The Adjustment Summarytab lists all the adjustments that have been applied to the invoice in chronological order. From here you review and approve adjustments on an invoice
This form is reached by opening an invoice from the Invoice Browser and selecting the Adjustment Summary tab.
Each row in the grid represents an adjustment. The columns show the number of time or cost cards affected, the invoice effect, and the P&L effect of the adjustment. You can easily see the final value of the invoice, as well as the effect each of the adjustments has on it. This tab is also where the adjustment approval workflow takes place.
To display rejected adjustments, check the box titled Show rejected adjustments.
An identifying reference number. The adjustments are numbered chronologically.
You may see some of the following status icons for each row:
– Approved – This adjustment has been approved. The gray icon indicates no action is required – Pending – This adjustment still needs approval from either the Project Manager or Finance Manager – Dependency Chain – This adjustment is dependent upon other adjustments. See the dependency chain section below for more information. – Suppressed from Invoice – This time card will not be printed on the invoice
The type of adjustment, such as Write Up / Write Down, Include on Invoice, etc.
Denotes whether the adjustment applies to time or cost.
If you have permission to approve/reject adjustments for the finance department, you may do so by checking the appropriate box below.
- Approve – Check this box to approve the adjustment on behalf of finance.
- Reject – Check this box to reject the adjustment on behalf of finance. You will be asked to enter a reason for rejection.
If you have permission to approve/reject adjustments for project management, you may do so by checking the appropriate box below.
- Approve – Check this box to approve the adjustment on behalf of project management.
- Reject – Check this box to reject the adjustment on behalf of project management. You will be asked to enter a reason for rejection.
Number of Time or Cost Cards
The number of cards in this adjustment.
The monetary effect, positive or negative, that this adjustment has on the invoice.
The P&L effect is the effect that the adjustment will have on the value of the time or cost cards themselves, and thus on the profit and loss of the organization. The P&L effect is further broken down into the following categories:
- Revalue – The monetary effect of revalue portion of adjustments. Revalue effect only pertains to time cards and describes the change in contract value of time cards on the invoice due to revalue adjustments, transfers to other projects on the invoice, or transfers to other roles.
- Write Up/Down – The monetary effect of write up / write down adjustments to time cards or mark up / mark down adjustments to cost cards.
The reason for the adjustment, as entered in the Explanation field of the adjustment form when it was created.
Totals of the Invoice Effect, P&L Effect Revalue, and P&L Effect Write Up/Down for all of the adjustments.
- Contract value of time cards plus disbursed amount of cost cards – The summed value of the "par" value of time and cost cards on the invoice. This value is used as the amount total invoice write up or write down adjustments is compared to in order to determine whether the management approval percentage has been reached.
- Total invoice write up or write down adjustments
This total is the amount that is compared to the management hurdle amount that dictates whether the invoice will require management approval.
- Percent of total – This is the percentage that is compared to the management hurdle percentage that dictates whether the invoice will require management approval.
Adjustments on this tab are approved by Project and Finance Managers. Tick the appropriate checkbox depending on whether you want to approve or reject the proposed invoice changes. In this way you can hand pick which changes are acceptable and which ones are not. For a more complete tutorial surrounding invoice approvals, check out our Approve Invoice how-to.
If you hover over a checkbox, a tool tip appears that provides additional details: Who accepted or rejected the adjustmentWhen was it accepted or rejectedFor rejected adjustments, the reason it was rejectedFor grayed out checkboxes, the reason it is unavailableYou can also bulk accept all changes on the invoice from the Invoice tab.
If the net effect of adjustments results in the invoice exceeding certain thresholds, then management approval is required before the invoice can be issued. The threshold can be a specific dollar amount or a percentage and is defined on the System Settings Billing tab. See the Permissions section to see who can give management approval. Unlike Finance and Project Manager approvals, Management approval is given on this tab. It is finalized by checking the Management Approval checkbox on the Invoice Editor MP - Invoice Tab.
The Adjustments Summary tab provides a roll up of an adjustment. There may be a hundred time cards in a single adjustment, so it is useful to see how each of those time cards was adusted. To view this detail double click on a row to open a detailed view of that adjustment. Depending upon the type of adjustment, either the time card or cost card details screen is shown.
Write Up / Down adjustments can affect card values by a percentage, By definition these adjustments are dependent on the value of the card prior to the adjustment. If an adjustment is created with cards that are also associated with another pending adjustment, then the dependency icon (
) icon is shown. The icon indicates that the previous adjustment must first be approved before the current adjustment can be approved.
All adjustments that affect the financial value of a card (Write Up / Write Down, Adjust for Daily Billing, Revalue, Transfer, Change Role, Change Rate Type, or Change Expense Type) can start a dependency chain, but only a Write Up / Write Down adjustment can form a link in the chain, or be dependent on another adjustment. This is because all the other adjustments first reverse out prior Write Up / Write Down adjustments.
Rejecting dependency chain adjustments must be done in reverse order.
Additional information can be obtained by hovering the mouse over the dependency icon or the grayed out checkboxes.
In this example, adjustment 4 is a Write Up / Write Down adjustment that is dependent on adjustment 3, a Revalue adjustment. Dependent adjustments need to be approved in order (since subsequent adjustments are made based on the assumption that the prior adjustments will be approved), or they must be rejected in reverse order.