This chapter contains the following:
Because invoicing is done at the contract level, an invoice can contain transactions from multiple projects and tasks. Additionally, charges from an expenditure item or event can be split across multiple invoices if the project task is associated with multiple contracts. A billing transaction represents a mapping between an expenditure item or event, a contract line, and an invoice line. Billing transactions are created by the invoice preprocessor API during the invoice generation process. If you generate revenue for a contract prior to generating invoices, the billing transactions are created during the revenue generation program.
Contract contribution percentage is the maximum percentage of project work eligible for billing for a contract. The amount billed for a billing transaction against a contract is based on this value, and cannot exceed 100 percent.
The eligible amounts for invoice and revenue are the amounts that can be invoiced and recognized for a specific contract line and the expenditure item or event.
The qualified amounts for invoice and revenue are the amounts that will be invoiced and recognized for a specific contract line and the expenditure item or event. A qualified amount is determined by the available funding for the transaction. It is the smaller value of either the eligible amount, or the smallest amount of invoice or revenue funds remaining for all contract header and contract line billing controls to which the transaction maps. If this value is zero, a billing transaction exception is created in an amount equal to the eligible amount.
If the contract does not use billing controls, the qualified amount is equal to the eligible amount.
The billing control for the contract or contract line associated with the expenditure item or event determines whether the transaction is eligible for invoicing and revenue recognition. If the transaction passes the billing control and the billing control has available funds, a billing transaction is created and the funding amount of the billing control is reduced by the transaction amount.
If the contract does not use billing controls, the expenditure items and events charged to the task linked to the contract line are eligible for invoicing and revenue recognition, and billing transactions are created for them.
Create billing transactions automatically during invoice generation or manually. Select the automatic method when you submit the invoice generation program. If you want to create an manual billing transaction after creating an automatic billing transaction to pick up any adjustments, first delete the existing billing transaction.
The manual creation method is only used for expenditure items.
If an expenditure item is billed across multiple contract, If you create a automatic revenue billing transaction for an expenditure item , you cannot use the manual method for another contract.
Preview and print invoices from within an invoice or from the Invoice Overview region. Invoice printing consists of previewing an invoice, selecting an invoice template if more than one exists, and then printing the invoice in the preferred output format.
Invoice preview is available if one or more invoice templates are set up in Oracle Business Intelligence Publisher.
Preview allows you to see a printable version of the invoice upon selecting one of the invoice templates. This is useful in identifying possible adjustments needed to the invoice prior to transferring the invoice to Oracle Fusion Receivables. The current or previously active, expired, hold, or closed contract version provides the contract data on the invoice.
An invoice template contains instructions for the printed invoice format, which are designed for a contract and customer's preference. Select an invoice template to convert the invoice details to a printable version of the invoice.
Create events to invoice, recognize revenue, or both, for a specified amount based on a schedule, milestone, or progress. The various contract, project, and billing extension attributes determine the event amount and how it is calculated. The components of an event determine how it is processed.
Select an event type to control whether the event is used to invoice, recognize revenue, or perform both functions for a contract line.
Using the reversing option, you can create a revenue accrual that is automatically reversed. Enter a completion date in the accounting period. When you save the event, Oracle Fusion Project Billing also creates a new reversing event in the next accounting period. This new reversing event has an event amount that is equal to the negative value of the original event amount.
Enter the event amount in the bill transaction currency.
Note
The default bill transaction currency is the contract currency. To change it, set the billing currency type to Bill Transaction on the bill plan of the contract line. If the two currencies are not identical, the event amount in bill transaction currency is converted to the contract currency. If the bill transaction currency differs from the invoice revenue currency, the event amount in bill transaction currency is converted to the invoice revenue currency.
Oracle Fusion Project Billing retains the complete adjustment history of each event. Use adjustment history to review and track event adjustments.
The Generate Invoice or Generate Revenue process creates an invoice or revenue distribution when an event is invoiced or recognized for revenue. Optionally you can create the revenue accounting entries for the revenue distribution of an event if they are not already created.
There are times when credits need to be applied to a released invoice to adjust the amount. To reduce the amount of an invoice, you can choose from the following types of crediting actions:
Cancel an invoice.
Write off an invoice.
Apply a concession.
Create a net invoice.
Cancelling a released invoice results in the creation of a credit memo for the entire amount of the canceled invoice. Cancel an invoice only if is released and has no payments, adjustments, or crediting invoices applied to it. All items on the canceled invoice are returned to the unbilled transactions region of the invoice and are eligible for invoicing in the next billing cycle.
Note
The funds consumed balance on the contract that funded the original invoice is updated to reflect the returned consumed amount. The credit memo always has the same invoice currency and currency attributes as the original invoice.
The funds consumed balance on the contract that funded the original invoice is updated to reflect the returned consumed amount. The credit memo always has the same invoice currency and currency attributes as the invoice being credited.
Write off all or part of a released invoice that you cannot collect due to bad debts. Writing off an invoice creates a crediting invoice for the original invoice in the write-off amount that you enter. Write off at either the invoice level or the invoice line level. If you write off at the invoice level, the write-off amount is prorated across the invoice lines. For invoice line level write-offs, specify the write-off amount for the line.
Note
The write-off invoice always has the same invoice currency and currency attributes as the original invoice. The funds consumed are not returned to the contract line for future consumption when you write off an amount.
Apply a concession when you want to manually credit a released invoice without adjusting the transactions.
Apply a concession to either the invoice level or invoice line level by entering either an amount or percentage. If you apply the concession to the entire invoice, the concession amount is prorated across all the invoice lines. For invoice line concessions, specify the concession amount or percentage for the line. When you apply the concession, you create a credit invoice for the original invoice in the entered amount.
Enable net invoicing for your contract when you want to create a standard invoice that includes the amounts from adjusted transactions on one or multiple released invoices. A net invoice can include new transactions that are eligible for invoicing, along with the adjusted transactions from the same contract. If net invoicing is enabled for your contract, the application automatically consolidates credits with new invoices instead of issuing individual credit memos. A net invoice is not a credit memo; it uses the standard invoice type.
To create a net invoice that contains positive and negative amounts, the creation sign for the Oracle Fusion Receivables transaction type must be set to Any Sign.
Note
When net invoicing is not enabled:
The application automatically creates a credit memo each time that you adjust and process the transactions on a released invoice.
The credit memo reverses the invoice amount by the amount of the adjusting item.
The invoice transaction currency of the credit memo is the same as the currency of the released invoice.
Contract number is an alphanumeric attribute. The contract number range includes all contracts with a value equal to or greater than the From value but less than or equal to the To value.
Tip
If you use contract number ranges extensively, then use a fixed length numeric contract number. Using a fixed length numeric contract number simplifies the process of defining the contract number range and makes it more comprehensive. Precede the contract number with the required number of zeros to ensure that the length is always fixed.
Note
Spaces and letters are sorted before numbers when you sort a list of contract numbers.
The From and To contract numbers of 2009 through 2010 include the following contracts:
All contracts that start with 2009 and contain extra trailing characters, such as 20090 and 2009AZ, since they all have a value greater than 2009.
Contract 201, since it has a value less than 2010.
All contracts that start with 201 and with a letter in position 4, such as 201A123Z, since they all have a value less than 2010.
The From and To contract numbers of 2009 through 2010 exclude the following contracts:
Contracts 2 and 20, since they both have lower values than 2009.
Contract 20A9XYZ, since it has a lower value than 2009.
All contracts that start with 2010 and contain extra trailing characters, such as 20100 and 2010XYZ, since they all have values greater than 2010.
When you create a contract template, you can provide values for project-related attributes that appear on contracts created from the contract template.
The following table describes the project-related attributes for contract templates:
| Attributes | Description |
|---|---|
|
Bill plan |
Specify the invoice method, its classification, billing currency type, payment terms, billing cycle, bill set, and invoice summarization formats such as labor, nonlabor, and event. You don't need to enter values for bill plan attributes such as the bill-to account, bill-to contract, and bill-to site because these are specific to customer or contract. |
|
Revenue plan |
Specify the revenue method and its classification. Billing extensions, if used, are specific to each contract. Therefore, don't enter a billing extension on the contract template. |
|
Contract template lines |
Link contract template lines to a bill plan and a revenue plan defined on the template. |
|
Billing controls and overrides |
Specify on the contract. |
|
Rate schedules |
Specify labor schedule, nonlabor schedule, and burden schedule on the contract. |
If you create a contract from the contract template, you only need to enter the organization and contract-specific attributes.
Access to invoices is secured by the business unit. You only have access to invoices that belong to contracts in the business unit assigned to your role. You can see all invoices for projects that are linked to the contracts which you can access.
You have the option of searching for invoices by project. When you open the invoice, your view of the invoice amounts is restricted to transactions from that project only. The invoice does not display amounts from other projects associated with the contract. The queried amount on the invoice contains the amount of total invoice distributions for the project and task entered in your search criteria.
If you search an invoice by project and open the invoice to review the details, then you will see a value for the queried amount. The queried amount on an invoice is from the project in your search criteria. The queried amount does not contain amounts from other projects that have transactions on the invoice.
The invoice amount is the amount of transactions from all projects that contributed to the invoice.
Intercompany billing creates internal invoices and accounting entries to pass costs and share revenue across organizations on an intercompany billing contract. A provider organization performs work and charges it a project owned by the receiver organization. The provider organization creates an invoice in Oracle Fusion Receivables and the receiver organization imports the invoice from Oracle Fusion Payables. Accounting entries for revenue are created between the organizations.
Interproject billing creates internal invoices for costs incurred between a provider project and a receiver project defined on an interproject billing contract. The provider project generates an Oracle Fusion Receivables invoice, which the receiver project receives as an Oracle Payables invoice.
The associated task for a billing transaction is the task within the project task hierarchy associated with a contract line.
The transaction task for a billing transaction is the task within the project task hierarchy that the transaction is charged to.
When you set an expenditure item to be nonbillable, it will not be selected during the invoice or revenue generation processes. Any existing billing transactions for the expenditure item are deleted.
The expenditure item has an existing billing transaction that was created automatically. Create billing transactions either automatically or manually.
To manually create a billing transaction, change the billing transaction creation method to manual for the expenditure item.
Expenditure items that you create after generating an invoice become eligible billing transactions for the invoice. Manually create a billing transaction for the expenditure item after generating the invoice.
The consumed amount of the billing transaction is reduced to zero, and the invoiced amount and percent billed are updated. If the billing transaction is for an expenditure item or event on a released invoice, the billing transaction is marked for adjustment processing.
When you delete a draft invoice, all invoice lines, notes, and the invoice header are deleted. Billing transactions that do not have invoice line distributions will also be deleted.
Released invoices may contain partially invoiced billing transactions. In those instances, the billing transaction will not be deleted, and the billing transaction balance will be updated.
Yes. You can delete an unprocessed event. You cannot delete an event that was invoiced or recognized for revenue. Additionally, you cannot delete an event that was created by a billing extension, was previously reversed, or was a reversing event.
Request for the contract administrator to edit the soft limit or hard limit amounts in the contract billing controls. If the contract in not in draft status, the contract administrator must place the contract under amendment to make the edits.
For a transaction that reaches a hard limit during generation of invoices or revenue, the application creates a partial billing transaction consisting of the amount of funds that are remaining and a billing transaction exception for the amount of transaction that exceeds the funds remaining. You can review exceptions on the Manage Billing Transaction Exceptions page or on the Edit Invoice page. Based on the exceptions, you can then adjust the corresponding expenditure items or events.
On the Manage Expenditure Items page, search for expenditure items that are billable and in unbilled invoice status.
Request for the contract administrator to edit the billing resources in the contract billing controls. If the contract in not in draft status, the contract administrator must place the contract under amendment to make the edits.
Review the invoice exceptions for currency conversion errors that occurred when you updated invoices from Oracle Fusion Receivables. If there is an exception message for currency conversion, recalculate the currency conversion for the affected invoice.
Enable the automatic invoice release option in the billing region of your contract. When you generate invoices for the contract, the invoices are created with the status of Released.
If you make adjustments to a draft invoice that affect the amount of the billing extension, recalculate the billing extension before you submit the invoice for approval.
Note
Billing extensions are currently not available in Oracle Cloud implementations.
You can drill down from the contract invoice to view the Oracle Fusion Receivables invoice transaction if the project contract invoice is in Accepted status. The project contract invoice status is set to Accepted after AutoInvoice is successfully run in Oracle Fusion Receivables and Update Invoice Details from Receivables is run in Oracle Fusion Projects Billing.
If purchase order number does not exist for a contract line, then the contract number is displayed instead.
Whenever a billing event is updated using Update Events Web service in Oracle Fusion Project Billing, the event number and attributes such as event description are provided to the application.
If the same billing event is updated multiple times, then the most recent event attributes obtained from the Update Events Web service takes precedence over the previous attributes, except when the most recent values are null.
Yes. You can simultaneously release up to 500 approved invoices from the Manage Invoices page, using the Release All action.
Search for approved noncredit memo invoices (invoice amount in contract currency greater than zero) within a business unit by billing type. Select the Release All action from the Search Results to open the Release All window and optionally, override the invoice date for the complete list of approved invoices displayed by the search results, up to a maximum of 500. Submit the release action.
Note: Release All action is enabled only when the search results do not exclude any earlier approved invoices for any contracts and when the search results do not include any credit memos.
No. All credit memos are initially created in approved status. If you need to correct or update a credit memo, then release the credit memo and then adjust the released credit memo.
You must enter a credit memo reason when you release a nonstandard invoice, such as a credit memo, cancellation, concession, or write-off, for a contract business unit that requires a credit memo reason. When you submit the Transfer Invoice Details to Receivables process, the credit memo reason is transferred to Oracle Fusion Receivables.
Note
Oracle Fusion Receivables contains the values for credit memo reasons.
Invoice generation occurs by contract. Each contract line processes eligible transactions charged to its associated projects and tasks. Invoice amounts are calculated when you either submit the process to generate invoices or manually create an invoice for a contract.
Your security settings restrict the business unit and contracts available for you to select when entering the parameters for invoice generation.
The following table explains several key parameters of the invoice generation process.
| Parameter | Description |
|---|---|
|
Create Billing Transactions |
Validates and maps eligible project transactions to the contract and contract line to create billing transactions. Updates consumed funds on the contract and determines the billable amount based on the invoice method. Select No if you want to create the billing transactions when generating revenue instead of during invoice generation. |
|
Create Invoice |
Create invoice distributions from the billing transactions. Groups the invoice distributions into invoice lines and an invoice header using the rules defined on the invoice format. |
|
Previously Invoiced Items Only |
Create an adjustment invoice that includes only retroactive adjustments for transactions that were previously invoiced. |
|
Project Number |
If you enter a project, the invoice includes only transactions charged to the entered project. Transactions from other projects associated with the contract are excluded from the invoice. |
Important
If you do not enter a value for the contract number, the application creates invoices for all eligible contracts in the business unit. If you do not enter any parameters, all currently or previously active contracts are processed for invoicing, ordered by contract number.
The two major components of invoice generation involve creating the billing transactions and creating the invoice.
The first step of the Generate Invoice process evaluates the eligibility of expenditure items and events for invoicing, maps them to contract lines, and updates the funding amount for the contract line. If an expenditure item or event passes the billing controls, a mapping record is created for a combination of the transaction, contract line, and funded amount. This intermediate mapping record, the billing transaction, is placed on the invoice and is updated each time that you generate an invoice for the contract until the sum of its mappings are 100 percent.
Next, invoice lines and distributions are created from the eligible billing transactions during the Generate Invoice process. Distributions are grouped into invoice lines and the invoice header using the rules defined on the invoice format. Optionally, create distributions manually by attaching the eligible expenditure items and events on the invoice to the invoice lines.
Billing specialists format invoices for federal grants award contracts in the federal standard form SF270.
Billing specialists generate the federal SF270 invoice form in Oracle Fusion Project Billing after the following prerequisite steps are performed in Oracle Fusion Grants Management and Oracle Fusion Enterprise Contracts.
Grants administrators create awards in Oracle Fusion Grants Management. For award contracts that don't use LOC billing, the grants administrator can specify the invoicing format as SF270. Hence, when invoices are created for this contract, they are in SF270 format.
To generate invoices, billing specialists, grants accountants, or grants administrators can navigate to the Invoice work area and generate invoices for the award contracts.
The following table describes various sequence of actions related to the procedure for generating the SF270 form, locations from where these actions are performed, and their results.
| Step | Role | Action | Location | Result |
|---|---|---|---|---|
|
1 |
Grants administrator |
Set the invoice structure to SF270 and submit the award. |
Oracle Fusion Grants Management |
Oracle Fusion Grants Management creates contract, contract line, bill plan, revenue plan, and associated projects. Oracle Fusion Grants Management then links these attributes to the contract line in Oracle Fusion Enterprise Contracts. |
|
2 |
Grants administrator |
Navigate to the Contract work area and perform the following steps:
|
Oracle Fusion Enterprise Contracts |
The contract is submitted for approval. |
|
3 |
Contract administrator |
Approve the contract. |
Oracle Fusion Enterprise Contracts |
Contract is activated. |
|
4 |
Billing specialist |
|
Oracle Fusion Project Billing |
The Generate Invoice process runs, and the billing specialist monitors the process in the Invoice work area. |
|
5 |
Billing specialist |
Search by contract number on the Manage Invoices page after the Generate Invoice process is completed. Select the invoice from the search result. |
Oracle Fusion Project Billing |
The Review SF270 option is activated. |
|
6 |
Billing specialist |
Click the invoice number link. |
Oracle Fusion Project Billing |
The Edit Invoice Details page opens. The page contains the Review SF270 option. |
|
7 |
Billing specialist |
Click the Review SF270 option. |
Oracle Fusion Project Billing |
The invoice is structured and displayed in the SF270 format. |
|
8 |
Billing specialist |
View the invoice using the Preview action. |
Oracle Fusion Project Billing |
SF270 is displayed in a business intelligence process report in the structure published by the US federal government. |
|
9 |
Billing specialist |
Submit invoice for approval, saves, and closes the invoice. |
Oracle Fusion Project Billing |
Invoice is submitted for approval, and the Manage Invoice Listing page is displayed to the billing specialist. |
|
10 |
Billing specialist |
Navigate to the Invoice Overview page and perform the following steps:
|
Oracle Fusion Project Billing |
Invoice status changes to Approved. Invoice status changes to Published. |
In Oracle Fusion Grants Management, project application administrators can select sponsors and activate them for letter of credit (LOC) billing.
In Oracle Fusion Grants Management, grants administrators can then create award contracts with sponsors set up for LOC billing.
In Oracle Fusion Enterprise Contracts, grants administrators can then validate, save, and submit the award contracts for approval.
In Oracle Fusion Enterprise Contracts, customer contract managers can then approve and activate the award contracts.
In Oracle Fusion Project Billing, grants accountants can then generate invoices and recognize revenue for the award contracts.
The following table describes the sequence of actions for generating invoices by letter of credit and recognizing revenue for awards funded by letter of credit, locations from where the various users can perform these actions, and their results.
| Step | Role | Action | Location | Result |
|---|---|---|---|---|
|
1 |
Project Application Administrator |
|
Oracle Fusion Grants Management |
The selected sponsor is activated for LOC billing. |
|
2 |
Grants Administrator |
|
Oracle Fusion Grants Management |
The award created is associated with the sponsor activated for LOC billing. The corresponding contract is automatically created in Oracle Fusion Enterprise Contracts. |
|
3 |
Grants Administrator |
|
Oracle Fusion Grants Management |
Oracle Fusion Grants Management initiates the Merge Contract service to update the contract for creating the bill plan, revenue plan, associated projects, and contract line. |
|
4 |
Grants Administrator |
|
Oracle Fusion Enterprise Contracts |
The Contract Overview page opens. The contract information is displayed. |
|
5 |
Grants Administrator |
|
Oracle Fusion Enterprise Contracts |
Bill plan details are displayed. |
|
6 |
Grants Administrator |
|
Oracle Fusion Enterprise Contracts |
Revenue plan details are displayed. |
|
7 |
Grants Administrator |
|
Oracle Fusion Enterprise Contracts |
Contract line details are displayed. |
|
8 |
Grants Administrator |
|
Oracle Fusion Enterprise Contracts |
Details of the award project task associated with the contract line are displayed. |
|
9 |
Grants Administrator |
Submit contract. |
Oracle Fusion Enterprise Contracts |
The contract is validated, saved, and submitted for review. |
|
10 |
Customer Contract Manager |
Approve the contract. |
Oracle Fusion Enterprise Contracts |
The contract is approved and is in Active status. Contract is ready for invoice generation and revenue recognition. |
|
11 |
Grants Accountant |
|
Oracle Fusion Project Billing |
Generate Invoice page is displayed. |
|
12 |
Grants Accountant |
Select the LOC number parameters on the Generate Invoice page and click Submit to initiate the Generate Invoice process for generating invoice for the LOC number. |
Oracle Fusion Project Billing |
Generate Invoice process runs and the billing specialist is automatically navigated to the Invoice work area landing page to monitor the process. |
|
13 |
Grants Accountant |
After the Generate Invoice process completes, navigate to the Manage Invoices page, and search for the invoice by LOC number. |
Oracle Fusion Project Billing |
Invoice is displayed with status as Draft. |
|
14 |
Grants Accountant |
Navigate to Revenue work area and select the Generate Revenue task. |
Oracle Fusion Project Billing |
Generate Revenue page is displayed. |
|
15 |
Grants Accountant |
|
Oracle Fusion Project Billing |
Generate Revenue process runs. |
|
16 |
Grants Accountant |
Navigate to the Manage Revenue Distributions task. |
Oracle Fusion Project Billing |
Revenue listing table with LOC number and document number columns is available. |
|
17 |
Grants Accountant |
Search for the revenue lines using the LOC number. |
Oracle Fusion Project Billing |
Revenue lines with the LOC number are displayed. |
This example illustrates how to create a separate invoice line for each contract line.
You are required to prepare an invoice using a standardized method of construction contract billing and to invoice the work in accordance with a schedule of values. A schedule of values, or a contractor's application for payment, typically contains a detailed description of the work, value of the completed work, value of materials, and value of the balance required to finish the work.
The schedule of values drives the invoicing, which takes place by invoice line. To meet this request, you capture invoice amounts by contract line. For contract lines with a sell intent, item, and project-based line type source, invoicing must use invoice formats with grouping option that includes contract line. Usage of invoice formats with grouping option results in the transfer of inventory item and related attributes from contract line to invoice line in Oracle Fusion Receivables. These contract line attributes come from the currently or previously active, expired, hold, or closed contract version.
Your contractor's schedule of values has the following categories:
Original Contract Sum
Net Change by Change Orders
Contract Sum to Date
Total Completed and Stored to Date
Less Previous Certificates for Payment
Current Payment Due
Balance to Finish
The invoice must contain separate invoice lines for each category.
To create individual invoice lines for each category in the schedule of values, create a contract line for each category. The invoice formats for the contract lines bill plan must be grouped by contract line. The following table summarizes the setup of key contract and project features:
| Key Feature | Configuration |
|---|---|
|
Contract Line |
Create one contract line for each schedule of values category. |
|
Invoice Format |
Create one labor, one nonlabor, and one event invoice formats, all with grouping option of contract line and all. |
|
Bill Plan |
|
Expenditure items and events charged to projects associated with the contract lines resulted in the following invoice lines after invoice generation.
| Schedule of Values Category | Invoice Line Number | Invoice Line Amount |
|---|---|---|
|
Original Contract Sum |
1 |
$8,425,000 |
|
Net Change by Change Orders |
2 |
$0 |
|
Contract Sum to Date |
3 |
$8,425,000 |
|
Total Completed and Stored to Date |
4 |
$168,500 |
|
Total Earned |
5 |
$168,500 |
|
Less Previous Certificates for Payment |
6 |
$75,000 |
|
Current Payment Due |
7 |
$93,500 |
|
Balance to Finish |
8 |
$8,256,500 |
This example demonstrates how to create an invoice and send it to a customer for contract that is based on time and materials. During invoice review, you discover two hotel charges that should not be on the invoice. Adjust the invoice by changing the transactions to nonbillable and update the invoice amount.
The following table summarizes key decisions for this scenario.
| Critical Choices | In this Example |
|---|---|
|
Contract type |
External |
|
Invoice method classification |
Rate based |
|
Invoice frequency |
Monthly |
Invoice management involves:
Submitting the Generate Invoice process to create invoices automatically.
Reviewing and correcting any billing exceptions.
Opening and reviewing the invoice.
Adjusting or removing transactions from the invoice as necessary.
Changing the hold status of transactions.
Changing the billable status of transactions.
Changing billing transactions and unbilled transactions to invoice distributions.
Reorder invoice lines and invoice distributions.
Recalculating billing extensions as necessary.
Recalculating the invoice.
Previewing the invoice to confirm the format is correct
Submitting the invoice for approval
Approving and releasing the invoice so it can be transferred to Oracle Fusion Receivables
This example is based on the assumption that the following prerequisite conditions are met:
A contract for external billing is defined. The dates for the contract should be between 01-Jul-2013 and 21-Jul-2013. The contract status must be active, expired, or in the amendment cycle with a previously active or expired version.
The projects and project plans associated with the contract are defined.
Costs are captured for the associated projects.
On the invoice Overview page, select Generate Invoices from the Tasks pane.
Select Parameters.
Enter the following information:
| Field | Value |
|---|---|
|
Business Unit |
Vision Operations |
|
Billing Type |
External |
|
Create Billing Transactions |
Yes |
|
Create Invoice |
Yes |
|
From Contract Number |
Select the contract you created in the prerequisite step. |
|
To Contract Number |
Select the contract you created in the prerequisite step. |
Leave all other parameter fields blank.
Select Submit.
Click the F5 key to refresh your browser.
On the invoice Overview page, search for your invoice.
Enter the following information:
| Field | Value |
|---|---|
|
Business Unit |
All |
|
Billing Type |
External |
|
From Date |
01-Jul-2013 |
|
To Date |
31-Jul-2013 |
Click Search.
Select Exceptions, and verify there are no invoices present on this tab.
Select Draft Invoices .
Select the Invoice Number for your contract to open the invoice.
On the Edit Invoice page, expand the Invoice Lines region if the details are not visible.
Select a row for an invoice line that contains hotel charges.
In the Expenditure Items tab within the Line Details region, select a row with the transaction for the Hotel expenditure type.
From the Actions menu, select Remove Transactions - Set as Nonbillable. This action moved the expenditure item from Line Details to Unbilled Transactions.
Select Unbilled Transactions to review the expenditure item.
In the Invoice Header region, click Preview.
Select Default Template, and click Next. This opens a preview of the invoice as it will be printed using the format defined in the bill plan's invoice template.
Review the invoice, and click OK.
Click Save and Close.
On the Overview page, click the Draft Invoices tab, and select the row that contains your invoice.
Click Actions - Submit. The invoice status is changed to Submitted and it is now visible on the Submitted Invoices tab.
Select Submitted Invoices and locate the previously submitted invoice.
Select the row that contains your invoice.
Click Actions - Approve.
Click Release.
Override the invoice date and enter the receivables invoice number, if required.
Enter a credit memo reason if the invoice is a credit memo.
Click Submit.
Click the Released Invoices tab. Verify that your invoice is present in the list of invoices.
Oracle Fusion 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.
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 shown 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.
Oracle Fusion Project Billing uses this order to determine the labor bill rate for a billing transaction originating from an expenditure item:
Employee bill rate override
Employee job assignment override with job bill rate override
Job bill rate override
Labor multiplier override
Standard employee bill rate schedule
Employee job assignment override with standard job bill rate schedule
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:
Nonlabor bill rate override for a specific expenditure type, resource, and organization
Nonlabor bill rate override for a specific expenditure type and resource
Nonlabor bill rate override for a specific expenditure type
Standard nonlabor bill rate schedule for a specific expenditure type, resource, and organization
Standard nonlabor bill rate schedule for a specific expenditure type and resource
Standard nonlabor bill rate schedule for a specific expenditure type
Oracle Fusion Projects can generate invoices based on financial physical percent complete that you enter for a contract. Percent complete invoice amounts are determined by progress settings on the contract, the contract bill plan, and the invoice method.
For Oracle Projects to calculate percent complete invoice amounts, the bill plan for the contract or contract line must use the percent complete invoice method. When you assign the percent complete invoice method to a bill plan, the percent complete billing extension is automatically added to the bill plan. The billing extension calculation level that you select determines whether events are calculated at the contract line level or project level. The following table describes the effect of the calculation level selection:
| Calculation Level | Description |
|---|---|
|
Associated project |
The billing extension creates separate events for each project and task associated with a contract line that uses the percent complete bill plan. |
|
Contract line |
The billing extension creates one event for each contract line that uses the percent complete bill plan. The event contains the percent complete amounts for all projects and tasks associated with the contract line. |
There are two methods for calculating percent complete. Percent complete for an entire contract is automatically calculated when you update progress for the associated projects. Oracle Fusion Projects calculates the percent complete amount for each contract line as the sum of earned value effort multiplied by 100, divided by the sum of baseline effort.
To manually calculate percent complete, enter the project progress on the contract or override the percent complete for a specific contract line or associated project, and submit the Generate Invoice process. Depending on the contract configuration, Oracle Fusion Projects calls the percent complete billing extension for each:
Contract line associated to a bill plan which uses the percent complete billing extension, if billing extension assignment calculation level is contract line
Associated project and task for each contract line associated to a bill plan which uses the percent complete billing extension, if the billing extension calculation level is associated project
The Update Progress and Generate Invoices processes call the percent complete billing extension, calculates the percent complete amounts, and create events.
Note
If you modify an invoice that contains an event created by the percent complete billing extension, recalculate the extension to update the amount. Submitting the Generate Invoice process again does not update percent complete amounts; you must recalculate the extension.
Oracle Fusion Projects can generate invoices based on the percent spent invoice method for a contract. Percent spent invoice amounts are calculated by the percent spent billing extension, and the amounts are determined by the settings in the contract bill plan and invoice method.
For Oracle Fusion Projects to calculate percent spent invoice amounts, the bill plan for the contract or contract line must use the percent spent invoice method. When you assign the percent spent invoice method to a bill plan, the percent spent billing extension is automatically added to the bill plan. The billing extension calculation level that you select determines whether events are calculated at the contract line level or project level. The following table describes the effect of the calculation-level selection.
| Calculation Level | Description |
|---|---|
|
Associated project |
The billing extension creates separate events for each project and task associated with a contract line that uses the percent spent bill plan. |
|
Contract line |
The billing extension creates one event for each contract line associated with the percent spent bill plan. The event contains the percent spent amounts for all projects and tasks associated with the contract line. |
Percent spent for a contract is calculated when you generate invoices. Oracle Fusion Projects calculates the percent spent amount for each contract line as the lesser of either 100 or inception-to-date actual cost, multiplied by 100, divided by the total cost budget.
The Generate Invoices process calls the percent spent billing extension, calculates the percent spent amounts, and creates events.
Note
If you modify an invoice that contains an event created by the percent spent billing extension, recalculate the extension to update the amount. Submitting the Generate Invoice process again does not update percent spent amounts; you must recalculate the extension.
Use the Generate Invoice Report to review the invoice generation results for your contracts. The report provides a summarized view for items that were processed successfully, with warnings, and with errors. Additionally, the report optionally provides summarized and detailed descriptions of items that were not processed because they were considered ineligible.
Additional details for invoice generation exceptions are listed on the Manage Billing Transaction Exceptions page.
View the report after you generate invoices from the Contract Invoices Task panel.
You must do the following to obtain results for this report:
Have existing contracts and transactions that need invoicing.
Submit the Generate Invoice process.
The following table describes the sections of the Generate Invoice Report. It also describes the value you must select for the Generate Ineligible Data parameter in order to populate the corresponding section.
| Section | Description | Generate Ineligible Data |
|---|---|---|
|
Process Summary |
Summary statistics of:
|
No, Summary, Detail |
|
Billing Event Errors |
Billing extension events that were not created, along with message details for the cause of each unique error. |
Detail |
|
Ineligible Contracts |
Contracts that were excluded from invoice generation, along with message details for the cause of each unique error. |
Detail |
|
Ineligible Bill Plans |
Bill plans that were excluded from invoice generation, along with message details for the cause of each unique error. |
Detail |
|
Ineligible Contract Lines |
Contract lines that were excluded from invoice generation, along with message details for the cause of each unique error. |
Detail |
|
Ineligible Associated Projects |
Projects associated with contract lines that were excluded from invoice generation, along with message details for the cause of each unique error. |
Detail |
|
Ineligible Expenditure Items |
Expenditure items that were excluded from invoice generation, along with message details for the cause of each unique error. |
Detail |
|
Ineligible Events |
Expenditure items that were excluded from invoice generation, along with message details for the cause of each unique error. |
Detail |
The invoice preprocessor is an Application Programming Interface (API) called automatically during invoice generation. The invoice preprocessor checks invoice eligibility for contracts, contract lines, bill plans, projects, expenditure items and events. The invoice preprocessor then creates billing transactions for those eligible items.
A billing transaction exception represents the amount of a transaction that could not be invoiced or recognized for revenue. The exceptions are created during invoice and revenue generation. If you have a billing transaction exception, perform the indicated corrective action on the transaction, then generate the invoice or revenue again.
Numerous conditions can cause billing transaction exceptions, but the conditions can be grouped into problems in the following areas:
Billing resources
Billing controls
Currency conversion
Intercompany setup
Rates
The tax amount on a contract invoice is an estimated amount that is calculated based on the tax event class Sales Transaction Tax Quote defined in Oracle Fusion Tax. Oracle Fusion Receivables calculates the final tax amounts using the Invoice tax event class. If the setup for the two event classes differs in Oracle Fusion Tax or changes between the time you create a draft invoice in Oracle Fusion Project Billing and the final invoice in Oracle Fusion Receivables, then the tax amounts shown in the two applications can differ.
When reviewing an invoice, you have the option of editing transactions at the header, line, and details levels. Actions performed at the header level apply to every invoice line. Actions performed on an invoice line are applied to every expenditure item or event associated with the invoice line. Alternatively, adjust an individual expenditure item or event. To edit invoice transactions you choose from the following options:
Adjust transactions
Remove transactions
Recalculate the invoice details
Recalculate extensions
| Type of Adjustment Action | Invoice Status When Available |
|---|---|
|
Adjust transactions |
Released, Accepted, Transferred, and Draft |
|
Remove transactions |
Draft |
|
Recalculate invoice details |
Draft |
|
Recalculate extensions |
Draft |
Adjust a transaction when you want to remove it from the invoice line details and delete its corresponding billing transaction. The transaction moves to the unbilled transactions region of the invoice, where you can return it to billable status if it is an expenditure item or remove the invoice hold when you are ready to invoice it at a later time. The funds consumed amount on the contract is updated to reflect the adjusted amount.
Note
If you change a transaction in a released invoice to nonbillable status, the transaction is marked for adjustment processing and is not removed from the invoice lines details. The corresponding billing transaction is updated with the credit amount.
The following table describes the invoice adjustment actions, and the invoice status when they are available.
Remove a transaction when you want to remove the transaction completely from the current invoice. The transaction will be invoiced in next billing cycle. The funds consumed amount on the contract is not updated.
Recalculate the invoice details after you make a change to an transaction that affects the invoice amount. You may need to recalculate invoice details if you change a bill rate or make changes to the contract.
If you recalculate the invoice details for an invoice in draft status, the transaction amount is updated in the invoice lines details. However, if you recalculate the invoice details for a released invoice, the transaction is marked for recalculation, but the revised value is not shown in the invoice line details.
The billing transaction is updated with the credit amount and the qualified billable amount. The funds consumed amount on the contract is updated to show the adjusted consumed amount.
Recalculate the extensions for an invoice if you made a change to a billing extension after generating the invoice. The modified amount from the extension will be included in the invoice after you recalculate the extension. Recalculate extensions before you submit the invoice for approval.
You can put transactions on released, transferred, transfer rejected, or accepted invoices on invoice hold.
Oracle Fusion Project Billing performs the following actions when a transaction on an invoice is put on invoice hold from the Invoice work area:
The consumed invoice amounts on all applicable billing controls are reduced by the invoiced amount of the adjusted transaction in contract currency.
The qualified invoice amounts in contract and bill transaction currencies on the billing transaction for the adjusted transaction are set to zero.
The credit invoice amounts in contract and bill transaction currencies on the billing transaction for the adjusted transaction are set to the invoiced amount of the billing transaction in contract or bill transaction currencies respectively.
The adjusted transaction remains available in the Invoice Line Distributions region of the invoice because the transaction is still part of the released, transferred, transfer rejected, or accepted invoice.
The adjusted transaction is in the process of being reversed, however, and is now considered to be unbilled. Thus, it is now also displayed in the Unbilled Transactions region of the invoice.
If net invoicing option is available for the contract, the credit to reverse the invoiced amount of the adjusted transaction in invoice currency will appear on a new invoice that contains credits and new charges, the next time the Generate Invoice process is run.
If net invoicing option is not available for the contract, a credit memo is created in approved status that reverses the invoiced amount of the adjusted transaction in invoice currency.
A contract administrator sometimes retroactively amends contracts that are used for billing. When this happens, the project billing specialist must review previously generated invoices to see if any further action is required.
Some retroactive contract amendments do not affect the invoice amount. When such amendments are activated, previously processed transactions are not automatically adjusted. If you want an unreleased invoice to reflect the amended contract values, you must generate the invoice again, with the delete draft, approved, and approval rejected options selected. Generating the invoice again will automatically delete the previous invoice and create a new invoice, with those amended contract values.
If you already released the invoice, cancel the existing invoice and generate a new invoice, which will reflect the amended contract values. Alternatively, you can regenerate the released invoice, which will reflect the amended contract values.
Some retroactive contract amendments impact the amount of an existing invoice. When such amendments are activated, previously processed transactions with a transaction date on or after the amendment effective date are set to be automatically adjusted. The next time you generate an invoice for the contract, the original invoiced amounts are credited and the new amounts to be invoiced are charged, based on the amended contract values.
Use these scenarios to understand the differences between removing and adjusting invoice transactions.
You are reviewing a customer invoice that is in draft status and notice that the invoice amount is higher than expected. As you investigate, you find that the invoice contains charges for hotel telephone calls that were inadvertently marked as billable. Take the transactions off the current invoice by removing them and setting them as nonbillable. The transactions are moved to the region of the invoice that contains unbilled transactions, their statuses change to nonbillable, and the funding consumed amount is updated.
For this scenario, you also have the option of completely removing the transactions from the invoice. However, this does not change the transaction billable statuses, so the transactions will be returned to the invoice the next time you submit the Generate Invoice process.
As you review a released invoice, you discover that it contains labor charges that should not be invoiced until next month. Adjust the transactions by placing them on hold. The transactions are moved to the region of the invoice that contains unbilled transactions, and the consumed amounts of the existing billing transactions are reduced by the amounts of the transactions that you placed on hold. The invoice amount is not reduced, but the credit amount will appear on an adjusting invoice (credit memo or net invoice).
An invoice contains expenditure items and billing events grouped into invoice lines. In addition to the expenditure items and billing events which are present on an invoice line, there may be eligible and unbilled billing transactions for an invoice line. When you perform the action to attach an eligible or unbilled billing transaction to an invoice line, it becomes part of the invoice line amount.
Invoice lines consist of line details, eligible billing transactions, and unbilled billing transactions. Manage adjustments to invoice lines and billing transactions from the invoice lines region of an invoice.
Line details are the billing transactions for expenditure items and billing events which are represented in the invoice amount.
The adjustment actions available in the line details vary depending on the invoice status. If you need to change an invoice line item, you can:
Attach a transaction to a different invoice line. This updates the invoice line amount for the original invoice line and the invoice line you move the transaction to.
Remove a transaction by making it nonbillable or placing it on hold. This moves the transaction to the unbilled transactions region of the invoice.
Remove a transaction from the invoice and delete the invoice distribution.
Recalculate a transaction if you made an adjustment to it after generating the invoice.
The eligible billing transactions on an invoice represent expenditure items and events that are partially invoiced for project tasks linked to the contract, and have at least one billing transaction. Depending on your adjustment action, transactions move to either the invoice line details or unbilled transactions from here.
The adjustment actions available for eligible billing transactions vary depending on the invoice status. If you need to adjust an eligible billing transaction, you can:
Attach the billing transaction to an invoice line. This moves the billing transaction to the invoice line details and updates the invoice line amount.
Remove a transaction by making it nonbillable or placing it on hold. This moves the transaction to the unbilled transactions region of the invoice.
Remove a transaction from the invoice and delete the invoice distribution.
Recalculate a transaction if you made an adjustment to it after generating the invoice.
Manage the billing transactions for an expenditure item. Create a new billing transaction, delete a billing transaction, or mark it for invoicing or revenue recognition.
The unbilled transactions are expenditure items and events that can be invoiced for project tasks linked to the contract, but are completely uninvoiced. An item may be present in this region if was partially invoiced, but does not have a billing transaction for the contract tied to the invoice. This occurs for expenditure items that are partially billed for a different contract. Depending on your adjustment action, transactions move to either the invoice line details or eligible billing transactions.
The adjustment actions available for unbilled transactions vary depending on the invoice status. If you need to adjust an unbilled transaction, you can:
Attach the billing transaction to an invoice line. This moves the billing transaction to the invoice line details and updates the invoice line amount. It also creates a billing transaction, invoice distribution, and links the invoice distribution to the invoice line.
Remove a transaction by making it nonbillable or placing it on hold. This moves the transaction to the unbilled transactions region of the invoice.
Remove a transaction from the invoice and delete the invoice distribution.
Recalculate a transaction if you made an adjustment to it after generating the invoice.
Manage the billing transactions for an expenditure item. Create a new billing transaction, delete a billing transaction, or mark it for invoicing or revenue recognition.
Note
Unbilled transactions are eligible for invoicing, but have not consumed any funds for the contract. Eligible billing transactions have consumed funds for the contract.
When you change the bill rate on a bill plan, the transactions associated with the contract line that use the bill plan are marked for recalculation. Recalculate the invoice or transactions to update the transaction amounts. If you change the bill rate on the rate schedule, you must select the transactions for to be recalculated during the next invoice generation.
Eligible billing transactions are expenditure items and events that have consumed a portion of funding for either invoices or revenue.
Unbilled transactions are expenditure items and events that may qualify for billing, but have not yet consumed funding nor been billed against a contract.
When you place an expenditure item or event on invoice hold from the manage or detail expenditure item or event pages, the invoice hold status on the transaction is updated to either once, or until you release the hold, and the invoice status on the transaction is updated to adjustment pending. Oracle Fusion Project Billing performs the adjustment processing for the transaction the next time invoice generation process is run.
When you place an expenditure item or event on hold from an invoice page, the following actions are performed:
Updates the invoice hold status on the transaction to once, or until you release the hold.
Reverses the consumed funds in the contract billing controls.
Deletes the billing transaction associated with the expenditure item or event.
Updates the invoice status on the transaction to unbilled.
Moves the expenditure item or event to the Unbilled Transactions tab.
When you hold a transaction from invoicing or revenue recognition, the transaction will not be selected during the invoice or revenue generation processes. If you hold the transaction from invoicing once, it will be picked up the next time you generate invoices. If you hold the transaction from invoicing or revenue recognition indefinitely, you must remove the hold and submit the invoice or revenue generation process again. Only at that time will the transaction become eligible for invoicing or revenue recognition.
Any billing transactions associated with the expenditure item or event are deleted when you place a transaction on hold.
The bill plan for the transaction uses a fixed invoice format. A fixed invoice format prevents you from attaching transactions to invoice lines.
When you link a distribution to an invoice line on a draft invoice, the invoice line amount and invoice header amount are updated. Correspondingly, if you remove the link between a distribution and invoice line, the invoice line and header amounts are updated. Perform this action if the invoice format for the bill plan associated with the transactions is not a fixed format.
To avoid partial invoicing of a transaction when hard limit is reached, remove the transaction from the invoice by placing it on invoice hold, from the Edit Invoice page.