Multifunding Process
This appendix describes the multifunding process.
This appendix covers the following topics:
- Definition
- Features
- Multiple Awards Funding Multiple Projects Diagram
- Multifunding Flow Chart
- Multifunding Process
Definition
Multifunding is a feature unique to Grants Accounting that allows users to do the following:
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fund multiple projects from a single award
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fund a single project from multiple awards
Features
The Grants Accounting multifunding feature allows users to do the following:
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manage complex relationships between awards and projects, where multiple awards fund multiple projects
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control spending against each award
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manage complex billing requirements to ensure compliance with terms and conditions, where multiple awards funding the same project may have different indirect cost recovery rates, different billing cycles, and different funding periods
Multiple Awards Funding Multiple Projects Diagram
The diagram below shows multiple awards funding multiple projects.
Award Project 1 funds Award 1, which is funding Projects 1 and part of Project 2. Award Project 2 funds Award 2, which is funding part of Project 2 and all of Project 3.
Multiple Awards Funding Multiple Projects Diagram
Multifunding Flow Chart
The following diagrams show the multifunding process as described in the Multifunding Process table. Rectangles with solid lines indicate tasks that are viewed by the Grants Accounting user. Rectangles with dashed lines indicate tasks that are not viewed by the Grants Accounting user because they occur internally.
Multifunding Flow Chart (Continued)
Multifunding Process
The table below describes the sequence of events that occur in the Grants Accounting user interface and internally in Grants Accounting during the multifunding process.
| Event | Description of Action that Occurs in the Oracle Grants Accounting User Interface | Description of Action that Occurs Internally in Oracle Grants Accounting |
|---|---|---|
| 1. | The user enters projects. | No action occurs. |
| 2. | The user enters awards. | When a new award is created, the system automatically creates an award project. The award project is used to accrue revenue and invoice the award. |
| 3. | The user enters installments. | No action occurs. |
| 4. | The user funds the projects. | Award Projects are automatically funded, which result in the automatic creation of baselined revenue budgets. |
| 5. | The user enters, submits, and creates baseline versions for award budgets. | When you submit an award budget version for baseline processing, a process is activated that summarizes, submits, and creates a baseline version of the project budget. The first time you create a baseline version for an award budget, Grants Accounting automatically sets budgetary controls using the default settings. When you create subsequent baselines for the award budget, Grants Accounting sets budgetary controls using the default settings for:
In addition, you can change the budget entry method for an award budget after you create a baseline version. If the budget entry level for the new budget entry method is different from the budget entry level for the current budget entry method, then Grants Accounting resets the budgetary controls to the default budgetary control level settings when you create the next budget baseline. |
| 6. | The user enters transactions against the project and award. | No action occurs. |
| 7. | The user distributes costs and checks funds available. | Transactions are committed, funds are reserved, and the award budget balance is updated when funds check is successful. When funds check fails, transactions are not committed and the award budget balance is not updated. |
| 8. | The user runs GMS: Generate Draft Revenue for a Single Award process or GMS: Generate Draft Revenue for a Range of Awards process. | Grants Accounting's billing extension creates revenue events for the award project. The award project and revenue events are used to accrue revenue. |
| 9. | The user runs GMS: Generate Draft Invoices for a Single Award process or GMS: Generate Draft Invoices for a Range of Awards process. | Grants Accounting's billing extension creates billing events for the award project. The award project and billing events are used to invoice by award. |
The stages of the multifunding process are described in greater detail in the following sections.
Enter Projects
The user enters projects in Grants Accounting.
For information on entering projects, see Creating Projects, Oracle Projects Fundamentals.
Enter Awards
The user enters one or more awards in Grants Accounting.
The purpose of Oracle Projects is to accumulate costs and to control activity on a project. Projects recognizes that agreements fund projects, but it does not recognize awards as a source of funds.
The purpose of Grants Accounting, on the other hand, is to track awards and funded projects. Grants Accounting recognizes that awards fund projects, but it does not recognize agreements as a source of funds.
Grants Accounting is closely linked to Projects and uses its revenue generation and invoicing processes, in addition to other forms and tables.
To enable Projects to recognize awards created by Grants Accounting, an award project is automatically created in Projects for every award entered in Grants Accounting. These award projects are not visible to the Grants Accounting user.
For information on entering awards, see Award Entry Procedures.
Enter Installments
The user enters installments in Grants Accounting.
For information on entering installments, see Installment Entry Procedures.
Fund Projects
The user funds the projects in Grants Accounting, which results in the automatic funding of award projects in Projects. The funding of award projects in Projects results in the creation of revenue budgets in Projects, which are automatically baselined.
For information on funding projects, see Project Funding Procedures.
Enter, Submit, and Baseline Award Budgets
The user enters, submits, and baselines award budgets. An award budget is created. A project budget is summarized and baselined. Budgetary control settings based on award level defaults are activated
For information on entering, submitting, and baselining award budgets, see Budget Entry Procedures.
Enter Transactions
The user enters transactions against the project and the award.
For information on entering transactions, see Transaction Entry Procedures.
Distribute Costs and Check Funds
The user distributes costs by project, task, and award in Grants Accounting. Transactions are committed, funds are reserved, and the award budget balance is updated when funds check is successful. When funds check fails, transactions are not committed and the award budget balance is not updated.
Funds check accounts for the total cost of a transaction by deriving and including the burden cost(s) associated with the transaction.
For information on distributing costs, see Transaction Processing and Funds Check Activation Procedures.
Generate Draft Revenue
Grants Accounting uses Projects' revenue accrual process. Grants Accounting added a billing extension, which creates revenue events in Projects.
The user accrues revenue by award in Grants Accounting. Projects uses award projects and revenue events created for the award project by Grants Accounting's billing extension to accrue revenue by award.
For information on accruing revenue by award, see Revenue and Invoice Procedures.
Generate Draft Invoices
Grants Accounting uses Projects' billing process. Grants Accounting added a billing extension, which creates billing events in Projects.
The user generates an invoice by award in Grants Accounting. Projects uses award projects and billing events created for the award project by Grants Accounting's billing extension to invoice by award.
For information on invoicing by award, see Revenue and Invoice Procedures.