Can I Exclude Unpaid Accounts Payable Invoices from Grant Draws?

Some grant contracts, such as cost-reimbursable federal grants, require that invoices for goods and services be paid before funds can be drawn. To ensure that unpaid AP invoices are not selected for billing in Lawson Billing and Revenue Management, the Exclude Unpaid AP field on Contract Parameters (BR10.1) must be set to Yes for the grant's contract activity. If the Exclude Unpaid AP field is set to No, all Accounts Payable invoices for the contract activity, whether paid or not, are eligible for billing.

Note: You can exclude unpaid AP invoices from billing only for transaction-based billing methods, such as Cost Plus (commonly used for cost-reimbursable grants) or Time and Materials.

When an Accounts Payable invoice is posted to a grant activity, it creates an activity transaction with an AP Paid status of Hold for Billing. Paid Invoice Activity Update (AP178) checks the Exclude Unpaid AP field for the contract associated with the grant activity. If the value is Yes, AP178 passes invoice payment information from Accounts Payable to Project Accounting. If an invoice is not paid, the transaction (in Project Accounting) remains on hold and the billing selection programs ignore the transaction. When the Accounts Payable invoice has been paid, AP178 sends information to Project Accounting to update the paid status in the activity transaction, and the transaction becomes eligible for billing.

How Does Billing and Revenue Management Handle Unpaid Transactions in Grant Management?