This blog was written by Hemender Devangan and Wendy Lamar.
Many organizations bill the same customer multiple times for projects. Customers often face challenges when processing multiple invoices and this also increases workload for Finance team. In this blog post, I will go through Oracle Application Project module powerful feature which can provide relief to the organizations and streamline billing operations, improve customer satisfaction and accelerate payment collection.
A Consolidated Bill Group allows organizations to combine multiple invoices into a single invoice for a customer, summarizing all transactions into a single invoice.
Various projects will consolidate into one invoice based on a consolidated bill group assigned to the project(s). This functionality applies to one customer per consolidated bill group.
Improved customer experience – Customers receive single invoice instead of multiple invoices.
Faster Payment Processing – Customers can process payments for single invoice more quickly which reduces payment delays.
Reduced Workload – Finance team spend less time processing single invoice instead of multiple invoices
Better Financial Tracking – Organizations can track billing and collections more efficiently.
Reduce paperwork – Fewer invoices mean less paperwork.
Consolidated Bill Group and Bill Group are two different terms which seem similar but different functionality. Bill group works with combination of Consolidated Bill Group.
A consolidated bill group allows you to project invoices for a customer into one project draft invoice, leading to one Accounts Receivable invoice. This functionality allows grouping of invoices together across projects, across top tasks, agreements, or other criteria, as long as the invoices are for the same customer and customer bill to sites. The consolidated bill group is assigned at either the project or the top task.
This functionality is different from bill groups. Consolidated bill groups allow a single invoice for multiple projects for one customer. Bill groups allow generation of multiple invoices for one project based on groupings of expenditure items.
Chart below from My Oracle Support Document Overview of Bill Group Enhancement Functionality (Doc ID 2787282.1)
Consolidated Bill Group | Bill Group | |
Functionality | Generates single Invoice for multiple projects associated with one customer | Generates multiple Invoices for single project based on user criteria |
Context | Across projects for one customer | Within 1 project |
Field Value | Derived from consolidated bill group setup | Free form text field |
Assignment | Project/Top Task | Expenditure Items/Events |
(Note: all screenshots used in this document are for illustration purposes only, it could slightly be different in your oracle apps environment depending on oracle apps version)
Step 1: Login into Oracle Apps and choose Oracle Project responsibility.
Step 2: Define consolidated bill group.
The name is a free text field, and the customer and customer sites must be assigned. It has its own invoice prefix and numbering sequence, defined during setup of the Consolidated Bill Group.
Navigation: Billing > Consolidated Bill Group
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The Transaction Bill Group setting, when enabled, will consider bill groups and/or events during invoice generation. If it is not enabled, bill groups will have no impact on the consolidated invoice.
Step 3: Create multiple Projects and assign Consolidated Bill Group
Projects are created and/or updated to include the consolidated bill group assignment at the project header or top task. Our examples focus on the project header.
Navigation: Projects
a. Project #TestHDConBill00 – Project Header
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Open the Billing Setup Options from the Project
Project #TestHDConBill00 – Billing Setup (View Consolidated Bill Group)
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b. Project #TestHDConBill01 – Project Header
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Open the Billing Setup Options from the Project
Project #TestHDConBill01 – Billing Setup
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Step 4: Create Agreement and Funding
In our example, one agreement funds the two example projects shown above.
Navigation: Billing > Agreements
This example includes two projects funded by one agreement. The functionality also supports multiple projects on different agreements.
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Step 5: Create Cost and Revenue budget and baselined it.
Step 6: Collect costs on projects and run oracle standard process to distribute and generate accounting.
Verify cost on both projects.
Navigation: Expenditures > Expenditure Inquiry > All
You can also search using the Projects option, which will require search criteria related to only one project.
Project #TestHDConBill00 – Expenditure Items
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Project #TestHDConBill01 – Expenditure Items
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If Project is Work/Work then invoice can be generated using these expenditure items
But if project is Event/Event then invoice can be generated using events.
Step 7: Run the PRC: Generate Draft Invoice for Range of Projects
The billing is generated by running the program PRC: Generate Draft Invoices for a Range of Projects. Make sure that you selected right Consolidated Bill group as a parameter.
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Step 8: Review Consolidated Invoice
Next, once the consolidated invoice has been generated, you can view the draft consolidated invoice in the Consolidated Invoice Review page. This page is where the draft consolidated invoice will be approved and released, or any credit memos processed. If there is a need to delete and regenerate the consolidated draft invoice, that step is performed on this page.
Navigation: Billing > Consolidated Invoice Review
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When you click on the link for Consolidated Invoice Number, details page display details info like project number, draft invoice number, agreement number etc. This is a sample from an Oracle document placed here to provide an idea of the information contained in the page.
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Step 9: Run the PRC: Submit Interface Streamline Processes
This Streamline Processes send draft invoice to AR.
Step 10: Review the Receivables Invoice.
Switch to a Receivables responsibility
Navigation: Transactions > Transactions
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Open the Invoice Transaction Flexfield (See Red Box + Red Arrow)
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Next, from the invoice header, choose the lines button. (See the green box.)
The invoice line items will display. Each invoice line will reference the project and other identifying information.
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From each line, choose the Line Transaction Flexfield labeled ‘Trans’. See the red box)
The invoice lines reference the project number and other identifying information.
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Consolidated Invoice Bill group does not work for
Different invoice currency
Different payment terms
Different client sites
This Consolidated Bill group feature is valuable for organization managing multiple projects for same customer. As explained above, if Consolidated Bill group is configured correctly, it reduces workload for finance team, improves billing accuracy and better customer experience.
