3Manage Project Contract Billing

This chapter contains the following:

Because invoicing is done at the contract level, an invoice can contain transactions from multiple projects and tasks. Additionally, charges from an expenditure item or event can be split across multiple invoices if the project task is associated with multiple contracts. A billing transaction represents a mapping between an expenditure item or event, a contract line, and an invoice line. Billing transactions are created by the invoice preprocessor API during the invoice generation process. If you generate revenue for a contract prior to generating invoices, the billing transactions are created during the revenue generation program.

Contract Contribution Percentage

Contract contribution percentage is the maximum percentage of project work eligible for billing for a contract. The amount billed for a billing transaction against a contract is based on this value, and cannot exceed 100 percent.

Eligible Amount

The eligible amounts for invoice and revenue are the amounts that can be invoiced and recognized for a specific contract line and the expenditure item or event.

Qualified Amount

The qualified amounts for invoice and revenue are the amounts that will be invoiced and recognized for a specific contract line and the expenditure item or event. A qualified amount is determined by the available funding for the transaction. It is the smaller value of either the eligible amount, or the smallest amount of invoice or revenue funds remaining for all contract header and contract line billing controls to which the transaction maps. If this value is zero, a billing transaction exception is created in an amount equal to the eligible amount.

If the contract does not use billing controls, the qualified amount is equal to the eligible amount.

Eligible Transactions

The billing control for the contract or contract line associated with the expenditure item or event determines whether the transaction is eligible for invoicing and revenue recognition. If the transaction passes the billing control and the billing control has available funds, a billing transaction is created and the funding amount of the billing control is reduced by the transaction amount.

If the contract does not use billing controls, the expenditure items and events charged to the task linked to the contract line are eligible for invoicing and revenue recognition, and billing transactions are created for them.

Billing Transaction Creation Method

Create billing transactions automatically during invoice generation or manually. Select the automatic method when you submit the invoice generation program. If you want to create an manual billing transaction after creating an automatic billing transaction to pick up any adjustments, first delete the existing billing transaction.

The manual creation method is only used for expenditure items.

If an expenditure item is billed across multiple contract, If you create a automatic revenue billing transaction for an expenditure item , you cannot use the manual method for another contract.

Invoice Printing: Explained

Preview and print invoices from within an invoice or from the Invoice Overview region. Invoice printing consists of previewing an invoice, selecting an invoice template if more than one exists, and then printing the invoice in the preferred output format.

Invoice Preview

Invoice preview is available if one or more invoice templates are set up in Oracle Business Intelligence Publisher.

Preview lets you view a printable version of the invoice upon selecting one of the invoice templates. This is useful in identifying possible adjustments needed to the invoice prior to transferring the invoice to Oracle Fusion Receivables. The current or previously active, expired, hold, or closed contract version provides the contract data on the invoice.

Invoice Template

An invoice template contains instructions for the printed invoice format, which are designed for a contract and customer's preference. Select an invoice template to convert the invoice details to a printable version of the invoice.

Create events to invoice, recognize revenue, or both, for a specified amount based on a schedule, milestone, or progress. The various contract, project, and billing extension attributes determine the event amount and how it is calculated. The components of an event determine how it is processed.

Event Type

Select an event type to control whether the event is used to invoice, recognize revenue, or perform both functions for a contract line.

Reversing Option

Using the reversing option, you can create a revenue accrual that is automatically reversed. Enter a completion date in the accounting period. When you save the event, Oracle Fusion Project Billing also creates a new reversing event in the next accounting period. This new reversing event has an event amount that is equal to the negative value of the original event amount.

Currency

Enter the event amount in the bill transaction currency.

The default bill transaction currency is the contract currency. To change it, set the billing currency type to Bill Transaction on the bill plan of the contract line. If the two currencies are not identical, the event amount in bill transaction currency is converted to the contract currency. If the bill transaction currency differs from the invoice revenue currency, the event amount in bill transaction currency is converted to the invoice revenue currency.

Adjustment History

Oracle Fusion Project Billing retains the complete adjustment history of each event. Use adjustment history to review and track event adjustments.

Distributions

The Generate Invoice or Generate Revenue process creates an invoice or revenue distribution when an event is invoiced or recognized for revenue. Optionally you can create the revenue accounting entries for the revenue distribution of an event if they are not already created.

Import Project Billing Events Process

The Import Project Billing Events process imports billing events from third-party applications to Oracle Fusion Project Billing based on the data that you load into the Oracle Fusion Project Billing Events open interface table (PJB_BILLING_EVENTS_INT).

To import the billing events:

  1. Use the Create Billing Events macro-enabled Excel workbook template to prepare data for loading into the open interface table.

  2. Click Generate CSV File in the template to create a comma-separated values file of billing events to load into the billing events interface table.

    Optionally, you can skip steps 1 and 2 and manually create the CSV file.

  3. Navigate to the File Import and Export page, click Upload from the Actions menu. In the Upload File window, browse for the CSV file that contains the billing events. Select the Oracle WebCenter Content Management account to upload the file and then click Save and Close.

  4. Navigate to the Scheduled Processes page, run the Load Interface File for Import process followed by the Import Project Billing Events process.

The predefined templates and the Load Interface File for Import process are part of the External Data Integration Services for Oracle Cloud feature.

Parameters for Load Interface File for Import Process

Import Process

Select Import Project Billing Events.

Data File

Select the CSV file that contains the billing events.

Billing Event Upload Error Report

The Billing Event Upload Error Report summarizes the number of successful transactions and errors during the import of billing events.

If the report has errors, then:

  1. Review the error message detail for each billing event, fix the issues in the Excel template and regenerate the CSV file. Alternatively, manually fix the issues in the CSV file.

  2. Load the CSV file to the Oracle WebCenter Content Management account.

  3. Run the Load Interface File for Import process followed by the Import Project Billing Events process.

Invoice Credits: Points to Consider

You can apply credits to a released invoice to adjust the amount. To reduce the amount of an invoice, you can choose from the following types of crediting actions:

  • Cancel an invoice.

  • Write off an invoice.

  • Apply a concession.

  • Create a net invoice.

Canceling an Invoice

Canceling a released invoice results in the creation of a credit memo for the entire amount of the canceled invoice. Cancel an invoice only if the invoice is released and has no payments, adjustments, or crediting invoices applied to it. All items on the canceled invoice are returned to the unbilled transactions region of the invoice and are eligible for invoicing in the next billing cycle.

The application updates the funds consumed balance on the contract that funded the original invoice to reflect the returned consumed amount. The credit memo always has the same invoice currency and currency attributes as the original invoice.

When you cancel an invoice, the application only copies the invoice lines with amounts, from the original invoice to the new credit memo. The cancel operation is disabled for invoices without amounts.

Writing Off an Invoice

Write off all or part of a released invoice that you can't collect due to bad debts. Writing off an invoice creates a crediting invoice for the original invoice in the write-off amount that you enter. Write off at either the invoice level or the invoice line level. If you write off at the invoice level, the application prorates the write-off amount across the invoice lines. For invoice line level write-offs, specify the write-off amount for the line.

The write-off invoice always has the same invoice currency and currency attributes as the original invoice. The funds consumed are not returned to the contract line for future consumption when you write off an amount.

Applying a Concession

Apply a concession when you want to manually credit a released invoice without adjusting the transactions.

Apply a concession to either the invoice level or invoice line level by entering either an amount or percentage. If you apply the concession to the entire invoice, the application prorates the concession amount across all the invoice lines. For invoice line concessions, specify the concession amount or percentage for the line. When you apply the concession, you create a credit invoice for the original invoice in the entered amount.

Creating a Net Invoice

Enable net invoicing for your contract when you want to create a standard invoice that includes the amounts from adjusted transactions on one or more released invoices. A net invoice can include new transactions that are eligible for invoicing, along with the adjusted transactions from the same contract. If net invoicing is enabled for your contract, the application automatically consolidates credits with new invoices instead of issuing individual credit memos. A net invoice is not a credit memo and it uses the standard invoice type.

To create a net invoice that contains positive and negative amounts, the creation sign for the Oracle Receivables transaction type must be set to Any Sign.

When net invoicing is disabled:

  • The application automatically creates a credit memo each time that you adjust and process the transactions on a released invoice.

  • The credit memo reverses the invoice amount by the amount of the adjusting item.

  • The invoice transaction currency of the credit memo is the same as the currency of the released invoice.

Contract Number Ranges: Explained

Contract number is an alphanumeric attribute. The contract number range includes all contracts with a value equal to or greater than the From value but less than or equal to the To value.

Tip: If you use contract number ranges extensively, then use a fixed length numeric contract number. Using a fixed length numeric contract number simplifies the process of defining the contract number range and makes it more comprehensive. Precede the contract number with the required number of zeros to ensure that the length is always fixed.
Note: Spaces and letters are sorted before numbers when you sort a list of contract numbers.

Valid Contract Number Range Examples

The From and To contract numbers of 2009 through 2010 include the following contracts:

  • All contracts that start with 2009 and contain extra trailing characters, such as 20090 and 2009AZ, since they all have a value greater than 2009.

  • Contract 201, since it has a value less than 2010.

  • All contracts that start with 201 and with a letter in position 4, such as 201A123Z, since they all have a value less than 2010.

The From and To contract numbers of 2009 through 2010 exclude the following contracts:

  • Contracts 2 and 20, since they both have lower values than 2009.

  • Contract 20A9XYZ, since it has a lower value than 2009.

  • All contracts that start with 2010 and contain extra trailing characters, such as 20100 and 2010XYZ, since they all have values greater than 2010.

Contract Templates for Project Billing: Explained

When you create a contract template, you can provide values for project-related attributes that appear on contracts created from the contract template.

Project Attributes to Specify on Contract Templates

The following table describes the project-related attributes for contract templates.

Attributes Description

Bill plan

Specify the invoice method, its classification, billing currency type, payment terms, billing cycle, bill set, and invoice summarization formats such as labor, nonlabor, and event.

You don't need to enter values for bill plan attributes such as the bill-to account, bill-to contract, and bill-to site because these are specific to customer or contract.

Revenue plan

Specify the revenue method and its classification.

Billing extensions, if used, are specific to each contract. Therefore, don't enter a billing extension on the contract template.

Contract template lines

Link contract template lines to a bill plan and a revenue plan defined on the template.

Billing controls and overrides

Specify on the contract.

Rate schedules

Specify labor schedule, nonlabor schedule, and burden schedule on the contract.

If you create a contract from the contract template, you only need to enter the organization and contract-specific attributes.

FAQs for Manage Project Contract Billing

Access to invoices is secured by the business unit. You only have access to invoices that belong to contracts in the business unit assigned to your role. You can see all invoices for projects that are linked to the contracts which you can access.

What happens if I search for an invoice by project?

You have the option of searching for invoices by project. When you open the invoice, your view of the invoice amounts is restricted to transactions from that project only. The invoice does not display amounts from other projects associated with the contract. The queried amount on the invoice contains the amount of total invoice distributions for the project and task entered in your search criteria.

What's the difference between the queried amount and the invoice amount?

If you search an invoice by project and open the invoice to review the details, then you will see a value for the queried amount. The queried amount on an invoice is from the project in your search criteria. The queried amount does not contain amounts from other projects that have transactions on the invoice.

The invoice amount is the amount of transactions from all projects that contributed to the invoice.

Intercompany billing creates internal invoices and accounting entries to pass costs and share revenue across organizations on an intercompany billing contract. A provider organization performs work and charges it a project owned by the receiver organization. The provider organization creates an invoice in Oracle Fusion Receivables and the receiver organization imports the invoice from Oracle Fusion Payables. Accounting entries for revenue are created between the organizations.

Interproject billing creates internal invoices for costs incurred between a provider project and a receiver project defined on an interproject billing contract. The provider project generates an Oracle Fusion Receivables invoice, which the receiver project receives as an Oracle Payables invoice.

What's the difference between the associated task and transaction task on a billing transaction?

The associated task for a billing transaction is the task within the project task hierarchy associated with a contract line.

The transaction task for a billing transaction is the task within the project task hierarchy that the transaction is charged to.

When you set an expenditure item to be nonbillable, it will not be selected during the invoice or revenue generation processes. Any existing billing transactions for the expenditure item are deleted.

The expenditure item has an existing billing transaction that was created automatically. Create billing transactions either automatically or manually.

To manually create a billing transaction, change the billing transaction creation method to manual for the expenditure item.

Expenditure items that you create after generating an invoice become eligible billing transactions for the invoice. Manually create a billing transaction for the expenditure item after generating the invoice.

The consumed amount of the billing transaction is reduced to zero, and the invoiced amount and percent billed are updated. If the billing transaction is for an expenditure item or event on a released invoice, the billing transaction is marked for adjustment processing.

When you delete a draft invoice, all invoice lines, notes, and the invoice header are deleted. Billing transactions that do not have invoice line distributions will also be deleted.

Released invoices may contain partially invoiced billing transactions. In those instances, the billing transaction will not be deleted, and the billing transaction balance will be updated.

Yes, you can delete an unprocessed event. You can't delete an event that was invoiced or recognized for revenue. Additionally, you can't delete an event that was created by a billing extension, was previously reversed, or was a reversing event.

Can I invoice or recognize revenue for a billing event without a completion date?

No, you can't invoice or recognize revenue for a billing event that doesn't have a completion date. You must specify the completion date on the Edit Event page or in the Project Billing Event Create, Read, Update, or Delete Web Service to make a billing event eligible for invoicing or revenue recognition.

Request for the contract administrator to edit the soft limit or hard limit amounts in the contract billing controls. If the contract in not in draft status, the contract administrator must place the contract under amendment to make the edits.

What happens when revenue or invoice amounts reach a hard limit?

For a transaction that reaches a hard limit during generation of invoices or revenue, the application creates a partial billing transaction consisting of the amount of funds that are remaining and a billing transaction exception for the amount of transaction that exceeds the funds remaining. You can review exceptions on the Manage Billing Transaction Exceptions page or on the Edit Invoice page. Based on the exceptions, you can then adjust the corresponding expenditure items or events.

How can I find expenditure items that are not yet invoiced?

On the Manage Project Costs page, search for expenditure items that are billable and in unbilled invoice status.

Request for the contract administrator to edit the billing resources in the contract billing controls. If the contract is not in draft status, the contract administrator must place the contract under amendment to make the edits.

When do I recalculate the currency conversion for an invoice?

Review the invoice exceptions for currency conversion errors that occurred when you updated invoices from Oracle Fusion Receivables. If there is an exception message for currency conversion, recalculate the currency conversion for the affected invoice.

In the Billing section of your contract select the Released option from the Generated Invoice Status drop-down list. When you generate invoices for the contract, the invoices are created in Released status.

How can I transfer automatic credits from contract invoices to Oracle Fusion Receivables?

On the Manage Transaction Types page, while creating a transaction type select Any Sign from the Creation Sign list. This allows both positive and negative invoice amounts to be transferred from Oracle Fusion Project Billing to Oracle Fusion Receivables.

When do I recalculate a billing extension?

If you make adjustments to a draft invoice that affect the amount of the billing extension, recalculate the billing extension before you submit the invoice for approval.

Note: Billing extensions are currently not available in Oracle Cloud implementations.

How can I view an Oracle Fusion Receivables transaction for a contract invoice?

You can view invoice transactions only if the project contract invoice is in Accepted status. In the Edit Invoice page, click View Receivables Invoice to view the Oracle Fusion Receivables invoice transaction.

The invoice status changes to Transfer Rejected or Accepted after you run these processes:

  • Import AutoInvoice in Oracle Fusion Receivables

  • Update Invoice Details in Oracle Fusion Project Billing

Note: The application disables the View Receivables Invoice action for invoices integrated with third-party receivables applications.

What happens if I preview an invoice when the contract line does not have a purchase order?

If purchase order number does not exist for a contract line, then the contract number is displayed instead.

What happens if the same billing event is updated multiple times using the Update Events Web service?

Whenever a billing event is updated using Update Events Web service in Oracle Fusion Project Billing, the event number and attributes such as event description are provided to the application.

If the same billing event is updated multiple times, then the most recent event attributes obtained from the Update Events Web service takes precedence over the previous attributes, except when the most recent values are blank.

Can I release multiple approved invoices?

Yes. You can simultaneously release up to 500 approved invoices from the Manage Invoices page, using the Release All action.

Search for standard type invoices within a business unit by billing type. Select the Release All action from the search results to open the Release All window and optionally, override the invoice date for the complete list of approved invoices displayed by the search results, up to a maximum of 500. Submit the release action.

Note: Release All action is enabled only when the search results don't exclude any earlier approved invoices for any contracts and also include only standard invoices.

Can I change the status of a credit memo to draft?

No. All credit memos are initially created in approved status. If you need to correct or update a credit memo, then release the credit memo and then adjust the released credit memo.

When is a credit memo reason required?

You must enter a credit memo reason when you release a nonstandard invoice, such as a credit memo, cancellation, concession, or write-off, for a contract business unit that requires a credit memo reason. When you submit the Transfer Invoice Details to Receivables process, the credit memo reason is transferred to Oracle Fusion Receivables.

Note: Oracle Fusion Receivables contains the values for credit memo reasons.

Manage Project Contract Billing: Generate Invoices

You can generate invoices by using contracts. Each contract line processes eligible transactions charged to its associated projects and tasks. Invoice amounts are calculated when you either submit the process to generate invoices or manually create an invoice for a contract.

You can generate invoices more quickly by specifying a number of instances of the process that would run in parallel. In the Manage Administrator Profile Values task, use the Number of Parallel Invoice Generation Programs profile option to specify a value between 2 and 5. Each instance processes a subset of the contracts, using a system-generated contract number range.

Settings That Affect Invoice Amounts

Depending on the security settings, the application restricts the business unit and contracts that you can select when you enter the parameters to generate an invoice.

The following table explains several key parameters of the invoice generation process.

Parameter Description

Create Billing Transactions

Validates and maps eligible project transactions to the contract and contract line to create billing transactions. Updates consumed funds on the contract and determines the billable amount based on the invoice method. Select No if you want to create the billing transactions when generating revenue instead of during invoice generation.

Create Invoice

Create invoice distributions from the billing transactions. Groups the invoice distributions into invoice lines and an invoice header using the rules defined on the invoice format.

Previously Invoiced Items Only

Create an adjustment invoice that includes only retroactive adjustments for transactions that were previously invoiced.

Project Number

If you enter a project, the invoice includes only transactions charged to the entered project and excludes transactions from other projects associated with the contract.

Note: If you don't enter a value for the contract number, the application creates invoices for all eligible contracts in the business unit. If you don't enter any parameters, all currently or previously active contracts are processed for invoicing, ordered by contract number.

How Invoice Lines Are Created

The two major components of invoice generation involve creating the billing transactions and creating the invoice.

The first step of the Generate Invoice process evaluates the eligibility of expenditure items and events for invoicing, maps them to contract lines, and updates the funding amount for the contract line. If an expenditure item or event passes the billing controls, a mapping record is created for a combination of the transaction, contract line, and funded amount. This intermediate mapping record, the billing transaction, is placed on the invoice and is updated each time that you generate an invoice for the contract until the sum of its mappings are 100 percent.

Next, invoice lines and distributions are created from the eligible billing transactions during the Generate Invoice process. Distributions are grouped into invoice lines and the invoice header using the rules defined on the invoice format. Optionally, create distributions manually by attaching the eligible expenditure items and events on the invoice to the invoice lines.

For sponsored projects funded by multiple awards and funding sources, users can invoice sponsors and generate accurate revenue using the costs charged to a specific project and award combination. Cost transactions for sponsored projects store the contract as specific attributes, because there can be multiple awards or contracts for a single sponsored project. This is available only for sponsored project transactions, not for non-sponsored projects or regular, non-award based contracts. When you use this contract on the project cost transaction, the invoice generation and revenue recognition processes now select the project costs specific to the award or contract.

All transactions for an internal funding source are non-billable. Users cannot make any adjustments to an internal funding source cost transaction so as to mark it as a billable transaction.

Generating SF270 Invoice Forms: Procedure

Billing specialists format invoices for federal grants award contracts in the federal standard form SF270.

Billing specialists generate the federal SF270 invoice form in Oracle Fusion Project Billing after the following prerequisite steps are performed in Oracle Fusion Grants Management and Oracle Fusion Enterprise Contracts.

Grants administrators create awards in Oracle Fusion Grants Management. For award contracts that don't use LOC billing, the grants administrator can specify the invoicing format as SF270. Hence, when invoices are created for this contract, they are in SF270 format.

To generate invoices, billing specialists, grants accountants, or grants administrators can navigate to the Invoice work area and generate invoices for the award contracts.

The following table describes various sequence of actions related to the procedure for generating the SF270 form, locations from where these actions are performed, and their results.

Step Role Action Location Result

1

Grants administrator

Set the invoice structure to SF270 and submit the award.

Oracle Fusion Grants Management

Oracle Fusion Grants Management creates contract, contract line, bill plan, revenue plan, and associated projects. Oracle Fusion Grants Management then links these attributes to the contract line in Oracle Fusion Enterprise Contracts.

2

Grants administrator

Navigate to the Contract work area and perform the following steps:

  • Search for a contract by using the award number as the contract number.

  • Review the draft contract.

  • Submit the contract for approval.

Oracle Fusion Enterprise Contracts

The contract is submitted for approval.

3

Contract administrator

Approve the contract.

Oracle Fusion Enterprise Contracts

Contract is activated.

4

Billing specialist

  • Sign into the application and automatically reach the Invoice work area.

  • Generate the invoice for the award contract setup for SF270 invoicing.

  • Ensure that the LOC number is blank.

Oracle Fusion Project Billing

The Generate Invoice process runs, and the billing specialist monitors the process in the Invoice work area.

5

Billing specialist

Search by contract number on the Manage Invoices page after the Generate Invoice process is completed. Select the invoice from the search result.

Oracle Fusion Project Billing

The Review SF270 option is activated.

6

Billing specialist

Click the invoice number link.

Oracle Fusion Project Billing

The Edit Invoice Details page opens. The page contains the Review SF270 option.

7

Billing specialist

Click the Review SF270 option.

Oracle Fusion Project Billing

The invoice is structured and displayed in the SF270 format.

8

Billing specialist

View the invoice using the Preview action.

Oracle Fusion Project Billing

SF270 is displayed in a business intelligence process report in the structure published by the US federal government.

9

Billing specialist

Submit invoice for approval, saves, and closes the invoice.

Oracle Fusion Project Billing

Invoice is submitted for approval, and the Manage Invoice Listing page is displayed to the billing specialist.

10

Billing specialist

Navigate to the Invoice Overview page and perform the following steps:

  • Search for the specific invoice in the submitted invoices list based on the contract number.

  • Approve the invoice.

Oracle Fusion Project Billing

Invoice status changes to Approved. Invoice status changes to Published.

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 is 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.

Invoicing by Contract Line: Example

This example illustrates how to create a separate invoice line for each contract line.

Scenario

You are required to prepare an invoice using a standardized method of construction contract billing and to invoice the work in accordance with a schedule of values. A schedule of values, or a contractor's application for payment, typically contains a detailed description of the work, value of the completed work, value of materials, and value of the balance required to finish the work.

The schedule of values drives the invoicing, which takes place by invoice line. To meet this request, you capture invoice amounts by contract line. For contract lines with a sell intent, item, and project-based line type source, invoicing must use invoice formats with grouping option that includes contract line. Usage of invoice formats with grouping option results in the transfer of inventory item and related attributes from contract line to invoice line in Oracle Fusion Receivables. These contract line attributes come from the currently or previously active, expired, hold, or closed contract version.

Schedule of Values

Your contractor's schedule of values has the following categories:

  • Original Contract Sum

  • Net Change by Change Orders

  • Contract Sum to Date

  • Total Completed and Stored to Date

  • Less Previous Certificates for Payment

  • Current Payment Due

  • Balance to Finish

The invoice must contain separate invoice lines for each category.

Analysis

To create individual invoice lines for each category in the schedule of values, create a contract line for each category. The invoice formats for the contract lines bill plan must be grouped by contract line. The following table summarizes the setup of key contract and project features.

Key Feature Configuration

Contract Line

Create one contract line for each schedule of values category.

Invoice Format

Create one labor, one nonlabor, and one event invoice formats, all with grouping option of contract line and all.

Bill Plan

  • Select the labor, nonlabor, and event invoice formats created with grouping option of contract line and all.

  • Associate the schedule of values contract lines with the bill plan.

Resulting Invoice Lines

Expenditure items and events charged to projects associated with the contract lines resulted in the following invoice lines after invoice generation.

Schedule of Values Category Invoice Line Number Invoice Line Amount

Original Contract Sum

1

$8,425,000

Net Change by Change Orders

2

$0

Contract Sum to Date

3

$8,425,000

Total Completed and Stored to Date

4

$168,500

Total Earned

5

$168,500

Less Previous Certificates for Payment

6

$75,000

Current Payment Due

7

$93,500

Balance to Finish

8

$8,256,500

This example demonstrates how to create an invoice and send it to a customer for contract that is based on time and materials. During invoice review, you discover two hotel charges that should not be on the invoice. Adjust the invoice by changing the transactions to nonbillable and update the invoice amount.

The following table summarizes key decisions for this scenario.

Critical Choices In this Example

Contract type

External

Invoice method classification

Rate based

Invoice frequency

Monthly

Managing Contract Invoices

Invoice management involves:

  • Submitting the Generate Invoice process to create invoices automatically.

  • Reviewing and correcting any billing exceptions.

  • Opening and reviewing the invoice.

  • Adjusting or removing transactions from the invoice as necessary.

  • Changing the hold status of transactions.

  • Changing the billable status of transactions.

  • Changing billing transactions and unbilled transactions to invoice distributions.

  • Reordering invoice lines and invoice distributions.

  • Recalculating billing extensions as necessary.

  • Recalculating the invoice.

  • Previewing the invoice to confirm the format is correct

  • Submitting the invoice for approval.

  • Approving and releasing the invoice so it can be transferred to Oracle Fusion Receivables.

Prerequisites

This example is based on the assumption that the following prerequisite conditions are met:

  1. A contract for external billing is defined. The dates for the contract should be between 01-Jul-2013 and 21-Jul-2013. The contract status must be active, expired, or in the amendment cycle with a previously active or expired version.

  2. The projects and project plans associated with the contract are defined.

  3. Costs are captured for the associated projects.

Generate an Invoice

  1. Open the Overview page in the Contract Invoices work area, and select Generate Invoices from the Tasks pane.

  2. Enter the information listed in the following table.

    Field Value

    Business Unit

    Vision Operations

    Billing Type

    External

    Create Billing Transactions

    Yes

    Create Invoice

    Yes

    From Contract Number

    Select the contract you created in the prerequisite step.

    To Contract Number

    Select the contract you created in the prerequisite step.

    Leave all other parameter fields blank.

  3. Click Submit.

  4. Click the F5 key to refresh your browser.

Open the Invoice

  1. Open the Overview page in the Contract Invoices work area, and search for your invoice.

  2. Enter the information listed in the following table.

    Field Value

    Business Unit

    All

    Billing Type

    External

    From Date

    01-Jul-2013

    To Date

    31-Jul-2013

  3. Click Search.

  4. Click Exceptions, and verify there are no invoices present on this tab.

  5. Click Draft Invoices.

  6. Select the Invoice Number for your contract to open the invoice.

Change the Billable Status of a Transaction

  1. On the Edit Invoice page, expand the Invoice Lines region if the details are not visible.

  2. Select a row for an invoice line that contains hotel charges.

  3. In the Expenditure Items tab within the Line Details region, select a row with the transaction for the Hotel expenditure type.

  4. From the Actions menu, select Remove Transactions > Set as Nonbillable. This action moved the expenditure item from Line Details to Unbilled Transactions.

  5. Select Unbilled Transactions to review the expenditure item.

Preview the Invoice

  1. In the Invoice Header region, click Preview.

  2. Select Default Template, and click Next. This opens a preview of the invoice as it will be printed using the format defined in the bill plan's invoice template.

  3. Review the invoice, and click OK.

  4. Click Save and Close.

Submit the Invoice for Approval

  1. On the Overview page, click the Draft Invoices tab, and select the row that contains your invoice.

  2. Click Actions > Submit. The invoice status is changed to Submitted and it is now visible on the Submitted Invoices tab.

  3. Select Submitted Invoices and locate the previously submitted invoice.

  4. Select the row that contains your invoice.

  5. Click Actions > Approve.

  6. Click Release.

  7. Override the invoice date and enter the receivables invoice number, if required.

  8. Enter a credit memo reason if the invoice is a credit memo.

  9. Click Submit.

  10. Click the Released Invoices tab. Verify that your invoice is present in the list of invoices.

Invoice and Revenue Rates: How They Are Determined

Oracle Fusion Project Billing uses bill rates, burdening, and transfer price schedules to derive standard bill rates, multipliers, markups, and bases for calculating potential revenue when the revenue method classification on a revenue plan is as billed, as incurred, or rate based. Similarly, bill rates derive invoice amounts when the invoice method classification on a bill plan is rate based.

Settings That Affect Rates and Overrides

The specific schedules to use to calculate invoice and revenue amounts are stored on either the bill plan or revenue plan. They are based on the schedule types specified on the invoice method and revenue method as listed in the following table.

Schedule Type Rate Source

Labor schedule, bill rate

Standard employee bill rate schedule

Standard job bill rate schedule

Nonlabor schedule, bill Rate

Standard nonlabor bill rate schedule

Labor schedule, burden

Standard labor burden schedule

Nonlabor schedule, burden

Standard nonlabor burden schedule

Labor and nonlabor schedule, burden

Standard burden schedule

Labor schedule, transfer price

Standard labor transfer price schedule

Nonlabor schedule type, transfer price

Standard nonlabor transfer price schedule

Tip: When the labor or nonlabor schedule type is bill rate, you can enter labor or nonlabor bill rate overrides on the bill plan or revenue plan.

How Bill Rates and Bill Rate Overrides Are Calculated

Oracle Fusion Project Billing uses this order to determine the labor bill rate for a billing transaction originating from an expenditure item:

  1. Employee bill rate override

  2. Employee job assignment override with job bill rate override

  3. Job bill rate override

  4. Labor multiplier override

  5. Standard employee bill rate schedule

  6. Employee job assignment override with standard job bill rate schedule

  7. Standard job bill rate schedule

Oracle Fusion Project Billing uses this order to determine the nonlabor bill rate for a billing transaction originating from an expenditure item:

  1. Nonlabor bill rate override for a specific expenditure type, resource, and organization

  2. Nonlabor bill rate override for a specific expenditure type and resource

  3. Nonlabor bill rate override for a specific expenditure type

  4. Standard nonlabor bill rate schedule for a specific expenditure type, resource, and organization

  5. Standard nonlabor bill rate schedule for a specific expenditure type and resource

  6. Standard nonlabor bill rate schedule for a specific expenditure type

Oracle Fusion Project Billing uses the percent complete invoice method to invoice as progress is measured and recorded.

The Generate Invoice process:

  1. Calculates the percent complete amounts

  2. Creates invoice events with the percent complete amounts

Prerequisites and Settings That Affect Percent Complete Invoice Amounts

The following prerequisites and settings impact the percent complete invoice for a contract line:

  • The percent complete on the contract line or associated project must be greater than zero.

    • To ensure the percent complete is greater than zero:

      • Ensure the project progress numbers are up to date and then update the progress for the entire contract.

      • Manually enter percent complete.

      • Override percent complete after the update from project progress.

  • The contract line amount or the funded amount for each project and task associated with the contract line must be greater than zero.

  • The contract line must be assigned to a bill plan that uses the percent complete invoice method.

  • The bill plan contains a calculation level that creates events for the contract line or associated project.

The following table describes the effects of the calculation level selection.

Calculation Level Description

Associated project

The percent complete invoice method creates separate events for each project and task associated with the contract line. Each event contains the project and task associated with the contract line.

Contract line

The percent complete invoice method creates one event for the contract line. The event contains the total of all percent complete amount for all projects and tasks associated with the contract line. The event doesn't contain a project or task.

How Percent Complete Is Calculated

The application performs the following activities when you update the progress:

  • Retrieves all project progress amounts for all tasks for the associated projects of each contract line associated with a percent complete bill plan.

  • Calculates percent complete at the contract line level, if the calculation level in the bill plan is contract line.

  • Calculates percent complete at the associated project and task level, if the calculation level in the bill plan is associated project.

  • Updates the percent complete attributes for all applicable contract lines or associated projects, based on the calculation level selected in the bill plan.

The following examples show how percent complete is calculated at the contract line level and associated project level based on effort and cost.

Contract Line Percent Complete Effort Example

When progress is based on effort, the following formula calculates the percent complete for the contract line.

Percent complete equals left parenthesis, sum of,
left parenthesis, baseline budget effort multiplied by  Physical Percent
Complete, right parenthesis, for every task associated to the contract
line, right  parenthesis, divided by left parenthesis Sum of Baseline
Budget Effort for every task associated to the  contract line, right
parenthesis
Task Baseline Budget Effort Physical Percent Complete Earned Value Effort Percent Complete

1

8

20

160

 

1

8

50

400

 

Line 1

16

 

560

35

Associated Project Percent Complete Effort Example

When progress is based on effort, the following formula calculates the percent complete for the associated project.

Percent complete equals left parenthesis, sum of,
left parenthesis, baseline budget effort multiplied by  Physical Percent
Complete, right parenthesis, for every subtask that is part of the
associated task, right  parenthesis, divided by left parenthesis Sum
of Baseline Budget Effort for every subtask that is part of the  associated
task, right parenthesis
Task Baseline Budget Effort Physical Percent Complete Earned Value Effort Percent Complete

1.1

2

50

100

 

1.2

6

10

60

 

1

8

 

160

20

Contract Line Percent Complete Cost Example

When progress is based on cost, the following formula calculates the percent complete for the contract line.

Percent complete equals left parenthesis, sum of,
left parenthesis, baseline budget cost multiplied by Physical Percent
Complete, right parenthesis, for every task associated to the contract
line, right parenthesis, divided by left parenthesis Sum of Baseline
Budget Cost for every task associated to the contract line, right
parenthesis.
Task Baseline Budget Cost Physical Percent Complete Earned Value Cost Percent Complete

1

1000

20

20000

 

2

500

50

25000

 

Line 1

1500

 

45000

30

Associated Project Percent Complete Cost Example

When progress is based on cost, the following formula calculates the percent complete for the associated project.

Percent complete equals left parenthesis, sum of,
left parenthesis, baseline budget cost multiplied by Physical Percent
Complete, right parenthesis, for every subtask that is part of the
associated task, right parenthesis, divided by left parenthesis Sum
of Baseline Budget Cost for every subtask that is part of the associated
task, right parenthesis.
Task Baseline Budget Cost Physical Percent Complete Earned Value Cost Percent Complete

1.1

250

50

12500

 

1.2

750

10

7500

 

1

1000

 

20000

20

2.1

400

60

24000

2.2

100

10

1000

2

500

25000

50

How Percent Complete Invoice Amounts Are Calculated

The following examples show how percent complete invoice amounts are calculated for the contract line and associated project.

Contract Line Percent Complete Amount Example

The following formula calculates percent complete invoice event amounts for the contract line.

Contract Line Percent Complete Invoice Amount equals
left parenthesis, left parenthesis, Contract Line Percent  Complete
multiplied by Contract Line Amount, right parenthesis, minus Sum of
Existing Invoice Events, right  parenthesis.
Percent Complete Contract Line Amount Sum of Existing Invoice Events Percent Complete Event Amount

30

2000

100

500

Associated Project Percent Complete Amount Example

The following formula calculates percent complete invoice event amounts for the associated project.

Associated Project Percent Complete Invoice Amount
equals left parenthesis, left parenthesis, Associated  Project Percent
Complete, multiplied by Associated Project Funded Amount, right parenthesis,
minus Sum of  Existing Invoice Events, right parenthesis.
Percent Complete Associated Project Funded Amount Sum of Existing Invoice Events Percent Complete Event Amount

20

1300

80

180

50

700

20

330

Oracle Fusion Project Billing uses the percent spent invoice method to recognize revenue as progress is calculated.

The Generate Invoice process:

  1. Calculates the percent spent amounts

  2. Creates events

Prerequisites and Settings That Affect Percent Spent Invoice Amounts

The following prerequisites and settings impact the percent spent invoice for a contract line:

  • A baseline cost (or cost and invoice) budget version must exist for all projects associated with the contract line.

  • All existing actual costs for projects associated with the contract line must first be summarized.

  • The Bill-Through Date parameter of the Generate Invoice process is a date that is on or after the last day of the current accounting period.

  • The contract line amount or the funded amount for each project and task associated with the contract line must be greater than zero.

  • The contract line must be assigned to a bill plan that uses the percent spent invoice method.

  • The bill plan contains a calculation level that creates events for the contract line or associated project.

The following table describes the effects of the calculation level selection.

Calculation Level Description

Contract line

The percent spent invoice method creates separate events for each project and task associated with the contract line. Each event contains the project and task associated with the contract line.

Associated project

The percent spent invoice method creates one event for the contract line. The event contains the total of all percent spent amounts for all projects and tasks associated with the contract line. The event doesn't contain a project or task.

How Associated Projects Actual Cost is Calculated

The associated projects actual cost is the inception-to-date (ITD) actual cost. Inception-to-date actual cost is derived by summing the actual costs summarized by accounting period up to and including the maximum accounting period with a period end date that is on or before the To Date of the Generate Invoice process. To include current period costs in the calculation, use a To Date that is on or after the last day of the current accounting period.

How Percent Spent Invoice Amounts are Calculated

The following examples show how percent spent invoice amounts are calculated for the contract line and associated project.

Contract Line Percent Spent Example

The following formula calculates the percent spent invoice amount for the contract line.

Event Amount equals left parenthesis, left parenthesis,
left parenthesis, left parenthesis Sum of ITD Actual Cost for every
task associated to the contract line, right parenthesis, divided by
left parenthesis Sum of Total Budgeted Cost for every task associated
to the contract line, right parenthesis, right parenthesis, multiplied
by Contract Line Amount, right parenthesis, minus Sum of Existing
Invoice Event Amounts for the Contract Line, right parenthesis.
Task ITD Actual Cost Total Budgeted Cost Contract Line Amount Sum of Existing Invoice Events Percent Spent Event Amount

1

60

300

 

 

2

40

100

 

 

Line 1

100

400

1000

100

150

Associated Project Percent Spent Example

The following formula calculates the percent spent invoice amount for the associated project.

Event Amount equals left parenthesis, left parenthesis,
left parenthesis, left parenthesis Sum of ITD Actual Cost for every
subtask that is part of the associated task, right parenthesis, divided
by left parenthesis Sum of Total Budgeted Cost for every task that
is part of the associated task, right parenthesis, right parenthesis,
multiplied by Associated Project Funded Amount, right parenthesis,
minus Sum of Existing Invoice Event Amounts for the Associated Project,
right parenthesis.
Task ITD Actual Cost Total Budgeted Cost Associated Project Funded Amount Sum of Existing Invoice Events Percent Spent Event Amount

1.1

40

100

 

 

 

1.2

20

200

 

 

 

1

60

300

600

75

45

2.1

30

60

 

2.2

10

40

 

2

40

100

400

25

135

Generate Invoice Report

Use the Generate Invoice Report to review the invoice generation results for your contracts. The report provides a summarized view for items that were processed successfully, with warnings, and with errors. The report optionally provides summarized and detailed descriptions of items that weren't processed because they were considered ineligible.

The Manage Billing Transaction Exceptions page lists additional details for invoice generation exceptions.

View the report after you generate invoices from the Contract Invoices task.

To obtain results for this report, you must:

  • Have existing contracts and transactions that need invoicing.

  • Submit the Generate Invoice process.

Report Results

The following table describes the sections of the Generate Invoice Report. It also describes the value that you must select for the Generate Ineligible Data parameter to populate the corresponding section.

Section Description Generate Ineligible Data

Process Summary

Summary statistics of:

  • Billing events

  • Billing transactions

  • Draft invoices

  • Ineligible contracts

  • Ineligible contract lines

  • Ineligible bill plans

  • Ineligible associated projects

  • Ineligible expenditure items

  • Ineligible events

No, Summary, Detail

Billing Event Errors

Billing extension events that weren't created, along with message details for the cause of each unique error.

Detail

Ineligible Contracts

Contracts that were excluded from invoice generation, along with message details for the cause of each unique error.

Detail

Ineligible Bill Plans

Bill plans that were excluded from invoice generation, along with message details for the cause of each unique error.

Detail

Ineligible Contract Lines

Contract lines that were excluded from invoice generation, along with message details for the cause of each unique error.

Detail

Ineligible Associated Projects

Projects associated with contract lines that were excluded from invoice generation, along with message details for the cause of each unique error.

Detail

Ineligible Expenditure Items

Expenditure items that were excluded from invoice generation, along with message details for the cause of each unique error.

Detail

Ineligible Events

Expenditure items that were excluded from invoice generation, along with message details for the cause of each unique error.

Detail

Export Invoice Details Process

The Export Invoice Details process lets you export invoices from Oracle Fusion Project Billing to third-party receivables applications. You then import the invoices into your third-party receivables application to issue them to your customers and account for them in your general ledger.

Navigate to the Scheduled Processes page, click Schedule New Process and select the Export Invoice Details process. You can only export invoices that are in Released or Transfer Rejected status. After the process completes, the application sets the exported invoices to the Transferred status.

Parameters

Business Unit

Select the business unit for which you want to export the invoices.

Billing Type

Select the billing type of the invoices. The types are External, Intercompany, and Interproject.

From Contract Number

Enter the starting contract number for the range of contracts.

To Contract Number

Enter the ending contract number for the range of contracts.

Export Invoice Data Report

The Export Invoice Details process stores the invoices and other attributes in a CSV file. You can import this file to third-party receivables applications for accounting.

If the report has errors, then:

  1. Review the error message details for each invoice and fix the issues.

  2. Resubmit the Export Invoice Details process.

FAQs for Manage Project Contract Billing: Generate Invoices

What's an invoice preprocessor?

The invoice preprocessor is an Application Programming Interface (API) called automatically during invoice generation. The invoice preprocessor checks invoice eligibility for contracts, contract lines, bill plans, projects, expenditure items and events. The invoice preprocessor then creates billing transactions for those eligible items.

A billing transaction exception represents the amount of a transaction that could not be invoiced or recognized for revenue. The exceptions are created during invoice and revenue generation. If you have a billing transaction exception, perform the indicated corrective action on the transaction, then generate the invoice or revenue again.

Numerous conditions can cause billing transaction exceptions, but the conditions can be grouped into problems in the following areas:

  • Billing resources

  • Billing controls

  • Currency conversion

  • Intercompany setup

  • Rates

The tax amount on a contract invoice is an estimated amount that is calculated based on the tax event class Sales Transaction Tax Quote defined in Oracle Fusion Tax. Oracle Fusion Receivables calculates the final tax amounts using the Invoice tax event class. If the setup for the two event classes differs in Oracle Fusion Tax or changes between the time you create a draft invoice in Oracle Fusion Project Billing and the final invoice in Oracle Fusion Receivables, then the tax amounts shown in the two applications can differ.

Can I use third-party applications to calculate tax?

Yes, you can use third-party applications to calculate tax only through the Calculate Tax action in the Invoices work area. You can't use third-party applications to calculate tax while running the Generate Invoices process.

How can I submit an invoice automatically?

In the Billing section of your contract select the Submitted option from the Generated Invoice Status drop-down list. When you generate invoices for the contract the application automatically submits the invoices, triggers the notification for invoice approval, and updates the work list.

Which original system do I choose for the Export Invoice Details process?

The customer hub reference number is the original system reference that the receivables application uses to map the customer on the invoice to the receivables customer identification number.

You must choose the original system that represents the customer hub that you set up using the Manage Trading Community Source Systems task in the Setup and Maintenance work area. This parameter is optional, but if you don't specify the original system, then the original system customer reference number is not populated in the CSV output of the Export Invoice Details process.

In the Billing section of your contract select the Released option from the Generated Invoice Status drop-down list. When you generate invoices for the contract, the invoices are created in Released status.

How can I correct the bill-to and ship-to details in transfer rejected invoices?

Amend the contract and update the bill-to and ship-to information and then activate the amended contract version. When you run the Transfer Invoice Details to Receivables process, the application updates the bill-to and ship-to information on the transfer rejected invoices before transferring them again to receivables.

Can I process invoices in any sequence?

Yes. You can allow project contract invoices to be processed through their normal life cycle in any order. Set the Allow Invoice Processing in any Sequence profile option to Yes. Leave the profile option set to No if you always want invoices to be submitted, approved, and released in ascending invoice number order, to avoid gaps in the project contract invoice numbering.

Manage Project Contract Billing: Manage Invoice Transactions

When reviewing an invoice, you have the option of editing transactions at the header, line, and details levels. Actions performed at the header level apply to every invoice line. Actions performed on an invoice line are applied to every expenditure item or event associated with the invoice line. Alternatively, adjust an individual expenditure item or event. To edit invoice transactions you choose from the following options:

  • Adjust transactions

  • Remove transactions

  • Recalculate the invoice details

  • Recalculate extensions

The following table explains the various invoice adjustment actions and the corresponding invoice status when you can perform these actions.

Type of Adjustment Action Invoice Status When Available

Adjust transactions

  • Set an expenditure item to nonbillable

  • Place an expenditure item or billing event on invoice hold

Released, Accepted, Transferred, and Draft

Remove transactions

Draft

Recalculate invoice details

Released, Accepted, Transferred, Transfer Rejected, and Draft

Recalculate extensions

Draft

Adjusting Transactions

When invoice is in draft status, adjust a transaction when you want to remove it from the invoice line details and delete its corresponding billing transaction. The transaction moves to the unbilled transactions region of the invoice, where you can return it to billable status if it is an expenditure item or remove the invoice hold when you are ready to invoice it at a later time. The funds consumed amount on the contract is updated to reflect the adjusted amount.

If you adjust a transaction on a released, transferred, transfer rejected, or accepted invoice, you don't remove the transaction from the invoice line details. Instead, you mark it for adjustment processing. The next time you run the Generate Invoice process, you will create an invoice distribution line that reverses the invoiced amount and reduces the funds consumed amount on the contract. If you don't enable net invoicing, you will create a separate credit memo. If you enable net invoicing but not net credit, you will create a separate standard invoice with a credit invoice line for the reversal and positive invoice lines for new transactions included. If you enable both net invoicing and net credit, you will create a separate credit memo with a credit invoice line for the reversal and a positive invoice line for the same transaction, if you set it back to billable or removed the invoice hold.

Removing Transactions

Remove a transaction when you want to remove the transaction completely from the current invoice. The transaction will be invoiced in next billing cycle. The funds consumed amount on the contract is not updated.

Recalculating Invoice Details

Recalculate the invoice details after you make a change to a transaction that affects the invoice amount. You may need to recalculate invoice details if you change a bill rate or make changes to the contract.

If you recalculate the invoice details for an invoice in draft status, the transaction amount is updated in the invoice lines details. However, if you recalculate the invoice details for an invoice in released or higher status, the transaction is only marked for recalculation. You must run the Generate Invoice process to actually perform the recalculation, which may result in a reversal of the previous invoiced amount and the invoicing of a new amount.

Recalculating Extensions

Recalculate the extensions for an invoice if you made a change to a billing extension after generating the invoice. The modified amount from the extension will be included in the invoice after you recalculate the extension. Recalculate extensions before you submit the invoice for approval.

Holding Transactions for Invoices: Explained

You can put transactions on released, transferred, transfer rejected, or accepted invoices on invoice hold.

Oracle Fusion Project Billing performs the following actions when a transaction on an invoice is put on invoice hold from the Invoice work area:

  • The consumed invoice amounts on all applicable billing controls are reduced by the invoiced amount of the adjusted transaction in contract currency.

  • The qualified invoice amounts in contract and bill transaction currencies on the billing transaction for the adjusted transaction are set to zero.

  • The credit invoice amounts in contract and bill transaction currencies on the billing transaction for the adjusted transaction are set to the invoiced amount of the billing transaction in contract or bill transaction currencies respectively.

  • The adjusted transaction remains available in the Invoice Line Distributions region of the invoice because the transaction is still part of the released, transferred, transfer rejected, or accepted invoice.

  • The adjusted transaction is in the process of being reversed, however, and is now considered to be unbilled. Thus, it is now also displayed in the Unbilled Transactions region of the invoice.

  • If net invoicing option is available for the contract, the credit to reverse the invoiced amount of the adjusted transaction in invoice currency will appear on a new invoice that contains credits and new charges, the next time the Generate Invoice process is run.

  • If net invoicing option is not available for the contract, a credit memo is created in approved status that reverses the invoiced amount of the adjusted transaction in invoice currency.

Contract Line Bill Rate Changes: Explained

You can change the bill rate for a contract line in two ways:

  • Change the contract specific rates within the Contracts work area

  • Change the standard rates using the Manage Rate Schedules task

The following sections explain the impact of changing the bill rate for a contract line using the two methods.

When you change a bill rate override on a bill plan and amend the contract, the application marks all transactions that have a transaction date on or after the contract amendment effective date for adjustment processing. To recalculate and display the revised bill rates, perform the actions listed in the following table within the Contract Invoices work area.

Invoice Status Action

Draft

Generate the invoice again or recalculate the invoice details.

Submitted

  1. Approve or reject the invoice.

  2. Perform the steps for an Approved or Approval Rejected invoice.

Approval Rejected

Any one of the following:

  1. Reset the invoice to Draft status and perform the steps for a Draft invoice.

  2. Delete and regenerate the invoice.

Approved

Any one of the following:

  1. Reset the invoice to Draft status and perform the steps for a Draft invoice.

  2. Delete and regenerate the invoice.

  3. Release the invoice and perform the steps for a Released invoice.

Released, Transferred, Transfer Rejected, or Accepted

Generate invoices for the applicable contract, which will create credit memos or credit invoice lines to adjust the original bill rates to the revised bill rates.

If you change a bill rate on a rate schedule using the Manage Rate Schedules task, then perform the actions listed in the following table to use the revised bill rate on previously generated invoices.

Invoice Status Action

Draft, Submitted, Approval Rejected, and Approved

  1. Recalculate each applicable transaction for invoicing.

  2. Delete and regenerate the invoice.

Released, Transferred, Transfer Rejected, or Accepted

  1. Recalculate each applicable transaction for invoicing.

  2. Regenerate the invoice to create credit memos or credit invoice lines that adjust the original bill rates to the revised rates.

Contract Amendments and Invoice Adjustments: Points to Consider

A contract administrator sometimes retroactively amends contracts that are used for billing. When this happens, the project billing specialist must review previously generated invoices to see if any further action is required.

Contract Amendments with No Impact on Invoice Amount

Some retroactive contract amendments don't affect the invoice amount. When such amendments are activated, previously processed transactions are not adjusted automatically. If you want an unreleased invoice to reflect the amended contract values, you must generate the invoice again, with the delete draft, approved, and approval rejected options selected. Generating the invoice again automatically deletes the previous invoice and creates a new invoice, with amended contract values from the currently active contract version.

If you have already released the invoice, cancel the existing invoice and generate a new invoice to reflect the amended contract values.

You can choose to create a new version each time you amend a contract. Versioning provides a historical record of the changes made to a contract and allows you to abandon the changes made and revert to the previous version. Versioning also allows you to generate invoices and recognize revenue from the previously active version when the contract is under amendment.

Note: Not versioning a contract may contribute to better performance as there is less historical data to retrieve and process, but prevents invoicing and revenue recognition for the contract while it is under amendment.

Contract Amendments that Impact Invoice Amount

Some retroactive contract amendments impact the amount of an existing invoice. When such amendments are activated, previously processed transactions with a transaction date on or after the amendment effective date are automatically marked for adjustment. The next time you generate an invoice for the contract, the invoice contains the adjusted amounts and all contract attributes from the currently active contract version.

Use the following scenarios to understand the differences between removing and adjusting invoice transactions.

Removing Transactions

You're reviewing a customer invoice that is in draft status and notice that the invoice amount is higher than expected. As you investigate, you find that the invoice contains charges for hotel telephone calls that were inadvertently marked as billable. You take the transactions off the current invoice by removing them and setting them as nonbillable. As a result, the application does the following:

  • Moves the transactions to the region of the invoice that contains unbilled transactions.

  • Changes the transaction statuses to nonbillable.

  • Updates the funding consumed amount.

For this scenario, you also have the option of completely removing the transactions from the invoice. However, this doesn't change the transaction billable statuses. The next time that you submit the Generate Invoice process, the process will return the transactions to the invoice.

Adjusting Transactions

As you review a released invoice, you discover that it contains labor charges that should not be invoiced until next month. You adjust the transactions by placing them on hold. As a result, the application does the following:

  • Moves the transactions to the invoice region that contains unbilled transactions.

  • Reduces the consumed amounts of the existing billing transactions by the amounts of the transactions that you placed on hold.

The invoice amount isn't reduced, but the credit amount will appear on an adjusting invoice (credit memo or net invoice).

An invoice contains expenditure items and billing events grouped into invoice lines. In addition to the expenditure items and billing events which are present on an invoice line, there may be eligible and unbilled billing transactions for an invoice line. When you perform the action to attach an eligible or unbilled billing transaction to an invoice line, it becomes part of the invoice line amount.

Invoice lines consist of line details, eligible billing transactions, and unbilled billing transactions. Manage adjustments to invoice lines and billing transactions from the invoice lines region of an invoice.

Line Details

Line details are the billing transactions for expenditure items and billing events which are represented in the invoice amount.

The adjustment actions available in the line details vary depending on the invoice status. If you need to change an invoice line item, you can:

  • Attach a transaction to a different invoice line. This updates the invoice line amount for the original invoice line and the invoice line you move the transaction to.

  • Remove a transaction by making it nonbillable or placing it on hold. This moves the transaction to the unbilled transactions region of the invoice.

  • Remove a transaction from the invoice and delete the invoice distribution.

  • Recalculate a transaction if you made an adjustment to it after generating the invoice.

Eligible Billing Transactions

The eligible billing transactions on an invoice represent expenditure items and events that are partially invoiced for project tasks linked to the contract, and have at least one billing transaction. Depending on your adjustment action, transactions move to either the invoice line details or unbilled transactions from here.

The adjustment actions available for eligible billing transactions vary depending on the invoice status. If you need to adjust an eligible billing transaction, you can:

  • Attach the billing transaction to an invoice line. This moves the billing transaction to the invoice line details and updates the invoice line amount.

  • Remove a transaction by making it nonbillable or placing it on hold. This moves the transaction to the unbilled transactions region of the invoice.

  • Remove a transaction from the invoice and delete the invoice distribution.

  • Recalculate a transaction if you made an adjustment to it after generating the invoice.

  • Manage the billing transactions for an expenditure item. Create a new billing transaction, delete a billing transaction, or mark it for invoicing or revenue recognition.

Unbilled Transactions

The unbilled transactions are expenditure items and events that can be invoiced for project tasks linked to the contract, but are completely uninvoiced. An item may be present in this region if was partially invoiced, but does not have a billing transaction for the contract tied to the invoice. This occurs for expenditure items that are partially billed for a different contract. Depending on your adjustment action, transactions move to either the invoice line details or eligible billing transactions.

The adjustment actions available for unbilled transactions vary depending on the invoice status. If you need to adjust an unbilled transaction, you can:

  • Attach the billing transaction to an invoice line. This moves the billing transaction to the invoice line details and updates the invoice line amount. It also creates a billing transaction, invoice distribution, and links the invoice distribution to the invoice line.

  • Remove a transaction by making it nonbillable or placing it on hold. This moves the transaction to the unbilled transactions region of the invoice.

  • Remove a transaction from the invoice and delete the invoice distribution.

  • Recalculate a transaction if you made an adjustment to it after generating the invoice.

  • Manage the billing transactions for an expenditure item. Create a new billing transaction, delete a billing transaction, or mark it for invoicing or revenue recognition.

Note: Unbilled transactions are eligible for invoicing, but have not consumed any funds for the contract. Eligible billing transactions have consumed funds for the contract.

FAQs for Manage Project Contract Billing: Manage Invoice Transactions

Eligible billing transactions are expenditure items and events that have consumed a portion of funding for either invoices or revenue.

Unbilled transactions are expenditure items and events that may qualify for billing, but have not yet consumed funding nor been billed against a contract.

What's the difference between placing an expenditure item or event on hold from a transaction page and an invoice page?

When you place an expenditure item or event on invoice hold from the manage or detail expenditure item or event pages, the invoice hold status on the transaction is updated to either once, or until you release the hold, and the invoice status on the transaction is updated to adjustment pending. Oracle Fusion Project Billing performs the adjustment processing for the transaction the next time invoice generation process is run.

When you place an expenditure item or event on hold from an invoice page, the following actions are performed:

  • Updates the invoice hold status on the transaction to once, or until you release the hold.

  • Reverses the consumed funds in the contract billing controls.

  • Deletes the billing transaction associated with the expenditure item or event.

  • Updates the invoice status on the transaction to unbilled.

  • Moves the expenditure item or event to the Unbilled Transactions tab.

When you hold a transaction from invoicing or revenue recognition, the transaction will not be selected during the invoice or revenue generation processes. If you hold the transaction from invoicing once, it will be picked up the next time you generate invoices. If you hold the transaction from invoicing or revenue recognition indefinitely, you must remove the hold and submit the invoice or revenue generation process again. Only at that time will the transaction become eligible for invoicing or revenue recognition.

Any billing transactions associated with the expenditure item or event are deleted when you place a transaction on hold.

The bill plan for the transaction uses a fixed invoice format. A fixed invoice format prevents you from attaching transactions to invoice lines.

When you link a distribution to an invoice line on a draft invoice, the invoice line amount and invoice header amount are updated. Correspondingly, if you remove the link between a distribution and invoice line, the invoice line and header amounts are updated. Perform this action if the invoice format for the bill plan associated with the transactions is not a fixed format.

How do I remove partially invoiced billing transactions?

To avoid partial invoicing of a transaction when hard limit is reached, remove the transaction from the invoice by placing it on invoice hold, from the Edit Invoice page.