In TrakPro, what is the “Over/Under Minimum Billing Amount” and what is it used for?
Peter Buitenhek Answer: Like my previous boss, George Harris, always said, “Hello!” You need to stay profitable on every phase of the project. Look at the ratio between year-to-date actual plus ETC (estimate-to-complete) costs and compare this to the contract cost amount to determine how far along you are on the project. If you have used 50% of the costs then, hypothetically, you are 50 % done. Therefore, you should be able to bill a minimum of 50% of the total contract “sell” amount. TrakPro compares what you have billed and what you should bill to give you an “over/under” billing dollar amount. Assume your costs are $365.75 and you have billed the customer $500 contract cost. You are $134.25 over billed. If the customer has paid the $500 invoice, then your cash position is $134.25 over cost. These “over cost” dollars thrill bankers and can be used to fund other projects without mixing project accounting funds.
