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Prepare Billing for a Project

This guide prepares a project so eligible Service Revenue work can reach Billing -> Open Items. You set the internal allocation rules first, then make the customer-facing decision on the Service Revenue budget.

Prerequisites
  • You need permission to manage Project Blueprints, Budget Blueprints, Budgets, Billing Profiles, and Stakeholders.
  • The project needs a Project Blueprint.
  • The project needs at least one Service Revenue budget for customer billing.

Step 1: Create The Invoice Recipient​

Create or confirm the customer in the Stakeholders module. Billing Profiles use a Stakeholder as the invoice recipient, so the correct organization must exist before you create the profile.

Example: Use the existing Stakeholder named Grand Hotel Berlin GmbH rather than creating a second record with a slightly different spelling.

Step 2: Create A Billing Profile​

Open Billing -> Billing Profiles, then click Create Billing Profile. Enter a clear Name, choose the Invoice Recipient, select the Currency, and save the profile.

The Billing Profile answers two commercial questions: who receives the invoice, and in which currency is it issued? Use names that make both facts easy to recognize, such as Grand Hotel Berlin - EUR.

Step 3: Set Actual Cost Allocation On The Project Blueprint​

Open Projects -> Blueprints, select the blueprint, and open its Billing tab. Under Actual Cost Allocation, review these three sources:

SourceWhat the setting controls
Desk TimeWhether a desk-time timesheet may or must name a Budget Item.
Travel Time / Service FeesWhether travel-time service fees may or must name a Budget Item.
Travel ExpensesWhether transportation and stay costs may or must name a Budget Item for each related project.

Choose No cost allocation, Optional cost allocation, or Required cost allocation for each source. These settings control the internal Actual Cost Ledger. They do not decide whether a customer is invoiced.

caution

If a user selects an externally invoiced budget with Actual Costs as its basis, COMPASS requires a Budget Item for that entry. This narrow rule overrides No cost allocation because Billing cannot create a receivable without an internal allocation.

Step 4: Set Defaults On The Service Revenue Budget Blueprint​

Open Budget Estimator -> Budget Blueprints, then select a Service Revenue blueprint. In Settlement and Invoicing, choose a default External Settlement Mode.

  • No default (legacy) leaves new budgets unclassified until someone reviews them.
  • Internal only tracks costs but never offers the budget for customer invoicing.
  • External invoicing allows the budget to feed Billing.

For external invoicing, choose Actual Costs or Budgeted Amounts as the default Invoice Basis. You may also select a Default Billing Profile. Leave the profile empty when each project needs a different recipient.

These are starting values for new budgets. Changing the Budget Blueprint later does not silently change an existing project budget.

Step 5: Keep The Billing Schedule Separate​

Review the Billing Schedule as a Finance forecasting setting, not as an invoice instruction. The Billing Schedule spreads expected Service Revenue across forecast periods based on project timing.

It does not generate invoice installments. It does not create Invoice Positions. It does not tell Billing when to send an invoice. For a Budgeted Amounts budget, the person preparing the invoice chooses the amount to charge, with the remaining approved amount shown as guidance.

Step 6: Confirm The Concrete Service Revenue Budget​

Open the project-specific Service Revenue budget and review Overview -> Settlement and Invoicing. The concrete budget is the final authority for external billing.

  1. Select Internal only — track costs, never invoice or External invoicing — costs can be charged on.
  2. For external invoicing, select Actual Costs or Budgeted Amounts.
  3. Select the Billing Profile.
  4. Click Save settlement settings.

The page tells you whether the current value came from the Budget Blueprint or was set on this budget. A completed budget can still receive its settlement setup. Archived and deprecated budgets are read-only.

caution

Changing settlement settings affects future Invoice Positions. Existing actual-cost totals remain. Positions that are already reserved or invoiced keep their commercial history, and COMPASS may block a change that would leave them without a valid budget setup.

Step 7: Verify The Billing Path​

Open the Service Revenue budget's Unbilled tab or go to Billing -> Open Items. An externally invoiced budget appears when it has an invoiceable amount.

  • An Actual Costs budget needs open, billable Invoice Positions created from allocated work.
  • A Budgeted Amounts budget needs an approved amount that is not already fully covered by invoices or drafts.

If the budget is missing, check the settlement mode, invoice basis, Billing Profile, budget status, and source allocation before changing the invoice itself.

Result​

The project now has a complete path from recorded work to Billing. Internal cost entries stay in the Actual Cost Ledger, eligible customer charges appear in Open Items, and invoices use the recipient and currency from the selected Billing Profile.

Common Mistakes​

  • Problem: A CapEx or OpEx budget is being prepared for external invoicing.

    Fix: Use a Service Revenue budget. CapEx and OpEx remain internal cost-control budgets.

  • Problem: A Service Revenue budget is completed but does not appear in Open Items.

    Fix: Open the budget and confirm External invoicing, an Invoice Basis, and a Billing Profile.

  • Problem: A Billing Schedule was entered, but no invoice installment appeared.

    Fix: Use Billing to create the invoice. The Billing Schedule only supports the Finance forecast.

  • Problem: A timesheet or trip asks for a Budget Item even though the Project Blueprint says No cost allocation.

    Fix: Check the selected budget. An external Actual Costs budget requires allocation for that entry.