Create fixed-price projects

If fixed price is what applies to you, you can read more about how such projects are created and what you need to include in the project settings before you get started and begin reporting time.

Concluded that fixed-price projects are the right fit for you?

Registering a fixed-price project

When a project is activated as fixed price, an invoicing plan is created under the “Allmänt” tab, together with a heading for write-ups and write-downs. In other respects, all tabs are the same, with the same settings as for a running account project.

Invoicing plan

The invoicing plan forms the basis for when customer invoices are automatically created in Kleer. Here you choose the invoice date, product and more, and you can preview the invoice that has been added. You can create several invoices for different periods ahead, which are then included in the plan. You will also see a summary for the invoicing plan.

The invoice will be created automatically when it is time to approve and send it, based on the invoice date chosen in the invoicing plan.

When the invoice is approved, no revenue is posted; instead, the entire amount excluding VAT is posted to account 1470. The revenue is only posted in the income statement when time is reported on this project in Kleer. Re-invoiced costs, however, are recognised as revenue directly on accounting account 3590.

How do you keep track of whether the project is going to plan?

If the amounts for the revenue budget and the invoicing plan differ, Kleer flags this with a warning triangle in the project overview and in the budget heading. When the amounts for the revenue budget and the invoicing plan match, the warning triangle is removed.

Once you have set up the project’s rules, click “spara”. Kleer then checks whether there is any customer invoice to be created. Invoices to be created with future dates are created automatically on the invoice date.

How is a credit note handled in a fixed-price project?

When an invoice has been approved, it is given an invoice number. You will find the invoice number and the invoice documentation in the project. Should you need to credit the invoice, the documentation for the credit note will be shown in the project. A warning triangle will then appear for the project, because the revenue budget and the invoicing plan no longer match once the credit has been created. This process is intended as an aid to help you keep track of the fact that a new invoice must be created according to plan.

When is revenue posted in a fixed-price project?

Revenue is posted automatically when time is approved on the project. The revenue is based on the settings in the project, i.e. the price per activity and/or project member — see the section on time report settings. When the time report is approved, the internal cost also appears in the project’s income statement.

How do you close a fixed-price project?

Before the project is closed

When a project is considered complete and is to be closed, the following steps need to be finished:

All customer invoices in the invoicing plan must have been sent to the customer
All hours that have been budgeted for must have been reported and approved

Kleer gives a warning if these steps have not been completed. Kleer also warns if there are re-invoiced costs that have not been invoiced. However, you can choose to close a project even though there are uninvoiced costs.

Go to the “projekt” view to see the status of hours worked and the revenue budget for the project.

How the project is closed

Select the project and click close. If either of the two points above has not been met, a warning will appear when you close it.

When a fixed-price project has been completed, it needs to be closed. Only then can you make a final assessment of whether the project has made a profit or a loss, and whether you need to make further write-ups or write-downs in the project in order to close it.

Why can a fixed-price project sometimes not be closed?

In that case you have invoiced a different amount from what was estimated earlier, and a profit settlement will then need to take place. Choose the activity against which the result is to be posted. Then click close. When you click close, the profit settlement is posted.

You will find the documentation for the accounting entry in the project, under the invoicing plan.

The project automatically ends up in the “stängda” filter. From here you can reopen the project.

How is a project adjusted on an ongoing basis?

It can be a good idea to adjust a fixed-price project over time so that it is correct and up to date. This is handled under the “Allmänt” tab and “Upp- eller nedskrivning”.

If you write the project down, too much revenue has been recognised in relation to what you have invoiced, and because the fixed price applies, the revenue needs to be adjusted downwards.

If you write the project up, you have more revenue to draw from what has been invoiced, since you have reported fewer hours than were estimated in the agreement.

Follow-up of fixed-price projects

Invoiced revenue is posted to account 1470 in the balance sheet. The revenue is therefore also adjusted against this account when time is reported. Read more in Pågående fastprisprojekt.

Fastprisprojekt i Kleer - hur fungerar det? (internal consultant guide, not published here)
Fastprisprojekt och koncernmodulen (internal consultant guide, not published here)