Setup Information

You can base retainage on funded value for one task and contract value for another task if you have set up the project to accommodate billing at the second level or below.

The unbilled portion of the billing journal will be posted to the account in the project account group that has a function code of "Unbilled Genl."  If the bill that is posted contains retainage then the amount of the retainage will be posted to the account from the project account group that has a function code of "Unbilled-retainage."  The posting processes will display an error message if the project account group does not contain an account that has been assigned a function code of "Unbilled - Retainage."

The billing programs post the amount of the bill to the account that has a function code of "Billed A/R" in the project account group.

Use the drop-down box to select the billing formula that applies to this project. This billing formula is used to calculate the bill for the project.

There are two types of billings, transaction-based and manual.

• A transaction-based billing formula is generally based on the transactions that have been charged to the project. The Open Billing Detail table stores the transactional data that is used in the computation of the invoice. This data remains in the Open Billing Detail table until you post the bill.

• A manual billing is one that does not rely on transactions that have been posted to the project.  Manual bills are entered in Enter Project Product Bills (Projects\Transactions\Billing), Enter Milestone/Percent Complete Bills (Projects\Transactions\Billing), Enter Customer Product Bills (Projects\Transactions\Billing), or Enter Manual Bills (Projects\Transactions\Billing) screens.  You must enter a billing formula of "Enter Bill Manually" if you want to use any of these formulas.

The following is a list of the available billing formulas:

• Cost Incurred Plus Fee On Cost - This is a transaction-based formula that summarizes the costs incurred by a project and applies burden and fee to those costs. The system uses the transactions in the Open Billing Detail table to calculate the invoice. The system calculates the burden using the provisional rates in the Pool Rates subtask of the Cost Pools screen (Projects\Maintain\Allocations). The fee is calculated by applying the fee percent entered in this screen to the total of the costs and burden.

• Cost Incurred Plus Fee On Hours - This is a transaction-based formula that summarizes the costs incurred by a project and applies burden and fee to those costs. When you calculate bills, the system uses the transactions in the Open Billing Detail table to calculate the invoice. The burden will be calculated using the provisional rates in the Pool Rates subtask of the Cost Pools screen.  The system calculates the fee by summarizing the hours incurred in the Open Billing Detail screen (Projects\Maintain\Billing) and applying the fee per hour entered in this screen.

• Enter Bill Manually - Use this formula if you will be using the Edit Project Product Bills, Edit Manual Bills, or Edit Milestone/Percent Complete Bills screens to enter your billings.  You must set up a record in this screen so that the system will recognize the project as billable. The system cannot calculate the invoice automatically if you use this formula.  If you need to use the Pay When Paid functionality, you should select the "Manual Bills with Unbilled Detail" formula.

• LLR W/Fee Plus Non-Labor W/Burden W/Fee - Use this formula to bill hours incurred times a billable rate with a fee on that amount plus non-labor costs and fee on non-labor costs. This is a transaction-based formula.  The hours incurred, associated billing rates, and non-labor costs are taken from the Open Billing Detail table. You must run the Load Labor Rates utility before the bill will calculate properly.  The burden will be calculated using the provisional rates from the pool rates subtask of the Cost Pools screen.  The fee percents will be taken from the Labor Fee Percent and Non-Labor Fee Percent fields in this screen. (These fields will appear below the Formula drop-down box when you select this billing formula.)

• Labor Cost Times Multiplier Plus Non-Labor Times Multiplier (Cost) - Use this formula to bill costs incurred times a multiplier. This is a transaction-based formula. The Labor and Non-labor cost amounts will be taken from the Open Billing Detail table. The cost amounts will be multiplied times the Labor Multiplier and Non-Labor Multiplier entered in this screen. (These fields will appear below the Formula drop-down box when you select this billing formula.)

• Labor Cost times Multiplier Plus Non-Labor times Multiplier (Hours) - Use this formula to have a multiplier-based billing computed at actual labor rates. This is a transaction-based billing. It is different from the "Labor Cost Times Multiplier Plus Non-Labor Times Multiplier (Cost)" formula because it computes using actual hourly rates. The system will calculate the actual hourly rate by dividing the labor cost by the hours incurred. The system will insert this rate into Open Billing Detail when you run the Load Labor Rates process (Projects\Process\Billing). This rate will then be multiplied times the multiplier in this screen and then by the number of hours in Open Billing Detail. The purpose of this formula is to show a multiplier billing with an hours-based format.

• Loaded Labor Plus Non-labor Plus Burden On Non-labor - Use this formula to bill hours incurred times a billable rate and burdened non-labor costs. This is a transaction-based billing. The hours incurred, non-labor costs, and the billing rate will be stored in the Open Billing Detail table. The provisional burden rate will be stored in the Pool Rates subtask of the Cost Pools screen.

• Loaded Labor Plus Non-labor W/Burden W/Fee - Use this formula to bill hours incurred times a billable rate and burdened non-labor costs with a fixed fee. This is a transaction-based billing. The hours incurred, non-labor costs, and the billing rate will be stored in the Open Billing Detail table. The provisional burden rate will be stored in the Pool Rates subtask of the Cost Pools screen. You will enter the fee that will be applied to the non-labor costs in this screen.

• Loaded Labor Rate - Use this formula to bill hours incurred times a billable rate. This is a transaction-based billing. The hours incurred and the billing rate will be stored in the Open Billing Detail table. No non-labor costs will be billed and no fee or burden will be applied when you use this formula.

• Loaded Labor Rate Plus Cost Incurred On Non-labor (T&M) - Use this formula to bill hours incurred times a billable rate and non-labor costs at actual. This is a transaction-based billing. The hours incurred, non-labor costs, and the billing rate used in the calculation will be stored in the Open Billing Detail table. This formula is a standard Time and Materials billing.

• Loaded Labor w/Burden w/Fee Plus Non-labor w/Burden W/Fee - Use this formula to bill hours incurred times a billable rate with fee and burden, and non-labor costs with fee and burden. This is a transaction-based billing. The hours incurred, non-labor costs, and the billing rate used in the calculation will be stored in the Open Billing Detail table. The provisional burden rate will be stored in the Pool Rates subtask of the Cost Pools screen. You enter the fee used in the calculation in this screen.

• Manual Bills with Unbilled Detail - Use this formula if you will be entering bills in the Edit Project Product Bills, Edit Manual Bills, or Edit Milestone/Percent Complete Bills screens but wish to use the Pay When Paid functionality. The Pay When Paid functionality restricts payment to subcontractors or consultants until you have billed your customer and have been paid by your customer. The Pay When Paid functionality will not work for fixed-price billings unless you select this formula. If you use this formula, the system populates the Open Billing Detail table when you post transactions. Once the bill is posted, the transactions are moved to a transaction history table where they can be flagged as paid or unpaid. No automatic billing calculations are available with this formula.

• Progress Payment - Use this formula to bill using Government Form 1443. If you select this formula, the calculated bill will be in the Edit Progress Payment Billings screen and you can print the bill from the Print Progress Payment Bills screen. This is a transaction-based bill. It will use data from the Open Billing Detail screen.

• Rate Schedule Times Multiplier Plus Non-Labor Cost Times Multiplier - Use this formula to bill hours using a variety of billing rates types. With this formula, you must use PLCs with all labor transactions. This is a transaction-based formula. You can set up each PLC to use any of the rate types.  This formula effectively allows the labor portion of the billing to be calculated according to who or what group of employees is charging it.  Select the Include Labor Multiplier in Billing Rate checkbox to have the labor multiplier calculated in addition to the billing rate.  The non-labor section is always computed using a multiplier.

• Unit Price Transactions Only - Use this billing formula to bill only unit transactions.  Selecting this formula will prevent transactions that are posted from Accounts Payable, Journal Entries, and Labor Distribution from populating the Open Billing Detail table. If you select this formula, Open Billing Detail will be populated only if you check the Post to Billings checkbox in the Enter Unit Usage screen. You should also use this formula if you wish to produce only scheduled bills.

Billing Calculation Values are located directly below the formula drop-down box and will be disabled unless the selected billing formula requires additional information, such as a fee percentage, fee per hour, or multiplier rate. Enter the fee or rate for the billing formula here.

Note: The titles of these fields will change, depending on the billing formula chosen in the Formula drop-down box.

Select this checkbox when you have selected a billing formula that uses a multiplier and want to include the labor multiplier in the billing rate.    

This checkbox is available only if you select "Labor Cost times Multiplier Plus Non-Labor Times Multiplier (Hours)" or "Rate Schedule Times Multiplier Plus Non-Labor Cost Times Multiplier" in the Formula drop-down box.

Use the drop-down box to select the basis for the system-calculated retainage. It can be based on the total bill amount, the fee amount, or the T&M labor portion of the billing. Select "None" if you do not want retainage for this project's billings.

Use this drop-down box to calculate the retainage for each billing or as a final amount.

Valid options are "Each," "Final Based On Contract Value," or "Final Based On Funded Value." If you select either "Final Based On Funded Value" or "Final Based on Contract Value," the system calculates the bill and then applies the billing amount to retainage, once the amount billed exceeds the contract value less the retainage amount (retainage amount = retainage percentage multiplied by the contract value) When you post this bill, it changes the unbilled from general to retainage.

If you select "Final Based on Funded Value" or "Final Based on Contract Value," you must designate a fee ceiling of "B" (Billings) or "A" (Both Revenue and Billings) in the Value Info group box of the Project Total Ceilings screen. Without the billing ceilings, the system will be unable to calculate retainage on a "Final Amount" basis.

Note: The system will not calculate the retainage on a final bill if the retainage is based on the T&M labor portion of the billing.

Enter the percentage to use for retainage amounts calculation, if the system has been set up to calculate retainage amounts.

Enter the maximum amount, or ceiling, of the retainage that can be withheld.