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

Contracts that use transaction-based billing methods (such as cost plus or time and materials) may require that Accounts Payable invoices be paid before the grant activity transaction is eligible for billing. The Exclude Unpaid AP field on Contract Parameters (BR10.1), lets you indicate if you want to exclude unpaid Accounts Payable transactions.

After you process payments in Accounts Payable, you will run Paid Invoice Activity Update (AP178) to update the payment status of the invoice activity transactions that were created before the payment cycle by Invoice Distribution Closing (AP175).

Invoice Distribution Closing (AP175) places transactions on hold if unpaid. After you run Payment Closing (AP170) to close the payment cycle, you must run Paid Invoice Activity Update (AP178) to remove paid activity transactions from hold. If you choose to exclude unpaid transactions, Invoice Calculation (BR120) will skip unpaid transactions when it calculates invoice amounts.

Likewise, you may need to exclude unpaid Accounts Payable transactions from revenue recognition if you use transaction-based revenue recognition methods (such as accrual or cost plus). To exclude unpaid transactions from revenue recognition, put transactions on revenue hold using the Unpaid AP field on Mass Transaction Hold (BR142), Other Options tab. You can also place individual transactions on hold on Transaction Hold (BR42.1). When you want to exclude unpaid Accounts Payable transactions from revenue recognition, you should run Mass Transaction Hold (BR142) as part of your cycle, before you run Revenue Calculation (BR130).