What Billing Methods are Available?

Customer billing will vary based on the billing method you define for your activity structure. The Billing and Revenue Management application provides six methods for billing customers. Each method is described briefly in the following table.

Billing Method	Description
Cost Plus Billing	This method uses a markup percent, burdens, or a burdened fee calculation to bill customers. You can assign markup percents to billable account categories or on the billing record. Additional burdens/fees also can be calculated.
Pass Thru Billing	This method is used when the costs for the particular activity or account category are passed to the customer but are not included in the contract amount. The application will continue to bill pass thru costs even though the contract ceiling has been reached.
Time and Materials Billing	This method bills for time based on billing category or resource rates, and for materials or non-labor costs based on the markup percent assigned to billable account categories.
Milestone Billing	Milestone billing offers several options. Billing can be triggered by the application if you set date, day, or percent complete milestones. For manual milestones, you determine when the milestone can be billed by setting the milestone status to 1 (To Process) on Milestones (BR05.1). You can set milestones at any activity level. Milestone billing can only be overridden by pass-thru billing.
Units of Production Billing	This method bills customers based on the number of units produced times a billing category rate.
User-Defined Billing	This option lets you customize your billing method by creating your own billing calculations.