Examples of Using Billing Controls

To create a billing control for a contract, you must enable billing controls for the associated contract type. You can create billing controls for a contract or contract line to limit the amounts, billing resources, dates, and funds available for billing consumption.

The following scenario demonstrates how billing controls regulate the transactions that are invoiced and recognized for revenue.

In this example, the contract type has billing controls enabled with a hard limit. The contract has two contract lines. A default billing control was automatically created for each contract line, using the line amount as the hard limit. A default billing control was also automatically created at the contract header level, with a hard limit equal to the sum of the hard limits for the two contract lines. A soft limit was manually entered for these default billing controls. Two additional billing controls were manually created for Contract Line 1, to further restrict invoicing and revenue recognition. The following table displays the billing controls.

Billing Control Location	Default Billing Control	Billing Resource	Start Date	End Date	Soft Limit	Hard Limit
Contract	Yes	N/A	N/A	N/A	190,000	270,000
Contract Line 1	Yes	N/A	N/A	N/A	120,000	170,000
Contract Line 1	No	Labor	6/1/2010	12/31/2010	30,000	45,000
Contract Line 1	No	Expenses	6/1/2010	12/31/2010	20,000	30,000
Contract Line 2	Yes	N/A	N/A	N/A	70,000	100,000

Contract Header Billing Control

Oracle Fusion Project Billing creates a warning during invoice or revenue generation the first time the inception-to-date (ITD) invoice or revenue amount for the contract exceeds 190,000. The total amount invoiced to the customer or recognized for revenue cannot exceed 270,000 for the contract.

Contract Line Billing Controls

The billing controls for Contract Line 1 causes Oracle Fusion Project Billing to perform the following functions during invoice and revenue generation:

• Creates a warning the first time more than a total of 120,000 is invoiced or recognized for revenue for Contract Line 1.

• Creates a warning the first time more than a total of 30,000 of labor or 20,000 of expenses is invoiced or recognized for revenue for Contract Line 1 between 6/1/2010 and 12/31/2010.

• Prevents more than a total of 45,000 of labor and 30,000 of expenses to be invoiced or recognized for revenue for Contract Line 1 between 6/1/2010 and 12/31/2010.

• Prevents more than a total of 170,000 to be invoiced or recognized for revenue for Contract Line 1.

The billing control for Contract Line 2 causes Oracle Fusion Project Billing to perform the following functions during invoice and revenue generation:

• Creates a warning the first time more than a total of 70,000 is invoiced or recognized for revenue for Contract Line 2.

• Prevents more than a total of 100,000 to be invoiced or recognized for revenue for Contract Line 2.