How are Ceilings used in Billing?
When you process billing programs, the application looks first for a ceiling record at the lowest level (billing category), or on the billing activity associated with the transaction. If a ceiling record exists at the lowest level, a ceiling amount/unit is applied to the transaction. The transaction then moves to the next level (billing activity account category), where a ceiling amount is applied to the transaction if a ceiling record exists. At the next level (billing level activity without an account category attached), the transaction again looks for a ceiling record. If there is a ceiling amount, it is applied to the transaction. Finally, the transaction moves to the contract level, where again it looks for a ceiling record.
Example
The following figure represents the Billing and Revenue Management activity group structure for Client 1. The contract parameters are set up based on different activities required by the project. Posting activities are below the contract level and contain account categories at the lowest level.
The application will check for ceilings at each level (billing category, account category, and activity) on the billing activity associated with the transaction. Ceilings are then checked at the billing category, account category, and activity levels on the contract activity as well. The application also checks the contract ceiling.
When a ceiling amount is reached at any level, it can be exceeded if there is a tolerance amount at that level or a higher level. Billing amounts in excess of both ceiling and tolerance levels are stored in a file where they are billed at a later date, if the ceiling is increased.
When you run Invoice Calculation (BR120) to update your billing amounts, and select Y (Yes) in the Bill Overages field, the application checks to see whether the ceilings have increased. If ceilings have been lifted or have increased, the overage will be billed up to the amount of the new ceiling.