Defining a ceiling and tolerance at the billing category level

You can set ceilings by billing category if you use time and materials billing. You can set billing category ceilings by activity, activity with account category, or activity with account category group. Billing categories are transaction attributes, such as a job code, so this ceiling accommodates limits by a specific labor resource for a given activity.

Note: If you select time and materials billing as the billing method on Billing Detail (BR00.2), then you must define the billing rates. If you define labor billing rates on Billing Category Rates (BR03.1), then you can set billing category ceilings.

Time and materials billing calculation validates the labor category defined here. The labor category that you select here must match a labor category rate table defined on Billing Category Rates (BR03.1), before the ceiling amounts you define here will take effect.

See Defining a billing category rate table.

Use this procedure to define a ceiling and tolerance at the billing category level.

Access Ceiling Levels (BR00.3).
To set the maximum amounts and units that can be billed to a labor category, use these guidelines to specify the field values:
Activity

Select the contract, summary, or posting activity for which you are defining the ceiling amounts.

Account Category / Contract Category Group / Summary Account Category

Select a valid account category, contract category group or summary account category to associate with the activity that transactions are posted to.

Billing Category

Select the billing category where you want to define the ceiling amounts. Your labor value options will default based on the labor category you select here. For example, if the labor category is Job Code, then a value might be Sr. Technician.

Ceiling Amount/Unit
Specify the maximum amount or units that can be billed to the activity/account category combination selected.
Note: These rules apply to ceilings:

If you change the ceiling or tolerance, then the new ceiling plus tolerance must still exceed any previously billed amounts for the activity.

If an existing ceiling has already been exceeded using a tolerance, then the ceiling cannot be reduced.
Tolerance Amount/Unit

Specify the maximum tolerance amount or units that can be billed to the activity/account category combination defined above.