Understanding Detail Fee Processing

When you set up contracts, you can specify whether to process fees in summary or detail. For contracts that are set up to process fees in summary, the Invoice Generation (R52121) and the Journal Generation (R48132) programs create one summarized record in the Billing Detail Workfile (F4812) with the total fee amount for the invoice. For contracts that are set up to process fees in detail, the R52121 and R48132 programs create separate records in the F4812 for the calculated fee amount for each workfile transaction. By creating detailed records for fees, you can determine whether the method and rate for a fee are correct. You can also track and control costs and profitability.

To associate the detailed fee line with the transaction on which the fee was calculated, the system populates the Split Link (SLNK) field on the detailed fee record with the Billing Control ID of the base transaction. The system also populates the Billing Basis Flag (BBF) on base transactions that have detailed fees associated with them with a 2.

In addition to creating separate fee records for each base transaction on which a fee is calculated, the system also populates these fields on each fee record:

• Home Business Unit

• Employee address book number

• Job Type

• Job Step

• PDBA Code

• Payroll Tax Type

• Equipment Worked

• Equipment Worked On

• Rate group

• Rate code

Because each fee record contains this information, you can see how much a particular business unit is adding to the profitability of the organization, even when employees of that business unit are working on jobs outside of their cost center. For example, you can set up billing AAIs for revenue to use the home business unit as the resulting business unit. You can also set up allocations in the JD Edwards EnterpriseOne General Accounting system to allocate the costs and fees to the profit and loss (P&L) accounts of the performing organization.