Module 4: Finance, Accounts & Job Costing Training

Target Roles: Chief Financial Officer, Senior Accountants, Billing Officers, Accounts Payable / Receivable Clerks.

---

🎯 Learning Objectives

By the end of this module, the Finance & Accounting team will be able to:

1. Generate milestone Sales Invoices (50% Deposit, 40% Delivery, 10% Handover).
2. Process customer payments via Bank Wire and M-Pesa.
3. Manage supplier payables and verify 16% VAT/eTIMS tax invoices.
4. Generate real-time Project Profitability reports (Gross Margin per fitting job).

---

📋 Standard Operating Procedures (SOP)

SOP 4.1: Processing Milestone 1 (50% Advance Deposit)

• When to do it: Immediately upon receiving customer contract approval.
• Steps:
  1. Open the Sales Order (or create a Sales Invoice from Accounts).
  2. Click Create → Sales Invoice.
  3. Ensure Payment Schedule specifies 50% Advance.
  4. Submit Sales Invoice.
  5. Click Create → Payment when funds hit company bank account/M-Pesa.

SOP 4.2: Processing Milestone 2 (40% Delivery Payment)

• When to do it: When workshop assembly completes and items are ready for site delivery.
• Steps:
  1. From the Sales Order, create the second Sales Invoice for the 40% Progress portion.
  2. Confirm payment before or during delivery staging.

SOP 4.3: Processing Milestone 3 (10% Final Retention)

• When to do it: When Task 12 (Joint Snag Inspection & Handover) is signed off by the client.
• Steps:
  1. Issue the final Sales Invoice for the remaining 10% Retention.
  2. Collect final payment and close project billing.

SOP 4.4: Analyzing Job Gross Profitability

• Steps:
  1. Go to Projects → Project → Select Project.
  2. Review the Costing and Billing card:
     • Total Billed: Client revenue.
     • Total Cost: Purchase Invoices + Material transfers + Direct Labor.
     • Profit Margin: Target is minimum 35%–45% gross margin.

---

🧪 Practical Hands-On Exercise

Scenario: Client Dr. Amina Hassan has approved quotation SAL-QTN-2026-00001 (KES 739,000.00).

• Task:
  1. Generate the Milestone 1 Sales Invoice (50% = KES 369,500.00).
  2. Record a Payment Entry for KES 369,500.00 to the bank account.
  3. Verify that the Accounts Receivable report reflects the updated balance.