The posting programs update the Open Billing Detail for projects with transaction-based billing formulas. The Calculate Standard Bills screen copies allowable transactions in this table into Billing Edit Detail. Transactions include costs, units, and hours. The link between the two tables is the "Billing Transaction Key," a multi-field key that uniquely identifies individual transactions.
Transactions can be partially billed. In order to be able to partially bill transactions for a given project, you must select the Allow Transactions To Be Partially Billed check box on the Setup Information tab of the Manage Project Billing Information screen. If you do not select this check box, transactions must be billed entirely, or not at all. In the calculation of allowable amounts, transactions that cannot be partially billed are disallowed entirely once a ceiling is reached.
Cost-based formulas include: Cost Plus Fee on Cost and Cost Plus Fee on Hours.
For cost-based formulas, values for each transaction are evaluated in the following manner:
On the Setup Information tab of the Manage Project Billing Information screen, you can select the Allow Transactions To Be Partially Billed check box if you would like to bill partial transactions. Clear this check box if you only want to bill transaction totals. If transactions cannot be partially billed, then, for each transaction, the Write Off and Hold amounts are summarized in Open Billing Detail. This summary amount is compared to the transaction amount. If the transaction amount is greater than the sum of those fields, the difference is the amount of this transaction eligible for billing.
The second option is Allow Transactions To Be Partially Billed. If this check box is selected on the Setup Information tab of the Manage Project Billing Information screen, partial transactions are also taken into consideration when arriving at allowable costs. Values for partial transactions are evaluated in the following manner:
The Write Off, Hold, and Previously Billed amounts are summarized on the Manage Open Billing Detail screen. If the transaction amount is greater than the sum of those fields, the difference is the amount of this transaction eligible for billing. If a write-off or hold amount was entered on the Manage Open Billing Detail screen, the amount to bill displays in the Amount to Bill field. If amount Amount on Hold or Write Off Amount was not entered, the Amount to Bill is zero, and the Transaction Amount is used by the Calculate Standard Bills screen.
You can set cost ceilings at the summary or detail account level, or at multiple project levels. Only ceilings set at project levels equal to or lower than the level of the invoice project ID are observed, however. For example, you set up a three-level contract. The project is billed at the second level, and costs are charged at the third level. Ceilings set at the second or third level are observed when allowable costs are determined for billing purposes. However, ceilings set and costs incurred at level one of the project are ignored.
Next, the program must calculate allowable costs. To determine allowable costs, the program sums eligible billing amounts in Open Billing Detail by Project/Org/Account combination. The program compares cost ceilings set by account to Inception-to-Date (ITD) amounts billed on the Manage Project Bill Summary screen. Cost ceilings with a ceiling code value of B or A are observed. The excess of ceiling amounts over amounts billed is the amount remaining to bill. The program compares this amount to the sum of currently billable transactions. If the transactions currently billable are less than the ceiling, all transactions are billed. If transactions exceed the cost ceiling, the program uses the following equation to determine which are allowable:
The program first looks at the fiscal year, period, and subperiod in which each cost was incurred. Costs incurred are allowed from earliest to latest subperiod incurred. For example, assume that the Open Billing Detail contains unbilled costs from 1995, periods 1, 2, 3, and 4. Costs are evaluated from period 1 first in the determination of allowable costs. Costs incurred in period 4 are evaluated last.
However, there may be situations where a ceiling is reached in the middle of a subperiod. Within a given fiscal year, period, and subperiod, costs are next evaluated based on transaction amount. Costs are allowed in ascending transaction amount. Therefore, smaller transaction amounts are considered before larger ones. Assume a cost ceiling was reached in period 4, subperiod 1. The program evaluates transactions within this subperiod based on amount. Transactions from smallest to largest are allowed until the ceiling is reached.
If you are partially billing transactions, a partial transaction may be allowed to arrive at a cost ceiling. Therefore, part of a transaction may be considered billable, and part of it may be considered over ceiling. In this situation, the billable amount copied into Billing Edit Detail is reduced by the portion of the transaction that has been disallowed. If partial transactions are not billed, the entire transaction being evaluated at the time the ceiling is reached is disallowed.
Allowable costs are determined before transaction updates to the Billing Edit Detail table. In other words, transactions are summed and evaluated in Open Billing Detail against cost ceilings. If transactions are partially billed, fully allowable transactions are copied into Billing Edit Detail. If only part of a transaction is allowable, only that portion is copied into Billing Edit Detail. Transactions over ceiling remain in Open Billing Detail. If transactions are not partially billed, the entire transaction used to arrive at the cost ceiling is disallowed and, therefore, is not copied into Billing Edit Detail.
Additional fields are then updated in Billing Edit Detail. Write off amounts, and amounts on hold, are also copied into Billing Edit Detail. Therefore, for every billable transaction, Billing Edit Detail stores the part of that transaction that has been previously billed, written off, placed on hold, or is currently billed. The sum of these fields is the total transaction amount. The project ID that incurred the transaction and the invoice project ID, or project level to which the invoice is posted, are both stored for each transaction.
Next, the program updates Billing Edit Detail with non-transaction-based amounts. These amounts include burdens, fee, fee over ceiling, costs over ceiling, and retainage amounts.
Burden. Burden amounts are the first non-transaction cost element calculated. The program groups allowable costs (and hours, if hours-based pools exist) by Project/Org/Account/FY/Period and Subperiod. It multiplies these allowable costs/hours by the provisional rate on the Pool Rates subtask of the Manage Cost Pools screen. The burden amounts are stored by Project/Org/Account/FY/Period/Subperiod and pool numbers in the Billing Edit Detail table. If burden ceilings exist for billing purposes, they are taken into consideration as part of this calculation. Burden ceilings are set by project, fiscal year, account and pool. If burden ceilings are set for billing purposes, they contain a ceiling code of B or A. The program compares the provisional rate to the burden ceiling rate. It multiplies the lower of the rates by the transaction amounts to arrive at a burden amount. It then adds a record to the Billing Edit Detail for burden amounts. It adds a record for each Project/Org/Account/FY/Period and Pool.
Fee. Next, the program calculates fee amounts. Fee calculations and updates occur in two phases. The program first calculates fee for direct costs. Once allowable costs have been determined, fee is applied. The program uses the fee percentage from the billing formula as the initial starting point when determining a fee rate. Next, fee overrides are taken into consideration. Fee overrides are set by account for both direct and burden costs. The program observes this override when computing billings if the override contains a ceiling code of B or A, Overrides may increase or decrease fee calculations.
Once the fee rate is determined, the program multiplies it by the sum of transactions to arrive at a billable fee amount. Records are added to the Billing Edit Detail table for fee on direct costs. The records are grouped by Project/Org/Account/ FY/Period and Subperiod. The second phase of the calculation involves the calculation of fee on burden costs. If you have set a fee override for a given cost pool, the program uses the fee override rate to determine fee amounts on burden costs for that pool.
However, fee overrides set on direct accounts are also taken into consideration in the calculation of fee on associated burdens. For example, fee on direct travel costs is limited to 2%. Assume that travel costs are burdened with G&A. The fee calculated on the G&A applied to that travel is also limited to 2%.
Therefore, a situation may exist where a fee override percentage is set for a cost pool, but another override may be set for an element of that cost pool. In this instance, the override that applies a lower fee rate is used. For example, you set a fee override on the G&A pool of 3%. You set a cost fee override on travel accounts of 2%. Travel is burdened with G&A. In this instance, travel and its associated burdens (G&A) have been identified with a fee override percent of 2%. However, G&A has additionally been identified with a fee override of 3%. The program applies the lower of the two fee overrides (2%).
Once the fee rate is determined, the program multiplies it by the burden amount to arrive at a billable fee amount per pool. Records are added to the Billing Edit Detail for fee on burden costs. These records are grouped by Project/Org/Account/ FY/Period/Subperiod and Pool number.
Fee Over Ceiling and Costs Over Ceiling. Next, the program applies total contract fee ceilings for both contract and funded values. Contract and funded fee ceilings are set on the Manage Total Ceilings screen. If the ceiling amount has a code of B or A, the program uses the ceiling for billing purposes. The fee calculated on the current invoice is combined with the fee billed to date on the Manage Project Bill Summary screen to obtain the Inception-to-Date (ITD) fee. If the total ITD fee computed exceeds the fee ceiling, the program will add a record to the Billing Edit Detail for over fee ceiling amounts. This record reduces the invoice by the amount over ceiling. The record is inserted into the Billing Edit Detail table at the level of the project where the ceiling was placed. Please note that the ceiling will be taken into consideration only if it is placed at or below the billing level of the project. The program adds allowable fee to allowable direct costs and burdens to arrive at a current billable amount. ITD amounts billed are summed on the Manage Project Bill Summary and added to current billable amounts. The program compares this amount to the Contract Value and Funded Value ceilings set up on the Manage Total Ceilings screen. If the amount has a ceiling code of B or A, the program uses this value as a total billing ceiling amount. If the total billing computed exceeds the billing ceiling, the program adds a record to the Billing Edit Detail for over ceiling total amounts. These ceilings are evaluated only if they have been placed at or below the billing level. The over ceiling records are inserted into the Billing Edit Detail table at the level of the project where the ceiling was placed.
Retainage Amounts. The final step is to calculate retainage amounts. Retainage is an amount that is withheld from the billing by an arrangement with the customer. It is usually stated in the form of a percentage of the contract or funded value. Retainage can be calculated on fee amounts, T&M labor, or billing amounts. For cost-based invoices, retainage must be calculated on fee or billing amounts. Additionally, retainage can be withheld on each invoice, or from the final invoice. You enter the formula and percentage used in retainage calculations on the Manage Project Billing Information screen at the Invoice Project level. A record is added to Billing Edit Detail for the retainage amount. This record is added at the Invoice Project level.
Hours-based formulas include: Loaded Labor w/Fee plus Non-Labor w/Burden w/Fee, Labor Cost times Multiplier plus Non-labor times multiplier (Cost), Cost times Multiplier plus Non-labor times multiplier (Hours), Loaded Labor plus Non-labor Plus Burden on Non-labor, Loaded Labor Plus Non-labor w/Burden w/Fee, Loaded Labor Rate, Loaded Labor Rate Plus Non-labor, Loaded Labor w/Burden w/Fee Plus Non-labor w/Burden, and Rate Schedule times Multiplier Plus Non-labor times Multiplier w/Fee. If you want to use these formulas, you need to set up Project Labor Categories (PLCs). These formulas do not calculate properly without the PLCs. They are based on hours incurred times a labor rate.
Costpoint calculates hours-based formulas using data on the Manage Open Billing Detail screen and the Manage Project Billing Information screen. The Open Billing Detail table is populated by the posting programs and by the Load Labor Rates process. The posting programs insert hours incurred, labor category, amount, account/org information, FY/Pd/Supd information, and other transaction details into the Open Billing Detail table. The Load Labor Rates process inserts the labor rate information into the Open Billing Detail table. The program uses the data in this table, along with some data on the Manage Project Billing Information screen, when calculating bills.
The following processes take place when Costpoint calculates an hours-based bill:
Write Off and Hold hours are summarized in Open Billing Detail. The program compares these hours to the total transaction hours. If the transaction hours are greater, the difference is hours eligible to be billed.
You can also partially bill transactions. If you select the Allow Transaction To Be Partially Billed check box on the Setup Information tab of the Manage Project Billing Information screen, partial transactions are also taken into consideration when arriving at allowable costs. Write Off, Hold, and Previously Billed Hours are summarized in Open Billing Detail. If the transaction hours are greater than the sum of those fields, the difference is hours eligible to be billed.
Next, Costpoint calculates allowable hours. To determine allowable hours, the hours in Open Billing Detail are summed by Project/Org/Account. Hours are allowable if they are less than the hours ceilings set on the Manage Hour Ceilings, Manage Employee Hour Ceilings, or Manage Vendor Hour Ceilings screens. When you set ceilings in these screens, they apply to both billings and revenue. Ceilings are set by employee, vendor, or labor category. You can also set ceilings at multiple project levels. Only ceilings at project levels equal to or lower than the project level of the invoice posting level are observed, however. For example, you set up a three-level contract. You post the invoice at the second level, and costs are charged at the third level. When determining allowable hours, Costpoint observes ceilings set at the second or third level. Ceilings set at level one of the project are ignored. If a ceiling is set for an employee, and an additional (higher) ceiling is set for the labor category of that employee, the employee ceiling takes precedence. For example, assume an employee is limited to charging 100 hours to a project. His labor category may charge 250 hours to the project. When calculating allowable hours, Costpoint considers hours in excess of 100 charged by this employee to be over ceiling.
The hours of other employees may be used in the calculation of allowable hours for this labor category; however, this employee's hours are not considered allowable. In other words, the program determines allowable hours by employee as the first phase of the calculation. Allowable hours by labor category are determined in the second phase of the calculation.
The excess of ceiling amounts over amounts billed is the amount remaining to bill. The program compares this amount to the sum of currently billable hours. If the transactions currently billable are less than the ceiling, all hours are billed. If hours exceed the cost ceiling, the following equation is used to determine which are allowable:
The program first looks at the fiscal year, period, and subperiod in which the hours were incurred. Hours incurred are allowed from earliest to the latest subperiod incurred. For example, assume that the Open Billing Detail contains unbilled hours from 1995, period 1, 2, 3, and 4. Hours are evaluated from period 1 first in the determination of allowable costs. Hours incurred in period 4 are evaluated last.
However, there may be situations where a ceiling is reached in the middle of a subperiod. Within a given fiscal year, period, and subperiod, hours are next evaluated based on transaction size. Hours are allowed in ascending transaction size order. Therefore, smaller transactions are considered before larger ones. Assume a ceiling was reached in period 4, subperiod 1. The program evaluates transactions within this subperiod based on number of hours. Transactions from smallest to largest are allowed until the ceiling is reached.
If you are partially billing transactions, a partial transaction may be allowed to arrive at a cost ceiling. Therefore, part of a transaction may be considered billable, and part of it may be considered over ceiling. In this situation, the billable hours copied into Billing Edit Detail are reduced by the portion of the transaction that has been disallowed. If partial transactions are not billed, the entire transaction being evaluated at the time the ceiling is reached is disallowed.
The program determines allowable hours before updating the Billing Edit Detail table. In other words, transactions are summed and evaluated in Open Billing Detail against cost ceilings. If transactions are partially billed, fully allowable transactions are copied into Billing Edit Detail. If only part of a transaction is allowable, only that portion is copied into Billing Edit Detail. Transactions over ceiling remain in Open Billing Detail. If transactions are not partially billed, the entire transaction used to arrive at the cost ceiling is disallowed and therefore is not copied into Billing Edit Detail. This is done so that the over ceiling transaction can be billed if the ceiling amount is increased.
Additional fields are then updated into Billing Edit Detail. Write off hours, and hours on hold, are also copied into Billing Edit Detail. Therefore, for every billable transaction, Billing Edit Detail stores the part of that transaction that has been previously billed, written off, placed on hold, or is currently billed. The sum of these fields is the total transaction amount. The project ID that incurred the transaction and the Invoice Project ID, or Project level at which the invoice is posted, are stored for each transaction.
Billing Edit Detail also needs to be updated with the T&M billing rates. Costpoint stores the billing rate in the Open Billing Detail table once you have run the Load Labor Rates screen. The appropriate labor rate is copied into Billing Edit Detail. The program multiplies the rate by allowable hours to arrive at billing amounts.
Next, the program updates Billing Edit Detail with non-transaction-based amounts. These amounts include burdens, fee, fee over ceiling, costs over ceiling, and retainage amounts.
Burdens. Burden amounts are the first non-transaction cost element calculated. The program groups allowable non-labor costs (hours, if using hours-based pools) by Project/Org/Account/FY/ Period and Subperiod. Burdens are applied to the allowable costs (hours) by pool. Burden amounts are stored in the Billing Edit table by Project/Org/Account/FY/ Period/Subperiod and pool number. If burden ceilings exist for billing purposes, they are taken into consideration as part of this calculation. Burden ceilings are set by project, fiscal year, account, and pool.
You can set burden ceilings on the Manage Burden Cost Ceilings screen. Burden ceilings are applied for billing purposes only if you enter a ceiling code of B or A. The program compares the provisional rate on the Pool Rates subtask of the Manage Cost Pools screen to the burden ceiling rate. It multiplies the lower of the rates by the transaction amounts to arrive at a burden amount. A record is added to the Billing Edit Detail table for burden amounts. A record is added for each Project/Org/Account/FY/Period, and Pool number combination.
Fee. Next, the program calculates fee amounts. Fee calculations and updates occur in two phases. The program first calculates direct costs. Once allowable costs have been determined, fee is applied. The fee percentage from the billing formula is the initial starting point in the determination of a fee rate. Fee overrides are next taken into consideration. Fee overrides are set by account for both direct and burden costs. This override is observed when billings are computed if the override contains a ceiling code of B. Overrides may increase or decrease fee calculations.
Once the fee rate is determined, the program multiplies it by the sum of transactions to arrive at a billable fee amount. A record that is grouped by Project/Org/Account/ FY/Period and Subperiod combination is added to the Billing Edit Detail. The second phase of the calculation involves the calculation of fee on burden costs. The fee percentage from the billing formula is the initial starting point in the determination of a fee rate for burdens as well.
A fee override may have been set for a given cost pool. In this situation, the program uses the fee override rate to determine fee amounts on burden costs for that pool. However, fee overrides set on direct accounts are also taken into consideration when calculating fee on associated burdens. For example, assume fee on direct travel costs is limited to 2%, and that travel costs are burdened with G&A. The fee calculated on the G&A applied to that travel is also limited to 2%.
Consequently, a situation may exist where a fee override percentage is set for a cost pool, but an override is also set for an element of that cost pool. In this instance, the program uses the override that applies a lower fee rate. For example, a fee override is set on the G&A pool of 3%. A cost fee override is set on travel accounts of 2%. Travel is burdened with G&A. In this instance, travel and its associated burdens (G&A) have been identified with a fee override of 2%. However, G&A has additionally been identified with a fee override of 3%. The lower of the two fee overrides (2%) is applied.
Once the fee rate is determined, the program multiplies it by the burden amount to arrive at a billable fee amount per pool. A record is added to the Billing Edit Detail for fee on burden costs that is grouped by Project/Org/Account/FY/ Period/Subperiod and Pool number combination.
Fee Over Ceiling and Costs Over Ceiling. Next, the program applies total contract fee ceilings. You can set up contract and funded value fee ceilings on the Manage Total Ceilings screen. If the ceiling amount has a code of B or A, the ceiling is used for billing purposes. The program determines the Inception-to-Date (ITD) fee by adding the previously billed fee amount on the Manage Project Bill Summary screen to the fee currently billable. It compares this amount to the fee ceiling to determine the allowable fee. If the total ITD fee computed exceeds the fee ceiling, a record is added to the Billing Edit Detail for over fee ceiling amounts. The program applies fee ceilings only if they are set up at the billing level or below. Fee ceilings above the billing level are ignored. If an over fee ceiling is encountered, a record will be inserted to the Billing Edit Detail table at the level of the project where the ceiling was placed.
The program adds allowable fee to allowable direct costs and burdens to arrive at a current billable amount. ITD amounts billed are summed in Maintain Project Bill Summary and added to current billable amounts. The program compares the total billing amount to the Contract and Funded Values set up on the Manage Total Ceilings screen. If the amount has a code of B or A, this value is used as a total billing ceiling amount. If the total billing computed exceeds the billing ceiling, the program adds a record to the Billing Edit Detail for over ceiling total amounts. If the ceiling is removed or increased, the amount that has not been billed can be included on the next billing.
The over ceiling record is inserted into Billing Edit Detail at the level of the project where the ceiling was placed on the Manage Total Ceilings screen.
Retainage Amounts. In the final step, the program calculates retainage amounts. Retainage can be calculated on fee amounts, T&M labor, or billing amounts. Additionally, retainage can be withheld on each invoice, or from the final invoice. For T&M invoices, retainage can only be calculated based on T&M labor, and must be calculated on each invoice. To calculate retainage, the program uses the formula and percentage on the Manage Project Billing Information screen at the Invoice Project level. A record is added to Billing Edit Detail for the retainage amount. This retainage record is added at the invoice project level.
The only exclusively unit-based formula is Unit Transactions Only. When you use this formula, only units will appear on the bill; however, units can be included on any T&M type billing. You can bill hours and non-labor costs as well as units if you use any of the loaded labor formulas. You must be sure to charge the units in the Enter Unit Usage screen to an account that has been assigned a Function Code of UNITS on the Manage Account Groups screen. The program will not perform the unit calculations unless this function code is used. The calculations for unit-based billings are outlined below.
For unit-based transactions, Write off and Hold units are summarized in the Open Billing Detail table. The program compares these units to the total transaction units. If the transaction units are greater, this is the number of units eligible to be billed.
You can partially bill transactions by selecting the Allow Transactions To Be Partially Billed check box on the Manage Project Billing Information screen, and the partial transactions are taken into consideration when arriving at allowable costs. Values are evaluated in the following manner:
Write Off, Hold, and Previously Billed Units are summarized in the Open Billing Detail table. If the transaction quantity is greater than the sum of those fields, the difference is the number of units eligible to be billed.
Next, the program calculates allowable units. Eligible units that have been calculated using the formula outlined in the previous section are summarized by Project/Org/Account/CLIN. Unit Ceilings are entered on the Item Linkage subtask of the Manage CLIN Information screen. Ceilings are entered in the table by CLIN and are taken into consideration for billings if they contain a ceiling code of B or A.
Units used for the month are entered and posted from the screens in the Units Usage menu in Costpoint Billing. If the Post To Billings check box is selected on the Manage Unit Usage screen, Units Used will update the Open Billing Detail table. The account entered in the Manage Unit Usage screen must have a Function Code of UNITS (on the Manage Account Groups screen) in order to be billed using unit price calculations. If the account entered on the Manage Unit Usage screen has a Function Code of NON-LABOR, the cost associated with the units will be billed. Units must be posted to the Open Billing Detail table to be included in billing calculations. Units in the Open Billing Detail table are summarized by Project, CLIN, and Item. Inception-to-Date (ITD) units billed are summarized on the Manage Project Bill Summary table. The program compares ITD units billed to the total unit ceiling set on the Item Linkage subtask of the Manage CLIN Information screen to obtain allowable units.
The excess of ceiling units over ITD units billed is the number of units remaining to bill. The program compares this number to the sum of currently billable units in the Open Billing Detail table. If the units currently billable are less than the ceiling, all units are billed. If units are in excess of this ceiling, they are disallowed in the reverse order in which they were used. In other words, units are allowed on a First In, First Out basis up to the ceiling, and are therefore disallowed on a Last In, First Out basis, depending on the unit usage date. The allowable number of units is finally derived, based on the date and the ceiling.
If you are partially billing transactions, a partial unit transaction may be allowed to arrive at a cost ceiling. Consequently, part of a transaction may be considered billable, and part of it may be considered over ceiling. In this situation, the number of billable units copied into Billing Edit Detail is reduced by the portion of the transaction that has been disallowed. If partial transactions are not billed, the entire transaction being evaluated at the time the ceiling is reached is disallowed.
The program determines allowable units before performing transaction updates to the Billing Edit Detail table. In other words, transactions are summed and evaluated in the Open Billing Detail table against unit ceilings. If transactions are partially billed, the fully allowable transactions are copied into Billing Edit Detail first. If only part of a transaction is allowable, that portion is copied into Billing Edit Detail. Transactions over ceiling remain in the Open Billing Detail table. If transactions are not partially billed, the entire transaction used to arrive at the cost ceiling is disallowed and therefore is not copied into the Billing Edit Detail table. This allows units to be billed if the unit ceiling is removed or increased in a future period.
The program then updates additional fields in the Billing Edit Detail table. Write Off units, and units on Hold, are also copied into the Billing Edit Detail table. Therefore, for every billable transaction, the Billing Edit Detail table stores the part of that transaction that has been previously billed, written off, placed on hold, or is currently billed. The sum of these fields is the total transaction amount. The project ID that incurred the transaction (or source project ID) and the invoice project ID, or project level at which the invoice is posted, are stored for each transaction.
Next, the program looks at the Project Unit Pricing subtask of the Manage CLIN Information screen for unit pricing information. The Project/CLIN and Item used for pricing information is the Project/CLIN and Item to which units used were charged. If Project/CLIN pricing is not used, pricing information from generic product price catalogs is used for the Item and Revision to which units used were charged.
Unit pricing may be fixed for all units (total pricing), or it may be incremental (incremental pricing). Select either the Incremental or Total option on the Configure Project Settings screen to determine the type of unit pricing. If you use incremental pricing, you can set price increments by date, or by number of units. If the unit price is fixed for all units, the program multiplies this price by the allowable units to arrive at a billing amount.
If unit pricing is incremental, the program first looks at the date range of the price increments. Once it finds the correct date range to use, it looks next to the quantity for the unit price. It multiplies the number of allowable units less than or equal to the maximum units at that price by the corresponding price to arrive at a billing amount for that group of units. The unit price is also stored in the Billing Edit Detail file.
Sales tax for units billed is also accrued by the Calculate Standard Bills screen. Unit transactions in the Open Billing Detail table store the sales tax code of the state associated with the units used in that transaction. The base amount used in the sales tax calculation is the price per unit multiplied by the number of units. The program multiplies this amount by the sales tax rate from the Sales Tax table for the designated sales tax code. The sales tax amount and code are stored in the Billing Edit Detail table.
Next, the program updates the Billing Edit Detail table with non-transaction based amounts. These amounts include costs over ceiling, and retainage amounts.
The program sums the billing amounts and compares them to the Contract Value and Funded Value from the Manage Total Ceilings screen. If the amount has a code of B or A, this value is used as a total billing ceiling amount. If the total billing computed exceeds the billing ceiling, a record is added to the Billing Edit Detail for over ceiling total amounts. The program updates the Billing Edit Detail table at the level of the project where the ceiling was set on the Manage Total Ceilings screen.
The final step is to calculate retainage amounts. Retainage can be calculated on fee amounts, T&M labor, or billing amounts. Additionally, retainage can be withheld throughout the project, or from the final invoice. For unit-based invoices, retainage can be calculated only on total billing amounts. For retainage calculations, the program uses the formula and percentage from the Manage Project Billing Information screen at the invoice project level. A record is added to the Billing Edit Detail for the retainage amount; this record is added at the invoice project level only.