Project contract features

You can create project contracts to establish project contract billing and revenue rules for billable projects. Flexible project contract setup includes these features:

  • Project contract revenue can be recognized at the time of invoicing or independent of invoicing.
  • A project contract billing method is defined for each contract and can be overridden for each posting project, account, or user dimension.
  • Project contracts can be funded externally by a customer or grant, or internally by a foundation or fund.
  • Project contracts can be funded by a single source or multiple sources.
  • Project contract funding rules are used to automate expenditure allocation for both invoicing and revenue recognition.
  • Flexible funding rules include priority, percent, and eligible expense groups that define reimbursement by the funding source
  • A project contract posting project can set a maximum billing amount per posting project.
  • Project contracts can calculate contract fees when generating invoices and recognizing revenue.
  • Project contract funding sources can include an administration fee when generating invoices and recognizing revenue.
  • Eligible posting projects for each funding source can be defined for a project contract.
  • A project contract can be defined to use front end split. Front end split is used to split the expense distributions to the funding sources before invoicing occurs.
  • Budget amount or funded amount is used to track expenditures and commitments for project contracts that are enabled for front end split. Set the option on the finance enterprise group.
  • Project contract amounts can be automatically increased when project funding sources are increased. This functionality is not available when approval for the project contract change is enabled on the enterprise project structure .

Set up the receivable company default values for project billing in Receivables. If you use project invoicing, you must set up the project invoice and credit memo prefixes on the Project tab of the Receivables company. Invoice prefixes are specified for each company.

If your project contract services are taxable, you must set up tax codes in Tax or your third-party tax system