Application Setup

Before setting up your activity structure, you should consider the following factors:

  • What are your reporting needs?

  • What is your work breakdown structure?

  • What currencies are required?

  • What are your budgeting and allocation requirements?

  • What kinds of cost, revenue, or accrual information do you want to track?

  • Will resources be assigned to your activities?

Use the following required and optional procedures to set up your activity structure:

  • Defining an activity group (required)

  • Defining an activity (required)

  • Defining an account category (required)

  • Defining resources (optional)

  • Defining burdens (optional)

Before setting up your billing structure, you should consider the following factors:

  • What kinds of customer data is required for activity billing?

  • How will your activities be billed?

  • How will revenue be posted for your activities?

Use the following required and optional procedures to set up your billing structure:

  • Defining a customer (required)

  • Defining journal codes (required)

  • Defining GL codes (required)

  • Defining a contract (required)

  • Defining billing parameters (required)

  • Defining a retainer (optional)

  • Defining fee billing (optional)

  • Defining invoice groups (optional)

Billing Methods Setup

Before setting up your billing methods, you should consider the following factors:

  • What kinds of costs are being billed?

  • What type of invoice will be sent to the customer?

  • At what activity level are billing parameters being defined?

Use the following procedures to set up your billing methods:

  • Setting up cost plus billing

  • Setting up pass thru billing

  • Setting up time and materials billing

  • Setting up milestone billing

  • Setting up units of production billing

  • Setting up user-defined billing

Revenue Recognition Methods Setup

Before setting up your revenue recognition methods, you should consider the following factors:

  • What activities will be identified for revenue recognition?

  • At which activity level will revenue be calculated?

Use the following procedures to set up your revenue recognition methods:

  • Setting up cost plus/full accrual revenue recognition

  • Setting up percentage of completion revenue recognition

  • Setting up completed contract revenue recognition

  • Setting up milestone revenue recognition

  • Setting up user-defined revenue recognition

Billing and Revenue Management Processing

After you have defined your billing and revenue recognition parameters, you are ready to process transactions used to calculate customer billing, interface invoice information to the Accounts Receivable application, and recognize revenue.

Billing and Revenue Management Reporting

After processing a billing and revenue recognition cycle, you can generate a variety of reports, listings, and analyses that you may want to provide to your clients. You can report on the following information:

  • billing history

  • activity aging

  • revenue history

  • income performance

  • percent complete

  • milestone analysis