Adding funding sources to project contracts

The fields on this page are conditional based on the revenue method, billing method, and funding type.
  1. Select Project Ledger > Setup > Project Setup.
  2. Select the Structure tab.
  3. Open a project structure and select the Hierarchy tab.
  4. Select a contract summary project and select Actions > Update.
  5. Click Contract Information.
  6. On the Project Funding tab, click Create.
  7. Specify this information:
    Project Funding
    Select a project funding source for the contract.
    Priority
    Select the priority order. Funding is processed in priority order. Funding sources can be added at any time in the life of the contract. When priority order is changed, it becomes the new priority.
    Percent
    Specify the percent that is covered by this funding source. If a contract is funded by a single funding source, then specify 100. If a contract is funded by multiple funding sources, then the split occurs by priority and funding group.

    For example, consider a 20/80 split. The first priority funding source is 20% and the second funding source is 80% or 100%. We recommend that you use 100% as the lowest priority to ensure that the full transaction is charged. The remaining funds are charged to the lowest priority if you deplete funds in a higher priority source. If the second priority funding is 80%, then only 80% of the full transaction is charged. The percentages are calculated for each incoming transaction and a total is displayed.

    Funded Amount
    Specify the funded amount for the project funding source.
    Funding Group
    Specify a funding group number. The same funding group is used by the federal grant and the associated match funding sources. When the generate invoices action is run, the first set of funding sources with the same funding group are processed, then the next funding group. Processing is based on priority order, percentage, funded amount, and funding group. The match funds must be next in priority to be processed and calculated correctly.
    Billing Group
    Select a billing group. You can assign identical values to the funding sources that are billed together. When invoices generated or revenue is recognized, if you specified a billing group, then only the funding sources with that billing group are included.
    Customer Type
    If the funding source is an external grant or customer, then select a customer type.
    Invoice Type Code
    Select an invoice type code for the company customer. The invoice type code is used to group invoices that are sent to Receivables. The list of values are from the company customer. If values are not available, then invoice type codes are not available for the company customer. If this field is blank, then the default value from the funding source is used.
    Bill To
    If the funding source is an external grant or customer, then specify the customer that is billed when the contract is invoiced. If this field is blank, then the default value from the funding source is used. If the default funding source is also blank, then the address from the receivable customer on the funding source is used. The address is used on invoices as the bill to address.
    Bill To Email Address
    The email address in the Bill To customer record is the default value. If the Bill To field is blank in both the contract funding and the funding source, then the default value is from the company customer record. You can override this field by providing a different email address.
    Invoice Issue Method
    Select the method to automatically issue an email when the contract invoice is journalized. When Email is selected, an email is sent to the address that is indicated on the Bill To customer. Otherwise, the email is sent to the company customer. This option is available if an invoice format is specified on the contract. If an invoice format is not specified on the contract, then the invoice format is not created to print or to email.
    Buyer Tax Code
    Select the buyer tax code or tax table to use for invoicing.
    Buyer Tax Location
    If Vertex Tax Engine is used, select the buyer tax location for the funding source level.  This field can be overridden at the posting project level.
    Tax Calculation Option
    Select Detail if tax is calculated for each invoice line detail record and totaled and summarized on the printed invoice. Select Detail if OneSource is used.

    If you select Summary, then when the invoice lines are generated, the totals are grouped by each unique combination.

    The combinations are Buyer Tax Code, Benefit Received Tax Code, Product Tax Category, Buyer Address Code, and Benefit Received Address Code.

    The exceptions are always calculated line by line and the results are not included in the pro-rating process. The exceptions are Allowance, Advance Billing, and Retainer taxation.

    Payment Terms
    Specify the payment terms for the contract funding source.
    Jurisdiction Code
    Select the jurisdiction code for the funding source.
    Customer PO Number
    If you select External Grant or External Customer for the funding type, then specify the customer purchase order number for the funding. This number is available on the invoice for customer reference. If this field is blank, then the customer PO number from the funding source is used.
    Default Milestone Project
    If the billing method is Milestone or Installment, then select a posting project for the project funding source.
    Invoice Minimum
    Optionally, specify a minimum invoice amount. If a minimum is specified, these rules apply:
    • Invoices are generated, but at the end of the action, each one is verified to ensure that the total amount meets the minimum invoice amount on the associated funding source.
    • If any invoice fails to meet the minimum, it is automatically deleted.
    • If the contract is multi-funded, partially billed transaction entries can be generated for expenses that were split between an invoice that failed to meet the minimum and one that succeeded or had no minimum.
    Revenue Structure Option
    Select whether the revenue structure is specified as a full or partial finance code block for the project funding source.
    • If the Type is Internal, then you can select None. If you select None, then GL Transaction Detail records are not created when the Journalize Invoice and Journalize Revenue actions are run.
    • If front end split is enabled on the contract, then the Finance Dimension 1 or the Accounting Unit is required in the Partial Revenue Finance Structure field. The value in this field is used as the default on the fund for expense entries.
    Partial Revenue Finance Structure
    Specify the dimensions to override for revenue for the project funding source. Blank dimensions inherit the value from the originating expense. The list is filtered on revenue accounts but any account can be used.

    This list shows the default method for revenue transactions:

    • The finance code block from the invoiced transaction is used.
    • If the Project Billing Override record exists and a partial revenue finance structure is included, the specified dimensions are used as the default and the default method ends.
    • If the posting project record contains a partial revenue structure, the specified dimensions are used as a default and the default method ends.
    • If an account category record for FD3 or FD4 exists that includes a partial revenue finance structure, then those dimensions are used as the default. Dimensions that are not specified on the FD3 and FD4 account category records are determined by the dimensions of the project funding source.
    Full Revenue Finance Structure
    Specify a value for the project funding source. This list is filtered on revenue accounts, but if another account type is required, then any account can be used.
    Revenue Adjustment Structure Option
    Select a value if the revenue adjustment structure is a full structure or partial structure. If an option is not selected, then the revenue finance structure is used for revenue adjustments.
    Partial Revenue Adjustment Finance Structure
    Specify the dimensions to override for revenue adjustment for the project funding source. The dimensions that are blank inherit the value from the originating expense. The list is filtered on revenue accounts but any account can be used.
    Full Revenue Adjustment Finance Structure
    Specify the a value for the project funding source. The list is filtered on revenue accounts but any account can be used.
    Clearing Project
    If the revenue method on the project contract is Separate, then select a posting project to use as the clearing account. The offset journal entries are summarized and posted to a single project.
    Revenue Clearing Finance Structure
    Specify a structure if the project funding source is Internal Fund and the revenue method is Separate. Specify the finance structure for the revenue for the project funding source.
    Billed Unearned Finance Structure
    Specify the structure if the project funding source is External Grant or External Customer and the revenue recognition method is Separate. Specify the finance structure for transactions that are invoiced but revenue is not recognized.
    Earned Unbilled Finance Structure
    Specify the structure if the project funding source is External Grant or External Customer and the revenue recognition method is Separate. Specify the finance structure for transactions that are not invoiced but the revenue is recognized.
    Pass Through Finance Structure
    Specify the structure if the project funding source is External Grant or External Customer and you use pass through billing. Specify the finance structure for transactions that are passed to the customer or to the sponsor using the override billing method of Pass Through. The list is filtered on balance sheet accounts but any account can be used.
    Advance Billing Finance Structure
    Specify the structure if the project funding source is External Grant or External Customer and you use advance billing. Specify the finance structure for new transactions that are created when the Create Advanced Billing action is run on the invoice lines. The list is filtered on balance sheet accounts but any account can be used.
    Other Finance Structure
    If the project funding source is Internal Fund and the revenue method is Combined, then specify the finance structure for the project funding source.
    Receivable Company
    Select the receivable company if the project funding source type is Intercompany Billing.

    The receivable company is the responsible company and it is the From Accounting Entity for the intercompany document and intercompany billing transactions. The setup for receivable company must include the intercompany billing setup.

    Recharge Item
    Select the recharge item if the project funding source type is Intercompany Billing. The transaction lines from the recharge item for intercompany billing are the default on the intercompany billing document.The recharge item is used to define dimension defaults for the finance structure on the Receivable Revenue Account and Payables Expense Account.
    Payables Expense Finance Structure
    Select the dimensions to use for the finance structure when the project funding source type is Intercompany Billing. These dimensions are used with the finance structure for intercompany billing recharge item Payables Expense Account to generate the payables expense distribution. The finance code block for payables begins with the finance structure for the recharge item. The finance structure of the funding source is the default.
    Include Selected Eligible Projects Only
    Optionally, select this check box to designate the posting projects that are eligible for invoicing and revenue for the funding source. If the table exists, then exclude posting projects that are not included in the table. If the table does not exist, then all projects are included and eligible for the funding source.

    See Creating the selected project list for project funding source.

    Override Front End Split Eligibility Group
    Select the business class group of expenditures for the funding source. The expenditures can be included or excluded. Use this field to limit the transactions that are eligible or ineligible for front end split at the time that the transaction was created in subsystems.

    If a transaction is not eligible for a funding source in a funding group, then the funding group is skipped. The expense transaction is added to the next eligible funding group or the general funding source. A budget error is displayed if a general funding source is not available.

    Eligibility Group Option
    Select whether to include or exclude the expense group.
    Override Expense Group
    Select the business class group to include as eligible or ineligible expenditures for the funding source. Use this field to limit the transactions that are eligible for invoicing. This group cannot be used for front end split contracts.
    Expense Group Option
    Select whether to include or exclude the expense group.
    Allowance Percent
    If the funding source is an external grant or customer, specify the percentage to use to calculate administration fees. A positive percentage is calculated as a fee. A negative percentage is calculated as a discount. When invoices are generated or revenue is recognized, the total amount of the expense lines is multiplied by the percent specified.
    Allowance Taxable
    Select the check box if the allowance is included when tax is calculated. If lines on the invoice are taxed independently, then the allowance is taxed independently. If lines are summarized to calculate tax, then the allowance is combined with all lines on the invoice to calculate tax.
    Allowance Project
    If the funding source is an external grant or customer, then specify a posting project in which to post the allowance.
    Allowance Finance Structure
    If the funding source is an external grant or customer, then specify the allowance finance structure.
    Retainage Percent
    If the project funding source is External Grant or External Customer, then specify a retainage percent, if one is required. A retainage is a hold back percentage of the project invoice until the project contract is complete. The retainage is calculated on the invoice total and subtracted from the invoice when invoices are generated. Retainage does not affect revenue recognition. Revenue is recognized immediately for the full amount.
    Retainage Maximum
    Specify the maximum amount that can be retained.
    Retainage Expense Group
    Select the business class group to include as the eligible retainage expenditures for the funding source or ineligible for the funding source.
    Retainage Group Option
    Select whether to include or exclude the expense group.
    Retainage Project
    Select the retainage project to use for posting the retainage for the funding source.
    Retainage Finance Structure
    Specify the retainage finance structure for the project funding source.
  8. Click Save.