Components

Components are a type of markup that the system calculates based on amounts and units. For example, the billing for labor might include a component to partially offset the cost of borrowing money. Component rules work in conjunction with markup rules. After you set up a component rule, you must associate it with a markup rule for the system to automatically calculate the component. Alternatively, you can manually create a component transaction, applying the component rule directly to the transaction. If you want the system to create separate workfile transactions for cost amounts and markup amounts, you can assign a component rule to a markup rule.

When you accumulate costs, the system calculates the component amount using the component rules that you set up to create component transactions. Component transactions are always associated with a parent workfile transaction. The system assigns both transaction types the same billing control ID number and a component link number that associates each component calculation with its related workfile transaction.

You set up component rules using:

• A code that identifies a set of component calculation rules.

• An effective date range.

• One or more calculation rules based on an amount, a unit rate, or both.

This table shows how the system calculates the component amounts:

Generation Type	Component Table	Component Calculation Basis
1 (Invoicing)	Cost	The cost amount.
2 (Revenue)	Cost	The cost amount. If both generation types 1 and 2 have cost table information, the system uses the information from generation type 2.
1 (Invoicing)	Inv/Rev	The invoice amount.
2 (Revenue)	Inv/Rev	The revenue amount.
3 (Component)	Cost Or Inv/Rev	The default table for all component information when no component information exists for generation type 1 or 2 tables.