Understanding Lump Sum Billing Lines

Contract billing lines for lump sum define a fixed billing amount. When you set up a billing line on a contract for lump sum, your company agrees to bill the customer for a fixed amount, regardless of the actual costs that are incurred to complete the job.

You can define lump sum billing lines for which you must calculate the billing amount manually or that the system can use to calculate the billing amount automatically. For the system to automatically calculate the billing amount, you must define a cross-reference to link the lump sum billing line to a nonbillable account, multiple accounts, or a range of accounts. The accounts that you cross-reference include the information about the actual costs and projected final costs that the system uses in the calculation of the billing amount for lump sum.

When you define a lump sum for manual calculation, the system might display the following message:

Warning - Cross-Reference Not Setup.

You can ignore this message because you do not use the cross-reference information when you use a lump sum billing line for manual calculation.

When you define contract billing lines for lump sum, the system supplies the:

• Tax explanation, tax or geographical area, job, and accounts receivable company based on the contract master.

• Accounts receivable offset based on the owner address information.

• Revenue account based on the AAI BC01 for lump sum.

  Important: If the cost account on the cross-reference table is billable rather than nonbillable, the system creates billing workfile records during the workfile generation process. Also, the system processes the transactions on a T and M billing line and on the unit/lump sum billing line, resulting in the customer being billed twice for the same cost transaction.