Billing Methods

 

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There are three billing methods available for a job. The billing method determines the manner in which you can bill a job using the Job Billing process.

The billing method can be specified by job type in Job Type Maintenance or by individual jobs in Job Masterfile Maintenance by selecting Non-Billable, Time and Material, or Fixed in the Bill Method field.

Warning The billing method used is significant only if the Accounts Receivable module is integrated with Job Cost, and the Job Billing process is used to bill jobs.

 

Expand/Collapse item  Non-Billable Billing Method

When the Non-Billable billing method is used, no billing is performed for the job. This method can be used for in-house jobs or any jobs that do not involve billing a customer.

 

Expand/Collapse item  Time and Material Billing Method

The Time and Material billing method allows you to bill a job based on the actual costs posted and billing rates established by cost code and cost type.

Invoices for Time and Material jobs are printed with a one-page summary, followed by multiple pages of cost code and cost type detail information. The detail information printed is sorted by cost type and cost code with subtotals by cost type (billing subtotals are provided for labor, material, subcontract, etc.). Billing amounts can be changed, and additional miscellaneous charges and comments can be added to the bill.

Billing amounts for each cost code and cost type can be calculated based on either a percentage markup over cost or the unit price multiplied by the quantity. Revised contract amounts, if not zero, determine the maximum billable amount for the job.

You can specify which cost types to bill in, detail or summary, by selecting the Bill Detail check box for each cost type in the Job Cost Options window. Cost types using the detail option list each transaction detail (including each Accounts Payable invoice, Payroll employee, etc.) on the bill. Cost types billed in summary list a total amount for each cost code and cost type.

Sales tax can be calculated on billing based on cost types that have been specified as taxable in Job Cost Options. The sales tax schedule is determined by the customer's sales tax code. Sales tax is not calculated for tax exempt customers or if the Sales Tax Reporting check box is cleared in the Accounts Receivable Options window. The default sales tax class and sales tax schedule can be changed during billing. For more information about sales tax classes, codes, and schedules, refer to Sales Tax Class Maintenance, Sales Tax Code Maintenance, and Sales Tax Schedule Maintenance in your Library Master manual; and to Setting Up and Processing Sales Tax in your Accounts Receivable manual.

All costs posted to a job, up to and including the billing date specified, are included on the bill unless they are unbilled in Job Billing Data Entry to be billed later. Any unbilled cost transactions are retained in the Job Transaction Detail file until the job is fully billed. If an unbilled line item is deleted in Job Billing Data Entry, it cannot be billed later.

 

Expand/Collapse item  Fixed Billing Method

The Fixed billing method allows you to bill a job based on a percentage of the revised contract amount. The last entered actual percentage of completion is used unless a new percentage is entered in Job Billing Data Entry. The amount billed is calculated to be the revised contract multiplied by the percentage of completion minus the amount previously billed to date.

The sales tax amount is calculated in Job Billing Selection or Job Billing Data Entry based on the amount billable multiplied by the sales tax schedule percentages. Sales tax is not calculated if the Calculate Sales Tax check box is cleared on the Job Masterfile Maintenance Main tab or if the Sales Tax Reporting check box is cleared in the Accounts Receivable Options window.

Invoices for fixed contract jobs are printed using a single-page summary format.

Note Fixed jobs use tax class TX or NT by default.

 

For more information, see:

Job Type Maintenance

Job Masterfile Maintenance


 

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