How Invoice and Revenue Rates Are Determined

Oracle Fusion Cloud Project Billing uses bill rates, burdening, and transfer price schedules to derive standard bill rates, multipliers, markups, and bases for calculating potential revenue when the revenue method classification on a revenue plan is as billed, as incurred, or rate based.

Similarly, bill rates derive invoice amounts when the invoice method classification on a bill plan is rate based.

Settings That Affect Rates and Overrides

The specific schedules to use to calculate invoice and revenue amounts are stored on either the bill plan or revenue plan. They are based on the schedule types specified on the invoice method and revenue method as listed in the following table.

Schedule Type	Rate Source
Labor schedule, bill rate	Standard employee bill rate schedule Standard job bill rate schedule
Nonlabor schedule, bill Rate	Standard nonlabor bill rate schedule
Labor schedule, burden	Standard labor burden schedule
Nonlabor schedule, burden	Standard nonlabor burden schedule
Labor and nonlabor schedule, burden	Standard burden schedule
Labor schedule, transfer price	Standard labor transfer price schedule
Nonlabor schedule type, transfer price	Standard nonlabor transfer price schedule

Tip:

When the labor or nonlabor schedule type is bill rate, you can enter labor or nonlabor bill rate overrides on the bill plan or revenue plan.

How Bill Rates and Bill Rate Overrides Are Calculated

Oracle Fusion Project Billing uses this order to determine the labor bill rate for a billing transaction originating from an expenditure item:

1. Employee bill rate override

2. Employee job assignment override with job bill rate override

3. Job bill rate override

4. Labor multiplier override

5. Standard employee bill rate schedule

6. Employee job assignment override with standard job bill rate schedule

7. Standard job bill rate schedule

Oracle Fusion Project Billing uses this order to determine the nonlabor bill rate for a billing transaction originating from an expenditure item:

1. Nonlabor bill rate override for a specific expenditure type, resource, and organization

2. Nonlabor bill rate override for a specific expenditure type and resource

3. Nonlabor bill rate override for a specific expenditure type

4. Standard nonlabor bill rate schedule for a specific expenditure type, resource, and organization

5. Standard nonlabor bill rate schedule for a specific expenditure type and resource

6. Standard nonlabor bill rate schedule for a specific expenditure type