Understanding Component Billing Lines
A component is a markup amount that you link to an independent billing line for time and materials or to a dependent billing line for burden. The billing amount for components is associated with the billing lines that you set up for time and materials.
To display the component amounts that are associated with billing lines for time and materials as a separate line on the invoice for the contract, you must set up a billing line for components. Setting up a separate billing line for components enables you to set characteristics for the component billing line that differ from the base record.
For example, when you set up a billing line for time and materials to calculate the billing amount for payroll costs, the amount includes a component markup of 10 percent for overhead. Because you have agreed to bill the client for the overhead separately from the payroll costs, you enter a billing line for a component to separate the payroll and overhead amounts.
When you define billing lines for components, the system automatically supplies the information for the job and the accounts receivable company based on the contract master. In addition, if you don't need to display component billing lines separately from time and material billing lines, you can include component amounts in time and material billing lines by having the system calculate component amounts.
See Adding Component Rules to Existing Markup Rules.
When you first define a contract billing line for a component, the system displays this message, which you can ignore:
Warning - Cross-Reference Not Setup