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 invoicing or independent of invoicing.
  • A billing method for project contract is defined for each contract. The billing method can be overridden for each posting project, account, or user dimension.
  • Project contracts can be funded externally by a customer or grant, or funded internally by a foundation or fund.
  • Project contracts can be funded by a single source or multiple sources.
  • Funding rules for Project contract are used to automate expenditure allocation for invoicing and for revenue recognition.
  • Flexible funding rules include priority, percent, and eligible expense groups that define reimbursement by the funding source.
  • A maximum billing amount can be set for each posting project in the project contract posting project.
  • When invoices are generated and revenue is recognized, contract fees are calculated in Project contracts
  • Funding sources for project contract can include an administration fee when invoices are generated and revenue is recognized.
  • 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. Select 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 .

Create the default values for project billing in receivable company. 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