This article describes the Revenue Posting feature in Next Project and explains the situations in which it is needed, such as when integrating with Next Cloud Link or when revenue needs to be allocated to the correct work order and change order. The article covers how to configure the feature under Administration – Finance – Revenue Posting, including how posting dimensions are set up to control what information is included with the customer invoice exported to the accounting system.
Background
In Next, there are two ways to manage which account a customer invoice should be posted to. One way is to use a cost account that matches an item from the accounting system. The other way is the Revenue Posting feature – and that is what we will take a closer look at in this guide.
Revenue Posting is needed in the following situations, for example:
- The integration requires it, such as Next Cloud Link (which replaces Next Connect for customers using Fortnox and Visma e-Ekonomi).
- If you want the revenue to be attributed to the correct work order or change order, and not only to the Base Commitment.
- If the same type of service or product can be attributed to different revenue accounts depending on the situation or recipient. For example, labor time that is invoiced can be posted to one account when selling to a sister company and a different account when selling to external customers. Another example is if you have different revenue accounts depending on the compensation type.
If you have been contacted by Next regarding migration to the Next Cloud Link integration, which replaces Next Connect for Fortnox customers, you should review your revenue posting setup. If you do not have this feature, we will set it up together – please read through the information to prepare for the upcoming meeting.
Setup in Next Project
The rule set that governs the Revenue Posting feature can be found under Administration – Finance – Revenue Posting. Note that only users with the administrative permission "Revenue Posting" have access to this tab. Additionally, the feature must be activated in your database. If you would like to activate the feature, please contact our support team.
Posting Dimensions
Posting dimensions refer to the information that can potentially be included with the customer invoice when it is exported to the accounting system. In our standard integrations Next Connect and Next Cloud Link, dimensions 1–4 are relevant. Dimensions 5–6 are not included in our standard integration and therefore cannot be passed to the accounting system.
The Posting Dimensions tab — note which dimensions are selected and mandatory.
The most common setup is for dimensions 1–3 to be checked and also set as mandatory. If you only want the revenue to appear on the project's base commitment, do not check row 3. If you want Cost Center to be included in the integration, check that row as well.
Note that if you transfer work orders and change orders as projects to the accounting system in the integration, row 3 "work order" must be checked. This means that the revenue is attributed to the correct work order or change order both in Next Project and in your accounting system. For example, project 10,000 work order 2 in Next will correspond to project number 10,000-2 in your accounting system. Note that the formatting of project numbers may differ between accounting systems and setups.
If you do not include work order as a dimension, all revenue is posted against the main project. Project 10,000 work order 2 in Next will then correspond to project number 10,000 in your accounting system.
Posting Rules
Under the Posting Rules tab, you set up the rule set for the revenue accounts used during invoicing. Accounts for rounding differences or accounts used in isolated cases – such as for fixed assets – do not need to be set up here.
The first row is a master rule that revenue always falls under if no exception rule on any other row is met. The account set as the master rule is also used for manual invoices and manual adjustments on invoice lines. Exception rules can be created based on various criteria depending on the type of sale the revenue should be attributed to.
Note that the balance account for accounts receivable must be specified in Next Project. In our standard integrations, it is the accounting system that controls which account is used in the bookkeeping – meaning it does not come from Next Project, even if it is specified in the posting rules.
Below are some common Revenue Posting setups. For more complex setups, we recommend that you contact us. Note that these are examples only – accounts and setup may differ depending on your needs.
Example 1. Applies when you have two revenue accounts for invoicing: one for sales with 25% VAT (3001) and one for sales with reverse charge VAT (3231). If the majority of your invoices involve reverse charge VAT, you can set account 3231 as the master rule and on row two set "excluded" in the reverse charge VAT column with account 3001.
The Posting Rules tab — review criteria and account settings for each row.
Example 2. Applies when you have four revenue accounts, where in addition to the split between sales with 25% VAT and reverse charge VAT, a distinction is also made between external sales and intra-group sales.
The Posting Rules page shows configurable rules with criteria and account mappings.
Example 3. Applies when you separate the sale of goods and services at 25% VAT and then have one account for reverse charge VAT. The master account is set to material sales since many different cost accounts may occur. The specified cost accounts are the accounts used for time reporting in Next and should generate revenue for services upon invoicing.
The Posting Rules tab shows rule rows with criteria and account settings.
Connection to the Accounting System
If you use Next Cloud Link for Fortnox as your integration, no items need to be created in the accounting system.
If you use Next Connect or Cloud Link for Spiris or Bjorn Lunden as the integration between Next Project and your accounting system, items must be created in the accounting system. You then link these to the correct revenue account in the Next chart of accounts. Enter the item number from the accounting system in the Item no. on invoice column, and fill in the VAT code for the revenue account in the accounting system under the External VAT code column in the Next chart of accounts (Administration – Finance – Chart of Accounts). The same item can be used for both an account with 25% VAT and an account for reverse charge VAT.
Chart of accounts view where the Item no. on invoice and External VAT code fields should be reviewed.
For more information about items when using Next Connect, see the following guides:
Integration Next Connect - Fortnox
Integration Next Connect - Visma Administration
Integration Next Connect - Spiris
Permissions
Permissions for Revenue Posting are managed under Administration – Groups/Permissions. To view and manage the Revenue Posting setup, you need the administrative permission "Revenue Posting" – this setting is recommended for finance administrators. To see the Revenue Posting tab in the invoice module, you need the module permission "Use revenue posting in invoices".
The page shows permission settings; note the difference between read and full access.
You can also configure a specific permission for how revenue posting may be used in invoices. For example, it is possible to restrict users so that they can only change the project, work order, or change order – and not accounts or other parameters in the revenue posting rule set.
Revenue Posting on an Invoice in Next Project
When a new invoice is created in Next Project, you automatically receive a suggested revenue posting, generated based on the rule set that has been configured.
Note that manual invoices and changes to invoice lines are generally posted against the revenue account set as the master rule. Revenue posting information must therefore be updated manually per line if you want to use an account other than the master rule.
The suggested revenue posting is based on when the underlying data is created, not when the invoice is locked. Therefore, you should always review the invoice's revenue posting before it is marked as locked and transferred to the accounting system. The invoice's revenue posting is updated if you change, for example, VAT or reverse charge VAT.
NOTE! If you then switch back to VAT, all lines will be updated according to the current rule set and any custom changes will be lost. In most cases this is not a problem, but it is something to be aware of if, for example, you switch from VAT to reverse charge VAT and back to VAT.
You can see on each individual line of the invoice which revenue account the line will be posted to. This can be edited manually, provided you have the appropriate permission. A major benefit of having the revenue account visible on each line is that you can easily control how the revenue should be posted. You also get a summary of the posting on the Revenue Posting tab, where you can see all conditions and their associated lines.
You can choose to show or hide revenue posting by showing or hiding columns, or by clicking the Show Revenue Posting button.
The Invoice Lines tab shows lines with their associated revenue posting and project information.
On the Revenue Posting sub-tab in the invoice module, you can see how the posting is distributed. On the left you see the rule set and on the right you see the lines on the invoice that are covered by the rule set. If you make changes here, all lines on the invoice are updated automatically.
The Revenue Posting tab — note the columns for account, work order, and amount.
Invoicing with ROT/RUT/Green Technology
When invoicing ROT/RUT/Green Technology, you handle the reduction under the Tax Reduction tab. When manually changing or adding Type of work and reduction amounts – on invoice lines or under the Tax Reduction tab – only the invoice sent to the customer is affected, not what is transferred to the accounting system. These changes must also be made under Revenue Posting – Data for the accounting system, as this is the information sent to the accounting system and which can subsequently be used for the application to the Swedish Tax Agency.
The information in Data for accounting system is created when the invoice data is generated, not when the invoice is locked, and is only partially updated when adjustments are made to the invoice. Therefore, you should always review the revenue posting and the data for the accounting system.
To simplify the handling of invoices with tax reduction, we recommend that the invoice is prepared by reviewing the pricing and, for example, whether order lines should be billable or not.
For fixed-price invoices with tax reduction, we recommend adding one or two order lines to be invoiced, such as "Fixed price materials" and "Fixed price hours." If you want to supplement from Next Project with the number of hours the fixed price covers, you can do so under Tax Reduction – Select type of work – Working hours. The hours are then only sent to the accounting system without being shown on the customer invoice.
The 'Tax Reduction Data' dialog — note the Type of work filter.
Frequently Asked Questions When Activating Revenue Posting
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Question: Why can't I lock my invoice?
Answer: If there were invoices that had been started but lacked an external invoice number when Revenue Posting was activated, you need to manually add the Revenue Posting line. You do this by clicking Balance Posting, or alternatively the green plus sign, on the Revenue Posting tab and filling in the required fields. -
Question: I get an error message when I try to credit an invoice?
Error dialog during posting — contact your administrator if you encounter this error code.
Answer: The error message is due to the original invoice being created before Revenue Posting was activated and therefore lacking the Revenue Posting line, which the system copies when crediting. Follow these steps to resolve the issue:
- Unlock the original invoice.
- Go to the Revenue Posting tab and create the line by clicking Balance Posting and adding the correct account and any other missing information.
- Lock the original invoice.
- Credit the invoice again.
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Question: Previously I had more information about the customer invoice in the accounting system, but now I only see the total – can we change it back?
Answer: That is correct. When Revenue Posting is activated, only one line per account and project is sent to the accounting system, with the exception of tax reduction invoices where labor and materials/other are separated even when the revenue account is the same. When transitioning to Cloud Link, we include the customer invoice image to simplify handling. -
Question: Do I need both the "Reverse charge VAT checkbox" on the invoice and the correct account in Revenue Posting?
Answer: With Cloud Link – yes, it is necessary. The reverse charge VAT checkbox affects the appearance of the invoice and the VAT rate, while Revenue Posting controls how the invoice is posted. With Next Connect integration, the reverse charge VAT checkbox also affects how the invoice is posted in the accounting system.