Letter of Credit Billing

In Oracle Fusion Grants Management, project application administrators can select sponsors and activate them for letter of credit (LOC) billing.

In Oracle Fusion Grants Management, grants administrators can then create award contracts with sponsors set up for LOC billing.

In Oracle Fusion Enterprise Contracts, grants administrators can then validate, save, and submit the award contracts for approval.

In Oracle Fusion Enterprise Contracts, customer contract managers can then approve and activate the award contracts.

In Oracle Fusion Project Billing, grants accountants can then generate invoices and recognize revenue for the award contracts.

The following table describes the sequence of actions for generating invoices by letter of credit and recognizing revenue for awards funded by letter of credit, locations from where the various users can perform these actions, and their results.

Step	Role	Action	Location	Result
1	Project Application Administrator	Navigate to the Manage Sponsors page. View the customer organizations from Oracle Fusion Trade Community Architecture displayed as sponsors. Select the sponsor and navigate to the Edit Sponsor page. Provide the Sponsor Account Number. Select LOC using the check box under the Sponsor Account Number field. Provide LOC details such as LOC number. Specify current sponsor or related sponsor as the bill-to sponsor. In case of related sponsors, use the LOC number of the parent sponsor. Specify related sponsor as the bill-to sponsor only if the following prerequisite conditions are met: Contract BU is enabled to use related sponsors. Both sponsor and related sponsor are active. Relationship between sponsor and related sponsor is active. Relationship defined between sponsor and related sponsor is valid for current date. Current date is within the start date and end date of the relationship date range defined. Bill-to indicator of the relationship is enabled.	Oracle Fusion Grants Management	The selected sponsor is activated for LOC billing.
2	Grants Administrator	Navigate to the Create Award window. While creating the award, grants administrator must select the Enable for LOC Billing check box to activate the award automatically for LOC billing. The grants administrator must specify the document number that's used to identify the funding. The grants administrator must specify a unique document number for each bill plan.	Oracle Fusion Grants Management	The award created is associated with the sponsor activated for LOC billing. The corresponding contract is automatically created in Oracle Fusion Enterprise Contracts.
3	Grants Administrator	Navigate to the Update Contract dialog box, while creating an award. Set the Invoice Method to Cost Reimbursable Type. Set the Contract Bill Plan for LOC billing using the Letter of Credit check box. Review the Document Number value. Select Update Contract.	Oracle Fusion Grants Management	Oracle Fusion Grants Management initiates the Merge Contract service to update the contract for creating the bill plan, revenue plan, associated projects, and contract line.
4	Grants Administrator	Navigate to the Contract work area. Search for the award contract using the contract number.	Oracle Fusion Enterprise Contracts	The Contract Overview page opens. The contract information is displayed.
5	Grants Administrator	Navigate to the Billing tab on the Contract header. Click on the bill plan in the bill plans table to review the bill plan details.	Oracle Fusion Enterprise Contracts	Bill plan details are displayed.
6	Grants Administrator	Navigate to the Revenue tab on the Contract header. Click on the revenue plan in the revenue plans table to review the revenue plan details.	Oracle Fusion Enterprise Contracts	Revenue plan details are displayed.
7	Grants Administrator	Navigate to Contract Lines tab page on the Contract header. Click on the contract line. Review the contract line details.	Oracle Fusion Enterprise Contracts	Contract line details are displayed.
8	Grants Administrator	Navigate to the Associated Projects tab on the Contract header. Click on the award project task associated with the contract. Review the details of award project task associated with the contract.	Oracle Fusion Enterprise Contracts	Details of the award project task associated with the contract line are displayed.
9	Grants Administrator	Submit contract.	Oracle Fusion Enterprise Contracts	The contract is validated, saved, and submitted for review.
10	Customer Contract Manager	Approve the contract.	Oracle Fusion Enterprise Contracts	The contract is approved and is in Active status. Contract is ready for invoice generation and revenue recognition.
11	Grants Accountant	Navigate to the Invoice work area. Click the Generate Invoices link.	Oracle Fusion Project Billing	Generate Invoice page is displayed.
12	Grants Accountant	Select the LOC number parameters on the Generate Invoice page and click Submit to initiate the Generate Invoice process for generating invoice for the LOC number.	Oracle Fusion Project Billing	Generate Invoice process runs and the billing specialist is automatically navigated to the Invoice work area landing page to monitor the process.
13	Grants Accountant	After the Generate Invoice process completes, navigate to the Manage Invoices page, and search for the invoice by LOC number.	Oracle Fusion Project Billing	Invoice is displayed with status as Draft.
14	Grants Accountant	Navigate to Revenue work area and select the Generate Revenue task.	Oracle Fusion Project Billing	Generate Revenue page is displayed.
15	Grants Accountant	Select Business Unit, From Date, and To Date for expenditure items for the award created. Enter the LOC number. Click Submit to initiate the Generate Revenue process.	Oracle Fusion Project Billing	Generate Revenue process runs.
16	Grants Accountant	Navigate to the Manage Revenue Distributions task.	Oracle Fusion Project Billing	Revenue listing table with LOC number and document number columns is available.
17	Grants Accountant	Search for the revenue lines using the LOC number.	Oracle Fusion Project Billing	Revenue lines with the LOC number are displayed.