This chapter discusses these topics:
Section 9.1, "Understanding the Rental Contract Billing Process"
Section 9.3, "Generating the Rental Contract Billing Workfile Report"
Billing for rental contracts follows the typical billing process of accumulating rental contracts to bill, creating and printing invoices, and recording journal entries for income and receivables.
When you run the Rental Contract Billing Workfile Generation program (R54R300), the system gathers the rental contracts that are eligible for billing from the Rental Contract Detail table (F54R11), and creates records in the Billing Detail Workfile table (F4812). The eligible records are those F54R11 records with billing method 1 (recurring rental contract billing) and 2 (one-off rental contract billing).
After you generate the billing workfile, you must continue the standard billing process, which includes:
Generating the invoice workfile using the Service Billing Invoice Generation program (P48121)
Printing invoices
Generating the Invoice Journal using the Journal Generation program (R48131)
Creating AR and GL entries using the Create A/R Entries program (R48199)
Posting the AR and GL entries using the standard General Ledger Post Report program (R09801)
After you successfully run the R54R300 program, the system updates the status of the rental contract line in the F54R11 table to 900 (Closed) for one-off rental contract billing. For recurring rental contract billing, the system updates the status of the rental contract line to 300 (Billing). The line status changes to 900 (closed) for the recurring billing contract line when you close the rental contract or close the rental billing contract line.
To bill contracts, you must identify information about the account structure and specific account values to process business transactions properly. You define the account structure and specific account values by using Automatic Accounting Instructions (AAIs). The system stores the AAI values in the Automatic Accounting Instructions table (F06904). Whenever a program performs an accounting function, it accesses the F06904 table.
The system uses Distribution AAIs to determine how to distribute amounts that are associated with general ledger entries that the system generates. For example, in JD Edwards EnterpriseOne Rental Management, AAIs indicate how to record the transaction when you bill a rental contract.
The distribution AAI related to rental contracts is 5410 (Rental Contracts). The Account Revisions form of the Distribution AAIs program (P40950) displays each AAI item and information about the document type, general ledger class, and accounts that are affected by transactions.
This section provides an overview of the Rental Contract Billing Workfile report, lists prerequisites, and discusses how to:
Run the Rental Contract Billing Workfile Generation (R54R300)
Set processing options for Rental Contract Billing Workfile Generation (R54R300)
The system gathers records based on processing options, user data selections, billing method, and other data from the Rental Contract Header table (F54R10) and the Rental Contract Detail table (F54R11). When you run the generation program in final mode, the system creates records in the Billing Detail Workfile table (F4812). Then the Service Billing system creates workfile transactions that are the basis for the Accounts Receivable and General Accounting systems. To bill and invoice a rental contract detail line, you must run the generation program in final mode. The system calculates the taxes during the workfile generation.
See "Understanding Contract Billing for Service Management" in the JD Edwards EnterpriseOne Applications Service Management Implementation Guide
The R54R300 report contains the following information:
The rental contract number, line number, and line type from the F54R10 and F54R11 tables
The address number (customer, ship to, invoiced to, or delivered to) specified in the processing option
The billing start date and end date from the F54R11 table
If the billing end date is not available in the F54R11 table, the system uses the actual end date from the F54R11 table. If the actual end date is not available in the F54R11 table, the system uses the projected end date.
The billing method, which is 1 (recurring contract billing) or 2 (one-off contract billing)
The line-billed-from and the line-billed-to dates from the billing start date and the billing end date, or from the Date to Bill Through processing option for the R54R300 program
For example, if the billing start date is 20 August 2014 and the billing end date is 12 December 2014, but the Date to Bill Through processing option value is 31 August 2014, then the line-billed-from = 20 August 2014 and the line-billed-to = 31 August, 2014.
For one-off billing (billing method 2), the Line Billed From, Line Billed To, and the Billing Duration columns have blank values.
The billing duration that the system calculates using the values in the Rent UM, Line Billed From, and Line Billed To columns in the F54R11 table
The requested billing day from the Rental Contract Header table (F54R10), if the value exists in the F54R10 table
Else, the system uses the last day of the bill-through month as the requested billing day.
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Note: The system does not process the billing when the requested billing day is greater than the day specified in the bill through date processing option. For example, if the requested billing day = 31, and the bill through date is 18 June 2014, then the system does not process billing for period 6 (June). |
Quantity from the Open Quantity field in the Rental Contract Entry program (P54R10), when the billing method is 1
When the billing method is 2, the quantity is retrieved from the Quantity field in the Rental Contract Entry program.
The period number and the fiscal year from the G/L Date processing option
The system writes the period number and fiscal year to the Billing Detail Workfile table (F4812) and the Billing Control Master (F1794).
The billing frequency code from the Rental Contract Header table (F54R10)
You either bill on the bill through date (specified in the processing option) or on the requested billing day (specified in the F54R10 table) that is prior to the bill through date.
The rental rate from the F54R11 table
The rental currency, which is the base currency of the company from the Company Constants table (F0010). If the base currency is different from the currency of the transaction that is specified in the Currency Code-From field, then the rental currency is the currency in the Currency Code - From field.
The rental billing unit of measure (Rent UM) from the F54R11 table
If the billing method is 1 (recurring billing), the Rent UM is a value (Weekly, Monthly, or Daily) from the 54R/UM UDC table.
If the billing method is 2 (one-off contract billing), the Rent UM is a value from the Pricing Unit of Measure (00/UM) UDC table.
The total billed amount calculated for each rental contract
The billing currency from the F54R11 table
The amount with tax calculated by the R53R300 program using the tax rate area of the item from the F54R11 table
The system calculates tax only when the item is specified as taxable in the F54R11 table, and the customer is a taxable customer.
The business unit, object, and subsidiary from the AAI
The billing ID from the Billing Details Workfile table (F4812)
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Note: The system updates the Billing Detail Workfile table (F4812) with other rental contract data, such as the asset number, that are not printed in the R54R300 report. The Invoice To address number in the F54R11 table is recorded in the Owner/Receivable field in the F4812 table. |
The exchange rate date that the system uses to retrieve the transaction exchange rate and billing exchange rate from the Currency Exchange Rates program (P0015A)
If you have selected the Fixed Exchange Rate option in the Rental Contract Entry program (P54R10), this date comes from the Exchange Rate Date field in the P54R10 program.
If you have not selected the Fixed Exchange Rate option, this date is based on the value in the Exchange Rate Date Basis processing option for the R54R300 program.
The 2nd item number from the Item Master table (F4101)
The transaction exchange rate from the Rental Contract Header table (F54R10), if you have opted to use a fixed exchange rate
If you have opted to use a variable exchange rate, the system retrieves the transaction exchange rate based on the value in the Exchange Rate Date Basis processing option for the R54R300 program.
This is the exchange rate that the system uses to convert amounts from the base currency to the transaction currency.
The billing exchange rate from the Rental Contract Header table (F54R10), if you have opted to use a fixed exchange rate
If you have opted to use a variable exchange rate, the system retrieves the billing exchange rate based on the value in the Exchange Rate Date Basis processing option for the R54R300 program.
This is the exchange rate that the system uses to convert the rental contract amount from the transaction currency to the billing currency.
The system uses this formula to calculate the total amount for a contract:
Billed Amount = Billing Duration * Rental Rate * Quantity
The system calculates the billing duration using the values in Rent UM (Rental Rate Unit of Measure), Line Billed From, and Line Billed To.
For example, if you are billing for a rental contract where Line Billed From = 06/26/14, Line Billed To = 07/31/14, Requested Billing Day is 31, and Billing Days in a Week (from the Rental Constants) = 6, then you get the following:
The days between Billed From and Billed To = 36
The work days between Billed From and Billed To = 31
The days in the Billed Through Month (July) = 31
The work days in the Billed Through Month (July) = 27
Using the above values, the billing duration is calculated as:
When the Rent UM is monthly, the billing duration = Work days between Billed From to Billed Through/Work days in Billed through Month = 31/27= 1.14
When the Rent UM is weekly, the billing duration = Work days between Billed From to Billed Through/Billing Days in a Week (from the Rental Constants) = 31/6= 5.16
When the Rent UM is daily, the billing duration = Work days between billed from to billed through = 31
In the Rental Constants program (P54R01), you have the option to specify the billable days in a week, or enter a calendar that the system uses to get the billable days. If you have specified the Billing Days Per Week constant, the system bases the billable days on the number of work days in the week. If the billable days = 5, then Saturdays and Sundays are non-billable days. If billable days = 6, Sundays are non-billable days. If billable days = 7, all days in a week are billable days.
If you have not specified the Billing Days Per Week constant, and instead entered a workday calendar in the Rental Constants program (P54R01), the system uses the specific workday calendar to calculate the billing duration.
For a monthly and daily Rent UM (Rental Rate Unit of Measure), the system looks at the workday calendar for the whole term to calculate the billing duration. For a weekly Rent UM, the system uses the workday calendar only for the final partial week. The system does not use the calendar to check if Workdays (W's) and Weekdays (E's) are regular or irregular for a complete week that has 7 days. Irregular Es and Ws in a complete week will not be reflected in the billing duration.
Example 1: When the base currency is different from the billing currency, the R54R300 considers the contract as a foreign contract, and calculates as follows:
Billed Amount = Billing Duration * (Rental Rate * Billing Exchange Rate) * Quantity
If you use a fixed exchange rate, the system uses the billing exchange rate from the F54R10 table.
If you use a variable exchange rate, the system retrieves the billing exchange rate based on the value specified in the Exchange Rate Date Basis processing option of the R54R300 program.
Example 2: When the base currency is the same as the billing currency, but different from the transaction currency, the R54R300 considers the contract as a domestic contract, and calculates as follows:
Billed Amount = Billing Duration * Unit Price from the Item Base Price File table (F4106) * Quantity
The R54R300 report displays the Rental Rate value from the Rental Contract Detail table (F54R11), but does not use this value in the calculation. Instead, the program calculates the amount billed using the unit price from the F4106 table.
Example 3: When the base currency, billing currency, and transaction currency are all different, the R54R300 considers the contract as a foreign contract.
If you use a fixed exchange rate, the R54R300 uses the billing exchange rate from the F54R10 table, and calculates as follows:
Billed Amount = Billing Duration * (Rental Rate * Billing Exchange Rate) * Quantity
If you use a variable exchange rate, the R54R300 retrieves the transaction exchange rate and the billing exchange rate based on the value specified in the Exchange Rate Date Basis processing option of the R54R300 program, and calculates as follows:
Billed Amount = Billing Duration * (Unit Price from the F4106 table * Transaction Exchange Rate * Billing Exchange Rate) * Quantity
When a customer returns items in installments, the Rental Contract Billing Workfile Generation program (R54R300) bills the contract line through multiple durations: the invoice date to the first receipt date, the previous receipt date to the next receipt date, and so on until the bill-through date.
For example, the billing start date of a rental contract is 1st January 2014, and the total quantity rented is 43. On 1st December 2014, the customer returns 12 quantities. This is the first receipt date. Therefore, you bill the customer for 43 quantities for the duration 1st January 2014 to 1st December 2014. The R54R300 report includes a line for this duration with all the details. Now, the open quantity that is still rented to the customer is 43 - 12 = 31.
On 10th December 2014, the customer returns 20 more quantities. This is the second receipt date. Therefore, you bill the customer for 31 quantities for the duration 2nd December 2014 to 10th December 2014. The R54R300 report includes a line for this duration, along with all the details. Now, the open quantity that is still rented to the customer is 31 - 20 = 11.
On 25th December 2014, the customer returns the remaining quantities. This is the bill-through date. Therefore, you bill the customer for 11 quantities for the duration 11th December 2014 to 25th December 2014. The R54R300 report includes a line for this duration with all the details. Now, the open quantity is zero.
Before you complete the tasks in this section:
Verify that the Document Type XR in the Document Type Maintenance program (P40040) is set to 4 (Rental Contract).
Set up the accounting rules for the Rental Contract AAI (5410) in the Account Revisions form of the Distribution AAIs program (P40950).
Periodic Processing (G54R20), Rental Contract Billing Workfile Generation
Processing options enable you to specify the default processing for programs.
Specify a value that the system uses to calculate the bill-through date for rental contracts. Values are:
1: Use the last day of the month from the system date.
2: Use the last day of the year from the system date.
3: Use the system date.
You can leave the Date to Bill Through field blank and instead enter a date that you want the system to use as the bill-through date. If you leave this processing option blank, the system uses the system date.
Specify the G/L date for rental contracts. If you leave this processing option blank, the system uses the bill-through date.
Specify the value that the system uses as the default value in the Subledger field. Values are:
Blank: No default subledger
1: Contract number
2: Customer number
3: Delivered To number
4: Short item number
Specify the address book number that the system displays on the billing report. Values are:
Blank: Customer number
1: Ship To number
2: Invoiced To number
3: Delivered To number
Use this processing option to specify the date to use to retrieve the exchange rate for the billing amount when the rental contract is set to use a variable exchange rate. Values are:
Blank: Use the system date.
1: Use the line-billed-from date for billing method 1 (recurring contract billing). For billing method 2 (one-off contract billing), the system does not populate the line-billed-from date, and uses the billing start date.
2: Use the bill-through date.
3: Use the G/L date.
Specify whether the system processes the Rental Billing Generation program (R54R300) in proof or final mode. Values are:
Blank: Process the report in proof mode.
1: Process the report in final mode.
Specify where the system records errors. Values are:
Blank: Record errors to the Work Center.
1: Record errors on the report.
Specify whether to print the detail section. The detail section includes additional information such as the exchange rate date, transaction exchange rate, billing exchange rate, 2nd item number, and item description.
Blank: Do not print the detail section.
1: Print the detail section.
Specify how to tax rental contracts. Use this processing option only if you are implementing the Vertex Quantum Sales and Use Tax software (third party tax software). Values are:
LEASE: Lease Tax
PURCH: Purchase Tax
RENTAL: Rental Tax
SALE: Sales Tax
SERVIC: Service Tax
Specify whether the Site GeoCode will be used for Ship From and Order Acceptance if the Business Unit does not have a valid GeoCode defined. If you leave this processing option blank and if the Business Unit does not have a valid GeoCode, an error occurs. Values are:
Blank: Do not use Site GeoCode.
1: Use Site GeoCode.