Where is Billing Calculated?

Billable amounts are calculated in the posting routine and stored on the transaction in the invoice currency.

Based on data from the billing parameters you established in your setup, the billing calculation takes all billable transactions and creates a billing record or invoice that can then be transferred to Accounts Receivable.

Transactions can come from other Lawson or non-Lawson applications, or they can be entered directly into Project Accounting. For more information on processing transactions, see the Project Accounting User Guide.

The billing calculation gathers all billable amounts and creates journal entries that update both Project Accounting and General Ledger. These transactions will vary depending on when billing occurs relative to when revenue is recognized.

Example 1: Billing Occurs Before Revenue Recognition

SBC bills customers every two weeks and recognizes revenue at the end of the month. The following journal entry is created at billing:


Account	Debit	Credit
Accounts Receivable	XXX,XXX
Billed		XXX,XXX

The following entry is made when revenue recognition occurs:


Account	Debit	Credit
Billed	XXX,XXX
Revenue		XXX,XXX

Example 2: Revenue Recognition Occurs Before Billing

In 1999, SBC decided to recognize revenue daily and bill customers every two weeks. The following journal entry is created when revenue recognition occurs:


Account	Debit	Credit
Unbilled	XXX,XXX
Revenue		XXX,XXX

The following journal entry is created when billing occurs:


Account	Debit	Credit
Accounts Receivable	XXX,XXX
Unbilled		XXX,XXX

How are Billed and Unbilled Accounts Used?

The billed and unbilled accounts are determined when you define GL codes on the contract. You can use a single account for both billed and unbilled accounts or you can use separate accounts.

The previous examples show how billed and unbilled accounts are updated during billing and revenue recognition processing.