Billing entities refer to the legal entities that raise the invoice for any project. Keka allows you to add multiple legal entities under the same tenant on Keka. These are typically used in cases where there is more than one legally registered organization working under the umbrella of a group.

Adding multiple entities is an add on service, to know more about this, please reach out to our agents

In Keka PSA, the various legal entities you have configured on your Keka HR Portal will be used as billing entities. You can further configure these billing entities with invoice formats and more. Depending on the terms of the agreement with your client, you can choose which billing entity needs to manage the billing for a particular project. 

Before you can configure a billing entity, it is important to add this entity as a legal entity on the Keka HR Portal. 

To know more about adding legal entities on Keka, Read here. 

You can view all the billing entities currently added on the Billing Entities page. To get here, go to Project (1) from the left navigation pane and select the Finances tab (3). Go to the Settings tab (3) here and select Billing Entities (4). You can see the list of billing entities under the section titled Billing Entities.

You have to configure these billing entities for project billing now. Let us take a look at how this can be done. 

Enabling or disabling project billing

First, select the billing entity from the list that you want to configure for project billing. Go to the Project Billing tab to begin configuration. 

The first action you have to do is to enable project billing for this billing entity. To do this, click on the Project Billing toggle button to enable it for the billing entity. 

Project billing has now been enabled for this billing entity. You can now configure a few more details before beginning to create invoices for clients from this billing entity. 

Setting up number series for invoices and credit notes

Numbering invoices and credit notes is helpful to all involved to manage several invoices and also in tracking payments and for financial compliance. You can configure a number series for both invoices and credit notes that are raised on behalf of a billing entity. This allows for the continuous numbering of invoices and credit notes that are being raised. 

To set up the number series for invoices, click on the edit icon next to the Upcoming Invoice Number field on the page under Number Series in Invoice Settings.

In the Invoice Number window that opens, you can enter the next number in the invoice series and also enter a suffix for the number which will be useful in further identifying the invoice details. You will see a preview of how the invoice number looks in the Invoice Number Preview field on this window. Click Save once you have entered the relevant details. 

To set up a number series for credit notes being raised on behalf of this billing entity, click on the Edit icon next to the Upcoming Credit Note Number field under the Number Series section. 

Similar to how the number series was set up for the invoices, you can enter a Number for the next credit note and also choose a Suffix. You can see how the credit note number will be shown in the Credit Note Number Preview field. 

Updating invoice preferences

You have the ability to further tailor how the invoice will look and the settings that govern this. To change the invoice preferences, click on the Edit icon next to Invoice Preferences.

On the Update Invoice Preferences window, you can select if the discounts and taxes you add to the invoice will apply to the overall invoice amount or if it needs to be applied to each line item in the invoice separately. This can be useful when you may have different tax rates for the different services you offer to your clients. You can avoid creating multiple invoices in case you choose to have taxes and discounts as applicable to each line item instead of the overall invoice. Make your choice here on this window. 

You can also decide if you want the overall invoice amount to be rounded off to the nearest whole number. If you choose this, then decimal places will be avoided and the amount will be rounded up to the nearest whole number. Say the total invoice amount comes to INR 25,577.78/-. In this case, the total amount will be rounded to 25,578/-. If the total amount of the invoice is INR 34,556.33/-, in that case, the total amount will be rounded off to INR 34,556/-. 

Make the necessary selections and then click Update to save the changes. 

Setting up Payment Terms

You can also define standard payment terms based on which the clients have to make payments for the invoices here. You can add various payment terms that can be applicable to this billing entity. It is also possible to add several payment terms. You can then assign these payment terms when you are creating a new invoice for a project. 

To add a Payment Term for the legal entity, click on +Add or +Add Payment Term in the Payment Terms section. 

In the Add New Payment Term window, enter the Payment Term Name and the number of days within which the payment needs to be made in the Due (Days) field. Click Add once you are done. 

You can add multiple payment terms and assign the ones that apply to each project or invoice. 

You can view the various payment terms added here and also edit or update these details by clicking on the three dots icon corresponding to each payment term. 

Setting up invoice custom fields

You can customize your invoice by adding custom fields to the invoice. To add a custom field, click on +Add Field or +Add New Field in Invoice Custom Fields section of the page.

This will open the Add Invoice Custom Field window where you can enter the Name for the field and also enter an optional Description for the field. You can also choose the Field Type, for the new field to indicate if it is a number, text, date, or any other type. Finally, choose if this is a mandatory field and needs to have input.

Once you have entered the relevant details, click Add to save the custom field. 

You can add more custom fields to the invoice by repeating the steps above. 

This brings us to the end of the article on configuring billing entities for Keka PSA. More questions? Reach out to our product experts today!