Billing (Upset) Limit Examples
Four billing (upset) limit methods are available from the Limit Method field on the Misc tab of the Billing Terms form. An upset limit is a maximum amount above which Vision cannot bill.
Aggregate Limits Example
This method combines all upset limits entered into billing terms for the project and compares the combined result to the total billings for the project. Any adjustment is prorated back to all sections that had billing amounts, in proportion to each section’s part of the total billings.
For example, assume an invoice is generated as follows:
| Current Billing | Upset Limit | |
|---|---|---|
| Labor | 2,810 | 7,000 |
| Consultants | 800 | 4,500 |
| Units | 233 |
The Billing Limits section on the bill will appear as follows:
| Billing Limits | Current | Prior | To-Date |
|---|---|---|---|
| Total Billings | 3,843 | 9,044 | 12,887 |
| Limit | 11,500 | ||
| Adjustment | 1,387 |
Proration adjustment is calculated as:
Proration Percentage
= Adjustment/Total Current Billings
= 1387/3843
= .3609159
Proration Percentage = 36% (rounded)
Applied to: All sections with billings
Labor Adjustment
= Current Labor Billings * Proration Percentage
= 2,810 * .36
= 1,011.60
Consultants Adjustment
= Current Consultant Hour Billings * Proration Percentage
= 800 * .36
= 288
Unit Adjustment
= Current Unit Billings * Proration Percentage
= 233 * .36
= 83.88
Individual Limits Example
After calculating the invoice section totals, Vision displays upset limits for only those sections that have upset limits specified. Vision calculates any adjustment required for each section compared to the upset limit specified for the individual section. If no adjustment is necessary, Vision displays the amount remaining. Since the adjustment is calculated for each individual section, there is no proration calculation necessary.
For example, assume an invoice is generated as follows:
| Current Billing | Upset Limit | |
|---|---|---|
| Labor | 2,810 | 7,000 |
| Consultants | 800 | 4,500 |
| Units | 233 | No limit |
The Billing Limits section on the bill will display as follows:
| Billing Limits | Current | Prior | To-Date |
|---|---|---|---|
| Labor | 2,810 | 4,875 | 7,685 |
| Limit | 7,000 | ||
| Adjustment | - 685 | ||
| Consultants | 800 | 3200 | 4,000 |
| Limit | 4,500 | ||
| Remaining | 500 |
Example of Print indiv - calc aggregate for sections with limits
This method displays a line for each section of the invoice that has a limit. The calculation combines all upset limits and compares the total result to project-to-date billings to determine any required adjustment or amount remaining. Any adjustment is prorated back to only those sections of the invoice that have upset limits, in proportion to their part of the total subject to limits.
For example, assume an invoice is generated as follows:
| Current Billing | Upset Limit | |
|---|---|---|
| Labor | 2,810 | 7,000 |
| Consultants | 800 | 4,500 |
| Units | 233 | No limit |
The Billing Limits section on the bill will display as follows:
| Billing Limits | Current | Prior | To-Date |
|---|---|---|---|
| Labor | 2,810 |
4,875 |
7,685 |
| Consultants | 800 |
3,200 |
4,000 |
| Total Billings | 3,610 |
8,075 |
11,685 |
| Limit |
11,500 |
||
| Adjustment |
-185 |
Proration adjustment is calculated as:
Proration Percentage
= Adjustment/Total Current Billings Subject to Limits
= 185/3610
= .0512465
Proration Percentage = 0.051% (rounded)
Applied to: All sections with limits
Labor Adjustment
= Current Labor Billings * Proration Percentage
= 2,810 * 0.051
= 143.31
Consultants Adjustment
= Current Consultant Hour Billings * Proration Percentage
= 800 * 0.051
= 40.80
Unit Adjustment = n/a, no limit
Example of Print indiv-calc aggregate for all sections
This method combines all upset limits entered into billing terms for the project and compares the combined result to the total billings for the project. Any adjustment is prorated back to all sections that had billing amounts, in proportion to each section’s part of the total billings.
For example, assume an invoice is generated as follows:
| Current Billing | Upset Limit | |
|---|---|---|
| Labor: | 2,810 | 7,000 |
| Consultants: | 800 | 4,500 |
| Units: | 233 |
The Billing Limits section on the bill will display as follows:
| Billing Limits | Current | Prior | To-Date |
|---|---|---|---|
| Labor | 2,810 | 4,875 | 7,685 |
| Limit | 7,000 | ||
| Consultant | 800 | 3,200 | 4,000 |
| Limit | 4,500 | ||
| Units | 233 | 969 | 1,202 |
| Limit | 0 | ||
| Total Billings | 3,843 | 9,044 | 12,887 |
| Limit | 11,500 | ||
| Adjustment | -1,387 |
Proration adjustment is calculated as:
Proration Percentage
= Adjustment/Total Billings
= 1387/3843
= .3609159 Proration Percentage
= 36% (rounded)
Applied to: All sections with billings
Labor Adjustment
= Current Labor Billings * Proration Percentage
= 2,810 * .36
= 1,011.60
Consultants Adjustment
= Current Consultant Hour Billings * Proration Percentage
= 800 * .36
= 288.00
Unit Adjustment
= Current Unit Billings * Proration Percentage
= 233 * .36
= 83.88