A fixed price invoice means that, except for change orders, you agree to
complete a job as specified in the plans and contract documents for an agreed
amount. You assume the entire risk if the job goes over budget, but you also
have the opportunity to exceed your estimated profit if you can bring the job
in under the contract amount.
If your company is a contracting business that bills on a fixed fee, then
you will bill the customer a certain percentage based on the total
contract amount. For example, your contract may state that you are able to bill
the customer as follows:
30% of contract due when material
is delivered to job site
30% of contract due when rough frame is
30% of contract due when final flooring is
10% of contract due when owner signs off on
final punch list
To make an invoice for this type of contract, you first need to create a new
item for fixed fee billing.
Go to the Lists menu and click Item List.
Click Item at the bottom of the list and click New.
Click the Type drop-down list and choose Service.
In the Item Name/Number field, type "FF Billing" (for Fixed Fee
In the Description field, type "fixed fee billing" or whatever
generic description you like. This description will automatically fill in on
the invoice or draw when the item is used. This description can later be
modified or completed by the person who creates the invoice to the customer or
Click the Account drop-down list arrow and choose an Income account. To add a new Income account, such as Construction Income, choose .
Go to the Customers menu and click Create Invoices.
Click the Customer:Job drop-down list and choose the customer.
In the Class field, select Revenue — Job Related.
If this column is hidden, turn on class tracking.
In the Item field, select FF Billing.
In the Quantity field, enter 1.
Modify the Description field to whatever is appropriate for this invoice,
for example, "30% of contract due when material is delivered to job
In the Rate field, type the amount currently due for this billing.
The Amount field will automatically be calculated.
Click Print at the top of the list and then click Preview to see how
the invoice will look when it is printed. The printed version of an invoice
looks different than the screen version.
Click Print. Make sure everything looks accurate and print the invoice
again. Send one copy to the customer and put the other copy in your customer's file.