Design Requirements
You must consider and answer these additional questions for your billing extension.
Revenue or Invoice Amount?
Are you calculating a revenue amount, an invoice amount, or both? Are the amounts generated during revenue accrual, invoice generation, or both?
- The Communication Surcharge generates only an invoice amount during the invoice generation process. There is no effect on revenue.
How is the Amount Calculated?
What are the inputs to the calculation?
Surcharge = Surcharge Percentage X Labor Invoiced
What is the Calling Place?
This billing extension is called in both Regular and Adjustment processing, to account for regular transactions and for revenue and invoice credits.
How are the Inputs Derived?
- Surcharge Percentage is entered by a project user who defines the billing terms of the project. This will be entered on the billing assignment. If the percent is not specified, read the corporate default from the descriptive flexfield.
- Labor Amount Invoiced is the labor bill amount on an invoice, excluding overtime billed on the invoice.
How is the Amount Processed?
You need to determine how the amounts are processed for different purposes: 1) for reporting purposes (2) for accounting purposes, (3) for invoicing?
- There are no special reporting requirements
- There is no special accounting effect for an invoicing event.
- The default event description for the billing extension is Communication Charge. The project users can override the value by setting the optional descriptive flexfield segment called 'Event Description', which will be used to override the default event description.
Automatic Event Attributes?
You need to determine the various attributes of the automatic event, including: event type, event organization, event description, completion date.
- The event uses the default event type of Surcharge from the billing extension definition.
- The event organization is defaulted to the project or task organization. This organization is not used in processing or reporting these events.
- The event description is set as noted in the previous question.
- The completion date is set to the bill through date of the invoice.
When is the Surcharge Billing Extension Used?
Under what conditions is this calculation used? What types of projects? What types of billing terms?
- The communication surcharge is applicable for all projects for which it is negotiated.
How is the Billing Extension Processed for Adjustments?
Adjustments are defined as revenue credits or invoice credit memos, based on other transactions.
- The surcharge must be accounted for on all invoices and invoice credit memos.
Can This Billing Extension be Called with other Billing Extensions?
Can this billing extension be called with other billing extensions on the same project/task? If so, what is the dependency and order of your billing extensions?
- A project can have a communication surcharge along with other billing extensions. The communication surcharge must be processed before the other billing extensions.
What is the Processing if Some Input Values Cannot be Found?
- If no percentage is specified on the billing assignment, use the corporate default value of 2%. This default value is held on the billing extension definition in a descriptive flexfield.
- If no labor is billed, then no surcharge is billed.
How is the Logic Affected if the Inputs Change?
- The surcharge percentage could change, but the user must disable the existing billing assignment and enter a new billing assignment with a new percentage. This new percentage is then automatically processed.
Is there a Limit on the Amount Calculated?
Is there a limit on the amount calculated? If so, what is the logic?
- There is no specific limit on the communication charge.
Funding Level?
Are there implications of the level at which the project is funded - either the project level or the top task level? If so, what?
- There are no special implications.
See Also
Designing Client Extensions
Designing Billing Extensions
