Understanding Billing Lines for Applied Burdens

Billing lines for applied burdens are similar to billing lines for components and enable you to separate the applied burden amounts that are associated with T and M or cost plus billing lines from the base records for invoicing and revenue recognition for the contract. You also use applied burden billing lines to calculate other billing lines, such as fees, based on burdened amounts separately from the T and M or cost plus billing line.

To set up billing lines for applied burdens, you complete these steps:

1. Set up a billing line using line type G.

2. Enter the burden category of the applied burden amount that you want to separate from the base record.

3. Select existing T and M or cost plus billing lines to cross-reference to the applied burden billing line.

When you define billing lines for applied burdens, the system automatically supplies the information for the job and the accounts receivable company based on the contract master.

When you first set up a contract billing line for applied burdens, the system displays this message, which you can ignore:

Warning - Cross Reference Not Setup

Note: The system highlights the X Ref field until you define a cross-reference for the applied burden billing line.

Note: If you do not set up the correct cross-references for the previously defined T and M and cost plus lines, the system does not separate the applied burden and T and M or cost plus amounts when you generate invoices. If you change a cross-reference after generating the workfile, you must run the Workfile Re-extension program (R481202) to apply the changes to workfile transactions.