1. Contract and Service Billing Implementation Guide
  2. Setting Up a Billing Rate and Markup Table

Setting Up a Billing Rate and Markup Table

Click Add on the Work With Billing Rate / Markup Table form to access the Billing Rate / Markup Revisions form.

Billing Rate / Markup Revisions form
Generation Type

Enter a code to determine the batch types and markup rules for invoice, revenue, and component amounts. The system assigns the batch type when the batch is created. Depending on how you set up the billing constants, different markup rules can apply to different amounts. Values are:

1: Apply the markup rule to invoice, revenue, and component amounts. If the billing constants specify that invoice and revenue amounts are always the same, the markup rule applies to revenue, invoice, and component amounts. If the billing constants specify that the invoice and revenue amounts can be different, the markup rule still applies to revenue, invoice, and component amounts if no type 2 rule exists.

2: Apply the markup rule to revenue and component amounts. If the billing constants specify that the invoice and revenue amounts can be different, the markup rule applies to revenue and component amounts only.

3: Apply the markup rule to component amounts only. This rule is not dependent on billing constants settings.

P: Apply the markup rule to multicurrency time accounting transactions only.

Currency Code

Enter the base currency code. The system uses the currency code from the company of the business unit.

Markup Rate Override

Enter the rate that the system should use to mark up the revenue amount reflected in the billing of professional services such as draftsmen, engineers, or consultants. This rate does not affect the employee's paycheck. You can use the markup rate as an override rate or as a maximum rate.

The calculation of the rate override for the total revenue markup is

(Rate Override * Unit) * (1 + Markup Percent) + Markup Amount

When you specify a maximum or cap rate, the system compares the rate override with the rate from the cost transaction. The system then uses the lower rate as the override rate.

You set up the override or maximum unit rate using the Billing Rate / Markup Table program (P48096).

Within Contract and Service Billing, you can mark up the revenue amount at a different rate from the invoice amount. The Independent Revenue/Invoice Amounts option in the billing constants controls this function. Use generation type 1 to specify a table for invoice, revenue, and component markup rates and use generation type 2 to specify a table for revenue and component markup rates.

Use generation type 1 to specify the invoice, revenue, and component markup rates only when the Independent Revenue/Invoice Amounts are set to not equal in the Billing Constants.

You can enter a markup rate to override an existing rate. For example, if you want a standard consulting fee to be higher than the normal hourly rate, you can type the consulting fee in this field.

You can also use this field to indicate a maximum rate for the entry when you use it in conjunction with the Cap field.

Cap

Enter 1 to indicate that the associated amount is the cap of the rate. Leave this field blank to indicate that the associated amount is the override rate. If you enter 1 and the cost rate is less than the cap rate, the cost rate is used; if the cost rate is greater than the cap rate, the cap rate is used.

Markup Percent

Enter the percentage that you use to mark up the revenue amount reflected in the billing of professional services workers, such as draftsmen, engineers, or consultants fees. This percentage rate does not affect the employee's paycheck. This percentage rate is set up in the Billing Rate/Markup Table program (P48096) using generation type 1 to specify a table for revenue/invoice markup percentage rates.

Enter percentages as whole numbers. For example, 50.275 percent would be entered as 50.275.

This field enables you to include a markup percentage for the amount of revenue recognition.

In Service Billing, you can set up a Billing Rate/Markup Table with generation type 1 that enables you to enter and maintain invoice amounts for single cost transactions that are different from the amounts used in revenue recognition. In tables with generation type 2, this field enables you to apply a markup rate that is specific to the revenue recognition amount for the table entry.

Markup Amount

Enter a number to identify the amount that the system will add to the account balance of the associated account number. Enter credits with a minus sign (−) either before or after the amount.

Job Type

Enter a code from UDC 07/G. These codes set up the jobs within your organization. You can associate pay and benefit information with a job type and apply that information to the employees who are linked to that job type.

Job Step

Enter a code from UDC 07/GS. These codes designate a specific level within a particular job type. The system uses this code in conjunction with job type to determine pay rates by job in the Pay Rates table.

Cost Pool

Enter a value from category code 12, which is associated with the Business Unit Master table (F0006). This is a user-defined code (00/12) for use in flex account mapping and in printing selected information on reports.

Home Business Unit

Enter the number of the business unit in which the employee generally resides.

Employee Number

Enter the number that identifies the employee in the Address Book system.

Pay Type

Enter a code that defines the type of pay, deduction, benefit, or accrual.

Pay types are numbered from 1 to 999. Deductions and benefits are numbered from 1000 to 9999.

Equip Number (equipment number)

Enter an eight-digit number that uniquely identifies an asset.

Rate Code

Enter a code from UDC 00/RC to indicate the billing rate, such as DY for daily, MO for monthly, or WK for weekly. You can set up multiple billing rates for a piece of equipment.

If you leave this field blank, the system searches for a valid billing rate in this sequence:

  1. Account Ledger Master (F0901).

    This table contains the most detailed rate information. You can assign multiple rates for a job. For example, you can set up separate rates for different equipment working conditions.

  2. Job or Business Unit Master (F0006).

    This table contains less detailed rate information than the Account Ledger Master. You can only set up a single rate for a job based on this table.

  3. Rental Rules (F1302).

    This table contains the least detailed rate code information. The system searches this table according to the criteria you establish when setting up the table.

This code enables you to apply multiple billing rates per equipment item. For example, you might want to set up a markup for the maintenance on a vehicle that is different from the markup for the cost of gasoline for that same vehicle.

Rate Group

Enter a code from UDC 12/C0 to group similar items for billing. If you are using Capital Asset Management, you must use this category code for rate group purposes only.

Cost Comp Tbl (cost component table)

Complete this field to associate component calculations with this markup rule.

Inv/Rev Comp Tbl (invoice/revenue component table)

Complete this field to associate component calculations with this markup rule.

Override Description

Enter a description, remark, explanation, name, or address that you want to apply to the billable detail transaction. This field is optional and can be used to override the descriptions from the related source transactions.

Note:

If you leave the account ranges blank, the system defaults the Obj From (object from) value to *DFT and applies the markup rule to all account ranges within the major key. You can use an asterisk (*) as a positional wildcard in a markup definition that relates to the source transaction. For example, suppose that the object from the source transaction is 1340. If you set up the object account for marking up the transaction as 1***, the workfile transaction is marked up.

To set up a markup rule that is specific to payroll, complete any of these fields:

  • Job Type

  • Job Step

  • Cost Pool

  • Home Business Unit

  • Employee Number

  • Pay Type

To set up a markup rule that is specific to equipment, complete any of these fields:

  • Equip Number

  • Rate Code

  • Rate Group

Payroll and equipment information are mutually exclusive.