Managing Revenue and Billing for Government Contracts

This chapter provides an overview of revenue and billing management for government contracts and discusses how to:

Review revenue.
Review billing activity.

Understanding Revenue and Billing Management for Government Contracts

This section lists prerequisites and discusses:

Revenue and billing management.
Revenue redistribution.

Prerequisites

Before you can manage revenue and billing data for government contracts, you must first define your contract with a contract classification of Government, add contract lines to the contract, define billing and revenue plans and associate contract lines to them, activate the contract, set billing and revenue plans to Ready status, and process billing and revenue for the contract.

Revenue and Billing Management

Contracts enables you to capture billing and revenue information for your government contracts and allocate that information across contract lines. This includes defining accounting distribution data for your contract lines for billing and revenue processing purposes, assigning the contract lines to billing and revenue recognition plans, managing when the conditions for generating invoices and revenue accounting entries have been met, and generating invoices and revenue journal entries for your contract lines for direct and indirect costs, fees, progress payments, and so on.

Managing billing and revenue for your contract lines consists of monitoring and updating billing and revenue plan statuses, event statuses where applicable, processing invoices and journal entries, and making any necessary adjustments to billing and revenue that has been processed.

Contracts provides several online inquiries and processing options to facilitate this process. Using Contracts, you can:

View the overall billing and revenue plans for your contracts based on query criteria that you define.
Mass update billing and revenue plan statuses for your contract lines.
Navigate into individual billing and revenue plans for contract lines to view or update information using the billing and revenue management pages.
Reverse billing activity that has already been processed, or place billing and revenue plans on hold.
Redistribute rate-based revenue that has already been recognized.

See Also

Understanding Revenue Management

Understanding Billing Management

Revenue Redistribution

You can initiate redistribution of revenue accounting associated with rate-based contract lines and rate-based contract lines associated with fee types (cost-plus) from the revenue management pages in Contracts. For revenue plans that have an as-incurred revenue recognition method, the revenue management pages enable you to view all projects and activities for all contract lines associated with that revenue plan.

The Redistribute Revenue page displays the processed revenue rows for the contract line revenue plan selected from the search dialog box. To redistribute recognized revenue, select the revenue rows for redistribution, enter the redistribution criteria, and run the redistribution process. The redistribution process reverses the revenue entry from the original accounts and creates a new entry using the new accounts that you specify.

See Redistributing Rate-Based (As-Incurred) Revenue.

Reviewing Revenue

This section provides an overview of reviewing revenue, lists common elements and discusses how to:

Review As-Incurred revenue plans.
Inquire on rate-based accounting journal entries.

Understanding Reviewing Revenue

Contracts provides a number of online inquiry pages that enable you to effectively manage revenue recognition for all of your contracts. Using these pages you can view and manage the revenue plans, events, and projects assigned to your contract lines from a high level, or you can drill down into a more detailed view using links and additional inquiry pages to adjust or update a specific revenue recognition plan.

Contracts provides the following revenue inquiry options:

Review Revenue-Plans page.

Use this page to view the revenue plans assigned to your contract lines, view processed and pending revenue amounts for each revenue plan, or redistribute revenue for a selected revenue plan.
Review Revenue-Events page.

Use this page to view the specific events defined for your revenue plans and place specific events on hold.
Review Revenue-As Incurred page.

Use this page to view the details of booked revenue and redistribute that revenue.
Contract Reversal page.

Use this page to reverse revenue and billing for an entire contract.

See Also

Reviewing Revenue

Common Elements Used in This Section

Contract	Enter the contract number to filter your search results to display only as-incurred revenue plans associated with the contract selected.
Contract Classification	Select to filter the search results by the contract classification assigned to the contract. To search for billing plans that are only attached to government contracts, select the contract classification of Government.
Fee Type	Select to filter the search results by the fee type assigned to the rate-based contract lines on a contract. Values include None, Fixed Fee, Award Fee, Incentive Fee and Other Fee.
GL Business Unit (General Ledger business unit)	Select to filter the search results by the general ledger business unit associated with the Contract business unit assigned to your contracts.
PC Business Unit (Project Costing business unit)	Select to filter the search results by the Project Costing business unit assigned to the rate-based contract lines on your contracts.
Revenue Plan	Select to filter the search results by a specific revenue plan identifier for a contract. To use this field you must first select a contract identifier.

Pages Used to Review Revenue

Page Name	Object Name	Navigation	Usage
Review Revenue-As Incurred	CA_AP_DTL_ASIN	Customer Contracts, Review Revenue, As Incurred, Review Revenue-As Incurred Click the Method link for a specific as-incurred revenue plan on the Review Revenue - Plans page.	Inquire on the details for revenue plans with an as-incurred revenue recognition method. From this page, you can review the details of booked revenue and redistribute that revenue.
As Incurred Accounting Lines	CA_ACCT_RATE_JRNL	Customer Contracts, Review Revenue, As Incurred Jrnl Acctg Lines, As Incurred Accounting Lines	Inquire on the accounting entries for rate-based contract lines and rate-based contract lines associated with fee types (cost-plus), after you run the rate-based revenue process (Accounting Rules Engine) and your accounting entries are processed by the Journal Generator Update process and posted to the general ledger.

Reviewing As-Incurred Revenue Plans

Access the Review Revenue - As Incurred page.

Search Criteria

Use the fields in the Search Criteria group box to filter search results by entering specific values in these fields. If you leave all of the fields blank, the search returns all as-incurred revenue plans for all Active contracts within your system. Click the Search button to carry out a search based on the search criteria that you enter. Search results appear in the Details scroll area. Amounts appear in the contract currency.

Details: General Tab

Select	Select this check box to redistribute the rate-based contract line revenue booked for a transaction row.
PC Business Unit	Displays the Project Costing business unit associated with the contract line.
Project	Displays the project identifier associated with the revenue processed for the contract line.
Activity	Displays the activity identifier associated with the revenue processed for the contract line. Contract lines are linked to projects at the activity level–directly or indirectly. Each activity ID can be associated with only one rate-based contract line.
Transaction ID	Displays the transaction identifier associated with the revenue processed for the contract line.
Accounting Date	Displays the accounting date, which reflects the accounting period in which entries were booked for the contract line.
Amount	Displays the amount of revenue recognized for this row.
Redistribute	Click this button to redistribute the revenue for the rows that you selected on the General tab of the Detail scroll area.

Review Revenue – As Incurred: Contract Tab

Select the Review Revenue – As Incurred: Contract tab.

Contract Line Num (contract line number)

Displays the contract line associated with the revenue plan for this project and activity ID combination. Each project is linked to a contract line, and each contract line is assigned to a revenue plan.

Distribution Type

Displays the distribution type associated with the accounting entry. Each accounting entry is distinguished by distribution type. Examples include revenue and Unbilled Accounts Receivable.

PostSeq# (posting sequence number)

Displays the posting sequence number associated with the accounting entry. When you have multiple accounting entries for the same contract line, revenue recognition event, and distribution type, such as when you split revenue across departments, the system uses a posting sequence number to make them unique.

Reversing Entry

Indicates if this entry was redistributed.

Inquiring About Rate-Based Accounting Journal Entries

Access the As Incurred Journal Accounting Lines page.

To view the data on this page, the contract accounting entries for your rate-based contract lines must be successfully posted to the general ledger by the Journal Generator process.

GL Journal	Click to access the journal for this accounting line.
Journal ID	Displays the General Ledger journal identifier assigned by the Journal Generator process when booking the revenue row to the general ledger.
Journal Date	Displays the date that the journal entry was booked to the general ledger.
Project	Displays the project identifier associated with the revenue row booked to the general ledger.
Activity	Displays the activity identifier associated with the revenue row booked to the general ledger.
Transaction ID	Displays the transaction identifier associated with the revenue row generated for the contract line.
Amount	Displays the amount of revenue recognized for this journal entry.
Fiscal Year	Displays the fiscal year associated with a revenue budget.
Distribution Status	Displays the distribution status for the journal entry.
Account	Displays the account code of the account assigned to the journal entry. Account codes classify the nature of a transaction.
Alt Account (Alternate Account)	Displays the alternate account assigned to the journal entry. Alternate accounts classify the nature of a transaction for regulatory authorities and are used for statutory accounting.
Oper Unit (Operating Unit)	Displays the operating unit assigned to the journal entry. Use operating units to indicate a location.
Fund	Displays the fund code assigned to the journal entry. Fund codes are the primary structural units of Education and Government accounting.
Dept (Department)	Displays the department ChartField code assigned to the journal entry. Departments are used to track information according to a divisional breakdown of your organization. Use department ChartFields to indicate who is responsible for or affected by a transaction.
Program	Displays the program ChartField code assigned to the journal entry. Program codes track revenue and expenditures for programs within or across your organizations. Use program ChartFields to identify groups of related activities, cost centers, revenue centers, responsibility centers and academic programs.
Class	Displays the class ChartField code assigned to the journal entry. Use class ChartFields to identify specific appropriations.
Bud Ref (Budget Reference)	Displays the budget reference ChartField code associated to the journal entry. Use budget references to identify unique budgets when individual budgets share budget keys and overlapping budget periods.
Product	Displays the product ChartField code associated to the journal entry. The product ChartField captures additional information useful for profitability and cash flow analysis by product sold or manufactured.
Affiliate	Displays the affiliate ChartField code associated with the journal entry. Use affiliate codes to map transactions between business units when using a single interunit account.
Fund Affil (Fund Affiliate)	Displays the fund affiliate ChartField code associated with the journal entry. Use fund affiliate codes to correlate transactions between funds when using a single intraunit account.
Oper Unit Affil (Operating Unit Affiliate)	Displays the operating unit affiliate code associated with the journal entry. Use operating unit affiliates to correlate transactions between operating units when using a single intraunit account.

Reviewing Billing Activity

This section provides an overview of reviewing billing activity, lists prerequisites and common elements, and discusses how to:

Review billing plans.
Review statuses for As-Incurred billing plans.

Understanding Reviewing Billing Activity

Contracts provides a number of online inquiry pages to enable you to effectively manage your billing activity for your contract lines. From the billing management pages, you can review multiple contract billing plans together, navigate to individual billing plans to update information that controls contracts billing activity, view historical data for an individual billing plan, and reverse billing activity.

Contracts provides the following billing inquiry options:

Review Billing-Plans page.

Use this page to view the billing plans assigned to your contract lines, view processed and pending billing amounts for each billing plan, update the plan status for one or more billing plans, reverse a billing plan for the contract, or navigate to the Billing Plans-History page to view billing transaction history for the billing plan.
Review Billing-Events page.

Use this page to view the details associated with specific events defined for your billing plans, place specific events on hold, update the event status for one or more billing plan event, or reverse an event.
Review Billing - As Incurred page.

Use this page to view the details of billed amounts, billing amounts pending for as-incurred billing plans or navigate to the Billing Plans-History page to view billing transaction history for the billing plan. You can also use this page to place as-incurred billing plans on hold.
Contract Reversal page.

Use this page to reverse billing for an entire contract. If you reverse an entire contract, only those contract lines associated with billing plans containing the billing plan methods of Milestone, Percent Complete, Immediate and Value-based are reversed on the contract.

Prerequisites

Before you can manage billing plans for your government contracts, you must first define a contract with a contract classification of Government, add contract lines, define billing plans and assign contract lines to them, activate the contract, and set the billing plans to Ready status.

Common Elements Used in this Section

Billing Business Unit	Select to filter the search results by the Billing Business Unit associated with the contract.
Billing Plan or Bill Plan ID	Select to filter the search results by the billing plan identifier associated with the contract line. Each contract can contain multiple billing plans, and multiple contract lines may be assigned to one billing plan. You must first select a contract number before you can search by billing plan ID.
Billing Plan Status	Select a billing plan status to search for billing plans with a specific billing plan status.
Bill To Customer	Select to filter the search results using a specific Bill To Customer associated with the contract. The Bill To Customer is the customer receiving the invoice.
Business Unit	Select to filter the search results by the Contracts business unit assigned to the contract.
Contract Classification	Select to filter the search results by the contract classification assigned to the contract. To search for billing plans that are only attached to government contracts, select the contract classification of Government.
Customer	Displays the customer ID for the customer associated with the contract.
Detail	Click this link to view pending and billed amounts, event statuses, or projects associated with contract billing plans.
Fee Type	Select to filter the search results by the fee type assigned to the rate-based contract lines on a contract. Values include None, Fixed Fee, Award Fee, Incentive Fee and Other Fee.
History	Click this link to access and view the contracts billing history details for the billing plan.
Hold	Select to search for all billing plans or events that are placed on hold.
Hold Date	Displays the current system date when a billing plan or event has been placed on hold. You can place a billing plan on hold after the billing plan is in a status greater than Ready. The system automatically places a billing plan on hold when you initiate a reversal for amount-based contract lines or when amendment processing affects events.
Project	Select to filter the search results by a project assigned to the contract lines.

Pages Used to Review Billing Activity

Page Name	Object Name	Navigation	Usage
Review Billing-Plans	CA_BI_MGMT_INQ_PNL	Customer Contracts, Review Billing, Plans, Review Billing-Plans	View billing plan activity or update plan status for both pending and billed amounts, for any cross-section of the Contracts system. Update plan status to Pending or Ready. Reverse billing for Milestone and Immediate billing plans.
Review Billing-Events	CA_BI_MGMT_EVENTS	Customer Contracts, Review Billing, Events, Review Billing-Events	View amounts by billing event that have been billed to date and are pending. Inquire on the status of billing events. Place billing plan events on hold, update event statuses, and navigate to more detailed information. Reverse billing for billing plan events.
Review Billing-As Incurred	CA_BI_MGMT_AI_PNL	Customer Contracts, Review Billing, As Incurred, Review Billing-As Incurred	Inquire on the status of as-incurred billing plans. From this page, you can view the amounts that have been billed to date and the amounts that are pending. You can place billing plans on hold and you can navigate to more detailed information.

Reviewing Billing Plans

Access the Review Billing - Plans page.

Search Criteria

Use the fields in the search criteria group box to filter your search results by entering specific values in these fields. If you leave all fields blank, the search returns all billing plans for all active contracts within your system.

Method

Select the check box of a billing plan - billing method to limit your search to include only those billing plans with a billing method equal to the billing methods that you selected. If you leave all check boxes blank, the system returns all billing plans matching the remainder of your search criteria. Billing method choices include: Milestone, Percent Complete, Value Based, As Incurred, Recurring, and Immediate. The method of Recurring does not apply to government contracts.

Note. To view billing plans for amount-based contract lines or to view billing plans that are not directly tied to contract lines (for prepaid amounts and progress payments), you must select the check box for the Fee Type of None.

Review Billing - Plans Page: Contract Billing Information Tab

(select)	Select a check box to update the status for this billing plan to Pending, Ready, or Reversal in Progress. Depending on your selection in the Update Plans group box, when you click the Update Plan Status button, the system updates the status of the billing plan.
Billing Plan ID	Click to view details pertaining to this billing plan ID.
Billing Method	Displays the billing method of the billing plan associated with the contract line.
Status	Displays the current status of the billing plan associated with the contract line.
Hold	Indicates if the billing plan has been placed on hold.

Update Plans

The status for each row in the Billing region of the page can be changed from Ready to Pending or from Pending to Ready. You can update the status of multiple billing plans at the same time by selecting the new status (either Pending or Ready), selecting the check box next to the appropriate billing plans, clicking the Update Plan Status button, and then saving the page.

Pending	Select to update the status of the selected billing plan to Pending.
Ready	Select to update the status of the selected billing plan to Ready.
Reversal In Progress	Select to reverse all or a portion of the bill amount processed for the selected billing plan. Click the Update Plan Status button to reverse the billing amount. If the billing plan status is Completed, and all billing plan lines are successfully reversed, the next time that you run the Contracts/Billing Interface process, the system updates the plan's status to Reversed. Note. This option only applies to amount-based contract lines.
Update Plan Status	Click to update the billing plan status of the selected contract lines in the Billing group box with the pending, ready, or reversal in progress status that you selected. If you selected the Reversal In Progress option, clicking this button initiates the reversal for the billing plan.

Review Billing - Plans Page: Billing Financial Information Tab

Select the Review Billing – Plans: Billing Financial Information tab.

Amount

Displays the net amount for this billing plan ID, for billing plan IDs associated with amount-based contract lines.

Total Sent To Billing

Displays the amount associated with a billing plan ID processed by the Contracts/Billing Interface process and sent to Billing.

Total Billed

Displays the amount that has been finalized and billed by Billing and then written back by Billing to the Contracts/Billing cross-reference table.

Amount Pending

Displays the amount pending (equals the total amount sent to billing less the total amount billed) for amount-based contract lines associated with the billing plan.

Billed Thru Date

Displays the date through which the contract line has billed for recurring contract lines. This field does not apply to government contracts.

Currency Code

Displays the currency code associated with the billing plan.

Fee Type

Displays the fee type associated with the rate-based contract line linked to the billing plan.

See Setting Up Billing Plans for Cost-Plus Contract Lines.

Review Billing Plan Events

Access the Review Billing-Events page.

See Reviewing Billing Events.

Reviewing Statuses for As-Incurred Billing Plans

Access the Review Billing - As Incurred page.

Use the fields in the Search Criteria group box to filter your search results by entering specific values in these fields. If you leave all fields blank, the search returns all billing information for all active contracts within your system. To search for only active government contracts, select the contract classification of Government.

Project

Select to filter your search results by a specific project. When defining rate-based contract lines and rate-based contract lines associated with fee type (cost-plus), you link the contract lines to Project Costing projects.

Review Billing - As Incurred Page: Billing Financial Information Tab

Select the Review Billing – As Incurred: Billing Financial Information tab.

Total Billed

Displays the total amount finalized and billed by Billing, for as-incurred billing plans, and then written back by Billing to the Contracts/Billing cross-reference table.

Amount Pending

Displays the pending billable amount in Project Costing that has not yet been invoiced for your rate-based contract lines associated with the billing plan.

Fee Type

Displays the fee type associated with the contract line linked to the billing plan. Rate-based contract lines associated with fee types are linked to individual as-incurred billing plans.

See Setting Up Billing Plans for Cost-Plus Contract Lines.

Contract Line Num (contract line number)	Displays the contract line associated with the revenue plan for this project and activity ID combination. Each project is linked to a contract line, and each contract line is assigned to a revenue plan.
Distribution Type	Displays the distribution type associated with the accounting entry. Each accounting entry is distinguished by distribution type. Examples include revenue and Unbilled Accounts Receivable.
PostSeq# (posting sequence number)	Displays the posting sequence number associated with the accounting entry. When you have multiple accounting entries for the same contract line, revenue recognition event, and distribution type, such as when you split revenue across departments, the system uses a posting sequence number to make them unique.
Reversing Entry	Indicates if this entry was redistributed.

Amount	Displays the net amount for this billing plan ID, for billing plan IDs associated with amount-based contract lines.
Total Sent To Billing	Displays the amount associated with a billing plan ID processed by the Contracts/Billing Interface process and sent to Billing.
Total Billed	Displays the amount that has been finalized and billed by Billing and then written back by Billing to the Contracts/Billing cross-reference table.
Amount Pending	Displays the amount pending (equals the total amount sent to billing less the total amount billed) for amount-based contract lines associated with the billing plan.
Billed Thru Date	Displays the date through which the contract line has billed for recurring contract lines. This field does not apply to government contracts.
Currency Code	Displays the currency code associated with the billing plan.
Fee Type	Displays the fee type associated with the rate-based contract line linked to the billing plan.

Total Billed	Displays the total amount finalized and billed by Billing, for as-incurred billing plans, and then written back by Billing to the Contracts/Billing cross-reference table.
Amount Pending	Displays the pending billable amount in Project Costing that has not yet been invoiced for your rate-based contract lines associated with the billing plan.
Fee Type	Displays the fee type associated with the contract line linked to the billing plan. Rate-based contract lines associated with fee types are linked to individual as-incurred billing plans.