Job Billing - Functionality Overview

Billing Type Rate Rules

Depending on the billing type, billing rates are derived from different places.

Billing Type	Rule
Cost	If on the 'Job Master Use Payroll Billing Rates' or 'Use Equipment Billing Rates' boxes are checked then these rates will be used where possible to determine the billing amount for cost transactions generated in the Payroll or Equipment Costing modules. All other billing amounts will be determined by using the billing rate table. There is one override to this rule. On the Job Setup screen there is a Max Hourly Rate field, if this is entered then all transactions from payroll will be compared to this max billing rate and altered if their billing rate is greater than this max.
Unit	Under this method, the billing rate used is the billing rate applied on the billing code line.
Phase Unit	Under this method, the billing rate used is the billing rate applied on the billing code line.
% Complete of Costs	Under this method, the billing amount is the percent complete of the costs to the budgeted costs for the billing code.
% Complete of Construction Value	Under this method, the billing amount is the percent complete of the percent of the construction value.
% Complete of Units	Under this method, the billing amount is the units complete of the billing code times the unit rate of the billing code.
Milestone	Each milestone indicates the exact amount to bill when the milestone is released either manually or automatically.
Non-recoverable	This is a non billing rate. Any item using this method will not be billed unless manually overridden.

Billing Types

Code	Billing Type	Calculation Method
COST	Cost	This method will select all the cost transactions for a specific billing code and bill the calculated revenue amount associated with each transaction.
UNIT	Units	This method is calculated as the sum of the units associated with all cost transactions for a specific billing code multiplied by the billing rate on the contract.
UPHS	Phase Unit Billing	This method will calculate as the sum of the amount entered via Job Costing phase quantity completion multiplied by the rate on the billing code line.
NR	Non-Recoverable	This method is a non-billable method – any transactions associated with bill codes marked with this billing method will produce a zero bill but the transactions will be marked as billed, these transactions are also available for printing on the invoice.

% Complete Billing Types Overview

Percent complete billings work against a fixed contract value, the budgeted cost, budgeted units, or contract value. The units and costs are derived from the Job Costing transactions.

Code	Billing Type	Calculation Method
PCCO	% Complete/Cost	With this method the billing type used will depend on the billing contract budget lines. Where there is a budget on the billing line, then percent complete billing type will be used. Where the billing budget line is null or zero, the billing type cost will be used.
PC	% Complete of Budgeted Costs	This method will automatically calculate the percent complete of currently asked for costs against the budgeted cost amount of the billing code and create the bill amount as ((Budgeted Billing Amount) × (Percent Complete ÷ 100)).
PCV	% Complete of Construction	This method will automatically calculate the percent complete of currently asked for costs against the construction value of the billing code and create the bill amount as ((Construction Value × (Percent of Construction Value ÷ 100)) × (Percent Complete ÷ 100)).
PU	% Complete of Budgeted Units	This method requires the user to enter the percent of units complete for each billing code. The system will then calculate the bill amount as ((Budgeted Units × Percent Complete) ÷ 100) × Unit Billing Rate).

Burdened Billings Billing Types Overview

Burdened billings are a method of billing a percent of a different billing line. For example, your site management fee may be 15% of all general conditions.

Code	Billing Type	Calculation Method
BPC	Burdened billings percent of cost amount	This method will sum the cost amount of the associated billing codes' cost transactions and then apply the required burden percent: ((Sum of Costs × Burden Percent) ÷ 100)).
BPB	Burdened billings percent of billing amount	This method will sum the bill amount of the associated billing codes’ cost transactions and then apply the required burden percent: ((Sum of Bill Amounts × Burden Percent) ÷ 100)).
BPU	Burdened billings dollar rate per unit	This method will take the billing units entered of the associated billing codes and then apply a rate per unit: (Sum of Units × Dollar Rate per Unit).

MILESTONE BILLINGS Billing Types Overview

Milestone billings are manual billings triggered by percent complete, dates, and costs or manually released. All milestones except fixed fee allow for multiple releases of the milestone.

Code	Billing Type	Calculation Method
MC	Milestones Cost to Date	This method allows the user to define the amount to be billed every time the actual cost to date reaches an entered value.
MD	Milestone Date Based	This method allows the user to define the amount to be billed on specific dates.
MF	Milestone Fixed Fee	This method allows for a bill code to be billed only once, for a specified dollar amount. The user must manually release this milestone.
ME	Milestone User Defined	This method allows the user to define multiple milestones with fixed dollar values for a specific bill code. The user must manually release the milestones.
MPC	Milestone % Complete of Cost	This method allows the user to enter the amount to bill when the calculated percent complete equals or is greater than the percent complete entered on the milestone.
MPCV	Milestone % Complete of Construction Value	This method allows the user to enter the amount to bill when the calculated percent complete equals the percent complete of construction value entered on the milestone.
MPU	Milestone % Complete of Units to Date	This method allows the user to enter the amount to bill whenever the units complete equals the percent of budgeted units entered on the milestone.
MQ	Milestone Quantity to Date	This method allows the user to enter the amount to bill whenever the units to date equal the amount entered on the milestone.

Billing Functionality

The system treats all billing types the same when calculating the next bill. The system always generates the billable amount up to and including the requested cutoff date then subtracts the previous billing to give the current billing.

Cost transactions are automatically picked up and marked as included on a specific draw or draw and revision when a new billing is created. Surcharges and minimum maximum transactions are also created at the time the billing is created. If there are any automatically released milestones, they will also be calculated at this time. A cost transaction entered in the job billing Create Cost Transaction pop-up window and that had the 'Auto-Reverse' box checked will automatically be reversed on the next billing.

You may mark transactions as either “Permanently Deferred” meaning that they are never to be billed, or “Temporarily Deferred” indicating that they should not be included on this current bill, but will be billed on the next bill.

The system allows the user to adjust the amount to bill on each transaction when the billing type is cost and the job is not using revenue generation. The job set up will read – “As Costs Incurred (Without GL)”.

Minimum Time Charges Functionality

Minimum time charges are mostly utilized in billing engineering work. The functionality allows for specific tasks to have minimum charges regardless of the time sheet hours. In order to utilize this function to its fullest, the category structure created in Job Costing must be quite task specific.

Minimum time charges only work if you are posting from Payroll to Job Costing with the job summary set to “Employee by Date”, and the charges are calculated and applied according to the following rules.

1: Minimums Not Met

Minimums are applied first at the specific category level, then at the overall level prorated by quantity.

Example 1:

Minimum time 8 hrs, maximum time 12 hrs, round up .50 hrs

Minimum Categories	– 1002 – No specific minimum
	– 1003 – No specific minimum
	– 1004 – No specific minimum
	– 1005 – No specific minimum

Time charged is:	3.75 hrs to category 1002
	0.00 hrs to category 1003
	0.25 hrs to category 1004
	0.00 hrs to category 1005

Minimum 8.00 hrs minus time charged of 4.00 hrs = Adjustment of 4.00 hrs is required.

Time charged is:	3.75 hrs to category 1002 + adjustment of 3.80 hrs
	0.00 hrs to category 1003
	0.25 hrs to category 1004 + adjustment of 0.20 hrs
	0.00 hrs to category 1005

Example 2:

Minimum time 8 hrs, maximum time 12 hrs, round up .50 hrs

Minimum Categories	– 1002 – No specific minimum
	– 1003 – No specific minimum
	– 1004 – Specific minimum of 1 hr
	– 1005 – No specific minimum

Time charged is:	3.75 hrs to category 1002
	0.00 hrs to category 1003
	0.25 hrs to category 1004
	0.00 hrs to category 1005

Minimum 8.00 hrs minus time charged of 4.00 hrs = adjustment of 4.00 hrs is required.

Time charged is:	3.75hrs to category 1002 + adjustment of 3.25 hrs
	0.00 hrs to category 1003
	0.25 hrs to category 1004 + adjustment of 0.75 hrs
	0.00 hrs to category 1005

NOTE: If a category minimum adjustment is required – it will not reuse that category for overall minimum adjustments.

2: Maximums Exceeded

Maximums exceeded are created by starting with every category where the category quantity is greater than the category minimum and reducing that category quantity until the category minimum or the maximum has been reached. Then it moves on to the next category. The procedure starts with the category with the largest quantity first.

If there are no category minimums, it will then prorate the adjustment according to the category quantities.

Example 1:

Minimum time 8 hrs, maximum time 12 hrs, round up .50 hrs

Minimum Categories	– 1002 – No specific minimum
	– 1003 – No specific minimum
	– 1004 – No specific minimum
	– 1005 – No specific minimum

Time charged is:	6.00 hrs to category 1002
	4.00 hrs to category 1003
	0.25 hrs to category 1004
	3.50 hrs to category 1005

Maximum 12.00 hrs minus time charged of 13.75 hrs = adjustment of –1.75 hrs is required.

Time charged is:	6.00 hrs to category 1002 adjustment of -0.80 hrs
	4.00 hrs to category 1003 adjustment of -0.50 hrs
	0.25 hrs to category 1004 adjustment of -0.05 hrs
	3.50 hrs to category 1005 adjustment of -0.40 hrs

Example 2:

Minimum time 8 hrs, maximum time 12 hrs, round up .50 hrs

Minimum Categories	– 1002 – 2 hrs specific minimum
	– 1003 – 2 hrs specific minimum
	– 1004 – 2 hrs specific minimum
	– 1005 – 2 hrs specific minimum

Time charged is:	6.00 hrs to category 1002
	4.00 hrs to category 1003
	0.25 hrs to category 1004
	3.50 hrs to category 1005

Maximum 12.00 hrs minus time charged of 13.75 hrs = adjustment of – 1.75 hrs is required.

Time charged is:	6.00 hrs to category 1002 adjustment of – 1.75 hrs
	4.00 hrs to category 1003
	0.25 hrs to category 1004
	3.50 hrs to category 1005

Example 3:

Minimum time 8 hrs, maximum time 12 hrs, round up .50 hrs

Minimum Categories	– 1002 – 5 hrs specific minimum
	– 1003 – No specific minimum
	– 1004 – No specific minimum
	– 1005 – 2.75 hrs specific minimum

Time charged is:	6.00 hrs to category 1002
	4.00 hrs to category 1003
	0.25 hrs to category 1004
	3.50 hrs to category 1005

Maximum 12.00 hrs minus time charged of 13.75 hrs = adjustment of – 1.75 hrs is required.

Time charged is:	6.00 hrs to category 1002 adjustment of – 1.00 hr
	4.00 hrs to category 1003
	0.25 hrs to category 1004
	3.50 hrs to category 1005 Adjustment of – 0.75 hr

Example 4:

Minimum time 8 hrs, maximum time 12 hrs, round up .50 hrs.

Minimum Categories	– 1002 – 5 hrs specific minimum
	– 1003 – No specific minimum
	– 1004 – No specific minimum
	– 1005 – No specific minimum

Time charged is:	6.00 hrs to category 1002
	4.00 hrs to category 1003
	0.25 hrs to category 1004
	3.50 hrs to category 1005

Maximum 12.00 hrs minus time charged of 13.75 hrs = adjustment of –1.75 hrs is required.

Time charged is:	6.00 hrs to category 1002 adjustment of –1.00 hrs
	4.00 hrs to category 1003 adjustment of -0.40 hrs
	0.25 hrs to category 1004 adjustment of -0.05 hrs
	3.50 hrs to category 1005 adjustment of –0.30 hrs

3: Rounding

Rounding is only applied if minimums or maximums do not apply. Rounding is prorated by quantity.

Example 1:

Minimum time 8 hrs, maximum time 16 hrs, round up .50 hrs.

Minimum Categories	– 1002 – No specific minimum
	– 1003 – No specific minimum
	– 1004 – No specific minimum
	– 1005 – No specific minimum

Time charged is:	6.00 hrs to category 1002
	4.00 hrs to category 1003
	0.25 hrs to category 1004
	3.50 hrs to category 1005

Time charged is:	6.00 hrs to category 1002 adjustment is 0.10 hrs
	4.00 hrs to category 1003 adjustment is 0.10 hrs
	0.25 hrs to category 1004 adjustment is –0.05 hrs
	3.50 hrs to category 1005 adjustment is 0.10 hrs

Surcharge Functionality

Surcharges create zero dollar cost transactions with billing dollar amounts. Each surcharge is created against a unique cost code/category combination. Surcharges are meant for situations where costs are accumulated during a billing period to specific cost code/categories where you know further costs not posted to the job have been incurred. Each contract may have multiple surcharge codes applied.

Surcharge billing rates are retrieved from the billing rate table associated with the job. Surcharges use the billing rate column of the rate table only.

Surcharges are always applied if entered; the surcharge is pro-rated according to the number of hours entered. Applied surcharges cannot be further increased/decreased by the minimum charge function.

Example 1:

Every 4 hours of tech time should create .25 hours of engineering time:

Example 2:

Every 4 hours of tech time should create .25 hours of engineering time with roundup to .5 of an hour: