Billing Info

Evaluate ceilings, billing formula types, customers, and project tasks when choosing a billing level for the project.

If your project requires billing ceilings based on the contract or funded value of a specific branch of the project tree, you must place the billing formula at the highest level of the project tree where the values exist. For example, funding has been issued by the customer for multiple phases of the project, you must place the ceilings in the project tree at or above the level where the funding for that phase has been entered. In this case the project tree should have been set up by project phase.

You must evaluate the need for multiple billing formulas before structuring your project and choosing a billing level. If multiple billing formulas will be needed for the project, then you must enter the billing formula at level two or below in order for the bills to compute properly.

If you have multiple customers on this project you may need to enter the billing formulas at level two or below. The system has the capability of billing multiple customers without the need for separate tasks. However, the billing requirements for the customers must be identical in order for this to work properly. If the billing requirements by customer differs, use separate tasks to accommodate the needs of each customer. In this case, you must set up the billing level at level two or below.

If the project does not have any of the requirements above, you should set up the billing at the top level of the project as this is the easiest way to bill.

If you have posted transactions to your project before you have established your billing formula in this screen, you must follow some additional steps in order to bill the project. Use the following steps to enable project billing for this project:

Evaluate the Open Billing Detail screen for this project. If any transactions exist in this screen for the project in question, you must take them into consideration when you complete the steps noted here. You may want to delete any transactions found in the Open Billing Detail screen so that there will be no possibility of duplicate billing.

Set up a transaction based billing formula in the Project Billing Information screen. A transaction based billing formula includes all formulas available in this screen except "Enter Bill Manually" and "Unit Price Transactions Only."

Use the Update Open Billing Detail screen (Projects\Utilities\Project Toolkits) to populate the Open Billing Detail screen with transactions for this project. We recommend that you run this utility for only one project at a time. The utility will not evaluate the presence of transactions in the Open Billing Detail screen. It will simply use the General Ledger Detail table to populate the Open Billing Detail screen. For more information on the use of this utility see the screen documentation for the Update Open Billing Detail screen.

Multiple billing formulas can be set up within a single project as long as the project is structured so that billing formulas are not stacked. The system will not let you enter a higher level billing formula if it finds another billing formula at a lower level of the project tree.

Structure the project so that the billing formulas can be entered at level two or below and all the tasks below the billing level fall below the desired billing formula type in the project structure.

A transaction-based billing formula is one that is billed according to the transactions that were charged to the project. The transactions-based billing formulas include all the formulas in this screen except "Enter Bill Manually" and "Unit Price Transactions Only."

You can enter manual bills in the Enter Milestone/Percent Complete Bills, Enter Manual Bills, and Enter Project Product Bills screens. You must, however, establish a billing record in this screen before you can create manual bills in those screens.

The Edit Progress Payment Bills screen exists for projects that will be billed using Government form 1443.

Select the "Progress Payment" formula if you need to produce Government Form 1443.

You must set up a billing formula for your project in this screen if you intend to bill the project using any of the manual billing processes. You should use the "Enter Bill Manually" formula in most cases.

If you need to use the Pay When Paid feature, you should select the "Manual Bills with Unbilled Detail" formula. This billing formula allows you to use one of the manual billing screens and it populates the Open Billing Detail screen. The data in the Open Billing Detail screen is used to evaluate the "pay when paid" status of individual transactions.

Enter, or use Lookup to select, the billing format code for this quick project.

Billing formats contain customized formatting for your transaction-based billings. You set them up in the Generic Billing Formats screen in Projects\Maintain\Billing.

Enter, or use Lookup to select, the billing formula for this quick project. This billing formula is used to calculate the bill for the project.

After you enter a billing formula ID, its description populates the field to the right.

Also, depending on the billing formula you enter, additional billing calculation fields, such as Fee Percent, Labor Fee Percent, or Non-Labor Fee Percent display in this screen and require entry.

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 the Enter Manual Bills, Enter Milestone/Percent Complete Bills, Enter Project Product Bills, and Enter Customer Product Bills 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. 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 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 utility. 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 on the Setup Information tab of the Project Billing Information screen (Projects\Maintain\Billing) 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.