Applying a Billing Cap to Individual Budgets

When a project has more than one billable budget, you can prevent individual budgets from being over-billed by applying a billing cap to each of them. If you rely on a project-level billing cap, that will prevent the project from being over-billed but not individual budgets.

For example, if a project's total bookings are 30,000 and the project includes a customer purchase order budget for the amount of 15,000, applying a project-level billing cap will prevent you from billing more than 30,000 against the project but will not prevent you from billing more than 15,000 against the customer purchase order budget. This might result in your customer rejecting invoices for amounts that exceed the 15,000 agreed for that budget.

To apply a billing cap to a budget:

  1. Ensure that PSA is set up to use budget allocations as explained in Setting up PSA to Track Consumption of Individual Budgets.
  2. Open the budget that you want to cap.
  3. Select Apply Billing Cap.
  4. Save your changes.
  5. [Optional] Set a tolerance on the customer's account. See Setting a Tolerance Amount for Individual Customers.
  6. Ensure that the Disable Billing Closer to Cap field in the Billing Settings custom setting is not selected if you want to allow PSA to optimize a billing event on release if it exceeds a budget cap. To allow this optimization when releasing billing events in bulk, you must also select Bill to Budget Cap on the project. This optimization will result in any unreleased billing event items being moved to a new billing event, and miscellaneous adjustments being created for overageClosed When a billing event item partially fits within a budget cap, overage is the amount by which the item exceeds the budget amount.. For more information, see Billing Event Optimization for Capped Budgets.
Warning:

You must not apply billing caps at both budget and project level for the same project.

Setting a Tolerance Amount for Individual Customers

You can optionally set a tolerance amount for individual customers. For example, if the budget amount is 15,000 and the customer's tolerance amount equates to 0.99 in budget currency, PSA will allow you to release billing events up to the value of 15,000.99.

Note:

You set a tolerance for a customer by editing a field on the customer's account extension record. The Account Extension object is a core component of Foundations. Other Certinia applications can add fields to this object instead of adding them to Salesforce's Account object.

Your administrator must grant you permission to access the Account Extension object, add the PSA Budget Billing Cap Tolerance field to the Account Extension page layout, and give you permission to edit that field.

To set a tolerance amount for an individual customer:

  1. Edit the account extension record linked to the customer's account.
  2. Enter the tolerance amount in the Project Budget Billing Cap Tolerance field. It can be a maximum of 9999.99. The number you enter is an amount in the account extension currency (not a percentage). The account extension currency must match the account currency.
  3. Save your changes.

PSA converts the tolerance amount to budget currency when checking if billing events can be released without exceeding the cap.

How PSA Calculates a Budget's Amount Available to Bill

PSA uses the following formula to calculate the amount of budget that is available to bill:

Amount - Amount Released for Invoicing

When the result is a positive amount, if the customer account has a tolerance amount it is converted to budget currency and added to the amount available to bill.

The budget's Amount Consumed field has no bearing on the amount available to bill.