Defining Billable Business Units

When you set up business units, you can specify a business unit type, which is a UDC (00/MC). You use business unit types to group similar business units together or to designate the business unit as being a model, a job, and so forth. In addition to setting up UDC codes for business unit types, you can specify any business unit type as billable or nonbillable.

In the JD Edwards EnterpriseOne Expense Management system, the business unit against which employees charge expenses can be billable or nonbillable. Expenses that will be charged to and paid by the client are billable. Specifying a business unit as billable provides you with additional features:

• You can set up a policy for nonbillable business units so that the system does not apply policy rules to expenses that will be charged to the client.

• You can set up unique account numbers to use for the journal entries that the system creates to charge expenses against. For example, you could set up expense account mapping to use account number 4550 to charge hotel expenses for nonbillable business units and account 4555 for hotel charges that the client will pay.

• The system validates billable accounts against billable business units when you run the Expense Report Reimbursement program (R20110) and returns an error if:

• The account is nonbillable and the business unit type is billable.

• The account is billable and the business unit type is nonbillable.

• You can specify tax rates for expense categories based on whether the expense is billable. The system uses the Billablefield on the Work with Tax Mapping form as one of several criteria to locate the appropriate tax rate area.