Billing and Revenue Management Structure Setup
The following diagram shows the required and optional setup tasks you must complete to set up your Billing and Revenue Management structure.
You can find details about concepts and procedures related to Billing and Revenue Management structure setup in the following Billing and Revenue Management User Guide chapters.
| Setup | Requirements | For details, see |
|---|---|---|
| Customers | Customer records are the starting point for setting up your billing and revenue recognition structure. Identify customers with whom to associate activity billing options. | Setting up contracts |
| GL Codes | Define GL codes to group GL companies, accounting units, accounts, and subaccounts within the Project Accounting and Billing and Revenue Management applications. | Setting up contracts |
| Journal Codes | Define journal codes to group GL codes and account categories for revenue-at-risk transactions. | Setting up contracts |
| Contract Parameters | After you create a contract activity, you define contract parameters to identify the characteristics of the contract. For example, you can identify the contract currency, revenue recognition method, level, customer, GL and journal codes, and ceiling tolerances. The contract is associated with a specific activity group for the purpose of collecting cost information and other project details. | Setting up contracts |
| Billing Parameters | You define billing parameters to establish the billing method, type of customer invoice, and other processing criteria for an activity. You can define activity billing parameters at the contract, summary or posting level, or at the account category level. For ease of setup, define billing parameters at the highest level possible. You can make changes at the lower levels if your billing methods are different at those levels. | Setting up billing |
| Retainers (optional) | As an option, you can define a retainer amount which is a fee paid to secure services. Retainers can be held by the performing party until the work is completed or, they can be spread over the life of the activity. | Setting up billing |
| Retention (optional) | As an option, you can define retention parameters to delay billing amounts. A percentage of the billable amount is retained on each invoice until a pre-set ceiling has been retained. Thereafter, the amount is fully billable. The retained amounts will be billed on a date determined by a manual event. For example, a manual event could be the completion of an audit of the contract. | Setting up billing |
| Fee Billing (optional) | Fees allow you to add a markup to specific costs. Fees can be used for billing and/or revenue purposes. You can define parameters to record fee retention and establish ceilings to stop accruing or billing fees. Any unbilled fees can be billed at a later date or can be written off. | Setting up fees |
| Invoice Groups (optional) |
As an option, you can group multiple activities under one contract. An invoice group lets you associate all activities that have the same invoice group code with a single invoice for billing purposes. All invoices produced within a group will have sequential numbering. Note: If the Invoice Group field is left blank,
the invoice group is assigned to a blank group.
|
Setting up contracts |