A contract is a written agreement between a customer and a provider (contractor). The customer, who is the owner of a job or project, requests a product or service. Your company, as the provider, bills the customer for the product or services that you provide under the contract. The agreement can be changed so that you can provide extra services.
Each agreement includes:
The billing terms of the contract:
The type of billing, such as time and material (T&M), lump sum, or unit price
The amount to bill, based upon a schedule of values
Information about the customer that you are billing:
Who to bill
Payment terms
Discount terms
Billing limits
Special holdbacks, such as retainage
You can use JD Edwards World Contract Billing system to:
Account for the costs related to time and material
Mark up the costs
Calculate retainage and fees
Create warnings when the billing amount or units exceed specified limits
Bill according to the terms of a contract
Provide written proof that justifies the billing amounts
Create accounting entries for the contract billing amounts