Progress Payment Business Process Flow

The following list identifies the steps for setting up and processing a progress payment:

1. Create a contract with a contract classification of Government.

2. Add amount-based contract lines to the contract associated with progress payment amounts.

   Note:

   Government contracts can include amount-based or rate-based (Time and Material or fee associated) contract lines on the same contract. However, progress payments can only be associated with amount-based contract lines.

3. Define progress payment terms:

   1. Assign progress payment and liquidation rates.

   2. Assign a distribution code to the progress payment for progress payment liability.

   3. Assign defined projects, activities, and amount-based contract lines to the progress payment terms for use during liquidation.

   4. Set the progress payment terms to Ready status.

4. Define billing and revenue plans for the contract lines.

5. Define the billing amounts for the contract lines.

6. Set the contract processing status to Active.

7. Prepare the progress payment request using the progress payment worksheet.

8. Define an immediate billing plan for the progress payment request.

9. Run the Contracts/Billing Interface process to initiate billing for the progress payment amount.

10. Complete the billing process for the progress payment request.

11. After the contract items are ready for delivery and you are ready to bill, set the billing plans (or events) for amount-based contract lines to Ready status.

12. Run the Contracts/Billing Interface process to generate the regular bill for the items delivered and initiate liquidation of the progress payment amount.

13. Complete the billing process for the items delivered and liquidation of the progress payment.