The contract-based job does need a valid Contract to be created and in the Contracts module before it can be invoiced through the recommended work flow.
Fore more details on how to enter a contract based invoice see 37667
For more details on the contract based billing work flow, see 17332
For additional reasons why the contract is not listed to bill in the BL Contract based invoice screen, see 21280
For details on billing a Job without affecting the Contract, see 36006 DocLink: What is the workflow for contract based billing? DocLink: My contract is not on the list in the Billing Contract-Based Invoices task. DocLink: Can I bill a job without affecting the contract totals? DocLink: How do I enter a contract-based invoice in Billing?
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