Bill Transaction Adjustment Prevention During Contract Amendment

Optionally prevent bill transactions from being marked for adjustment following project contract amendments using a configurable option on the contract type setup. It eliminates undesirable credit rebills and revenue reversals generated due to bill transaction adjustments as part of retroactive project contract amendments.

When the Adjust transactions during contract amendments option is disabled in the contract type setup, previously invoiced or revenue-recognized bill transactions are not marked for adjustment upon activation of a retroactive amendment to the project contract. This behavior applies even when the amendment includes updates to bill rates for specific labor or nonlabor resources, modifications to contract funding, changes to contract dates, updates to existing project associations, the addition of new bill or revenue plans, or the addition of new contract lines.

When the Adjust transactions during contract amendments option is enabled in the contract type setup, previously invoiced or revenue-recognized bill transactions with a transaction date later than the amendment’s effective date are marked for adjustment upon activation of a retroactive amendment to the project contract. This behavior applies when the amendment includes updates to bill rates for specific labor or nonlabor resources, modifications to contract funding, changes to contract dates, updates to existing project associations, the addition of new bill or revenue plans, or the addition of new contract lines.

The business benefit of this feature is that it eliminates the need to delete unwanted credit memos, and to reverse and re-book revenue for a project contract in undesired accounting periods resulting from retroactive project contract amendments.

Steps to Enable

The application implementation consultant can enable or disable the Adjust transactions during contract amendments option in the Project Billing tab of the contract type setup, as highlighted below.

Contract Type Setup

Tips And Considerations

• The Adjust transactions during contract amendments option can be enabled or disabled at any time, even after project contracts have been created using the contract type.

• When a new contract type is set up with a class of Enterprise Contract or Grant, with an intent of Sell, and a line class of Project, the Adjust transactions during contract amendments option is disabled by default. The user can enable this option in the Project Billing tab.

• For existing contract types with a class of Enterprise Contract or Grant, with an intent of Sell, and a line class of Project, the Adjust transactions during contract amendments option will be enabled. This ensures that there are no changes in behavior for existing contract types.

• The new option Adjust transactions during contract amendments is supported in both the Export to CSV File and Import from CSV File actions on the contract type setup object.

• The warning message shown below is not displayed during project contract validation when a retroactive amendment effective date is provided under either of the following conditions:

  • The Adjust transactions during contract amendments option is disabled at the contract type setup level

  • The project contract is amended without versioning, regardless of the value of the Adjust transactions during contract amendments option in the contract type setup.

Contract Validation Warning Message

• The value of the Adjust transactions during contract amendments option in the contract type setup is honored during project contract amendment activation performed through the user interface, Contract SOAP services, and REST APIs.

Access Requirements

There are no new access requirements.