14 Equipment Time Billing

This chapter contains these topics:

Chapter 14, "Objectives,"

Chapter 14, "About Equipment Time Billing,"

14.1 Objectives

  • To enter equipment time in order to bill jobs

  • To understand the payroll and time accounting fields related to equipment

  • To understand the process of recording billing transactions in the general ledger and equipment balance tables

14.2 About Equipment Time Billing

You can charge a job or business unit for the use of your equipment. When you enter equipment billing information, the system creates debit journal entries to the Account Ledger table (F0911). You can then review and approve billing entries for posting. When you post the entries, the system creates the offsetting credit entries to the general ledger Account Balance table (F0902). You must also post equipment time billing transactions to the equipment system Item Balance table (F1202).

Use one of the following methods to enter equipment charges:

  • Enter charges using Time Accounting

  • Enter charges using Payroll

  • Enter charges using Equipment Time Entry

The method you choose to enter equipment charges depends upon the systems that you have installed and the type of information that you need to enter.

Method Description
Time Accounting Use the Time Accounting system to enter charges for both equipment use and associated labor. You can charge for employees' time based on their labor rates or their recharge rates. However, you can charge for equipment use without charging for labor.
Payroll You can use the Payroll system to enter charges for labor associated with equipment use. In this system, you must enter charges for both equipment and labor. You can also create payroll liabilities, such as payroll taxes and employee benefits. The Payroll system uses information from the employee master to create the liabilities. In addition, use Payroll to post equipment transactions on an interim basis, regardless of the payroll cycle.
Equipment Time Entry Use the Equipment Time Entry program in the Equipment/Plant Maintenance system to enter only equipment charges to a job or business unit.

Note:

You must install Time Accounting (System 05) and Payroll (System 07/77) to use their billing features with Equipment Billing.

14.2.1 Before You Begin