BILLING

Use this tab to establish default values for billing-related fields on selected sales order (SO) line item types. You can also use this tab to provide a default sales group abbreviation and inventory abbreviation for each sales order line.

The sales abbreviation and inventory abbreviation can be different for each line in the sales order. Each sales abbreviation entered on the order has a unique combination of sales/revenue, deferred revenue, and accounts receivable accounts. You can charge only one accounts receivable account, organization, and project combination for each sales order.

The Revenue Recognition method you choose on this tab defaults on the invoice and determines the journal entry created for the order when the sales order journal is posted to the general ledger.

Sales Group Abbrev

Enter, or click to select, a valid sales group abbreviation. The sales group abbreviation selected is the default value on each SO line item.

Inv Abbrev

Enter, or click to select, a valid inventory abbreviation. The inventory abbreviation selected is the default value on each SO line item. Inventory abbreviation information is originally established on the Manage Inventory Projects screen, and is assigned to pricing projects and catalogs on the Manage Sales Order Project Defaults and Manage Sales Order Catalog Defaults screens, respectively. If you entered a pricing project, and a CLIN and Item on the sales order line, the default inventory abbreviation displays for the line from the Manage CLIN Information screen. The inventory abbreviation is required only for INV (Inventory) line types.

Revenue Recognition

From the drop-down list, select one of the following revenue recognition methods:

• Deferred Revenue

• Liquidations

• Prepay

• Ready for Use

• Shipment/Sales

• Unbilled A/R

The pricing project or catalog provides the default for this field. If you did not choose a pricing project/catalog, it defaults from the Configure Sales Order Entry Settings screen.

This revenue recognition method displays on the Details tab of the Manage Invoices screen. The revenue method and the line type together determine the journal entries made to the general ledger when the sales order journal is posted. The sales order journal entries are listed as follows:

* The inventory journal posts the cost-of-sales entry, debiting Cost of Sales and crediting Inventory.

Where applicable, the sales order journal includes an additional entry to credit the sales tax liability account for the sales tax amount recorded on the invoice. The appropriate accounts receivable account includes the debit side of the sales tax entry.

In general, the clearing account charged by the sales order journal is offset by the accounts payable journal posting when the expense for purchased items is recognized.

All sales orders that include warranty charges have an additional sales order journal entry showing a debit to a warranty expense account and a credit to a warranty accrual account.

Project To Charge

Enter, or click to select, a project-to-charge to be used by sales abbreviations that have accounts defined for project substitution. The project-to-charge selected defaults on each SO line item. The project-to-charge can also default from the Sales Order tab of the Manage Customers screen, if it applies to the customer ID. Only accounts that require projects and that allow project substitution use the Project To Charge field.

Recurring

Starting

Enter, or click to select, the beginning date of the period that the recurring line item is in effect. The starting date defaults on each REC (Recurring) sales order line.

Ending

Enter, or click to select, the ending date of period that the recurring line item is in effect. The ending date will be the default value on each REC (Recurring) sales order line.

Billing Cycle

Enter, or click to select, the applicable billing cycle code. The code will be the default value on each REC (Recurring) sales order line.