When you enter revenue and billing information for your project, you specify the following information:

• Revenue Accrual Method and Invoice Method

  The project type determines which distribution rule appears as the default value for these fields. It also determines which other distribution rules you can choose from. The following table shows how Oracle Projects predefines various distribution rules:

  Distribution Rule	Definition
  Cost/Cost	Accrue revenue and bill using the ratio of actual cost to budgeted cost (percent spent).
  Cost/Event	Accrue revenue using the ratio of actual cost to budgeted cost (percent spent), and bill based on events.
  Cost/Work	Accrue revenue using the ratio of actual cost to budgeted cost (percent spent), and bill as work occurs.
  Event/Event	Accrue revenue and bill based on events.
  Event/Work	Accrue revenue based on events, and bill as work occurs.
  Work/Event	Accrue revenue as work occurs, and bill based on events.
  Work/Work	Accrue revenue and bill as work occurs.

  The revenue accrual method and invoice method you enter determines how revenue is calculated and how invoices are generated for this project.

  Note: Note: If you want to accrue revenue or generate invoices based on percent complete, you must use the Event/Event, Event/Work, or Work/Event distribution rule. See: Percent Complete Revenue Accrual and Invoice Generation.

• Customer at Top Task

  Check this box if you want to assign customer at top task. If you enable this option you can assign and invoice customers for each specific top task on the project. Only one customer can be assigned at the top task level.

  Additional Information: You can enable this option only if the project funding level is Top Task or Both. You can change this option prior to funding, revenue, or invoice generation. If project is already funded, but no revenue or invoice generated, you can reverse the project level funding and update the option.

• Invoice Method at Top Task

  Check this box if you want the ability to override the project level invoice method at the top task. If you enable this option you can use multiple invoice methods for a project.

  Additional Information: You can enable this option only when the project level invoice method is Work or Event and the project funding level is Top Task or Both.

• Date-Effective Funds Consumption

  Select this option to have the expenditure item and event processing use the billing sequence and expiration dates that are set up for the associated agreements. When you enable this option, Oracle Project Billing bills expenditure items and events against the agreement with the lowest sequence and expiration date that has funding available greater than or equal to the amount of the expenditure item or event. If you enable this option, then you do not specify contribution percentages for the customers.

• AR Receipt Notification

  Select this check box for your project to receive workflow notifications for receipts applied to customer invoices in Oracle Receivables. This notification enables project managers track customer payments on project invoices that are linked to supplier invoices on pay when paid holds. From the notification, project managers can navigate to the Supplier Workbench to manually review and release linked supplier invoices from pay when paid holds. For information on enabling AR receipt notifications for a project type, see Project Types Window Reference. See also Send AR Notification Workflow, Oracle Projects Implementation Guide.

• Automatic Release of Pay When Paid Invoices

  Select this check box to ensure that the Release Pay When Paid Holds concurrent program considers supplier invoices linked to customer invoices for this project.

  Leave this check box deselected, if you want the Release Pay When Paid Holds program to skip this project when considering supplier invoices for the automatic release of pay when paid holds. In this case, you can manually review and release pay when paid holds on supplier invoices for your project using the Supplier Workbench. For information on release of pay when paid invoices for a project type, see Project Types Window Reference.

• Include Adjustments on Standard Invoice

  Select the appropriate option to use a standard invoice for billable transaction adjustments instead of a credit memo. When the Include Adjustments on Standard Invoice option is enabled, invoice cancellations, adjustments, concessions, and write-offs can be made for invoices that do not contain adjustments on the original transaction. A write-off or concession is allowed on all standard invoices but performed on the non-adjusted transaction lines of the invoice.

  If you select None, then the application creates credit memos for all project billing adjustment transactions and does not create standard invoices for any adjustment transactions. If you select Labor Accruals Only, then the application creates standard invoices with adjustment lines for labor accrual reversal transactions. All other adjustment transactions are processed on standard credit memos. If you select Labor Only, then the application creates standard invoices for all types of labor billing adjustments including accrual reversal transactions. All other adjustment transactions are processed on standard credit memos. If you select All Transactions, then the application creates standard invoices for all types of billing adjustment transactions. It does not create credit memos for any adjustment transactions.

  Note: If you select any option for this setup other than None, then the application restricts you from changing the invoice currency for a customer after you generate invoices. You are also restricted from modifying the value of this setup option if there are any existing invoices for a customer with a currency that is different than invoice currency setup for the customer's account. These restrictions do not apply if you enable the project setup option Invoice by Bill Transaction currency. See Currency Option Check Boxes, in the Billing Setup section for Top Tasks for more information on the Invoice by Bill Transaction Currency option.

  The below example describes a sample process flow of the cancellation or adjustment options available for invoices with the adjustments included on a standard invoice enabled:

  Example

  Simple Cancellation

  Invoice	Line	Amount	Marked for Recalculation	Transactions	Steps	Actions
  1
  	1	$100		1
  	2	$200		2
  		$300			1	Initial Invoice created - $300
  2
  	1	$-100	X	1	2	Line 1 - marked for recalculation
  	2	$110		1	3	New Amount entered for $110
  		$10			4	New Invoice - $10
  3
  	1	$-110	X	1	5	Line 1 - marked for recalculation
  	2	$120		1	6	New Amount entered for $120
  		$10				New Invoice - $10

  Cancellation after Adjustment

  Invoice	Line	Amount	Marked for Recalculation	Transactions	Steps	Actions
  4	Credit 2
  	1	$100		1	7	Corruption of credit #2 is created
  	2	$-110

  In the listed example, it is not possible to cancel or credit the original $100 transaction. The credit can only be issued against the latest transactions. As the original $100 (and also the $110 in Invoice 2) was included as an adjustment on the standard invoice, it is not feasible to allow the transaction to be credited or cancelled.

  Write-off

  Invoice	Line	Amount	Marked for Recalculation	Transactions	Steps	Actions
  1
  	1	$100		1
  	2	$200		2
  		$300
  2
  	1	$-100	X	1	2	Invoice Write-off - $100
  	2	$110		1	3	New Transaction - $110
  		$10			4	New Invoice - $10
  3						Credit Write-off on Invoice 2
  	1	$-10

  Although write-off and concession are allowed on all standard invoices, the write off and concession are completed only on the non-adjusted transaction lines of the invoice.

• Bill Labor Accruals

  Select this check box to specify whether labor cost accrual transactions are eligible for billing. This option is available only at project level. If you select Yes, then the future labor accrual transactions are eligible for billing on customer invoices. Select No, if you do not want labor accruals to be considered for billing.

• Billing Cycle

  The billing cycle is the user-defined code that determines the next billing date for this project. You can accept the default cycle, or you can override this value and enter a different code. See: Billing Cycle, Oracle Projects Implementation Guide.

• First Bill Offset Days

  The number of days that elapse between the project start date and the date of the first project invoice. You can accept the default bill offset days, or override this value and enter a different number.

• Next Billing Date

  Next Billing Date displays the next billing date on which the project is eligible for billing. The Next Billing Date is updated each time draft invoices for the project are released, cancelled, or deleted.

• Tax Classification Code

  Select the tax classification code for invoice lines created for this project. Oracle Projects uses this code as the default tax classification code based on the Application Tax Options hierarchy that you define in Oracle E-Business Tax for Oracle Projects and the project operating unit. Oracle E-Business Tax uses this tax classification code to calculate tax amounts on the invoice lines. For more information on setting up taxes and the hierarchy of application tax options for an application and operating unit, see the Oracle E-Business Tax User Guide.