Was this page helpful?
Thank you!

Comments or suggestions?

Enter Email Address (optional)

Creating a fixed price invoice

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 complete
30% of contract due when final flooring is complete
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.

To create a new fixed fee billing item

  1. Go to the Lists menu and click Item List.

  2. Click Item at the bottom of the list and click New.

  3. Click the Type drop-down list and choose Service.

  4. In the Item Name/Number field, type "FF Billing" (for Fixed Fee Billing).

  5. 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 bank.

  6. Click the Account drop-down list arrow and choose an Income account. To add a new Income account, such as Construction Income, choose .

  7. Click OK.

To create the fixed price invoice

  1. Go to the Customers menu and click Create Invoices.

  2. Click the Customer:Job drop-down list and choose the customer.

  3. In the Class field, select Revenue — Job Related.

    If this column is hidden, turn on class tracking.

  4. In the Item field, select FF Billing.

  5. In the Quantity field, enter 1.

  6. Modify the Description field to whatever is appropriate for this invoice, for example, "30% of contract due when material is delivered to job site."

  7. In the Rate field, type the amount currently due for this billing.

    The Amount field will automatically be calculated.

  8. 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.

  9. 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.

  10. Click OK.

11/18/2017 5:45:18 AM
PPRDQSSWS901 9142 Pro 2018 5331e5