How is Billing Category Assignment Used With Cost Plus Billing?

Billing categories are transaction attributes. Values for those attributes can be entered in transactions posted to Billing and Revenue Management. Cost Plus Billing Labor Category Assignment (BR03.3) identifies a subset of billing category values that are valid for the transactions you enter. You can assign billing categories to a posting activity, an activity and an account category, or an activity and a summary account category, or an activity and a contract category group.

Use billing category assignment when your client requires you track employees on a particular project. For example, if Kim Reynolds and Mary Jacobs will be the only trainers on Project A, you can establish a labor account category assignment to prevent other trainers from posting costs to Project A. To further define the assignment, you can add a training labor account category. This means that only Kim and Mary can be included on the transaction sent to the training labor account category, but other trainers could be attached to transactions posted to other account categories.

Billing category assignment has no effect on the billable amount. Rather, it serves as an edit when determining which billing category values can be posted to specified activity or activity/account category combinations. The billable amount is determined by the markup percent associated with the account category.

Billing category assignment is optional. If defined, the values entered in a transaction are edited against the assignment. If you do not establish billing category assignments, the values are edited only against those values defined for the billing category on Attribute (MX00.1).