Activating a Fixed Price Contract - 31f

Purpose: Use this document as a reference for activating a fixed price contract in ctcLink.

Audience: Settlement Manager, GL Accountant

Navigation: Main Menu > Customer Contracts > Create and Amend > General Information

Activating a Fixed Price Contract

  1. Use the Find an Existing Value tab of the General Information page to search for a contract:
    1. If it did not default, enter or select the appropriate business unit in the Business Unit field.
    2. Enter or select the contract number (same as the award number) in the Contract field.
    3. Click the Search button.
Find an Existing Value tab
  1. Click the Lines tab.
  2. Under the Lines tab, use the General tab to verify the following contract details:
    1. Make sure the Product is correct for the type of contract.
    2. Make sure the Start Date and End Date on the contract line match the awarded period.
    3. Click the Detail tab.
  1. Use the Detail tab to verify the following contract details:
    1. Make sure the Bill Plan is set to ‘Pending’ and the Revenue Plan is set to ‘Billing Manages Revenue.’
    2. Click the Pending link under the Billing Plan.
  1. In the Bill Plan General page, review the Customer Information, Billing Options, and the Billing Default Overrides for any data that needs to be updated.

IMPORTANT: The Pre Approved and Direct Invoice checkboxes are NOT selected for fixed price contracts.

Note: The Billing Status is set to ‘Pending’ and the Ready at Activation field has a checkmark in it. This will allow the bill plan to become activated when the contract is set to ‘Active.’

  1. Click the Save button.
  2. Click the Events tab.
  1. Use the Events page to enter the date for the first invoice:
    1. Select the Amount radio button in the Define Events section.
    2. Click the Add multiple new rows button.
Script Prompt
  1. On the sbctc.edu needs some information window, enter the following:
    1. Enter the number of rows to add, i.e. invoice event dates for the contract.
    2. Click the OK button.
  1. Continue to complete the Events page:

Note: The original Event line 1 is locked and unchangeable. Only the newly added Event lines with ‘Pending’ Event Status will be editable.

  1. In the Event Date field, enter or select the date for each invoice.
  2. For each line, enter an Amount less than the total amount owed by the Sponsor.
  3. When all lines are complete, use the Event Status drop-down menu to change the status from ‘Pending’ to ‘Ready.’

Note: This action makes the two events ready for invoicing on the event date set in the system.

  1. Click the Save button.
  2. Click the Return to General Information link.
  1. Click the Contract Terms link under the Details tab.
  1. On the Related Projects page, verify the following contract terms:
    1. Ensure that all Associated Projects for this contract are listed on this page.
    2. Ensure that the Activity is correct for the Project.
    3. Ensure the Billing Limit matches the award amount for the award.
    4. Click the Return to General Information link.
  1. Click the Detail tab.
  1. Click the Distribution link under Accounting for the line. The next several steps are to add the revenue account code to the contract for reporting purposes.
  1. Use the Accounting Distribution page to complete the contract accounting details:
    1. If necessary, change the Effective Date to the first day of the activation of the award or the award start date.
    2. In the Define Distributions By section, select the Amount radio button.
    3. In the Revenue Forecast section, enter or select the GL business unit for this account in the GL Unit field.
    4. In the Revenue Forecast section, enter or select the revenue account in the Account field.
    5. In the Revenue Forecast section, enter or select the revenue department in the Dept field.
    6. In the Unbilled AR section, complete the required ChartField entries for the contract, i.e. Account, Oper Unit, Fund, Dept, Class, Project ID, and State Purpose.
    7. Click the Save button.
  1. Click the OK button.
Message
  1. Click the Return to General Information link.
Accounting Distribution
  1. Click the Billing Amount Details tab for the contract line.
  1. On the Billing Amount Details tab, ensure the Billing Limit on the Contract Line is the same as the awarded amount.
  1. Click the General tab at the top of the page.
  1. Use the General page to update the status of the contract:
    1. Enter or select the new status in the Contract Status field to change the contract status to ‘ACTIVE.’
    2. Click the Save button.

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