Billing & Invoicing

Billing & Invoicing

Overview

The Billing & Invoicing module in Octayne PSA enables organizations to create, manage, and send invoices based on approved time entries and expenses. The module supports multiple invoice formats, fixed fee line items, invoice collections for batch management, matter codes for legal and consulting firms, and a full integration with QuickBooks for seamless accounting workflows.

Invoices are generated from submitted and approved timesheets and expenses, ensuring that only validated work is billed to clients.

[Screenshot: Billing & Invoice list view showing invoice number, project, client, amount, status, and date columns]

Creating a New Invoice

Invoice creation follows a guided multi-step workflow. Each step must be completed before advancing to the next.

Step 1: Invoice Setup

1. Navigate to Billing & Invoice from the main Navigation Menu.
2. Click + New Invoice in the upper-right corner.
3. Fill in the following fields:

• Project — Select the project to invoice.
• Format — Choose the invoice format (e.g., Detailed, Summary, Fixed Fee).
• Components — Select which components to include (Time, Expenses, Fixed Fees).
• Invoice # — Enter the invoice number. This may auto-generate based on your organization's numbering convention.
• Invoice Date — Set the invoice date (defaults to today).
• Start Date / End Date — Define the billing period for this invoice.

1. Click Next to proceed to Step 2.

[Screenshot: Invoice Setup form showing Project, Format, Components, Invoice #, Invoice Date, and Start/End Date fields]

Tip: The Format selection determines the level of detail shown on the final invoice. Use "Detailed" for clients who want line-by-line breakdowns and "Summary" for clients who prefer aggregated totals.

Step 2: Select Time Entries

1. A list of submitted and approved timesheets for the selected project and date range appears.
2. Select the timesheets to include on this invoice by checking the boxes next to each entry.
3. Review the total hours and amount at the bottom of the selection.
4. Click Next to proceed to Step 3.

[Screenshot: Time entry selection step showing approved timesheets with checkboxes, hours, and amounts]

Note: Only time entries in Submitted or Approved status appear in this step. Entries that are still Open or Rejected are excluded.

Step 3: Select Expenses

1. A list of submitted and approved expenses for the selected project and date range appears.
2. Select the billable expenses to include on this invoice.
3. Review the total expense amount.
4. Click Next to proceed to Step 4.

[Screenshot: Expense selection step showing approved billable expenses with checkboxes and amounts]

Tip: Non-billable expenses are not shown in this step. If you need to include an expense that appears to be missing, verify its billable designation in the Expenses module.

Step 4: Review

1. Review a complete summary of the invoice including:

• Invoice header information (project, client, dates, invoice number).
• Selected time entries with hours and rates.
• Selected expenses with amounts.
• Fixed fee line items (if applicable).
• Total amount.

1. Make any final adjustments.
2. Click Save and Send to finalize and send the invoice, or click Save as Draft to save without sending.

[Screenshot: Invoice review page showing complete invoice summary with time entries, expenses, and totals]

Warning: Once an invoice is sent, the included time entries and expenses are locked and cannot be modified. Ensure all information is correct before clicking Save and Send.

Fixed Fee Line Items

For projects with fixed-fee components, you can add line items that are not tied to specific time entries:

1. During the invoice creation workflow (typically in Step 4 or via an Add Line Item option), click Add Fixed Fee Line Item.
2. Enter the description, quantity, rate, and total amount.
3. The fixed fee line item appears on the invoice alongside time and expense entries.

Note: Fixed fee line items are commonly used for milestone payments, retainers, or flat-rate deliverables.

Invoice Allocations by Team Member

Invoices can show allocations broken down by team member, providing clients with transparency into who worked on their project and for how many hours. This breakdown is automatically generated based on the selected time entries and the rates assigned to each team member.

[Screenshot: Invoice allocation section showing team member names, hours, rates, and subtotals]

Invoice Formats and Components

Octayne PSA supports multiple invoice formats to match client preferences:

Format	Description
Detailed	Line-by-line breakdown of every time entry and expense, grouped by team member or date.
Summary	Aggregated totals by category (e.g., total consulting hours, total expenses).
Fixed Fee	A single line item or set of milestone-based line items without hourly detail.
Custom	Organization-defined templates configured in Organization Settings.

Components that can be toggled on or off during invoice creation:

• Time — Include time entry details.
• Expenses — Include billable expense details.
• Fixed Fees — Include fixed fee line items.

Invoice Status Lifecycle

Status	Description
Draft	Invoice has been created but not yet sent to the client. Can be freely edited.
Sent	Invoice has been sent to the client. Time entries and expenses are locked.
Viewed	The client has opened/viewed the invoice (if tracking is enabled).
Partially Paid	The client has made a partial payment against the invoice.
Paid	The invoice has been fully paid.
Overdue	The invoice has passed its due date without full payment.
Void	The invoice has been voided and is no longer valid.

[Screenshot: Invoice status lifecycle diagram showing Draft > Sent > Viewed > Paid, with branches to Partially Paid, Overdue, and Void]

Invoice Collections

Invoice collections allow you to batch or group related invoices together for easier management, especially useful for organizations that send multiple invoices to the same client or across a portfolio of projects.

Creating a Collection

1. Navigate to Billing & Invoice.
2. Click Collections in the sub-navigation or sidebar.
3. Click + New Collection.
4. Enter a collection name and optional description.
5. Click Create.

[Screenshot: New Collection form with name and description fields]

Adding Invoices to Collections

1. Open an existing collection.
2. Click Add Invoices.
3. Select invoices from the list to add to the collection.
4. Click Add Selected.

Alternatively, when viewing an individual invoice, you can assign it to a collection from the invoice detail view.

Managing Collections

• View aggregate totals across all invoices in a collection.
• Track payment status across the collection.
• Send batch reminders for unpaid invoices within a collection.
• Export collection summaries for reporting.

Tip: Collections are particularly useful during month-end or quarter-end billing cycles when you need to track a batch of invoices together.

Matter Codes

Matter codes are used primarily by legal and consulting firms to track billing against specific matters, engagements, or work streams within a project.

What Are Matter Codes

A matter code is a unique identifier assigned to a specific scope of work. Clients may require their own matter codes on invoices for internal tracking and cost allocation. In Octayne PSA, matter codes can be assigned to projects and individual time/expense entries.

Creating Matter Codes

1. Navigate to Organization Settings > Matter Codes.
2. Click + New Matter Code.
3. Enter the matter code identifier and description.
4. Click Save.

[Screenshot: Organization Settings > Matter Codes list with Add button]

Assigning Matter Codes to Projects/Entries

• At the project level: Navigate to Project Settings and assign a default matter code. All entries on the project inherit this code unless overridden.
• At the entry level: When creating or editing a time entry or expense, select a matter code from the dropdown.

Note: Matter codes appear on invoices when the invoice format includes matter code details. Ensure your invoice template is configured to display matter codes if your client requires them.

QuickBooks Integration

Octayne PSA integrates with QuickBooks Online to streamline invoice management and client synchronization.

Importing Invoices from QuickBooks

1. Navigate to Billing & Invoice.
2. Click the dropdown menu (typically next to + New Invoice).
3. Select Import from QuickBooks.
4. A list of invoices from your connected QuickBooks account appears.
5. Select the invoices you want to import.
6. Click Import.

[Screenshot: Import from QuickBooks dialog showing a list of QuickBooks invoices with checkboxes]

Note: Imported invoices appear in Octayne PSA with a QuickBooks sync indicator. Changes made in either system can be synced bidirectionally.

Pushing Invoices to QuickBooks

1. Open the invoice you want to push to QuickBooks.
2. Click Push to QuickBooks from the invoice actions menu.
3. Confirm the push in the confirmation dialog.
4. The invoice is created in QuickBooks and linked to the Octayne PSA invoice.

Tip: Set up automatic push rules in Settings > Integrations > QuickBooks to automatically push invoices when they reach Sent status.

Syncing Clients with QuickBooks Customers

1. Navigate to Clients from the main Navigation Menu.
2. Click the dropdown menu.
3. Select Import from QuickBooks.
4. A list of QuickBooks customers appears.
5. Select the customers to import as clients in Octayne PSA.
6. Click Import.

[Screenshot: Clients page with Import from QuickBooks option in the dropdown menu]

Imported clients are automatically linked to their QuickBooks counterparts, ensuring that invoices reference the correct customer records.

Sync Status and Troubleshooting

Each synced entity (invoice, client) displays a sync status indicator:

Status	Meaning
Synced	The entity is up to date in both Octayne PSA and QuickBooks.
Pending	A sync operation is in progress.
Error	The sync failed. Hover over the indicator to see the error details.
Not Synced	The entity exists only in Octayne PSA and has not been pushed to QuickBooks.

Warning: If you see persistent Error status, check that your QuickBooks connection is still active in Settings > Integrations > QuickBooks. Token expirations or permission changes in QuickBooks can cause sync failures.

Force Resync

If an entity is stuck in an error state or appears out of sync:

1. Navigate to the entity (invoice or client).
2. Click Resync or Force Resync from the actions menu.
3. The system attempts a fresh sync with QuickBooks.
4. Monitor the sync status indicator for confirmation.

[Screenshot: Invoice detail view showing the Force Resync option in the actions menu]

Viewing and Filtering Invoices

The Billing & Invoice list view provides tools to locate and manage invoices:

• Search — Search by invoice number, client name, or project name.
• Date Filters — Filter invoices by invoice date or billing period.
• Status Filters — Filter by status (Draft, Sent, Paid, Overdue, Void, etc.).
• Project Filters — Filter by project.
• Client Filters — Filter by client.

[Screenshot: Billing & Invoice list with active filters for status and date range]

Tip: Use the Overdue status filter to quickly identify invoices that need follow-up.

AI Invoice Adjustment Summary

When invoices are created from time entries that were reviewed using the AI-powered review feature, Octayne PSA generates an AI adjustment summary. This summary highlights:

• Time entries that were flagged by AI review and subsequently adjusted.
• The original vs. adjusted amounts.
• The total impact of AI-suggested adjustments on the invoice.

This provides transparency for both internal stakeholders and clients regarding any modifications made during the review process.

[Screenshot: AI Invoice Adjustment Summary section on an invoice showing original hours, adjusted hours, and net impact]

Note: The AI adjustment summary is informational and appears only when AI-reviewed entries are included on the invoice.

Troubleshooting

Issue	Possible Cause	Resolution
No time entries appear in Step 2	No entries are submitted/approved for the selected project and date range	Verify that team members have submitted their timesheets and that reviewers have approved them. Adjust the date range if needed.
Invoice total seems incorrect	Some entries may be excluded or rates may be misconfigured	Review the selected entries in Step 2 and Step 3. Check team member rates in Project Settings > Members.
QuickBooks push fails	QuickBooks connection expired or the customer is not mapped	Reconnect QuickBooks in Settings > Integrations and ensure the client is linked to a QuickBooks customer.
Cannot edit a sent invoice	Sent invoices are locked by design	Void the existing invoice and create a corrected invoice, or create a credit note.
Import from QuickBooks shows no invoices	No new invoices in QuickBooks or date filters are too narrow	Adjust the date range in the import dialog or check that new invoices exist in QuickBooks.
Matter code not appearing on invoice	Invoice format does not include matter code details	Switch to an invoice format or template that supports matter codes, or customize your template in Organization Settings.

FAQ

Q: Can I create an invoice for multiple projects at once?

A: Each invoice is tied to a single project. However, you can use Invoice Collections to group invoices from multiple projects for a single client.

Q: What happens to time entries after they are invoiced?

A: Time entries included on an invoice are marked as "Invoiced" and locked from further edits. They will not appear in future invoice creation workflows.

Q: Can I send an invoice directly from Octayne PSA?

A: Yes. When you click Save and Send, the invoice is emailed to the client contact associated with the project. You can also download the invoice as a PDF to send manually.

Q: How do I handle a client dispute on an invoice?

A: Void the disputed invoice, make the necessary corrections (e.g., adjust time entries or expenses), and create a new invoice. Alternatively, issue a credit note for the disputed amount.

Q: Does QuickBooks integration support QuickBooks Desktop?

A: The integration currently supports QuickBooks Online only. QuickBooks Desktop is not supported.

Q: Can I customize the invoice template?

A: Yes. Organization admins can configure custom invoice templates in Organization Settings > Invoice Templates, including logo, colors, payment terms, and layout.

Q: How do invoice allocations by team member work with fixed fee invoices?

A: Fixed fee invoices do not show team member allocations by default since the billing is not tied to individual hourly rates. However, you can include an allocation summary as a supplementary section if needed.