Direct Draw Billing Lines

A direct draw represents a fixed-amount reduction that you apply to a contract. You define a dependent contract billing line for a direct draw. The dependent billing line reduces the billing amount of another billing line in the contract. To apply a direct draw billing line to a billing amount, you must define a cross-reference between the two billing lines.

You can define a cross-reference between direct draw billing lines and these contract billing lines:

• Unit price (independent)

• Lump sum (independent)

• Time and Material (independent)

• Milestone (independent)

• Progress (independent)

• Fee (dependent)

• Component (dependent)

You apply the reduction beginning with the first billing until the entire schedule of values for the draw is fully applied to the contract. The schedule of values for the direct draw is the amount of the prepayment. For example, assume that a direct draw is for -22,000 USD, and that the first three billings are for 10,000 USD each. The calculations for the billings occur in sequence:

10,000 Billing – 10,000 Direct Draw reduction =0 Billing Amount

10,000 Billing – 10,000 Direct Draw reduction =0 Billing Amount

10,000 Billing – 2,000 Direct Draw reduction =8,000 Billing Amount