4 Generating the Workfile for Billing

This chapter contains the topic:

Section 4.1, "Generate the Workfile."

4.1 Generate the Workfile

Navigation

From Work Order/Service Billing Processing (G48), choose Service Billing

From Service Billing (G4821), choose Workfile Generation

From Workfile Generation (G4822), choose Generation (P48120)

Revenue recognition and invoices are based on billable costs. The first step in the revenue recognition and billing processes is to accumulate costs. Although the costs can be processed 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).

Source transactions originate from multiple sources, such as the Accounts Payable, Equipment/Plant Management, and Payroll systems. 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 Service Billing processes on the information stored in workfile transactions.

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

Figure 4-1 Process of Accumulating Costs

Description of "Figure 4-1 Process of Accumulating Costs"

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

Identifies all the 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.

4.1.1 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 Service Billing rules:
- · Cost Plus Markup
- · Tax Derivation
- · Component
- · G/L Offset and Retainage

Verify that you have defined a customer number for your work orders or a customer address number for your jobs

4.1.2 What You Should Know About

Topic	Description
Customer numbers	All workfile transactions must include a customer number. The system uses the customer number to bill the transactions. You must identify a customer number on individual jobs or work orders. The address book number on the Revise Single Business Unit form is not the customer number (P0006, 4/G09411). To specify the customer number on a job, use the Owner Address Number field (AN8O) in Job Master Revisions (P510063, 4/G5111).
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.

4.1.3 Processing Options

See Section 27.1, "Work File Generation (P481201)."