Define charge definitions for a customer contract to determine what the system invoices on the contract and how the system generates the invoice. Charge definitions are invoiced per contract item (e.g., a piece of equipment, project, or work order).
Defining charge definitions involves specifying adjustments for invoicing transactions for several charge categories, subcategories, and levels which all help to determine when and how costs are invoiced to customers during the invoice generations process.
See the following table for details on charge definitions categories and subcategories available for selection:
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Charge Category |
Description |
Charge Subcategory |
|---|---|---|
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WO Charges |
select to associate charge definition records with invoices for work order costs |
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Sales Transactions |
select to associate charge definition records with invoices for work order related costs against a fixed sales price |
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Fuel Charges |
select to associate charge definition records with invoices for fuel issues from the fuel management system |
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Energy Charges |
select to associate charge definition records with invoices for energy usage like electricity or gas |
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Usage Charges |
select to associate charge definition records with invoices for usage per period (e.g., monthly rent) or per usage (e.g., miles driven) |
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One Time Charges |
select to associate charge definition records with invoices for one-time costs like contract initiation fees, attorney fees, fuel (rental contract) etc.
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To define charges for customer contracts:
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Select Work > Contract Management > Customer Contracts.
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Select the contract for which to define charges, and then click the Charge Definitions tab.
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Click Add Record.
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Specify this information:
Contract Item - Specify the contract item for which to define charges. Contract items consist of equipment, projects, or work orders. The system automatically populates the contract item description, and applicable Work Order, Project, or Equipment, and Contract Item Org.
Leave Contract Item unpopulated to define these charges for all contract items on the header level of
the customer contract.
Invoicing Org. - Specify the invoicing organization on the customer contract header. The system automatically populates Source Code with details of where the record originated.
Invoicing Description - Specify a description of the invoice transaction for the charge defined here. This description is listed on the invoice when it is generated.
Invoice - Select to include this line of charges defined on the invoice.
Use Invoice to make exceptions, e.g., invoice all work order charges but not tool costs.
Invoice Conditional - Specific to charge levels, charge category adjustments and subcategory adjustments. Select to invoice this line if the lower charge level costs add up to more than zero.
Charge Category - Select the category of the charges defined above in the table for the customer contract to determine the type of charges that will be invoiced.
Charge Level - Select the level of invoicing for the charges defined here for the customer contract. Select one of the charge levels to invoice as follows:
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Transaction Adjustment - Select to invoice the customer for the charges defined here on the transaction level, e.g., stocking items or issuing fuel.
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Subcategory Adjustment - Select to invoice the customer for the charges defined here on a group level, e.g., select Subcategory Adjustment to add a $50 administration fee when materials are issued from the warehouse, or select Subcategory Adjustment to add a 2% tax on all fuel issues.
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Charge Category Adjustment - Select to invoice the customer for the charges defined here on the charge category level, e.g., select Charge Category Adjustment to specify that the first $250 of work order costs is included in the rental fee of the space and is therefore free of charge.
Charge Subcategory - Select the subcategory level of invoicing for the charges defined here for the customer contract. This selection depends on the selection you made for Charge Category.
Rate - Specify the price to use on the invoice for Energy Charges, Usage Charges, and One Time Charges.
Adjustment % Before - Specify the percentage by which to adjust the transaction amount prior to price or transaction adjustments are applied.
Adjustment Unit Price - Specify the adjustment that should be applied to the transaction price.
Adjustment Transaction - Specify the adjustment that should be applied to the transaction.
Adjustment % After - Specify the percentage by which to adjust the transaction amount after the Adjustment % Before, price, or transaction adjustments are applied.
Minimum Quantity - Specify the minimum quantity to invoice.
The system compares the transaction quantity with Minimum Quantity and if the transaction quantity is less, the system invoices the minimum quantity.
Minimum Charge - Specify the minimum charge value to invoice.
Maximum Charge - Specify the maximum charge value to invoice.
Free Up To - Specify a monetary amount to designate the amount by which the invoice will be reduced, or the amount that is free of cost. E.g., the first $100 of work order charges are free.
Taxable - Select to indicate this transaction line is taxable on the invoice.
Tax Code - Specify the tax rate to be applied to the cost of the contract item.
Usage UOM - Specify the unit of measure, e.g., miles, kilometers, to which the usage-based rate will be applied.
Charge Estimated Usage - Select to add estimates for the usage and energy consumption of the equipment or charge definitions to the periodic invoices.
The system invoices the customer for actual usage entered via meter readings but when meter readings are not up to date, the system also invoices the estimated usage entered below in Estimated Daily Usage.
Rollover - Select to roll over the difference between the actual usage and Minimum Quantity invoiced when actual usage is less than Minimum Quantity.
The difference is used in future invoices to compensate for over usage. E.g., A customer
has a Minimum Quantity of 2000 miles per month. The customer is charged for 2000 miles each month, but perhaps
one month the customer uses only 1800 miles. The customer would lose 200 miles because
the system uses the Minimum Quantity when generating the customer's invoice.
Rollover allows the system to roll over the 200 miles into a buffer that can be used in the next invoicing periods if the customer uses more than the 2000 miles in a month.
Starting Meter Value - Specify the value of the meter at the beginning of the contract. This is the starting value of the meter for the first invoice.
Estimated Daily Usage - Specify the estimated daily usage to charge to the invoice if Charge Estimated Usage was previously selected. The system invoices the customer for estimated daily usage or energy consumption during the invoice generation process when actual usage via meter readings is not known or incomplete.
Trade - Specify the trade of the charge definition. This is only relevant for work order charges and if you want to make exceptions for certain trades.
Occupation Type - Specify the Occupation Type of the charge definition. This is only relevant for work order charges and if you want to make exceptions for certain occupation types.
Part Class - Specify the part class of the charge definition. This is only relevant for work order charges and if you want to make exceptions for certain part classes.
Submetered - Select if the equipment or contract item has its own meter (water meter, gas meter, or electric meter) from which to measure energy consumption.
Use Floor Area - Select if the equipment or contract item does not have it own meter and you would like to measure and track energy consumption based on the building utility bill, i.e. Utility Bill Source.
If you select to use the floor area in the calculations, the system calculates the
invoicing percentage based on the floor area of the contract item and that of the
utility bill source, e.g., typically the building in which the contract item resides.
Invoicing Percentage - Specify the percentage of the utility bill or actual submetered consumption to invoice.
Utility Bill Source - Specify the utility bill source, usually a piece of equipment, to associate with the contract item. The system automatically populates the utility bill source description and Utility Bill Source Org.
The utility bill source determines the consumption of energy and the rate, if Rate was left blank for this charge definition record.
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Click Submit.
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Click Reset Tax Codes to reset tax codes based on the selected values for the associated contract items.
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Click Associate Missing Meters for all contract items where a usage-based charge definition references a meter UOM that does not exist on the equipment, the system add this meter to the equipment.
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Click Update Energy Preferences to save the energy settings of all commodities and all equipment referenced on the contract.
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