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There is no standard configuration that meet the requirement.
You could develop a billing extension, called by GDR.
The procedure will check the accumulated total revenue including the revenue calculated during the corrent run, and if its under 20% of total revenue budget, the procedure will create a negative revenue event to offset all revenue.
There could be alternative approaches, depending on the revenue generation method. Is it based on WORK, Cost or deliverable based events.
do you have any document on distribution rules. how we use then when and where we implement such rules.. can you please send me to email@example.com
Thanks a lot
Project Billing overview
Oracle Projects suite includes many features that allow companies to manage their contract projects, indirect or capital projects. A contract project is a type of project created to manage, plan and control the execution of the required work for fulfilling the content of the awarded contract or customer order. Managing the execution project and charging costs of the execution activities are supported by Oracle Project Management (PJT) and Oracle Projects Costing (PJC). Oracle Projects Billing functionality allows users to invoice the project customer, and to accrue revenue for that project.
Oracle Projects Billing (PJB) was initially designed to meet several business scenarios where a contractor gets a contract to perform a specified statement of work. The value of the commercial arrangement between the contractor and its customer can be set up as an agreement in the system. The contractor establishes a contract project to manage the work and that project is funded by the customer agreement.
The system supports several different invoicing methods and revenue accrual methods. The user defines those methods when creating the project. Both, revenue and invoice may be based on expenditure items charged to the project as work occurs. Alternatively, revenue or invoice may depend on some independent billing items called Events. Such billing items may represent deliverables, milestones achieved, progress made in the project or any type of formula derived amount.
The system is flexible and supports numerous billing extensions. The implementation teams can design the extensions using their own business rules for calculating the revenue and bill amounts of the detailed expenditure items, or generating automatic billing events at the required billing amount.
Users may enter manually the billing events through the Project Billing form. Users working with Project Contracts or Project Management can generate billing events from those applications. They will mark the deliverables as completed, and execute the button to send the transaction and create billing events into the PJB events table.
When invoicing is based on expenditures, the revenue generation process is calculating the invoice amount of each item and creates distribution lines called RDL (revenue distribution line). The billing amount may be based on the actual cost of the expenditure item, or added markup of certain percentages. The system is using the burden schedule defined for revenue or invoicing to derive such markups. Another method is using bill rates. The GDR process is multiplying quantity of labor hours by the billing rates, which were set up by employee name, by job or by organization. If needed, the implementation team may develop a billing extension to calculate the bill amount of the labor expenditure items, or any other non-labor resource.
Projects Billing application has two basic processes for users to run. Those are: PRC: Generate Draft Revenue (GDR); and, PRC: Generate Draft Invoice (GDI).
The first program processes the expenditure items and calculates the revenue amount and the invoice amount of the item. Those amounts are populated on Revenue Distribution Lines (RDL). This step is done if either revenue recognition method or invoicing method is based on expenditure items. The next step of GDR program is to create the revenue draft document. This step summarizes the detailed billing items into draft revenue lines based on the accounting distributions.
The second program (GDI) creates the draft invoice. If invoicing method depends on expenditures, the GDI program will gather all the expenditures which were already processed by the previous program, the GDR. However, the GDI program may generate automatic billing events, and will select for invoicing all available events that have invoicing amounts. The next step of the GDI program is grouping the billing items into invoice lines. Each billing event becomes a separate invoice line. If invoicing includes also amounts of expenditure items, the system will summarize the detailed items to invoice lines based on the setup of the Invoice Format. After reviewing the draft invoice the users may approve and release it. Released draft invoices are interfaced to Receivables. The Receivables application will calculate and add tax lines, and print the final invoice.
What are the supported billing methods and invoicing guidelines?
A customer contract may include many terms and conditions that guide the business in preparing the invoices. Government contracting is known for its strict dictations for billing. Large commercial contracts for long term projects usually include several sections describing the agreed upon procedure for the invoicing. Industries like Aerospace and Defense, Engineering and Constructions and many Professional Services companies face the same kind of billing challenges.
Oracle Project Contracts application (OKE) allows for enhanced representation of the commercial arrangements between the customer and the contractor. The contract document may be authored in the OKE forms. A contract may include the statement of work descriptions, the terms and conditions, the contract lines and sub lines, the deliverables table, the invoicing detailed method, legal articles and many other attributes. In OKE users can enter the funding lines related to that contract. However, Oracle has not yet enhanced the Projects Billing application (PJB) to use any of the values stored on a contract. Oracle has integrated the OKE application and the Projects Suite of applications in a minimal way. The contract and funding lines, which exists in OKE, are interfaced to Project Billing as agreement and funding lines. The agreement document in PJB can only store the following information of a contract – the bill to customer and contact, the total amount of the contract, and the contract expiration date.
Project Billing was designed to generate revenue and invoices by the billing attributes that were set up on the project itself. The agreement document in PJB has no information about any billing terms, and no instructions for invoicing. The billing information on a project has the basic billing instructions starting with the invoicing method and revenue method. The system actually supports two basic methods, WORK and EVENT. The system LOV is allowing also the COST method, which is really a particular case for billing by events. COST is a predefined billing extension that Oracle delivered for generating billing based on the popular percent spent formula.
With the WORK method the billing is based on the expenditure transactions accumulated on the project. When creating a project, the set up billing options allow the choice between four combinations – separate set up for labor or non labor transactions, and for each of them, the choice of using bill rates or a burden schedule. If those combinations are not sufficient, the implementation team can develop billing extensions to calculate either the labor transaction billing amount or the non labor transaction billing amount. Such billing extensions are altering the billing amounts of existing expenditures, but are not creating any new transactions.
With the EVENT method the billing is based on billing transactions, separate from the expenditures of the project. Events can be entered manually using the events form or they may be interfaced from other applications using the events API. Oracle has delivered the interface for deliverable based events from either OKE deliverable tracking system (DTS) or from the deliverables page of Projects Management (PJT). Events can be calculated and created automatically by the system process, based on implementation configurations and code developed within the billing extensions. Billing extensions are very flexible tools, and can be used before, after or during the general processing of the Oracle’s billing generation program (GDR or GDI). Using billing extensions the implementation team can create events for fees or mark up that are calculated on top of the expenditure values. Billing extensions can calculate amounts based on the project or task progress, or any other calculation based on values stored anywhere in the system.
The overview is really nice...
i m slightly confused on the second paragraph..........
Do GDI should get run first in the system or GDR to run first in the system....
As per my knowledge
GDI ---create a draft invoice.....
then v can approve and release invoice
the GDR to b run -to generate draft revenue...then month end process like
generate revenue accounting events and create accounting to push to GL
by running first GDR or GDI what differences??pls explain....
When invoicing is based on expenditures, the revenue generation process is calculating the billable amount of each item and creates distribution lines called RDL (revenue distribution line).
That means, if you want to generate invoice based on expenditures (WORK), you must run the GDR before you run the GDI process.
However, for any other invoicing method, the GDI might run independently, and will not be based on any calculations or updates from the GDR process.
Thank you so much Dina for the detailed explanation.