Completing Prerequisite Setup for Billing

Regardless of the billing method you select, you will need to complete certain prerequisite setup steps. Many of these steps have been covered in detail as part of procedures in the setup section of this manual. Use the following table as a checklist to confirm that all prerequisite setup has been completed before moving on to define billing parameters.

To complete prerequisite setup for billing

Complete all applicable setup as described in the following table.
To Use
Define the activity as billable

Activity (AC10.1). Use the following guidelines to enter field values:
Set up a billable account category and define a markup percent

Override Account Categories (AC06.1). Use the following guidelines to enter field values:

  • BI (Billable): Set to Y (Yes).

  • Markup Percent: Define markup for each account category that will be used for cost plus billing.

    Setting up account categories

Note: You can also set up a billable account category through the account category structure.
Assign billed and unbilled account categories and GL codes (or set up a contract)

GL Codes/Acct Cats tab on Contract Parameters (BR10.1):

  • Earned/Unbilled: Select the GL code and account category where you want to store earned/unbilled amounts.

    Note: The unbilled GL code is used when revenue exceeds billing.

  • Billed/Unearned: Select the GL code and account category where you want to store billed/unearned amounts.

    Note: The billed GL code is used when billing exceeds revenue.

    Setting up contracts

Set up a billing ceiling tolerance

Tolerance tab on Contract Parameters (BR10.1). Use the following guidelines to enter field values:

  • Include for Billing: Set to I (Include) to enforce ceiling and tolerance amounts.

  • Tolerance: Type an amount by which you will allow the contract to exceed the ceilings on the contract and billing records.

    Setting up contracts

To assign a customer to a contract

Customer (BR11.1). Use the following guidelines to enter field values:

  • Customer: Select the customer you are assigning to the contract.

  • Percent Billable: Enter the percentage of billable charges to this customer.

    Setting up contracts