Using cost plus invoicing

In Cost Plus invoicing, invoiced amounts are based on:
  • The actual costs plus a markup.
  • The sales price or rate for the product.
  • The service extended to the customer.
Contracts of the type, Cost Reimbursement and Time & Materials must be linked to a cost-based invoicing method. For contracts of the type, Cost Reimbursement, the pricing of the billable cost is based on the markup defined on the Selling tab in the Contract Lines (tpctm1110m000) session. For contracts of the type, Time & Materials, the pricing will be based on the markup percentage defined for the sales price of labor and material cost types on the Selling tab in the Contract Lines (tpctm1110m000) session.

The CLIN can be linked to a billing cycle, which drives the recurrence of the billing. Only costs that are marked as billable are invoiced. The application displays the billing amounts and quan-tities, based on the effort spent, on the contract lines of type Cost Reimbursement and Time & Materials. You can create a business partner's invoice only when you incur the actual costs. To use cost plus invoicing:

  1. Create a contract of type, Cost Reimbursement or Time & Materials with the Invoice Type set to Cost-Plus.
  2. Specify a project that is linked to the relevant contract line.
  3. Register unit costs on the project. The application registers the unit costs on the contract line.
  4. Assign the revenue codes in the Assign to Revenue Codes (tppin0810m000) session.
  5. Record the actual costs in the Cost Entry Overview (tpppc2811m000) session.
  6. Confirm the unit costs in the Approve Costs (tpppc4811m000) session.
  7. Process the transactions using the Process Transactions (tpppc4802m000) session.
    Note: This is relevant only for unit costs registered for a project. The application approves and processes the unit costs that are not part of the project.
  8. Set the transactions to To be Invoiced using the Cost-Plus Transactions to be Invoiced (tppin4810m000) session.
  9. Process the transactions to Invoicing using the Transfer Transactions to Invoicing (tppin4200m000) session.
  10. Compose, print, and post invoices to Accounts Receivable in Invoicing.
The associated revenues are defaulted to Project Progress for transaction processing.
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