Financials

Statements of Work

Statements of Work in Synthelioare the financial foundation of each client engagement. Every SoW stores:

•    SoW name

•    Client account

•    Amount and currency

•    Status: Draft or Signed

•    Valid period: start dateand end date

•    Link to the connected CRMdeal

•    Link to the associatedPurchase Order

SoWs can be downloaded as PDFsdirectly from Synthelio. The status is tracked — Draft until the client signs,then Signed, and Expired at the end of the valid period. Expired SoWs remain inthe system for historical reference.

The billing rates defined in a SoWare what Synthelio uses to generate invoices. When approved timesheet hours arepicked up by the invoice generator, the SoW rate is applied automatically. Thismeans the connection from signed contract to accurate invoice is automatic andtraceable.

Purchase Orders

Purchase Orders from clients arestored in Synthelio and linked to the relevant SoW and project. For each PO,Synthelio tracks:

•    PO name and referencenumber

•    Client account

•    Amount and currency

•    Associated SoW

•    Invoices raised againstthis PO

The PO amount versus invoicedamount is tracked automatically. When invoices are generated and linked to aPO, the remaining PO balance reduces. Finance can see at a glance how much ofeach PO has been invoiced and how much remains.

The PO tracking feature prevents acommon problem in IT outsourcing billing: invoicing work that isn't covered byan authorised PO. When a project approaches the PO limit, the finance team cansee it coming and request a new PO from the client before the limit isexceeded.

Invoice generation

Invoices in Synthelio aregenerated from approved timesheets. The process is:

1.  Timesheets for the billingperiod are submitted and approved by managers.

2.  Synthelio identifies theapproved hours for billable projects in the billing period.

3.  The SoW billing rate isapplied to the approved hours to generate invoice line items.

4.  Finance reviews the draftinvoice, adjusts if necessary, and sends or syncs to the accounting tool.

There is no manual data entry forinvoice line items. The hours come from approved timesheets. The rates comefrom the SoW. The connection is automatic.

Line items can be grouped byemployee, by project, or by billing code — depending on how the client expectsto receive their invoice. If timesheets for the billing period have not beenfully approved, Synthelio flags this before the invoice is generated.

Project margin tracking

Project margin in Synthelio iscalculated from two data points: the approved timesheet hours costed at theemployee's internal rate (their cost to the company), and the approvedtimesheet hours billed at the SoW rate (their revenue to the company). The differenceis the margin.

This calculation happens in realtime as timesheets are approved. It doesn't require the billing period toclose. A delivery lead or finance manager can see the margin position of anyproject at any point during the project — not just at the end.

Projects running at a margin belowthe expected threshold are visible before the invoice goes out. This givesdelivery leads and account managers the opportunity to:

•    Identify scope creep earlyand have the conversation with the client

•    Understand which projecttypes or clients are consistently less profitable

•    Make pricing decisionsbased on real margin data rather than estimates

Multi-currency

Synthelio handles multi-currencySoWs, purchase orders, and invoices natively. Supported currencies include USD,EUR, GBP, PLN, and others. Additional currencies can be configured inFinancials Settings.

For organisations running projectsin multiple currencies, FX rates are applied automatically to cost and revenuecalculations. Multi-entity organisations can have different base currencies perlegal entity, with financial reporting respecting entity boundaries.

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