17 Generating the Workfile

This chapter contains these topics:

17.1 Understanding Workfile Information

You review and analyze workfile information to track the status of workfile transactions and accurately plan your invoicing cycle.

17.1.1 Workfile Generation

The Billing Detail Workfile (F4812) is a repository of transactions used by the system to invoice customers, recognize revenue, and allocate costs. The system provides the following three methods to create workfile transactions:

Topic Description
Workfile Generation The system uses this batch process to create workfile transactions based on billable accounting entries stored in the Account Ledger table (F0911). When you run Workfile Generation, the system copies source transactions from the Account Ledger to create workfile transactions, applying the correct markup, offset, and tax information. You use the Work With Workfile form to view these transactions.
G/L Transaction Selection You use this interactive program to create workfile transactions based on billable accounting entries stored in the Account Ledger table (F0911). When you use G/L Transaction Selection, the system copies the selected source transactions from the Account Ledger to create workfile transactions, applying the correct markup, offset, and tax information. You use the Work With Workfile form to view these transactions.
Ad-hoc Workfile Transactions You use this interactive program to create workfile transactions that are not represented in the Account Ledger table (F0911).

To maintain the integrity of the original source transactions, the system creates copies of these billable transactions. The copied transactions are referred to as workfile transactions and are stored in the Billing Workfile (F4812).

Workfile transactions include costs with any applicable markup, tax, and other key information. The rest of the billing process is based on the information stored in workfile transactions.

All workfile transactions with an eligibility code of 0 (invoicing, revenue, costing) or 1 (invoicing only) must include a customer number. The system uses the customer number to invoice the transactions. You must identify a customer number on individual jobs (business units) or work orders associated with the transactions.

Note:

You attach a customer number in the Owner Address field on the Job Master Revisions form, not the Job Site Address field. The Address Book number on the Revise Business Unit form is not the customer number.

17.1.2 Processing Payroll

Account Ledger transactions originate from multiple sources, such as the Accounts Payable, Equipment/Plant Management, and Payroll systems. You run the Workfile Generation program to accumulate the cost information from these sources into the billing system.

For the system to create workfile transactions from payroll transactions, all information in the Payroll and Employee tables must be identical to the Account Ledger table. The Payroll system allows summarized accounting entries; therefore, the billing system must retrieve detail information from the Payroll system to create the workfile transactions. The system uses the following fields from the Account Ledger to retrieve additional information from the Payroll Transaction History (F0618) or the Employee Transactions Detail (F06116) table to create the workfile transactions:

  • Batch Number

  • Account Number

  • G/L Date

  • Subledger Information

Caution:

After the system processes payroll, the fields above should not be changed or deleted in the F0911 table.

17.1.3 Processing Burden

Burden is the cost that a company incurs as a result of employing people. Burden can include:

  • Company-paid payroll taxes

  • Insurance

  • Fringe benefits, such as union pensions

  • Direct labor costs, such as small tools

The following conditions must exist for the system to automatically create burden transactions in the workfile:

Alternatively, in Contract Billing only, you can manually set up billing lines for burden. Creating burden transactions this way allows you to display billing lines for burden separately from the associated billing lines for labor. See Defining a Contract Billing Line for Time and Material in the JD Edwards World Contract Billing Guide.

You use a billing constant to control whether burden entries from the Payroll system are processed for the workfile. The system calculates burden transactions when payroll journal entries are created. The only way you can process burden within the billing system is in conjunction with its associated labor workfile transaction.

The eligibility code for burden transactions must be compatible with the eligibility code for the associated labor workfile transaction. Specifically, the system prevents the eligibility code for a labor workfile transaction from being more restrictive than the eligibility code of its burden workfile transactions.

For example, if the burden transaction for a labor workfile transaction is eligible for revenue and invoicing, but the labor workfile transaction is eligible only for invoicing, the system overrides the burden transaction eligibility code with the labor workfile transaction eligibility code.

The Payroll system calculates the following types of burden:

Topic Description
Actual burden The actual cost of payroll taxes, insurance, and fringe benefits. The system calculates the burden for the actual costs that are associated with each employee's timecard.
Flat burden An estimated burden amount that the system derives from the direct labor costs. The system calculates the burden on a timecard-by-timecard basis as a percentage of the labor costs.

When burden transactions are associated with a labor workfile transaction, the system displays an X in the Burden (B) field for that workfile transaction on the Work With Workfile form. You use the Burden Info option from the Row menu to view these workfile transactions.

Note:

When you use Daily Time Entry, the only type of burden that you can associate with a labor workfile transaction is flat burden. After you process the daily payroll transactions and accumulate their costs in the workfile, the system marks the original payroll transactions as billed.

After the original payroll transactions have been processed, the system does not retrieve any new burden transactions calculated for the transactions. For example, if you reverse the flat burden amount and calculate the actual burden amount for the original payroll transactions, the system does not retrieve the new burden transactions.

17.1.4 Processing Components

A component is a type of markup. The system calculates component transactions based on amounts or units from source transactions. For example, you might create a component transaction to offset the cost of borrowing money.

You can use component transactions based on the invoice amount to apply charges in addition to the markup amount for the workfile transaction. A compound component creates an additional markup; its calculation is based on existing component amounts.

You set up the rules for component calculations in the Component Table Master table (F4860). You must then assign this component rule to a markup rule to instruct the system to create component transactions.

When a component transaction is associated with a workfile transaction, the system displays an X in the Component (C) field for that workfile transaction on the Work With Workfile form. You use the Component Info option from the Row menu to view the component workfile transactions.

17.1.5 Defining Parent/Child Relationships in the Workfile

The workfile transactions can share a parent/child relationship under the following conditions:

Topic Description
Workfile transaction/Component workfile transaction This parent / child relationship exists when component transactions are created for a workfile transaction.
Labor/Burden This parent / child relationship exists when the burden associated with labor is stored in the workfile.
Burden/Components This parent / child relationship exists when component transactions are created for burden transactions.

17.1.6 Viewing Workfile Transactions

You can view the following transactions in the workfile:

Workfile Transactions

Workfile transactions are copies of source transactions from the Account Ledger that represent the billable costs for your company.

Burden Transactions

Burden transactions are workfile transactions that represent the cost over and above the direct labor wages or salaries that a company incurs as a result of employing people. Burden transactions might include:

  • Company-paid payroll taxes

  • Insurance

  • Fringe benefits, such as union pensions

The billing system always processes burden transactions in conjunction with the associated labor workfile transactions. You access Burden Information from the Row menu to view these workfile transactions. See Section 18.4, "Reviewing Burden Transactions."

Component Transactions

Component transactions are special types of workfile transactions that represent additional amounts that you add to the original costs when you invoice a customer. For example, component transactions might be used to offset the cost of borrowing money.

The billing system always processes component transactions in conjunction with associated workfile transactions. You access Component Transaction Inquiry from the Row menu to view these workfile transactions. See Section 18.5, "Reviewing Component Transactions."

17.1.7 Assigning Eligibility Codes

The system assigns eligibility codes to workfile transactions based on the Billable Y/N field in the Account Master table and the Journal Generation Control option that you set up in your Billing Constants.

Note:

The value stored in the eligibility code field specifies the amounts that are displayed and the billing processes in which the workfile transaction can participate. The system assigns the following eligibility codes to the workfile transactions:

0 – The workfile transaction is eligible for invoicing, revenue recognition, and costing processes.

1 – The workfile transaction is eligible for invoicing and costing processes.

2 – The workfile transaction is eligible for revenue recognition and costing processes.

3 – The workfile transaction is nonbillable.

4 – The workfile transaction is eligible for cost processing only.

5 – The workfile transaction is eligible for A/P vouchering only (CSMS workfile transactions only).

For example, if the Billable Y/N field for an account is set to Y (Billable) and the Journal Generation Control option selected is Inv/Rev w/o Reconciliation, then the eligibility code is set to 0, indicating that the workfile transaction is eligible for invoicing, revenue recognition, and costing. If the same account with a Y in the Billable Y/N field is processed through the billing system and the Journal Generation Control option selected is Invoice Only, then the eligibility code is set to 1, indicating that the workfile transaction is eligible for invoicing only.

The following table illustrates the system logic used to assign the eligibility codes:

Account Master - Bill Y/N Billing Constants - Journal Creation Billing Workfile - Eligibility Code Assigned
N (Nonbillable) Not Applicable No workfile transaction created
Y (Billable) 1 (Invoice Only) 1 (Invoice Only)
Y (Billable) 2 (Revenue Only) 2 (Revenue Only)
Y (Billable) 3 (Inv/Rev w/o Reconciliation) 0 (Invoicing and revenue)
Y (Billable) 4 (Inv/Rev with Reconciliation) 0 (Invoicing and revenue)
1 (Invoice Only) 1 (Invoice Only) 1 (Invoice Only)
1 (Invoice Only) 2 (Revenue Only) No workfile transaction created
1 (Invoice Only) 3 (Inv/Rev w/o Reconciliation) 1 (Invoice Only)
1 (Invoice Only) 4 (Inv/Rev with Reconciliation) 1 (Invoice Only)
2 (Revenue Only) 1 (Invoice Only) No workfile transaction created
2 (Revenue Only) 2 (Revenue Only) 2 (Revenue Only)
2 (Revenue Only) 3 (Inv/Rev w/o Reconciliation) 2 (Revenue Only)
2 (Revenue Only) 4 (Inv/Rev with Reconciliation) 2 (Revenue Only)
4 (Costing only) 1 (Invoice Only) 4 (Costing only)
4 (Costing only) 2 (Revenue Only) 4 (Costing only)
4 (Costing only) 3 (Inv/Rev w/o Reconciliation) 4 (Costing only)
4 (Costing only) 4 (Inv/Rev with Reconciliation) 4 (Costing only)

17.1.8 Assigning Control/Sequence Numbers

When you revise workfile transactions, the system sequentially numbers the workfile transactions and each new revision for audit purposes.

The following graphic illustrates the numbering sequence: You can use these numbers to track the progression of revisions to original workfile transactions. The system assigns each workfile transaction the following control and sequence numbers:

Topic Description
Billing Control ID (BCI) The BCI number is assigned at the time the workfile transaction is first created in the Billing Workfile. The system uses Next Numbers, system 48 index 2 (Billing Control) to derive the number. The BCI number of a workfile transaction never changes, regardless of the revisions made to the workfile transaction. If you split a workfile transaction, the resulting workfile transactions will share the same BCI.
Sequence Number (SBSQ) The sequence number of the original workfile transaction is always 1. The sequence number changes only when you split the workfile transaction. The system assigns the next available sequence number within that BCI series to the resulting workfile transactions. For example, the first time a workfile transaction is split, the sequence numbers assigned to the resulting workfile transactions are 2 and 3. If you split one of those workfile transactions, the sequence numbers assigned to the resulting workfile transactions are 4 and 5.
Parent Sequence Number (PRSQ) The parent sequence number of the original workfile transaction is always 0. The parent sequence number changes only when you split the workfile transaction. The system assigns a parent sequence number to workfile transactions that result from a split. The parent sequence number is always the sequence number of the workfile transaction that you split. For example, if you split a workfile transaction with a sequence number of 1 and a parent sequence number of 0, the system assigns the resulting workfile transactions a parent sequence number of 1.
Secondary Sequence Number (SCSQ) The secondary sequence number of the original workfile transaction is always 1. The secondary sequence number tracks the number of revisions you make to a workfile transaction. You can use this number to track the progression of revisions to original workfile transactions. For example, you might revise a workfile transaction three times. The secondary sequence number of the workfile transaction you revise is 1. After the revision, the secondary sequence number for the workfile transaction is 2. When you change the transaction again, the secondary sequence number is 3. When you split a workfile transaction, the secondary sequence numbers will be 1 on the resulting workfile transactions.
Component Link Number (CLNK) The component link number of the workfile transaction links the parent workfile transaction to the child component transactions. If this number is 0, no components exist for this workfile transaction. The component link number changes when you split a workfile transaction with components. The system assigns a new component link number to each resulting parent workfile transaction. This new component link number is then assigned to the respective component workfile transactions.

17.1.9 Generating the Workfile

Use one of the following navigations:

For Service Billing:

Navigation

From Daily Processing menu (G48S11), choose Workfile Generation

For Contract Billing:

Navigation

From Workfile Processing menu (G5211), choose Workfile Generation

Invoices are based on billable costs. The first step in the billing process is to generate the workfile. Billable costs are represented by source transactions that the system stores in the Account Ledger table (F0911).

When you run Workfile Generation (R48120) to create workfile transactions, the system performs the following actions:

  • Identifies all the unprocessed source transactions in the Account Ledger table (F0911)

  • Determines whether the account for each source transaction is billable, based on the Billable (Y/N) field in the Account Master table (F0901)

  • Uses related tables when constants and source transactions indicate the need for additional information, such as when burden is associated with payroll transactions

  • Updates the source transactions in the Account Ledger table as processed or nonbillable

  • Updates the Payroll Transaction History and Employee Transaction Details for all payroll-related source transactions

  • Calculates markup and tax amounts

  • Creates copies of source transactions in the Billing Detail Workfile (F4812)

  • Assigns appropriate eligibility codes to the copied transactions based on the Journal Generation Control option in the Billing Constants and the Billable (Y/N) field in the Account Master table

To indicate that the source transactions have been created in the Billing Workfile, the system marks the source transactions in the Account Ledger table with N (if the account is nonbillable) or Z (if the account is billable and has been processed by the billing system). The next time you run Workfile Generation, the system creates workfile transactions for only the source transactions that have not been previously included in the Workfile Generation process.

See Also:

17.1.10 Before You Begin

  • Verify that you have assigned a customer number to your projects if you want the system to automatically retrieve the customer for the contract.

  • Define all billable accounts in the chart of accounts.

  • Verify that the Billing Constants have been set up.

  • Define the rules in the Billing Rate/Markup table.

17.1.11 Processing Options for Workfile Generation (R48120)

Defaults Tab

This processing option lets you specify the source for the home business unit for payroll equipment records.

Process Tab

This processing option lets you specify the Revenue Workfile Generation program (R52120) to use to generate revenue for lump sum and unit price billing lines.

17.1.12 Generate the Workfile

Navigation

From Contract Billing Processing (G52), choose Workfile Generation

From Workfile Generation (G4822), choose Generation (P481201)

Revenue recognition and invoices are based on billable costs and calculated amounts. The first step in the revenue recognition and billing processes is to accumulate costs associated with T&M billing lines. Although you can process the costs for revenue only, the costs are typically billable and are included on invoices. Billable costs are represented by source transactions that the system stores in the Account Ledger table (F0911) and are in accounts that marked as billable in the Account Master (F0901).

Source transactions originate from multiple sources, such as the Accounts Payable, Equipment/Plant Management, and Payroll systems. You run the Workfile Generation program to accumulate the cost information from these sources.

To maintain the integrity of the original source transactions, the system creates copies of the source transactions. The copied transactions are referred to as workfile transactions and are stored in the Billing Workfile (F4812).

Workfile transactions include costs with any applicable markup, taxable amounts and other key billing information. You base the rest of the Contract Billing processes on the information stored in workfile transactions.

Note:

Workfile transactions for non-T&M billing lines are also created. If non-T&M billing lines are included in the revenue recognition process, then the workfile transactions for lump sum and unit price billing lines are created during Workfile Generation. The workfile transactions for fee billing lines are created during Revenue Journal Generation. For the billing process, the workfile transactions for all non-T&M billing lines are created during Invoice Generation. The workfile transactions for non-T&M billing lines are system-generated and cannot be modified. See Chapter 30, "Accumulate Costs for Revenue."

17.2 About Accumulating Costs for Contracts

When you use the Contract Billing system, the tasks you perform depend on the functionality you choose with the Journal Generation Control system constant and on the billing lines you include on a contract. Billing lines define the billing terms of the contract and whether the costs relate to time and material (T&M).

If you create contracts based on time and material, your company agrees to bill the customer for the actual costs of goods and services that are required to complete the contract. Actual costs can include:

  • Labor

  • Payroll burden

  • Equipment

  • Material

If your company does not bill for time and material, you begin the billing process by creating invoices automatically or manually. When you create invoices, the system calculates the billing amounts for the portion of the contract that is not related to time and material, such as fees, prepayments, quantities and price per unit.

Note:

You must accumulate costs to process costs that are related to time and material billing lines. You do not have to accumulate costs if your contracts do not include T&M billing lines. If you need to recognize revenue on non-T&M billing lines, you must accumulate costs with the appropriate contract revenue generation processing options selected.

The following graphic illustrates the process the system uses to accumulate costs.

Figure 17-1 Process to Accumulate Costs

Description of Figure 17-1 follows
Description of ''Figure 17-1 Process to Accumulate Costs''

When you run the Workfile Generation program to accumulate costs, the system:

  • Identifies all unprocessed source transactions in the Account Ledger (F0911)

  • Determines whether the account for each eligible source transaction is billable, based on the Billable (Y/N) field in the Account Master table (F0901)

  • Uses related tables when constants and source transactions indicate the need for additional information, such as when burden is associated with payroll transactions

  • Updates the Bill Code (BC) field of the source transactions in the Account Ledger table as processed to the workfile (Z) or non-billable (N)

  • Updates the payroll transaction history and employee transaction details for all payroll-related transactions

  • Calculates markup and tax amounts

  • Creates copies of source transactions in the Billing Workfile (F4812)

  • Assigns appropriate eligibility codes to the copied transactions based on the Journal Generation Control field in the system constants and the Billable (Y/N) field in the Account Master table

  • Assigns each transaction in the Billing Workfile a customer number

After you accumulate costs to generate workfile information, the system marks the source transactions in the Account Ledger table with N (non-billable) or Z (billed) to indicate that the transactions have been included in the billing process. The next time you accumulate costs, the system generates workfile transactions for only the source transactions that have not been previously included in the workfile generation process.

17.2.1 Before You Begin

  • Define all billable accounts in the chart of accounts

  • Set up the system constants to identify the costs that you want to accumulate

  • Define the following applicable Contract Billing rules:

    • Cost Plus Markup

    • Component

  • Set up contracts with billing lines for costs that are related to time and materials

  • Verify that the information for the Contract Billing customers exists in Address Book and Customer Master

17.2.2 What You Should Know About

Topic Description
Eligibility codes The system assigns eligibility codes to workfile transactions based on the Billable (Y/N) field in the Account Master table and the Journal Generation Control field you set up for your system constants.

For example, if the Billable (Y/N) field for a transaction is a Y and the Journal Generation Control field is set for both revenue recognition and billing, the eligibility code for the transaction is 0. An eligibility code of 0 indicates that the transaction is eligible for both revenue recognition and billing. If the same account with a Y in the Billable (Y/N) field is processed through the billing system and the Journal Generation Control field is set for billing only, the eligibility code for the transaction is 1. An eligibility code of 1 indicates that the transaction is eligible for billing only.
Changing source and payroll transactions The system might need additional information from the Payroll Transaction History (F0618) or the Employee Transactions Detail (F06116) tables to process certain source transactions.

After the system creates payroll and source transaction tables, do not change or delete any of the following transaction information:

  • Account number

  • Dates

  • Subledger information

  • Employee Address Book number

For the system to create workfile transactions from payroll transactions, all information must be identical in the Payroll or Employee tables and Account Ledger tables.
Burden transactions The eligibility code for burden transactions must be compatible with the eligibility code for the associated workfile transaction.

Specifically, the system prevents the eligibility code for a workfile transaction from being more restrictive than the eligibility code of its burden transactions. If, for example, the burden transaction for a workfile transaction is eligible for both revenue and billing, but the workfile transaction is eligible only for billing, the system assigns the burden transaction the same eligibility code as the workfile transaction.

See Also:

17.2.3 Processing Options

See Section 17.1.1, "Workfile Generation."