Fund accounting for project contracts

To use fund accounting with Project Invoicing and Revenue, fund accounting must be enabled for the finance enterprise group.

See Enabling and disabling fund accounting.

If fund accounting is enabled, the Revenue Recognition for project contracts must be Combined.

When fund accounting is enabled, Receivables entries are based on the revenue entries generated. Project Invoicing and Revenue entries are based on the project funding source setup.

Project Invoicing and Revenue are generated based on project funding source setup. Revenue is posted in one of these ways:

  1. Revenue is posted to a single fund by specifying the finance code block in the revenue finance structure in the project funding source setup.
  2. Revenue is allocated to multiple funds based on the source expenditure transactions that follow the originator of the expense. Revenue is allocated by specifying a revenue account in the project funding source setup.

If fund accounting is not used, a single Receivables entry is created using the finance structure specified for the ReceivableGeneralLedgerCode. The code is assigned to the Receivables customer associated with the project funding source. The Project field is blank.

When fund accounting is enabled, the Receivables accruals entries are allocated to funds and projects based on the revenue entries. These input parameters are passed from Project Invoicing and Revenue to the Receivables fund accounting API.

These are the input fields:

  • Revenue ReceivableGLDistributions
  • The Receivables account from the ReceivableGeneralLedgerCode

These rules are followed to create the accrual entries:

  1. If Receivables rules exist, return the rule values.

    See Creating Receivables fund accounting rules.

  2. Inherit the Receivables general ledger code account.
  3. Inherit other Global Ledger dimension values from the revenue transaction.