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What’s covered in this document:

Cost Plus Bill Rate/Recognition Rate

For cost plus contract billing types, this setting determines which set of indirect rates will be used for Billing/Invoicing and Revenue Recognition purposes.

  • Cost Plus Bill Rate: This will almost always be set to Provisional since the Provisional rates are the authorized bill rates per the contract.
  • Cost Plus Recognition Rate: This is the rate used to recognize revenue. The factors to consider for selecting the correct value here include:
    1. Actual: Select this rate if you need the revenue values in the project system to reflect the actual indirect rates incurred to date. If this value is selected, Unanet Financials users should calculate and post the actual indirect rates on a periodic basis and then recalculate revenue on all Cost Plus projects for the applicable fiscal year. The advantage of using the Actual rates is that the system will properly reflect the actual revenues earned in the project system. The disadvantage is that it can be confusing to users as the revenue and billing numbers are not the same. In addition, since the actual indirect rates tend to fluctuate significantly during the year, using actual rates may not reflect the actual expected ultimate revenue amounts for costs incurred on CP projects. This may make it more difficult to determine where the project stands with respect to funding levels.
    2. Provisional: Select this rate if you want the revenues and billings to be in sync. If used, a journal entry would typically be made to adjust recognized revenue for financial statement purposes to reflect actual rates.
    3. Target: Select this rate if you want revenues to reflect your best guess as to the ultimate indirect rates for the fiscal year. These rates would typically start out equal to Provisional rates but could be adjusted if it looks like the actual year end rates will vary from the original Provisional rates. The main advantage of using Target rates is that the project revenues will reflect the actual expected ultimate revenue amounts for costs incurred on Cost Plus projects, providing a good basis for determining where the project stands with respect to funding levels. If used, a journal entry would typically be made to adjust recognized revenue for financial statement purposes to reflect actual rates.

Labor Posting

This setting determines which dates should be used when selecting labor to be included in the Billing and Revenue Post and the Labor Cost Post.

  • Using Worked Date: The best practice is to use Worked Date. 
  • Using Posted Date: This Posted Date is the same as the Worked Date for regular Timesheet entries and end user adjustments, but can be overridden in Admin adjustments and imported time. The Posted date in this screen does not refer to the date assigned in the Financial Labor Cost Post or the Financial Billing & Revenue Post.

Expense Report Posting

This setting determines which dates should be used when selecting expense report items for the Billing and Revenue Post and the Expense Report Cost Post.

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Note that these settings affect project accounting reports for unposted actuals and forecasts and also affect the percent complete calculations for FP projects where the system is estimating percent complete 

 

Screenshot showing the Admin Expense Export screen where the Expense Posted Date may be set:

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Expense Report Posting Scenarios

Note that Scenario 1 allows you to differentiate the bill/revenue and cost posts by expense line item date, while both Scenarios 2 and 3 allow you to group the expenses straddling two months into one bill/revenue and one cost post.

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  1. Turn on property requiring Posted Date unasense.expense_extract.post_date.required
  2. Ensure that expenses are fully approved and have reached either the Completed, or (via autolock property) Locked status. 
  3. Via the Admin-Export screen, run an Expense Export in order to supply a Post Date on the export criteria screen. Note that this is not a financial post date.
  4. Perform your Financial Billing/Revenue posts and Expense Report Cost posts.

 


Scenario 3 - Posting and Billing expenses Using Completed Date (Financial Post date matches Expense Completed Date)

Generally not recommended unless you do not want to export expenses in order to apply a Posted Date using Scenario 2.

As in Scenario 2, you would like to ensure that expenses from 1 expense voucher with two months (end of January and early February, for example) appear on only one months' invoice and in one monthly period in the GL to avoid confusion.

 

  • Solution: Select the Using Voucher Completion Date on the Posting Options for Expense Report Posting.
  • Result: Both January and February expense line items are captured on February’s invoice and in the GL for February.

 

This allows you to group expenses from the same voucher albeit in different months onto the same invoice for billing/revenue recognition, and onto the same date for expense report cost post.

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NOTE: Of the two options (2 and 3) allow you to group multiple months into a single post: You might choose Scenario 2 over Scenario 3 since Scenario 2 allows you to more closely define the Posted Date.

Additional Information

Help Docs - Posting Options

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