Billing Rate and Markup Tables
Before you generate or revise a workfile transaction, you must set up markup rules in billing rate and markup tables. The billing rate is defined as the rate multiplied by the number of units worked to calculate the amount that you invoice your customer for goods or services rendered. The markup is defined as a percent or an amount that you add to costs for overhead and profit.
The system calculates markup amounts when you generate or revise workfile transactions that are based on the billing rate and markup rules that you set up when you set up Contract and Service Billing.
You set up billing rate and markup rules by specifying major and minor key values. The system uses these values in combination to identify the specific billing rate and markup rules that apply to individual source transactions.
When you generate or revise workfile transactions, the system completes these steps to mark up costs:
Accesses the billing rate and markup rules.
Locates and selects rules that match the values for specific source transactions for the major key.
Continues the search, narrowing the selection of rules based on the value for source transactions for the minor key.
Calculates the markup amount for individual transactions based on the applicable markup calculation rules.
Updates the workfile transactions with the applicable markup amount.
The system stores markup information in the Billing Rate / Mark up Table (F48096).
When you generate or revise workfile transactions, the system matches key values in the markup rules with the same values in the workfile transactions. The system uses the most specific rule that it can locate to calculate the markup for a workfile transaction.
Typically, you set up general markup rules that apply to most of the workfile transactions that you process in Contract and Service Billing. You can also set up additional markup rules for the workfile transactions that are exceptions. For example, you can set up rules that specify alternative markup rules for an individual customer or work order.
If you do not want to mark up a source transaction, the system processes it at cost. To include a source transaction at cost in the Billing Detail Workfile table (F4812), set up the billing rate and markup rules to include:
An account range that includes the account associated with the transaction.
Blank fields for the markup calculations.
If you do not include these, the system marks up the transaction using a default markup rule or the default percentage in the system constants.
The system uses default billing rate and markup rules to calculate the markup amounts for transactions that do not match the key values for any specific billing rate and markup rules. You can set up major key and minor key default billing rate and markup rules.
For a major key default markup rule, specify 9 as the key type and *ALL as the table key. For a minor key default markup rule, leave the account range blank and specify a markup calculation.
If you do not specify markup calculations for the minor key, the system processes the transactions at cost. If the transaction does not match the major or minor key values for any of the markup rules that you have defined, the system uses the default markup percentage that you have defined in the Billing Constants program (P48091).
Billing rate and markup rules are effective for the dates that you specify when you set them up. You cannot change the effective dates. However, you can create new billing rate and markup rules based on existing billing rate and markup rules by copying the rules and specifying new effective dates.
The system accesses billing rate and markup tables when you run the Workfile Generation (R48120) and the Workfile Re-extension (R481202) programs to apply markup information to workfile transactions.