Understanding Billing Plans


In this topic, you will learn how to better understand billing plans.


Steps:

  1. Before you define billing plans for a contract, you should first have established your contract header billing options.

    Step 1

  2. The information that you have entered at the contract header level migrates down to the billing plans created for the contract. Much of this information appears by default from the setup of the related Contract business unit.

    Step 2

  3. When you are setting up your billing plans, you can either first define billing plans and then assign contract lines to them, or you can first assign your contract lines to undefined billing plans and then finish the billing plan definition.

    Step 3

  4. You can optionally select billing plan templates to automate the creation of billing plans on your contract.

    Step 4

  5. You can associate events with your billing plan template depending on your plan method.

    Step 5

  6. In addition, you can create a billing plan detail template to override the billing defaults defined for a contracts billing business unit and contract header.

    Step 6

  7. Regardless of which approach you take, you still need to complete these high-level steps:

    Step 7

  8. Define a billing plan method when entering a billing plan.

    Step 8

  9. Define billing options for the billing plan.

    Step 9

  10. Define billing plan lines for Immediate, Milestone, and Percent Complete billing methods.

    Step 10

  11. Events are required for Milestone, Percent Complete, and Value based billing plans. Events are optional for As Incurred billing plans. Events are not used for Immediate and Recurring billing plans.

    Step 11

  12. Create billing plan lines for Value based billing methods.

    Step 12

Congratulations, you have successfully gained an understanding of billing plans.

Table of Contents  Start Topic