Adding project contract fees to project contracts

  1. Select Financials > Project Ledger > Setup > Project Setup.
  2. Click the Structure tab.
  3. Open a project structure and click the Hierarchy tab.
  4. Select a contract summary project and select Actions > Update.
  5. Click Contract Information.
  6. Click the Fees tab.
  7. Click Create.
  8. Specify this information:
    Fee Code
    Select the fee code for the project contract.
    Effective Date
    Specify the date the fee code is effective. The effective date should be within the project contract date range.
    Fee Type
    Select the type of fee for the fee code:
    • Rate: Specify a Rate amount. The amount is multiplied by the transaction units to calculate the fee. This calculation supports unit of production fees with tiered or volume pricing.
    • Flat Amount: Set up tiered amounts after saving the record. The flat amount that is based on the number of units is the fee.
    • Percent: Specify a rate Percent and Basis. The specified rate percent is multiplied by either the expense transaction amount or the billable amount to calculate the fee. This calculation supports markup percent and single step burden fees. This can also be set up as a markup or an allocation.
    Tiered
    Select whether the fee type is tiered. If the fee is tiered, pricing must be set up after saving the fee.
    Marginal
    Select whether the tiered pricing is marginal.

    For example, 100-999 units are $1.50 per unit and 1000-1999 units are $1.25 per unit. If this check box is selected, the first 999 units are $1.50 and every unit 1000 and above are $1.25. If this check box is cleared, all units are $1.25 after 1000 units is surpassed.

    Tax Exempt
    Select whether the project contract fee is tax exempt.
    Revenue Structure Option
    Select if the revenue structure will be entered as a full finance code block or a partial for the contract fee.
    Partial Revenue Finance Structure
    Specify the dimensions to override for revenue for the contract fee. The dimensions that are left blank will inherit the value from the originating expense. The list is filtered on revenue accounts because the account will generally be a revenue account. If another account type is required, any account can be specified.
    Full Revenue Finance Structure
    Specify the full revenue finance structure for the contract fee. The list is filtered on revenue accounts because the account will generally be a revenue account. If another account type is required, any account can be specified.
  9. Click Save.
  10. If Tiered was selected, click Create on the Tiers tab of the Fees tab. Specify this information:
    Through
    Specify the units for the end of the tier range. The Greater Than field is automatically populated as new tiers are created.
    Rate/Amount
    The field label depends on the Fee Type that is selected. Specify the rate or flat amount for the tier.
  11. Click Save.