Understanding Setup Requirements

Before you can use JD Edwards EnterpriseOne Contract Billing and JD Edwards EnterpriseOne Service Billing, you must define the constants and rules that you want to use during billing processes. The information that you define in the billing constants and rules specifies:

• How the system determines what number to assign to billing control, component link, reburdening adjustment group (RAG), and contract records.

• How the system uses dates (such as service and tax dates, general ledger dates, and various effective dates) in combination with billing AAIs (automatic accounting instructions), markup rules, and tax derivation rules to process source transactions.

• How the system uses billing AAIs to create journal entries.

• How the system processes billable transactions from the JD Edwards EnterpriseOne Payroll and Time Accounting systems.

This table describes the setup features for JD Edwards EnterpriseOne Contract Billing and JD Edwards EnterpriseOne Service Billing:

Setup Feature	Description
Billing Constants	Control the global processing of: Billable costs Customer information Dates Invoices Journals Default markup
Next numbers	Identify the next number for the system to use for these records in system code 48: Billing Control Number Component Link RAG Number Identify the next number for the system to use for these records in system code 52: Contract Number. You set up next numbers in the Next Numbers program (P0002). See "Setting Up Next Numbers" in the JD Edwards EnterpriseOne Applications Financial Management Fundamentals Implementation Guide.
Billing Rate and Markup Rules	Define the calculation for the amount that you add to costs to account for overhead and profit.
Billing AAIs	Define the accounting rules that the system uses to process journal transactions for billing, revenue recognition, and reallocations.
Component Rules	Define an additional markup that is based on amounts and units. The markup rules use this information to define additional markup.
General Ledger Offset and Retainage Rules	Identify the: Accounts for which the system creates the offsetting entries during the posting of accounts receivable information. The percentage of the invoice amount that will be retained until the work is completed. Note: JD Edwards EnterpriseOne Contract Billing does not use General Ledger Offset and Retainage Rules.
Tax Derivation Rules	Define the: Source transactions that are subject to tax. Tax rate or geographic area with common tax rates. Note: Contract Billing does not use Tax Derivation Rules.
AAIs	Define accounting information and general ledger relationships.
User-Defined Codes	Define custom codes for the system, such as component codes and adjustment reasons.
Sequence and Summarization Rules	Define how you want the system to sequence and summarize the transaction information that appears on invoices. Note: Contract Billing does not use Sequence and Summarization Rules.

This diagram illustrates the differences in the setup of JD Edwards EnterpriseOne Contract Billing and Service Billing: