EAM Billing

Certain costs like material, labor and equipment will be involved in completing a work order. If the maintenance department maintains the enterprise asset then the costs are generally tracked by the general ledger accounts. But the costs involved are not always limited to the particular department /organization. In some scenarios, the costs of a work order need to be charged to a customer, be it internal customers (departments within an organization) or external customers. eAM billing is used for the above mentioned purpose. Work order Billing enables invoice to be created based on the material or resources used for the work order or based on the asset activity.

eAM billing provides features to bill both internal and external customers. The price involved in the work order could be over- ridden by a certain percentage. The cost for the material, resource or the activity could be defined as a particular cost or could be picked up from a price list.

EAM Billing could be done either based on the material and resources involved in the work order. This is known as “Bill By Requirements” or based on Asset activity costs associated with the work order. This type of billing is known as “Bill By Activity”.

In EAM Billing, an “item” represents an activity, material, or a resource, which is charged to the customer. The billing basis for the item could be either Cost Plus or Price List:

• Cost Plus: The cost plus method uses the costs associated with the item. Therefore, the item should have a cost defined for it. Ensure that within the costing tabbed region for the item, the following two check boxes are selected: “Costing Enabled” and “Inventory Asset Value”.
• Price List: The price list method uses a specified price list. Therefore, the specified item should have an entry in the price list. 

The billing basis affects the item setup. If you want the ability to use both types of billing basis for the item, you need to follow both setups. It is possible to have the flexibility of using both billing basis types for an item and to gain that flexibility, it would be necessary to set up both costs and prices for that item.