22 Overview to Equipment Location Billing

This chapter contains these topics:

• Chapter 22, "Objectives,"

• Chapter 22, "About Equipment Location Billing,"

22.1 Objectives

• To bill for equipment time on the basis of location

• To post billings to the general ledger and equipment balances

22.2 About Equipment Location Billing

Use location billing when you want to bill for equipment time based solely on the location of the equipment. When you bill for equipment by location, you do not have to manually enter additional billing information. The system creates location billings based on the location information that you enter as you relocate equipment. Billing for equipment by location is particularly easy and effective when you want to bill for small tools.

You can bill for equipment based on location when you want to:

• Create location billings based on any time period.

• Assign and bill quantities of the same equipment item at different rates among different locations.

• Specify multiple billing rate codes for a single piece of equipment.

• Set up rental rates for groups of equipment or individual pieces of equipment.

• Change the billing rate after you reach a specific billing amount.

• Rent or sell equipment to a job. If you sell the equipment to a job, you can repurchase the equipment at a percentage of the replacement cost.

You can set up your system to meet your location billing needs. Use category codes to organize equipment information. Set up rental rates and billing rates to specify any default values that you want the system to use when you enter information that requires billing data. The system uses the following elements to bill equipment by location.

Element	Description
Category Code 10	JD Edwards World requires that you reserve category code 10 to specify equipment billing rate groups for the individual pieces of equipment. You can use the equipment billing rate groups to combine similar equipment for billing.
Rental rules	Use rental rules to specify the default values, rate table limits, and so on for individual jobs. You can also specify the regular work hours in a work day and the work days in a given month.
Billing rates	Use billing rate tables to set up and maintain billing rates for your various billing processes. For example, use billing rate tables to: Define billing rates at specific levels Indicate billing frequency Establish a hierarchy between billing rates Establish rates for entire groups or single pieces of equipment All rate tables have effective dates so that your billing is date-sensitive. For example, you can set up the same billing rate with different values depending on dates.

After you set up location billing and enter location information for equipment, you can create a location billing. The system automatically creates journal entries to distribute revenues and expenses to the appropriate accounts. The system creates billing journal entries based on your location billing setup and the location information for the equipment that is dated from the last bill date through the "bill to" date you specify for the billing.

Equipment location billing consists of the following tasks:

• Creating location billings

• Processing location billings

• Revising location billings

22.2.1 Before You Begin

• Verify that the following information is set up:

• Valid rate codes

• Billing rate codes

• Rental Rates table

• Rental rules

• Account derivation rules

See Also:

• Chapter 38, "Setting Up Billing Rate Code Hierarchy," for more information about set up tasks

The following diagram shows the flow of the location billing process in Equipment/Plant Management.

Figure 22-1 Location Billing Process Flow in Equipment/Plant Management

Description of "Figure 22-1 Location Billing Process Flow in Equipment/Plant Management"

Note:

You do not have to relocate equipment to bill by location. You can create as many billings as you want for a piece of equipment based on the initial location that you enter on the equipment master.