Revenue and Invoice Procedures

This chapter describes the revenue and invoice procedures.

This chapter covers the following topics:

• Definition
• Overview
• Prerequisites
• Reviewing Revenue Procedure
• Reviewing Invoices Procedure
• Adjusting Revenue Procedure
• Adjusting Invoices Procedure
• Controlling Billing by Top Task Procedure
• Control Billing by Top Task Window Description

Definition

In Oracle Grants Accounting, revenue is accrued and invoices are generated at the award and installment levels.

Overview

This section describes the following:

• Generating Revenue and Invoices

• Revenue and Invoicing Formats

• Revenue and Invoicing Requirements

• Billable and Active Check Boxes

• Billable Status on a Task

• Cost and Event Distribution Rules

• Controlling Billing by Top Task

• AutoAccounting Parameters

Generating Revenue and Invoices

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..

Revenue Hard Limit Example

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

Invoice Hard Limit Example

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.

Revenue and Invoicing Formats

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

Revenue and Invoicing Requirements

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.

Billable and Active Check Boxes

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.

Billable Status on a Task

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.

Cost and Event Distribution Rules

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.

Cost Distribution Rule

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.

Event Distribution Rule

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.

Controlling Billing by Top Task

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.

AutoAccounting Parameters

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.

AutoAccounting Differences Between Projects and Grants Accounting for Event Revenue Account

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

AutoAccounting Differences Between Projects and Grants Accounting for Revenue and Invoice Account

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

References

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.

Prerequisites

• 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 Procedure

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 Procedure

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 Procedure

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 Procedure

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.

Controlling Billing by Top Task Procedure

To control revenue accrual and invoices by the top task of a project, perform the following steps.

1. In Grants Accounting, navigate to the Control Billing by Top Task window as follows:

   Billing - Control Billing by Top Task

2. In the Project Number field, enter the project number.

3. In the Project Name field, enter the project name.

4. 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.

5. 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.

6. 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.

7. 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.

8. 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.

9. Save or save and continue as follows:

   File - Save or Save and Proceed

10. Close the window.

Control Billing by Top Task Window Description

Control Billing by Top Task 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