- 7. Proposals
7.12. Proposals Direct Bill - 7.11. Ledger Tab
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7.12. Proposals Direct Bill
Direct Bill proposals are proposals where you need to invoice a vendor, or multiple vendors, for a dealer commission or dealer service fee and the vendor(s) will invoice your customer directly. Typically you will not be invoicing your customer for the product. You are not technically buying the product from the vendor(s) but you are the dealership on record for carrying the sale. Your sales numbers will reflect the total sales. You can invoice your customer for product on a Direct bill proposal and invoice the vendors for your commissions. You also have the option of invoice the vendors for the full sell price of Products or Services that the vendor does not provide. You will typically invoice the vendor for Installation services that you provide so you need to invoice for the full sell price of that service.
You do not have to create multiple proposals to be able to invoice each vendor. You can include all your product on a single proposal.
Direct Bill processing tales place in three steps.
1 - Designate the proposal as a direct bill order type on the Project Info tab.
2 - Select the vendor(s) that will be invoicing your customer for the product during proposal finalization.
3 - Select either the Sell amount or Commission amount to invoice to each vendor.
The first step to creating a direct bill proposal is to change the Order Type field on the Project Info tab to Direct. There are two options for Order Type on the Project Info tab; Normal and Direct. In the example below, the Order Type for this proposal has been changed to Direct.
Step 1: Designate your proposal as a Direct Bill proposal
ProposalsDirectOrderType.JPG
A Direct bill order type proposal processing is slightly different than a normal bill proposal type. You create your Direct bill proposal exactly as you create any other proposal and you must select Direct as the order type on the Project Info tab.
After designating your proposal as a Direct order type, create you line items as you normally do. The line items can be imported from a specification file or manually entered or copied from an existing proposal. The next step of working with a Direct bill proposal occurs during proposal finalization. Below is an image of our direct bill proposal with two line items. The product and installation lines will be invoiced to the customer by the vendor. In this case, we will invoice the vendor for the commission amount on the product line and for the full sell price on the Installation line because we are providing that service to our customer, the vendor is not.
ProposalsDirectLineItems.JPG
Our proposal is ready for finalization so we can create purchase orders for the the product and Installation services.
Since the proposal is designated are a Direct bill, you must now select which vendor will be invoicing your customer for the products and services on the proposal. You select the vendor(s) that will be invoicing for the product in the finalization window.
Step 2: Select Direct Bill Vendors
ProposalsDirectVendorSelect.JPG
In the example above, each vendor on your proposal will be listed with the Total Sell and Total Cost amounts of their product contained on this proposal. In the drop down selection box to the right of each vendor listed, you select how this product is to be invoice. The drop down selection box lists each vendor that is used on this proposal. You can select which vendor will be doing the invoicing for the product here. The last option, "Treat as normal (open) market business" allows you to invoice your customer for this product line. If this option is selected then you will be able to create an invoice to your customer for this vendors product.
If the vendor options selected during proposal finalization need to be modified, you have the ability to change these settings during the Invoice Preview process. A single vendor can be selected to invoice for all the products and services on the proposal or each product line may be invoiced by the vendor providing the product.
In our example above, we have selected the vendor Teknion to invoice for our product and for the Installation services. You will choose to invoice the selected vendor for the commission amount or the full sell price of the product/service during the invoice creation process.
In the example above, we will generate two purchase orders, one for each vendor on this proposal.
Step 3: Invoice Direct Bill Vendors
After the product has been received and installed you are now ready to invoice. You create invoices from the Receivables Tab by clicking on the Create Customer Invoices icon and selecting the product lines to be invoiced.
ProposalsDirectBillInvoicePreview.JPG
In the Review Your Invoice window on Direct Bill proposals, you will be presented with a link that allows you to change the direct bill vendors selected during the proposal finalization process if necessary. At the top of the Review Your Invoice window you will see the warning symbol noting that you can change your vendor selections if you want to.
ProposalsDirectBillChangeVendors.JPG
The Change Direct Bill Designation window will open allowing you to change the vendor that are to be invoiced by you. If you make changes to the designated vendor in this window, your Review Your invoice window will update with the selections you have made. If you select the "Treat as a normal (open) market business" option for all the vendors on your proposal, then you will be creating a single invoice to your customer for the sell price on your proposal. This will result in a Normal billing condition meaning that the Direct Bill order type was not necessary on the Project Info tab. You can invoice a vendor, multiple vendors and your customer on a Direct Bill proposal.
ProposalsDirectBillCommSell.JPG
In the example above, we have selected to invoice the vendor Teknion for the commission on the product and for the full sell price for the Installation service line item. You select the amount you are invoicing for by selecting Commission or the Total Sell amount from the drop down selection box under each vendors name.
We are invoicing the vendor Teknion for the Total sell amount of the Installation service line because Teknion will be invoicing our customer for the installation for us. We need to receive that amount from Teknion as well as the commission on the product line item.
Creating the Direct Bill Invoice
Our invoice to the vendor will be created for the commission amount on the product line item and for the Total Sell amount of the Installation line item as shown below.
ProposalsDirectBillInvoice.JPG
This invoice allows us to receive our commission payment as well as the full sell amount for the installation service. When the payment from the vendor is received it will be entered against this invoice.
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