Examples

Accounts Receivable > Accounts Receivable Transaction Documents > Contracts & Grants Invoice > Process Overview

Examples

The Chemistry Department at Kuali University is working on a top secret project for the National Science Foundation (NSF), with various awards associated with this project. There are accounts set up for each award to track the various expenditures related to the project. Contracts & Grants Invoices are created for the awards, based on the Invoicing Option and Billing Frequency of the award.

• Award 80075 is set up to invoice NSF based on set events or milestones. Only one account can be associated with a milestone award. The Project Director has confirmed that Milestone 5 (for 10,000) was completed on February 15^th and Milestone 6 (for 25,000) on February 25^th, and ensures that these dates have been entered in the Milestone Schedule’s Actual Completion Date fields. The Contracts & Grants Invoice for these two milestones is created manually or by the batch process during the next billing cycle in March (for any unbilled milestones completed prior to the end of February).In March, one invoice for 35,000 is created for this award, representing the total of the two milestones completed during February. General Ledger entries are created to debit accounts receivable and credit income for the account assigned to the award.

• Award 80078 is set up to invoice NSF based on a predetermined billing schedule. The predetermined billing schedule for the award has monthly progress payments of 50,000 (bills) set up for 2015. On the Scheduled Bill Date, a Contracts & Grants Invoice is created manually or by the batch process for this award.General Ledger entries are created to debit accounts receivable and credit income for the account assigned to the award.

• Award 80066 is set up to invoice NSF on a monthly basis, and the invoicing option is set on the award to Invoice by Account. There are three accounts associated with this award and costs are charged against the accounts throughout the month of February. At the beginning of March, three Contracts & Grants Invoices (one for each account) are created manually or by the batch process for this award, billing for the February expenditures. The expenses are itemized by cost category on the invoice and General Ledger entries are created to debit accounts receivable and credit income for the account the invoices is billing for.

• Award 80067 is set up to invoice NSF on a quarterly basis, and the invoicing option is set on the award to Invoice by Contract Control Account. There are five accounts associated with this award, and these are each associated with one of two contract control accounts. Costs are charged against all five accounts throughout the months of January - March. At the beginning of April, two Contracts & Grants Invoices (one for each contract control account) are created manually or by the batch process for this award, billing for the January - March expenditures. The expenses are itemized by cost category on the invoice and General Ledger entries are created to debit accounts receivable and credit income for the contract control account the invoices is billing for.

• Award 80070 is set up to invoice NSF using the LOC (Letter of Credit) Billing functionality and the invoicing option is set on the award to Invoice by Award. There are sixteen accounts associated with this award, and these are each associated one contract control account. Costs are charged against all sixteen accounts each month. The LOC with NSF is set up so that draws may be made twice a month on the 1^st and 16^th day of the month. On February 1^st, the LOC Review document is initiated, the amount to draw is reviewed, and one Contracts & Grants Invoice is created for January 16 –31 expenditures. The expenses are itemized by cost category on the invoice and General Ledger entries are created to debit accounts receivable and credit income for each of the sixteen accounts associated with the award. While the actual LOC draw must be manually processed (outside of Financials), once the Contracts & Grants Invoice is finalized, the Cash Control and Payment Application documents are automatically created for the draw/payment transaction and the related General Ledger Entries are posted. On February 16^th, the next LOC Review document can be initiated.