Releasing Single Billing Events When Billing Is Capped at Budget Level

The page contains examples of releasing a single billing event when budgets are capped for billing. Examples 1 - 2 illustrate cases where the billing event is released in full. Examples 3 - 5 illustrate cases where billing event optimization occurs. For an explanation of billing event optimization, see Billing Event Optimization for Capped Budgets.

For examples of releasing multiple billing events, see Releasing Multiple Billing Events When Billing Is Capped at Budget Level.

Note:

When a business record is billed, the budget that it's allocated to is stored in the Allocated Budget field on the resulting billing event item. If two or more budgets in a project have the same customer reference, business records allocated to those budgets can be billed in the same billing event. This can mean that when releasing a billing event, some of its billing event items are within their budget cap and can be released, whereas other billing event items exceed their budget cap and cannot be released. See Example 5 for an illustration of this.

Example 1: Releasing a Billing Event That Is Within the Cap (No Tolerance)

In this example, the amount available within the CPO1 budget is 12,000. No tolerance amount is set on the customer account.

The billing event's total amount is 12,000 which does not exceed the budget amount, therefore the billing event can be released in full.

Example 1: Before Release

Example 1 Showing Billing Event Before Release
Billing Event	Billing Event Item	Linked Business Record	Allocated Budget	Amount	Released
Billing Event 1	Billing Event Item 1	Timecard 1	CPO1	7,000	No
Billing Event 1	Billing Event Item 2	Timecard 2	CPO1	5,000	No
Total				12,000

Example 1: After Release

The billing event and its billing event items are marked as released.

Example 1 Showing Billing Event After Release
Billing Event	Billing Event Item	Linked Business Record	Allocated Budget	Amount	Released
Billing Event 1	Billing Event Item 1	Timecard 1	CPO1	7,000	Yes
Billing Event 1	Billing Event Item 2	Timecard 2	CPO1	5,000	Yes
Total				12,000

Example 2: Releasing a Billing Event That Is Within the Cap (With Tolerance)

In this example, the amount available within the CPO1 budget is 12,000. The customer account has a tolerance amount that equates to 0.99 in budget currency.

The billing event's total amount is 12,000.65. This is within the budget amount + tolerance amount (12,000.99), therefore the billing event can be released in full.

Example 2: Before Release

Example 2 Showing Billing Event Before Release
Billing Event	Billing Event Item	Linked Business Record	Allocated Budget	Amount	Released
Billing Event 1	Billing Event Item 1	Timecard 1	CPO1	7,000	No
Billing Event 1	Billing Event Item 2	Timecard 2	CPO1	5,000.65	No
Total				12,000.65

Example 2: After Release

The billing event and its billing event items are marked as released.

Example 2 Showing Billing Event After Release
Billing Event	Billing Event Item	Linked Business Record	Allocated Budget	Amount	Released
Billing Event 1	Billing Event Item 1	Timecard 1	CPO1	7,000	Yes
Billing Event 1	Billing Event Item 2	Timecard 2	CPO1	5,000.65	Yes
Total				12,000.65

Example 3: Releasing a Billing Event That Exceeds the Cap - Whole Billing Event Item Is Moved

In this example, the amount available within the CPO1 budget is 7,000. The customer account has a tolerance amount that equates to 0.99 in budget currency.

Billing Event Item 1 does not exceed the budget amount + tolerance amount (7,000.99) therefore it can be released in full.

Even though the tolerance amount of 0.99 is still available, there is no budget amount remaining for Billing Event Item 2. Therefore the billing event will be split into two, with Billing Event Item 2 being moved to the new unreleased billing event.

Example 3: Before Release

Example 3 Showing Billing Event Before Release
Billing Event	Billing Event Item	Linked Business Record	Allocated Budget	Amount	Released
Billing Event 1	Billing Event Item 1	Timecard 1	CPO1	7,000	No
Billing Event 1	Billing Event Item 2	Timecard 2	CPO1	5,000	No
Total				12,000

Example 3: After Release

Billing Event 1 is released containing Billing Event Item 1 only.

Billing Event Item 2 is moved to a new billing event. This billing event and its billing event item are not released.

Example 3 Showing Billing Event After Release
Billing Event	Billing Event Item	Linked Business Record	Allocated Budget	Amount	Released
Billing Event 1	Billing Event Item 1	Timecard 1	CPO1	7,000	Yes
Billing Event 1			Billing Event 1 Total	7,000
*Billing Event 2	Billing Event Item 2	Timecard 2	CPO1	5,000	No
*Billing Event 2			Billing Event 2 Total	5,000
Total				12,000

* Indicates a record that is generated automatically as a result of billing event optimization.

Example 4: Releasing a Billing Event That Exceeds the Cap - Miscellaneous Adjustments Created for Overage

In this example, the amount available within the CPO1 budget is 12,000. The customer account has a tolerance amount that equates to 10 in budget currency.

Billing Event Item 1 is below the budget amount, so Billing Event Item 2 is also included for release: 7,000 + 5,200 = 12,200

This exceeds the budget amount + tolerance amount by 190. Therefore PSA will create miscellaneous adjustments to handle overage Closed When a billing event item partially fits within a budget cap, overage is the amount by which the item exceeds the budget amount..

Example 4: Before Release

Example 4 Showing Billing Event Before Release
Billing Event	Billing Event Item	Linked Business Record	Allocated Budget	Amount	Released
Billing Event 1	Billing Event Item 1	Timecard 1	CPO1	7,000	No
Billing Event 1	Billing Event Item 2	Timecard 2	CPO1	5,200	No
Total				12,200

Example 4: After Release

Billing Event Item 1 is released.

Billing Event Item 2 is released along with a miscellaneous adjustment for -200 which is included in Billing Event 1. An equal and opposite miscellaneous adjustment is created in a new unreleased billing event for the overage amount that is not billed.

Example 4 Showing Billing Event After Release
Billing Event	Billing Event Item	Linked Business Record	Allocated Budget	Amount	Released
Billing Event 1	Billing Event Item 1	Timecard 1	CPO1	7,000	Yes
	Billing Event Item 2	Timecard 2	CPO1	5,200	Yes
	*Billing Event Item 3	*Miscellaneous Adjustment 1	†<derived from Timecard 2>	-200	Yes
			Billing Event 1 Total	12,000
*Billing Event 2	*Billing Event Item 4	*Miscellaneous Adjustment 2	†<derived from Timecard 2>	200	No
*Billing Event 2			Billing Event 2 Total	200
Total				12,200

* Indicates a record that is generated automatically as a result of billing event optimization.

† The allocated budget is derived from the budget allocation on the business record that led to overage.

Example 5: Releasing a Billing Event That Exceeds Multiple Caps - Miscellaneous Adjustments Created for Overages

In this example:

Billing Event Items 1 and 2 are allocated to the CPO1 budget. The amount available within the CPO1 budget is 10,000.
Billing Event Items 3 and 4 are allocated to the Travel Expenses budget. The amount available within the Travel Expenses budget is 3,000.

No tolerance amount is set on the customer account.

Business records allocated to the two budgets are included in the same billing event because the budgets have the same customer reference.

Billing Event Items 1 and 2 can be released with a miscellaneous adjustment for -200 to bring the amount down to CPO1's budget amount of 10,000.

Billing Event Item 3 can be released with a miscellaneous adjustment for -1,000 to bring the amount down to Travel Expenses' budget amount of 3,000.

Billing Event Item 4 cannot be released because no amount remains in the Travel Expenses budget. Therefore the billing event will be split into two, with Billing Event Item 4 being moved to the new unreleased billing event.

Example 5: Before Release

Example 5 Showing Billing Event Before Release
Billing Event	Billing Event Item	Linked Business Record	Allocated Budget	Amount	Released
Billing Event 1	Billing Event Item 1	Timecard 1	CPO1	7,000	No
	Billing Event Item 2	Timecard 2	CPO1	3,200	No
	Billing Event Item 3	Expense 1	Travel Expenses	4,000	No
	Billing Event Item 4	Expense 2	Travel Expenses	350	No
Total				14,550

Example 5: After Release

Billing Event Item 1 is released.

Billing Event Items 2 and 3 are released along with miscellaneous adjustments for -200 and -1,000 respectively which are included in Billing Event 1. Equal and opposite miscellaneous adjustments are created in a new unreleased billing event for the overage amounts that are not billed.

Billing Event Item 4 is moved to the new unreleased billing event, Billing Event 2.

Billing Event 2, and its billing event items, are not released.

Example 5 Showing Billing Event After Release
Billing Event	Billing Event Item	Linked Business Record	Allocated Budget	Amount	Released
Billing Event 1	Billing Event Item 1	Timecard 1	CPO1	7,000	Yes
	Billing Event Item 2	Timecard 2	CPO1	3,200	Yes
	Billing Event Item 3	Expense 1	Travel Expenses	4,000	Yes
	*Billing Event Item 5	*Miscellaneous Adjustment 1	†<derived from Timecard 2>	-200	Yes
	*Billing Event Item 6	*Miscellaneous Adjustment 2	†<derived from Expense 1>	-1,000	Yes
			Billing Event 1 Total	13,000
*Billing Event 2	*Billing Event Item 7	*Miscellaneous Adjustment 3	†<derived from Timecard 2>	200	No
	*Billing Event Item 8	*Miscellaneous Adjustment 4	†<derived from Expense 1>	1,000	No
	Billing Event Item 4	Expense 2	Travel Expenses	350	No
			Billing Event 2 Total	1,550
Total				14,550