this particular sub invoice.
  • If there is a partial payment registered for an issued sub invoice, the sub invoice's positions with the highest tax rate are settled first. The remaining amount of the partial payment will then be applied to the invoice line items with the lower tax rate(s). If there is no remaining payment amount for a tax rate, this tax rate will appear as a sub invoice position with the amount 0.

Some use cases may require to recreate the final invoice, for example:

  • A certain event in the invoiced project requires to issue a new or cancel an existing partial invoice.
  • A customer makes a payment for a partial invoice after the final invoice has been created.

If the final invoice is not yet finalized (status Draft), you can simply delete the invoice and recreate it. If the final invoice is already finalized (status Open), you must cancel the invoice, and then create a new final invoice or clone the canceled final invoice. When cloning a final invoice, JustOn Billing & Invoice Management copies the type and the sub invoice assignment key from the original invoice and assigns the related sub invoices to the cloned invoice.

Bookkeeping Data

JustOn Billing & Invoice Management creates booking details for revenue with each issued partial invoice. This corresponds to the assumption that the partial invoice covers a delivered portion of a larger project – that is, after the particular revenue has been realized (see Understanding Partial Invoices).

Info

JustOn Billing & Invoice Management produces booking details that are designed for double-entry bookkeeping. This is why each business transaction always involves debit bookings and credit bookings to opposite accounts.

The following example illustrates the creation of the related booking details. It uses the following booking accounts:

Account name Account no. (SKR 03)
Bank 1200
Revenue 8400
Taxes 1776
Debtor 12345
(1) First partial invoice: grand total 30,00, tax rate 19%

Expected postings

Posting Debit to account Credit to account Amount
1 Debtor (12345) Revenues (8400) 25,21
2 Debtor (12345) Taxes (1776) 4,79

Produced booking details

# Amount Debit/Credit Flag Booking Account Contra Booking Account
1 25,21 H 8400 12345
2 4,79 H 1776 12345
(2) Payment receipt (first partial invoice)

Expected posting

Posting Debit to account Credit to account Amount
3 Bank (1200) Debtor (12345) 30,00

Produced booking detail

# Amount Debit/Credit Flag Booking Account Contra Booking Account
3 30,00 S 1200 12345
(3) Second partial invoice: grand total 40,00, tax rate 19%

Expected postings

Posting Debit to account Credit to account Amount
4 Debtor (12345) Revenues (8400) 33.61
5 Debtor (12345) Taxes (1776) 6.39

Produced booking details

# Amount Debit/Credit Flag Booking Account Contra Booking Account
4 33.61 H 8400 12345
5 6.39 H 1776 12345
(4) Payment receipt (second partial invoice)

Expected posting

Posting Debit to account Credit to account Amount
6 Bank (1200) Debtor (12345) 40,00

Produced booking detail

# Amount Debit/Credit Flag Booking Account Contra Booking Account
6 40,00 S 1200 12345
(5) Final invoice: grand total 100,00, tax rate 19%, received payments 70,00

Expected postings (difference between final invoice grand total and received payments)

Posting Debit to account Credit to account Amount
7 Debtor (12345) Revenues (8400) 25,21
8 Debtor (12345) Taxes (1776) 4,79

Produced booking details

# Amount Debit/Credit Flag Booking Account Contra Booking Account
7 25,21 H 8400 12345
8 4,79 H 1776 12345
(4) Payment receipt (final invoice)

Expected posting

Posting Debit to account Credit to account Amount
9 Bank (1200) Debtor (12345) 30,00

Produced booking detail

# Amount Debit/Credit Flag Booking Account Contra Booking Account
9 30,00 S 1200 12345

With respect to the booking accounts, the following postings will be recorded:

12345 Debtor
Posting Debit Credit
1 25,21
2 4,79
3 30,00
4 33,61
5 6,39
6 40,00
7 25,21
8 4,79
9 30,00
1200 Bank
Posting Debit Credit
3 30,00
6 40,00
9 30,00
8400 Revenues
Posting Debit Credit
1 25,21
4 33,61
7 25,21
1776 Taxes
Posting Debit Credit
2 4,79
5 6,39
8 4,79
Chart of accounts
Posting 12345
Debit		 Debtor
Credit		 1200
Debit		 Bank
Credit		 8400
Debit		 Revenues
Credit		 1776
Debit		 Taxes
Credit
1 25,21 25,21
2 4,79 4,79
3 30,00 30,00
4 33,61 33,61
5 6,39 6,39
6 40,00 40,00
7 25,21 25,21
8 4,79 4,79
9 30,00 30,00

The accounting balance after these transactions would look like this:

Assets Liabilities
Bank 100,00 Equity (earnings) 84,03
Debtor 0,00 Payable taxes 15,97