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Brief description:

Unanet can limit billing and/or revenue recognition on incrementally funded projects at either the project or task level. When cumulative calculated revenue exceeds the Funded Value (less any fixed fee, if applicable), Unanet will post a billing and/or revenue reduction, called a Funding Cap Adjustment. Similarly, when cumulative calculated Fee revenue on a Cost Plus contract exceeds the Fixed Fee amount, Unanet will post a reduction of billing and/or revenue, called a Fixed Fee Cap Adjustment.

The revenue reduction accounts are specified in the project's associated Posting Group (Admin > Setup > Accounting > Posting Groups). The Funded Value is set on the Accounting tab within the project/task. The Fixed Fee Amount is set on the project's Accounting tab (there is no Fixed Fee field on the task).

Items To Note:

  • If you set a Funded Value at the Project level as well as a Funded Value at the Task level, and inadvertently do not have them reflect the same total Funded Value, the funding cap will be triggered by the lesser of the two numbers.
    • For instance if you set the Project Funded Value at $130,000, but the Funded Value of the Tasks together equals $180,000, the Funded Value cap will trigger at $130,000.

  • Additional Items added to an invoice will not be counted against Funded Value and will allow the Funded Value to be exceeded.

What’s covered in this document:

Funding Caps

Project Or Task Level Setup 

You can optionally limit Revenue and/or Billing amounts to project and/or task Funded Values.  

In this example, there is a $5,000 Funded Value on Labor and $500 Funded Value on Expense. The JSR shows both labor and expense have exceeded their caps.

You may also wish to present the lost revenue from Funded Value Caps and Fixed Fee Cap adjustments on separate lines in the JSR.

Billing & Revenue Post

During a Billing & Revenue Post, Unanet will calculate and post the Gross Revenue amount.
If the funding cap has been exceeded and the check box to limit Billing and/or Revenue to funded amount has been selected, an entry will be generated to reduce revenue by the excess amount. 

Invoice Presentation

The Funding Cap Adjustments can be displayed on the invoice or hidden, depending upon the invoice format that is being used.

Below is an example of how Funding Cap Adjustments may look on an invoice.

Fixed Fee Caps

Fixed Fee Amounts (or Caps) are set only at the project level (with no option to define a task-level fee cap).
When the Fixed Fee Amount is populated, Unanet will automatically limit Fee Revenue and/or Billings to the set amount.

If the Limit Billing To Funded Value Less Fixed Fee and/or Limit Revenue To Funded Value Less Fixed Fee boxes are ALSO selected, then the Funded Value caps described above will subtract the Fixed Fee Amount from the calculation of the Funded Value Cap. 

In other words, the Funded Value includes any Fixed Fee.
In the example below: Total Funded Value is $2,950,000 = $2,655,000 (for labor/expense/indirect costs) + $295,000 (for fee).   

In this example, Unanet would perform two separate calculations: one for the fee portion and one for the non-fee portion.

Additional Information

Quick Topic - How can I limit billing and revenue to a contract's funded value?

Quick Topic - How to handle the four general types of cost-reimbursement (CP or Cost Plus) contracts in Unanet

KC - I&P GUIDE - Glossary for Project Billing

KC - I&P GUIDE - Reports

KC - Cost Reports

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