Billing AAI Rules

Accounting for the billing cycle is controlled by the billing AAI rules. The system uses the rules to:

• Identify and process workfile transactions.

• Direct the amount of the resulting journal entries to specific accounts.

You can define accounting entries using these rules:

• Base rules, which you use to specify which accounts the system uses when creating journal entries for the billing and revenue recognition processes.

  The system uses the base rule to create journal entries for the total of the base and component amounts.

• Reallocation rules, which you use to move amounts from one account to another.

  A reallocation rule consists of two or more offsetting journal entries that must balance. The first offset journal entry represents the reduction to the source account. The second journal entry represents the increase to the target account.

The Journal Generation Control field in the system constants for Contract Billing controls the types of billing AAI rules that you define for these processes:

• Billing (Invoicing) only.

  Revenue reconciliation is not applicable.

• Revenue recognition only.

  Revenue reconciliation is not applicable.

• Revenue recognition and billing, including these types:

  • Without reconciliation of the accrued receivable account to the billed revenue and receivable accounts.

    The accrued receivable account does not equal zero. Accrued receivable variances are allowed.

  • With reconciliation of the accrued revenue and accrued receivable amounts to the billed revenue and receivable amounts.

    The accrued revenue and receivable amounts must equal zero after you generate the invoice. Accrued variances are not allowed.