What is a Ceiling?

A ceiling limits the amount that can be billed to a customer or recognized for revenue. Ceilings are optional and can be set at multiple levels in the activity structure to limit billing or revenue amounts at those levels. All ceilings apply equally for billing and revenue recognition processes.

You can set ceilings at four levels within the activity structure. The levels include contract level, activity level, account category, summary account category, contract category group, or billing category (transaction attribute). During billing or revenue recognition, the application applies a ceiling hierarchy that starts with the ceiling set at the lowest level and works up. The ceilings stop billing and revenue recognition for amounts that exceed the ceiling and tolerance, if applicable.