Invoicing Overview

Plan: Not Available: Intermediate, Pro Available: Elite

Users: Not Available: All users Available: FYI Admins or User Group permissions

Practice Management Source: Not Available: Xero Practice Manager, APS, Iris, MYOB AE & AO, CCH, MYOB Practice Management (formerly GreatSoft) Available: FYI

Invoices can be created directly in FYI or can be added as a step as part of a process automation. Creating invoices in FYI improves efficiency for practices and provides full visibility of a client journey all the way through to invoicing.

Invoicing is available for practices on the Elite plan with FYI set as the Practice Management source. Refer to Practice Management Sync.

Invoice Permissions

Access to Invoicing is available to FYI Admins, and users assigned to a User Group with the following permissions enabled:

Permission	Details
Approve Invoices	This permission allows users to approve Invoices in FYI. Once an invoice is approved, it will be synchronised with Xero Ledger and assigned an Invoice Number. Refer to Approving Invoices. When the Approve Invoices permission is set to On, the Create Invoices, View Invoices and View Timesheets options will be automatically enabled.
Create Invoices	This permission allows users to create and manage Invoices in FYI, including from the Invoices tab of the Client and Job Workspaces, and the Practice menu. Users will also be able to manage Credit Notes and Unfiled invoices synchronised from Xero. When the Approve Invoices permission is set to On, the Create Invoices option will be automatically enabled. If only Create Invoices is on, View Invoices and View Timesheets permissions are enabled automatically. If Create Invoices is enabled, but Edit Timesheets is disabled, users will not be able to bulk update time or disbursements on an invoice, including using the Split Time function.
View Invoices	This permission allows users to view invoices only, including from the Invoices tab of the Client and Job workspaces, and the Practice menu. This option is enabled by default when theApprove Invoices or Create Invoices option is enabled. Note: If View Invoices is not enabled, users will not be able to see the Invoices tab, however will be able to access Invoices from Documents Lists. It's recommended to file invoices to a separate cabinet, and restrict access to the Cabinets via the User Groups - Cabinet tab.

Displaying Invoices

Invoices can be displayed on the Invoices Lists, available on the following tabs:

Practice - Invoices
Client - Invoices
Job - Invoices

Refer to Using the Invoices Lists.

Invoice Type

When creating an Invoice, the Invoice Type you select will determine whether WIP is applied, and whether it should be invoiced, written off or carried forward.

Invoice Type	Details
Progress	When selecting a progress invoice you can: Invoice some or all current WIP on the job, and have write on/offs applied. Invoice current WIP on the job, while also pre-billing future work on the same invoice by adding an interim amount. By default, the invoice total will be applied pro rata to all selected WIP, however users can choose to manually apply non-proportional WIP allocations, or add System Write On/Offs if required. Any remaining or additional WIP will remain active for future billing and will not be written off. This is the default Invoice Type that appears in the Create Invoice drawer.
Interim	Creating an interim invoice does not apply any WIP or write on/offs. Instead, once approved, a negative time entry will be created to reduce the WIP balance. Interim invoices are typically used for pre-payments. Invoices raised in Xero will synchronise to FYI and create Interim Invoices. These invoices will have an Unfiled filing status and must be reviewed and updated to either Filed or Excluded. Refer to Managing Unfiled Invoices. When an invoice is marked as Filed, an interim time entry is cretaed. Negative time entries will not be created for invoices imported before FYI was selected as the Practice Management source in the Practice Management Sync app in FYI. Where a negative time entry is allocated to a Billing Job only, these can be reallocated to a specific Workflow Job. Refer to Reallocating Time and Disbursements to another Job. Invoices will not be imported if the invoice was dated before the practice enabled FYI as the Primary Source.
Final	A Final Invoice is typically created at the end of a job where all remaining WIP is invoiced and any write on/offs are included. Users can choose to also add an interim amount to pre-bill future work on the same invoice, Once invoiced, the job state would then be set to "complete".
Disbursement	Used to invoice disbursements only. Time entries are not available to be invoiced on a Disbursement invoice.

Refer to Managing Job States to ensure the Lock Time & Disbursements setting is applied to relevant job states. This prevents additional time and disbursement entries from being created for the job.

Invoice Status

Event	Invoice Status	Displays	Details
Create Invoice in FYI	Draft	FYI	The initial status of an invoice when created in FYI. The Invoice is not yet approved, and the Preview will display as "Draft Invoice" until the status is updated to "Awaiting payment" or "Paid in Xero". Submitted Time & Disbursement entries can be allocated to the Invoice and once the invoice is created, they are set to the Locked status.
Approve Invoice in FYI	Approved then Draft in Xero	FYI Xero	When the Invoice is Approved, the invoice in FYI will show the "Approved" status until the Invoice has been synchronised to Xero. The Workflow Status will also update to Approved and this field will be locked. Once the invoice has been synchronised and created as a draft in Xero, the Invoice Number is assigned and the Status is updated to Draft in Xero. A copy of the draft invoice is displayed in FYI. All Time & Disbursement entries allocated to the Invoice are set to the Invoiced Status. Certain contact information will also sync to Xero upon Approval. Refer to Managing Invoices Settings.
Submitted for Approval in Xero	Submitted (in FYI) Submitted for Approval (in Xero)	FYI Xero	The invoice has been submitted for approval in Xero.
Approve Invoice in Xero	Awaiting Payment	Xero FYI	The Invoice has been approved in Xero. The Invoice status is updated and the final invoice is displayed in FYI as "Tax Invoice". Note: Changes to the Invoice Date and Due Date in Xero will sync to FYI.
Invoice is Deleted in FYI	Deleted	FYI	Only invoices with the status of Draft, Approved or Draft in Xero, or Submitted can be deleted in FYI, and will only be displayed in the Invoice List when "Show Deleted and Voided Invoices" is enabled. Once deleted, any time & disbursement entries allocated to the invoice return to the status Submitted.
Invoice is Voided in FYI	Voided	FYI Xero	Once an invoice is sent to Xero and marked as "Awaiting Payment", it cannot be deleted. Instead, it can only be voided, which reduces the client's outstanding balance. Voided invoices return Time and Disbursements to a "Submitted" status, including when the Job State is locked for Time and Disbursements. Note: Interim invoices will be updated to 'Deleted' status.
Invoice is Deleted in Xero	Deleted	Xero FYI	The Invoice has been deleted, and will only be displayed in the Invoice List when "Show Deleted and Voided Invoices" is enabled. Voided invoices return Time and Disbursements to a "Submitted" status, including when the Job State is locked for Time and Disbursements.
Invoice is Voided in Xero	Voided	Xero FYI	Once an invoice is approved in Xero and marked as "Awaiting Payment" it cannot be deleted from FYI. Instead, it can only be voided, reducing the client's outstanding balance. Once voided, all Time & Disbursement entries allocated to the Invoice will return to the Submitted Status.
Invoice is Paid	Paid	Xero FYI	The client has paid the invoice and the status is updated to Paid. The Paid Date and Paid Amount columns are updated in FYI. The Invoice Preview in FYI will display a "Tax Invoice".
Credit Note created in Xero	Paid	Xero FYI	The invoice has had a credit note applied and the status is updated to Paid. The Paid Date is updated in FYI.
Invoice does not Sync to Xero	Sync Exception	FYI	The status of Sync Exception indicates an issue with the Invoice or Xero connection. Invoices can be resubmitted in bulk from Practice - Invoices or individually from the Invoice drawer.
Create Invoice in Xero	Invoice Status from Xero	Xero FYI	If the client name matches in FYI, the invoice will sync to the client. If the client name does not match in FYI, the invoice will sync to 'Archived Client' in Practice - Invoices. The invoice can be updated to the correct client using the Invoice Drawer. If the invoice reference number matches the Job number in FYI, the invoice will also sync to the corresponding job in FYI.

Filing Status

The Invoice Filing Status, displayed in Invoices Lists, is used to identify whether an invoice has been filed, needs to be reviewed, or should be excluded from reconciliation. This ensures that all WIP reconciliation reports are reconciled correctly. Refer to Managing Unfiled Invoices.

Invoice Filing Status	Details
Unfiled	Invoices synchronised from Xero to FYI are marked with an Unfiled Filing status and the Source Xero. This includes invoices previously migrated to FYI, where no interim time entry was automatically created. Unfiled invoices must be reviewed and set to either Filed or Excluded, including those that have synchronised to associated jobs. Refer to Reviewing Unfiled Invoices. Tip: Unfiled invoices can be bulk updated to be excluded. For example, invoices dated before a practice's migration or go-live date. Refer to Bulk Update Invoices to Excluded.
Excluded	Invoices are marked as excluded in the following scenarios: Synchronised from Practice Sync (MYOB, APS, CCH). Each invoice will have the Source Migration. When a Bulk Update has been run to update invoices from Unfiled to Excluded. Invoices with the Filing Status Excluded will not have an interim time entry created. Excluded invoices do not need to be included in WIP reconciliation, for example, invoices dated before a practice's Go Live date.
Filed	Invoices are marked as filed in the following scenarios: All invoices created directly in FYI. Manually filed from Unfiled to Filed, as part of the unfiled review process. Credit Notes synchronised from Xero. Invoices marked as Filed confirm that the invoice can be included in the WIP reconciliation process. Each filed invoice will have a corresponding interim time entry created. Tip: Existing invoice views can be filtered by Filing Status: Filed to display only WIP that is ready to be included in WIP reports.

Invoice Source

The Source column identifies where an invoice originated and cannot be changed. Each invoice will have a source of either FYI, Xero or Migration.

The Source column can be added to an Invoices list, along with the Filing Status, to help identify invoices that may require review. Refer to Using the Invoices Lists.

Invoice Layouts

Invoice Layout

The Invoice Layout defaults to the layout selected in the Job Template, and this can be changed when creating the Invoice.

Summary Layout

The Summary Layout will display a single line on the invoice. Selection will depend on the level of information to be included on the invoice. The invoice description can viewed from the Details section of the Invoice Drawer.

Detailed Layout

The Detailed Layout will display each Job Description on a separate line. The invoice descriptions can be viewed from the Details section, by clicking the Show Invoice Description icon against each job.

Tip: When creating an invoice that includes both WIP and an interim amount, it is recommended to choose Detailed as the layout to ensure that future billed work is displayed on a separate line.

Note: An invoice description can only be changed in FYI for invoices in the draft status. Once an invoice has been approved in FYI, any changes to layout or description must be made in the practice's Xero Ledger.

Disbursement Layout

The Disbursement Layout is selected when creating an invoice, and defaults to the Summary option. Refer to Create an Invoice.

When the invoice is synchronised to Xero Ledger, the Detailed Layout will display disbursements as individual lines on the invoice and the WIP lines for Jobs will be reduced by the disbursement amounts. If Summary is selected, Disbursements will be included in the WIP for each job.

Invoice Theme

The theme determines which invoice template is selected from the Xero Ledger. When creating an invoice, the Theme will default to the corresponding Invoice Theme selected in the Job Template.

For practices with multiple Xero invoice templates, the theme can be changed by selecting an alternative from the drop-down if needed. For example, if the invoice layout selected is Detailed but you do not wish to display each itemised cost, select a different theme, set up in Xero first, that shows only the total amount.

Refer to articles in the section Creating and Editing Invoices.

Editing Invoices

Invoices with the status of "Draft" are held only within FYI, and all details of the invoice can be viewed and edited from the Invoice Drawer. Invoices created from FYI, with the status of "Draft in Xero", "Submitted" or "Awaiting Payment" can be unlocked by an FYI Admin or a user with Approve Invoice permissions. Refer to Opening and Editing Invoices.

Note: Invoices that include both WIP and an interim amount, cannot be unlocked.

Interim Invoices created in FYI can be edited as per the usual Draft process, while Interim invoices synchronised from Xero must be reviewed and either filed, or excluded. When filing the invoice, users will be able to select and confirm the correct job and client. Refer to Managing Unfiled Invoices.

Certain invoice details that are updated directly in Xero, will synchronise back to FYI. Refer to Synchronising Contacts, Invoices, and Client Ledger Reports with Xero Ledger.

Invoice Email Address

When invoices are approved in FYI and synchronised to Xero, the email address on the Client - Summary tab will be sent to Xero to be used as the invoice email address.

However, if practices wish to use a separate email address for invoices, a Client Custom Field can be used instead. The Custom Field must be configured as follows:

Applies to must be selected for Client.
The Type set to Email.

Refer to Creating Custom Fields.

Once the Custom Field has been created, it will need to be selected in the Invoice Settings. Refer to Managing Invoices Settings. The separate email address can then be updated for clients from the Client - Custom Fields tab.

If a Client Custom Field has been selected in the Invoice Settings, but an email address has not been entered into the custom field for the client, the email address on the Client - Summary tab will be used.