This chapter describes the revenue and invoice procedures.
This chapter covers the following topics:
In Oracle Grants Accounting, revenue is accrued and invoices are generated at the award and installment levels.
This section describes the following:
In Grants Accounting, when generating revenue and invoices for an award, the revenue item and invoice are associated with one or more installments. The total amount available for revenue or invoicing depends on whether the award is set for a hard or soft limit.
A revenue hard limit or/and invoice hard limit prevents revenue accrual and invoice generation beyond the total installment amount allocated to a project or task, even if eligible expenditures or events exist.
A soft limit issues a warning when revenue accrual and invoice generation exceed the installment amount funded to a project or task.
If the Revenue Hard Limit or/and Invoice Hard Limit check box in the Award Management window is selected, a hard limit is activated. If the Revenue Hard Limit or/and Invoice Hard Limit check boxes are deselected, a soft limit is in effect..
The Revenue Hard Limit check box in the Award Management window is selected for Award A which has two installments, Installment A1 and Installment A2.
Installment A1 funds Project 1 (P1), Task 1 (T1), and Task 2 (T2):
A1 funds P1/T1 = $50
A1 funds P1/T2 = $50
Installment A2 funds Project 1 (P1), Task 2 (T2), and Task 3 (T3)
A2 funds P1/T2 = $50
A2 funds P1/T3 = $50
In this example, revenue can be generated on the following:
Project 1 (P1) and Task 1 (T1) up to $50
Project 1 (P1) and Task 2 (T2) up to $100
Project 1 (P1) and Task 3 (T3) up to $50
The Invoice Hard Limit check box in the Award Management window is selected for Award A which has two installments, Installment A1 and Installment A2.
Installment A1 funds Project 1 (P1), Task 1 (T1), and Task 2 (T2):
A1 funds P1/T1 = $50
A1 funds P1/T2 = $50
Installment A2 funds Project 1 (P1), Task 2 (T2), and Task 3 (T3)
A2 funds P1/T2 = $50
A2 funds P1/T3 = $50
In this example, invoices can be generated on the following:
Project 1 (P1) and Task 1 (T1) up to $50
Project 1 (P1) and Task 2 (T2) up to $100
Project 1 (P1) and Task 3 (T3) up to $50
If the Revenue Hard Limit or/and Invoice Hard Limit check boxes are not selected, a soft limit is in effect and revenue and invoices can be generated for all eligible expenditures and events regardless of installment funding amounts.
Note: Total costs are generated for revenue and invoices. If the amount of the raw cost item is less than the hard limit, but the burden costs associated with the raw cost takes the total cost over the hard limit, then neither revenue nor invoices will be generated for the raw or burden cost depending on the revenue hard limit or invoice hard limit respectively.
In Grants Accounting, invoice formats use the standard functionality in Oracle Projects for labor and nonlabor items only.
The format for revenue lines is system-defined and cannot be modified. Revenue lines are grouped by the following:
project
task
expenditure type
expenditure organization
The Grants Accounting revenue and billing process does not use the invoice formats set up in the Award Management window for an award's burden lines. Burden lines for revenue and invoices are grouped by the following:
installment
project
task
burden cost code
expenditure organization
The following labor and nonlabor format type groupings are supported in Grants Accounting.
All
Employee
Expenditure Category
Expenditure Type
Revenue Category, Expenditure Category, Expenditure Type
Top Task, All
Top Task, Employee
Top Task, Expenditure Category
Top Task, Expenditure Type
Top Task, Revenue Category, Expenditure Category, Expenditure Type
The following fields in the Oracle Projects Invoice Format window are supported in Grants Accounting.
Employee First Name
Employee Full Name
Employee Last Name
Expenditure Category
Expenditure Type
Nonlabor Resource
Organization
Revenue Category
Text
Top Task Name
Top Task Number
Total Amount
Total Hours
Units
In order to generate revenue and invoices, the following conditions must apply:
There must be an available installment.
The installment must be billable.
For a cost based installment, the expenditure item date must be less than the end date of the installment.
For an event based installment, the manual event date must be less than the end date of the installment.
When the Revenue Hard Limit or/and Invoice Hard Limit check box is selected, the amount of the transaction or event must fit within the available funded installment amounts by project or top task.
For an expenditure item the cost is determined and funds are available.
For invoicing and revenue accrual, there can be no bill hold.
For invoicing and revenue accrual, task must be ready-to-accrue.
For revenue accrual of expenditures, there can be no accrual hold on the top task of the expenditure items task.
The Installments tab of the Award Management window provides the Active and Billable check boxes, to enable funding and billing.
If selected, the Active check box enables an installment to be used for funding.
If selected, the Billable check box enables an installment to be used for revenue and invoice generation.
Both the check boxes are mutually exclusive. Therefore, you can create events for installments, which are billable but not active. Similarly, you can generate billing and revenue against installments even if these are not active.
To fund projects with an installment but prevent billing against that installment, you must deselect the Billable check box. This deactivates the installment from being used for generating revenue and invoices.
Note: The Billable check box cannot be deselected if pending manual events exist for that installment. The events must be processed or deleted for an installment before the Billable check box can be deselected.
If the Billable check box on a task is not checked and an expenditure item is created and successfully cost distributed and funds checked, the invoicing process will not pick up the expenditure item for billing. Subsequently checking the Billable check box only affects future transactions.
To retroactively change the billable status of an expenditure item, the user must set the expenditure item to billable at the expenditure item level in the Expenditure Inquiry window.
The two methods of generating revenue and invoices are as follows:
Cost Distribution Rule
Event Distribution Rule
Cost and event distribution rules are set in the Rules region of the Compliances tab in the Award Management and Award Template Management windows.
The cost distribution method for generating revenue and invoices creates a revenue or invoice item for all eligible actual costs incurred, as well as the associated burden costs. It is not necessary to create burden lines for actual costs because Grants Accounting does this automatically for all actual costs processed.
The event distribution method for generating revenue and invoices creates manual events to generate revenue and invoices regardless of costs incurred. The event distribution method can be useful when a predetermined billing schedule is defined or when billing on milestones.
Revenue and invoicing can be controlled by using the Control Billing by Top Task window. Grants Accounting allows users the option to refrain from accruing revenue and invoicing at the top task level for a project.
In Grants Accounting, AutoAccounting parameters for functions Event Revenue Account and Revenue and Invoice Account differ from those of Projects. The Event Revenue Account function determines revenue account for revenue events. The Revenue and Invoice Account function determines accounts to track revenue and receivables.
The differences in the AutoAccounting parameters for these functions are listed in the tables below.
Note: In Grants Accounting, when the Projects AutoAccounting parameters of Project Organization, Project Organization ID, Project Number, and Project ID are selected, the corresponding Grants Accounting AutoAccounting parameters of Award Organization, Award Organization ID, Award Number, and Award Project ID are passed.
Projects AutoAccounting Parameter | Corresponding Grants Accounting AutoAccounting Parameter |
---|---|
Class Code | not supported |
Project Organization | Award Organization |
Project Organization ID | Award Organization ID |
Project Type | not supported |
Event Type | not supported |
Project Number | Award Number |
Project ID | Award Project ID |
Event Organization ID | supported for manual events only |
Event Organization | supported for manual events only |
Revenue Category | not supported |
Top Task ID | not supported |
Top Task Number | not supported |
Task ID | not supported |
Task Number | not supported |
Task Organization ID | not supported |
Task Organization | not supported |
Task Service Type | not supported |
Event Number | Event Number |
Projects AutoAccounting Parameter | Corresponding Grants Accounting AutoAccounting Parameter |
---|---|
Project Organization | Award Organization |
Project Organization ID | Award Organization ID |
Class Code | not supported |
Project Number | Award Number |
Project ID | Award Project ID |
Sources are pieces of information Oracle Subledger Accounting uses to determine how to create accounting for an accounting event. The process PRC: Create Accounting uses sources to create journal entries in Oracle Subledger Accounting. Sources are similar to parameters for AutoAccounting. The differences in AutoAccounting parameters between Oracle Projects and Oracle Grants Accounting also apply to sources in Oracle Subledger Accounting. For example, the source Project Organization for Oracle Projects corresponds with the source Award Organization when you define account derivation rules to determine revenue or invoice accounts for Oracle Grants Accounting.
Related Topics
Understanding Subledger Accounting Setup for Oracle Projects, Oracle Projects Fundamentals
For information on viewing and adjusting invoices, see Viewing Invoices, Oracle Project Billing User Guide and Adjusting Project Invoices, Oracle Project Billing User Guide.
For information on accruing revenue and generating invoices, see Multifunding Process.
Expenditures for an award must be costed and funds check passed.
To cost expenditures, see Transaction Processing and Funds Check Activation Procedures.
To view revenue, run either the GMS: Generate Draft Revenue for a Single Award process or the GMS: Generate Draft Revenue for a Range of Awards process.
To view invoices, run either the GMS: Generate Draft Invoices for a Single Award process or the GMS: Generate Draft Invoices for a Range of Awards process.
Reviewing revenue follows the same procedure in Grants Accounting as in Oracle Projects.
For information on reviewing revenue, see Reviewing Revenue, Oracle Project Billing User Guide.
In Grants Accounting, navigate to the Find Revenue window as follows:
Billing - Revenue Review
Note: Grants Accounting is based on awards rather than Projects and consequently Project field names are generally replaced by Award field names.
Reviewing invoices follows the same procedure in Grants Accounting as in Projects.
For information on reviewing invoices, see Reviewing Invoices, Oracle Project Billing User Guide.
In Grants Accounting, navigate to the Find Invoices window as follows:
Billing - Invoice Review
Note: Grants Accounting is based on awards rather than Projects and consequently Project field names are generally replaced by Award field names.
Note: No adjustments can be made to the Invoice Line Details window.
Adjusting revenue follows the same procedure in Grants Accounting as in Oracle Projects.
For information on adjusting revenue, see Adjusting Revenue, Oracle Project Billing User Guide.
In Grants Accounting, navigate to the Find Revenue window as follows:
Billing - Revenue Review
Note: Grants Accounting is based on awards rather than Projects and consequently Project field names are generally replaced by Award field names.
Adjusting invoices follows the same procedure in Grants Accounting as in Oracle Projects.
For information on adjusting invoices, see Adjusting Project Invoices, Oracle Project Billing User Guide.
In Grants Accounting, navigate to the Find Revenue window as follows:
Billing - Invoice Review
Note: Grants Accounting is based on awards rather than Projects and consequently Project field names are generally replaced by Award field names.
To control revenue accrual and invoices by the top task of a project, perform the following steps.
In Grants Accounting, navigate to the Control Billing by Top Task window as follows:
Billing - Control Billing by Top Task
In the Project Number field, enter the project number.
In the Project Name field, enter the project name.
Click Find.
Note: One or more fields in the Top Tasks region are populated. The Ready to Accrue and Ready to Bill check boxes are automatically selected when the top tasks' fields populate. Do not deselect these check boxes.
To hold revenue accrual for a top task, select the appropriate row by placing the cursor in the row, press the Ctrl key on the keyboard, and click Hold Accrual.
To hold invoicing for a top task, select the appropriate row by placing the cursor in the row, press the Ctrl key on the keyboard, and click Hold Billing.
To accrue revenue for a top task, select the appropriate row by placing the cursor in the row, press the Ctrl key on the keyboard, and click Ready to Accrue.
To invoice for a top task, select the appropriate row by placing the cursor in the row, press the Ctrl key on the keyboard, and click Ready to Bill.
Save or save and continue as follows:
File - Save or Save and Proceed
Close the window.
Field Name | Type | Features | Description |
---|---|---|---|
Project Number | required | list of values | project number |
Project Name | required | list of values | project name |
Clear | button | erases data from fields | |
Find | button | searches for data based on parameters entered | |
Task Number | display only | task number | |
Task Name | display only | task name | |
Description | display only | task description | |
Ready to Accrue | check box | accrues revenue for top task | |
Ready to Bill | check box | invoices for top task | |
Ready to Accrue 1 | button | accrues revenue for top task based on top task number | |
Hold Accrual 1 | button | holds revenue accrual based on top task number | |
Ready to Bill 1 | button | invoices for top task based on top task number | |
Hold Billing 1 | button | holds invoices for top task based on top task number |