Processing additive program income

  1. Program income must be recorded in Receivables as a non-AR cash payment. Revenue must be posted to the posting project, revenue account, and funding source.

    If program income is split between federal and state funding sources, then split the program income between the funding sources. Split them proportionately based on the funding rules so that you can track the additive program income and increase the amount that is available to spend with no effect on these amounts:

    • Project contract amount
    • Project funding source amounts
    • Budget amounts
    • Project: The credit entry is included, so additional funds can be invoiced using program income. Program income is automatically spent first because project invoicing processes are credited first.
    • Account: Track additive program income in a separate posting account. When accounts for additive program income are grouped with expense accounts, the amount of the expense budget group is automatically increased by the program income revenue.
  2. Generate contract invoices.
    Program Income is a credit to the invoice. Credit entries are always processed first when the Generate Contract Invoices action is run. The result is that program income is spent or applied first. Additive program income has no affect on federal grant and match amounts. Program income funds are added to award funds, which increases the available amount.