5. Progress & Final Invoicing, Receipting & Project Closeout

This guide covers the completion stages at Edge Home Solutions: issuing the 40% Delivery Milestone Invoice & Receipt, managing site finishing and snag clearance, issuing the 10% Final Retention Invoice & Receipt, and performing real-time project profitability and gross margin analysis.

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1. Natural System Flow Position

flowchart LR
    A["1. Lead Intake & 3D Survey"] --> B["2. Quotation & Contract"]
    B --> C["3. 50% Deposit Invoicing & Receipt"]
    C --> D["4. Project Execution & Workshop"]
    D --> E["📌 5. Progress/Final Invoicing & Closeout"]
    style E fill:#2563eb,stroke:#1d4ed8,color:#ffffff

🖥️ Live ERP Desk Screens for Step 5

• 🧾 Create Sales Invoice Screen — Issue 40% delivery or 10% retention invoice.
• 💵 Create Payment Entry Screen — Record progress or final client payment receipt.
• 📋 All Sales Invoices List — Check payment status across all project invoices.
• 📈 Project Profitability Report — Analyze actual revenue, material cost, labor, and gross profit margin.
• 📊 Accounts Receivable Summary — Verify zero outstanding client debt upon project closeout.
• 📑 Profit and Loss Statement — View company-wide monthly and quarterly financial performance.

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2. Milestone 2: 40% Delivery Invoicing & Payment Entry

When workshop pre-assembly is completed and modular cabinetry is staged at the client site:

Generating the 40% Delivery Sales Invoice:

1. Open the Sales Order (or go to Sales Invoice List).
2. Click Create → Sales Invoice.
3. Under Payment Schedule, select Milestone 2: EHS 40% Workshop Completion / Delivery (calculates to 40% of contract sum).
4. Verify VAT / eTIMS compliance.
5. Click Save and Submit.

Recording the 40% Payment Entry:

1. From the Sales Invoice, click Create → Payment.
2. Verify:
   • Payment Type: Receive.
   • Account Paid To: Selected Bank / M-Pesa account.
   • Paid Amount (KES): 40% progress amount.
   • Cheque / Reference No: Bank transaction reference.
3. Click Save and Submit.

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3. Site Installation, Snagging & Handover Acceptance (Task 9 - 12)

With the progress payment confirmed, site fitters complete final installation:

Key Finishing Milestones:

• Task 9: Shutter doors hung, 3-way concealed hinges adjusted for uniform 2mm reveal gaps, soft-close dampers calibrated.
• Task 10: Calacatta quartz or granite countertop template verified, undermount sink epoxy bonded, hob cutout chamfered, and waterproof silicone sealed.
• Task 11: LED ambient warm lighting wired, surface protective foils peeled, cabinet interiors vacuumed, and panels polished.

Joint Snag Walkthrough & Sign-off (Task 12):

1. Lead Project Engineer and Client perform joint inspection.
2. Complete Snag Clearance Checklist:
   • [ ] Smooth soft-close drawer damping without bounce.
   • [ ] Shutter door alignments perfectly plumb and flush.
   • [ ] Countertop joints sealed and polished seamlessly.
   • [ ] Kickplates and filler trims scribed neatly to floor and wall.
3. Client signs the Handover Acceptance Certificate.
4. Mark Task 12 and Project status as Completed.

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4. Milestone 3: 10% Final Retention Invoicing & Final Receipt

Upon client handover sign-off:

1. Issue Final 10% Retention Invoice:

1. Open the Sales Order → Create → Sales Invoice.
2. Select Milestone 3: EHS 10% Final Retention Handover.
3. Verify remaining 10% balance.
4. Click Save and Submit.

2. Record Final Payment Entry:

1. Click Create → Payment.
2. Enter Bank / M-Pesa reference and submit.
3. Result: Sales Order, all 3 Milestone Invoices, and all 3 Payment Entries show status Paid / Closed.

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5. Post-Project Costing & Profitability Analysis

ERPNext automatically aggregates all project revenue against actual costs to provide real-time gross profit metrics:

Financial Analysis Tools:

1. Project Profitability Report:
   • Navigate to Projects → Reports → Project Profitability (View Report).
   • Total Billed Revenue: Sum of Milestone Invoices (50% + 40% + 10%).
   • Direct Material Cost: Stock Entries issued to Workshop WIP (MDF, Plywood, Quartz, Hardware).
   • Direct Labor Cost: Timesheet hours logged by workshop carpenters and CNC fitters.
   • Direct Subcontract / Purchasing Cost: Supplier POs (e.g., specialized glass shutters or custom metalwork).
   • Gross Profit Margin (%): Net margin achieved on the fitting project.
2. Accounts Receivable Aging Summary:
   • Accounting → Accounts Receivable Summary (View Report)
   • Confirms zero outstanding balances across closed projects.

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6. Complete System Flow Summary

┌─────────────────────────────────────────────────────────────────────────────────┐
│              EDGE HOME SOLUTIONS COMPLETE OPERATIONAL LIFECYCLE                 │
├───────────────────┬──────────────────────────────────┬──────────────────────────┤
│ Phase             │ Key ERP Documents Created        │ Physical Milestone       │
├───────────────────┼──────────────────────────────────┼──────────────────────────┤
│ 1. CRM & Intake   │ Lead, Survey Notes, 3D Render    │ Site Laser Measurement   │
│ 2. Quoting & SO   │ Quotation (50-40-10), Sales Order│ Approved 3D & Contract   │
│ 3. Initial Deposit│ Sales Invoice (50%), Payment Rec.│ 50% Bank Deposit Inflow  │
│ 4. PM & Workshop  │ Project (12 Tasks), Stock Entries│ CNC, Assembly & Mounting │
│ 5. Progress Billing│ Sales Invoice (40%), Payment Rec.│ Site Delivery & Staging  │
│ 6. Final Handover │ Sales Invoice (10%), Payment Rec.│ Snag Sign-off & P&L Close│
└───────────────────┴──────────────────────────────────┴──────────────────────────┘