Understanding Fee Billing Lines

A fee represents an amount for which you want to bill the customer in addition to another billing amount. You can define fees based on the billed amount for another billing line in a contract. To do this, you define dependent contract billing lines for fees.

Contract billing lines for fees depend on other billing lines for their calculation. To calculate billing amounts for a fee billing line, you must set up a cross-reference between the fee billing line and the other billing lines within the contract. You must also assign a rate code or a fee percentage to the billing line for a fee. The rate code specifies a table for fee percentages that the system uses for a fee billing line. The rate code is based on an effective date rate.

To apply a fee to a contract, you must set up a cross-reference between the dependent fee billing line and other billing lines within the contract against which you want to apply the fee. You can also set up cross-references to other fee billing lines, thereby creating a compound fee calculation.

When you create invoices, the system uses either the invoice amount or the cost amount to calculate the fee amount. For example,

(Fee Amount) = (Fee Percent) × (Total Invoice Amount for the Billing Lines)