Understanding Billing Types
Contract billing lines define the billing information for a contract. Each billing line on a contract defines specific billing terms. The system uses the billing lines to calculate the billing amounts on customer invoices.
You can set up independent and dependent billing lines on a contract. The billing line type determines whether the billing line is independent or dependent. For example, you might want to bill the customer for time and materials based on the actual costs that are incurred to complete the job. You set up the time and materials billing line as an independent billing line and specify the accounts that include the costs that you want to bill. When you create an invoice for the contract, the system calculates the billing amount, based on the billing line, and creates one line for the specified amount on the invoice.
You set up dependent billing lines for a contract when you want to include the additional details that make up a billing amount on an invoice. A dependent billing line depends on other billing lines to calculate a billing amount.
For example, if the amount that you want to bill for time and materials includes costs for overhead union dues, you would set up a dependent billing line for the fee. The dependent billing line represents the portion of the billing amount for time and materials that is overhead union dues. You associate the dependent billing line for overhead union dues with the independent billing line for time and materials that includes this information in the total billing amount. Then, when you create the invoice, the system calculates the billing amounts based on the relationship between the dependent billing line and the independent billing line. The system creates the billing amount for the independent time and materials billing line and the dependent billing line for overhead union dues as two separate lines on the invoice.
The JD Edwards EnterpriseOne Contract Billing system provides multiple billing line types to control invoice calculations. These different methods enable your organization to meet the billing terms as negotiated with your customers. These billing line types, divided into independent and dependent billing lines, consist of:
Time and materials or cost plus
Unit price
Lump sum
Fee
Milestone
Progress
Direct draw
Rated draw
Components
Burdens
Revenue