9.2 Prepaid Contract - Creation to Activation

Purpose: Use this document as a guide to move through a Pre-Paid Contract Grant (PPC) Award from creation to activation processes in ctcLink.

Audience: Finance/Grant Fiscal Staff

You must have at least one of these local college managed security roles:

  • ZC Contracts Processing
  • ZZ Contract Maintenance
  • ZZ Contract Processing

If you need assistance with the above security roles, please contact your local college supervisor or IT Admin to request role access.

Prepaid Contract Grant Creation to Award Activation Process

Proposal

1. Create the Proposal

Navigation: Grants > Proposals > Maintain Proposal

  1. On the Maintain Proposal search page, select the Add a New Value tab.
  2. Enter or look up the Business Unit.
  3. The Proposal ID defaults to NEXT for it will be auto generated upon save. It is essential to not change this from NEXT.
  4. Select Add.
  5. Select the Proposal tab.
  6. Enter valid values in the required and/or optional fields; 
    1. Enter the Award Description.
    2. Optional to enter the Reference Award Number.
    3. Enter the Title.
    4. Optional to enter a Long Description.
    5. Enter or look up PI ID.
    6. Enter the Sponsor ID.
    7. Optional to enter or look up the CFDA number (known as the Assistance Listing Number*)
    8. Enter the Start Date, End Date and number of Periods. Then select the Build button. (NOTE:  Notice that after you build a period that the Build Periods button is now grayed out).
  7. Select the Projects tab.

PI stands for 'Principal Investigator' which is the person who is responsible for the design, conduct, and reporting of grant activities, also known as a grant program manager. If you need to add a new Grant PI ID, please submit a ctcLink Service Ticket with the PI's first and last name, and EMPLID number. If the PI is new to your college, please ensure the individual is set up as an employee in ctcLink before requesting they be set up as a grant PI.

*Assistance Listing Number is the unique number assigned to identify a Federal Assistance Listing, formerly CFDA number. If available, this number can be found within the local fiscal grant guidelines. For SBCTC Grant Awards, this number will soon become required.

Grant Maintain Proposal page
  1. The Projects tab page displays. The Title auto-fills from the prior page. Enter locally defined field values;
    1. Optional to add the Long Description.
    2. Enter the Department number.
    3. Enter the Subdivision (typically this is the same as the Department#).
    4. Enter the Institution (also know as the Business Unit).
    5. In the F&A Distribution section, enter 98219.
  2. Towards the bottom of the page, select the Location hyperlink.

Both the Proposal ID and Project ID default as 'NEXT' and will auto-populate from after the proposal has been completed and saved.  Note the F&A Department is always set to 98219 for Indirect Cost Liability and it's considered an offset account that SBCTC uses to track and monitor.  

Projects page
  1. The Location tab page displays.   
  2. Enter or look up locally define valid values for required fields.
  3. Select the Budgets tab.

The Grant "Location" is a local business practice decision and please refer to your Finance Director/Supervisor for details.

Location page.
  1. The Budgets tab page displays.
  2. In the Budget Header section, enter locally defined field value(s);
    1. Add the Budget ID (limited to 5 field values). Note this will become the 'Activity ID' of your ChartString.
    2. Add the Budget ID Description.
    3. *Optional to select the plus icon [+] to add more Budget IDs.
  3. Select the Save button.

*To add additional Budget ID(s), please refer to your Budget Narrative for guidance. Budget IDs are locally defined and can help Grant Managers or PIs identify and charge expenditures to the correct budget line(s) per the Award Narrative. For example, the Perkins Plan Grant has 2 defined budgeted lines; i.e. Professional Development and Instruction. In this case, 2 Budget IDs (or Activity IDs) can be created to match the defined budget for each activity. (Examples of Budget IDs: PRDEV or PDV24, and INSTR or INS24 whereas the 24 represents the Fiscal Year).

Budgets tab page

After the Proposal is saved, the Proposal ID number and the Project ID number will auto-populate.

Note the 'Proposal ID' will become your 'Contract ID' number after you generate the award.

  1. For each Budget ID, select the F & A and Pricing Setup link and complete the F&A Pricing Setup page information.
Select the F&A and Pricing Setup link

Notice the Pricing Method is “As Incurred”.  This means it is a cost reimbursable contract.  If you do not select the pricing method or you skip the F&A section completely the Grant will default to a Cost reimbursable billing method.

  1. The F & A and Pricing Setup page will display. Enter valid values for all required fields.
    1. The Pricing Method defaults to = As Incurred.
    2. The Product defaults = GRANT_SVC.
    3. Select the Rate Type = IND for indirect.
    4. Enter the F&A or FA Base per your Grant Narrative.
    5. Enter the Effective Date and FA Rate%. Note: the effective date should match the start of your Grant.
  2. Select OK to return to the Maintain Proposal page.
  3. Section complete.

The system uses either the Institution's F&A rate or the Sponsor's F&A rate for calculating the cost-sharing F&A. At this time, the cost-sharing functionality is not enabled for ctcLink thus the system defaults to the Institution Minus Funded check box.

Add F&A information

Video Tutorial

The video below demonstrates the process actions described in the steps listed above. There is no audio included with this video. Select the play button to start the video.

Video Tutorial Via Panopto

View the external link to Create a Reimbursable Proposal. This link will open in a new tab/window.

2. Enter the Proposed Budget

Navigation: Grants > Proposals > Enter Proposal Budget Detail

  1. On the Enter Budget Detail search page, enter or look up  the Business Unit.
  2. Enter or look up the Proposal ID or use a different Search Criteria option.
  3. Select Search.  Select the desired search results.  

Utilize the Search Criteria feature when searching for a specific Grant. For example, select the Short Title and select the dropdown arrow to select 'contains' and enter part of your local college Grant Name, such as WorkF, BEDA, Master, or EHSP.

  1. The Enter Budget Detail page displays. Enter valid values for all required fields.
    1. Enter or look up the Budget Item(s), the Description will auto-fill.
    2. Use the (+) or plus sign icon to add additional rows.
    3. Enter the Amount(s) for each Budget Item.
  2. Select Save.
  3. Section complete.

Notice that the Sponsor F & A is being calculated based on the percentage that was entered in the F & A Pricing Setup page above.

Add Budget Items and amounts

Video Tutorial

The video below demonstrates the process actions described in the steps listed above. There is no audio included with this video. Select the play button to start the video.

Video Tutorial Via Panopto

View the external link to Enter the Proposal Budget. This link will open in a new tab/window.

3. Submit the Proposal

Navigation: Grants > Proposals > Submit Proposal

Next you will “Submit” the Proposal.  When a Proposal has a status of “Submitted” you can no longer modify the Proposal.  You can only make changes when the proposal is in the “Draft” status. If need to make changes, return to the Submit Proposal and change status back to Not Submitted and Save. Make changes then return to to Submit Proposal. Only Grants that are in Submitted status can be Generated to an Award.

  1. On the Submit Proposal search page, enter or look up the Business Unit.
  2. Enter or look up the Proposal ID.
  3. Select Search. The Submit Proposal page will display.
  4. On the Submission tab, verify or enter valid values.
  5. Change the Submit Status to "Submitted".
  6. Select Save.
  7. Optional to select the Return to Maintain Proposal link and the Maintain Proposal page will display.
Select Submitted and save

Notice that the proposal is now at a "Submitted" status and no longer in a "Draft" status.

Proposal confirmation that it is submitted
  1. Section complete.

Video Tutorial

The video below demonstrates the process actions described in the steps listed above. There is no audio included with this video. Select the play button to start the video.

Video Tutorial Via Panopto

View the external link to Submit the Proposal. This link will open in a new tab/window.

4. Generate the Award

Navigation: Grants > Proposals > Generate Award

Only those proposals that have been submitted are available for award generation.

  1. On the Generate Award search page, enter or look up the Business Unit.
  2. Enter or look up the Proposal ID.
  3. Select Search.
  4. Information from the submitted proposal auto-filled specific fields. Verify as needed.
  5. Select the Generate button.

Note: The Budget ID(s) becomes the Activity ID(s) which is a part of valid ChartString(s) in PeopleSoft.

Generate the Award

Notice that after you “Generate”,  the Generate button is no longer available and when your Project was “Generated” it pushed this information out to Project Costing and also Contracts.

The Award is now Generated
  1. Section complete.

Award Profile

5. Grant Terms

Adding the Terms in the Award Profile ensures the Billing and Revenue Plans will be set for Cost Reimbursable Contracts.

Navigation: Grants > Awards > Award Profile  

  1. The Award Profile search page displays.
  2. Enter the search criteria as necessary.  Note: these fields may already have populated on this page.
  3. Select Search.
  4. The Award Profile main Award tab page displays. Notice the Proposal Information carried forward into the Award Profile.
  5. Select the Terms tab.
  6. The Terms page displays. Select the checkbox Copy terms to all projects on save.
  7. In the Details section, enter CRC in the Terms & Conditions field. The description will auto-populate.
  8. Select Save.
  9. Section complete.
Award Profile - Terms tab page
6. Project Type

The Project Type is a 5 digit number and the source of grant-related revenue. For OBIS grants the Project Type is to be coded 02012 for Intercollege Reimbursement. Check with your Finance Director or Supervisor to verify the Revenue Source. When the award integrates in the system, the Project Type becomes a 7 digit GL Account number in PeopleSoft; thus Project Type 02012 becomes GL Account 4020120.

For assistance on selecting a Project Type, please refer to the Grant Project Type Decision Tree link: Grants: How to Pick Project Type.

Navigation: Grants > Awards > Establish Project General Info

  1. On the Project General search page, enter or look up the Business Unit.
  2. Enter or look up the Project. Optional to use other Search Criteria, such as 'Description' and 'contains'.
  3. Select Search. Then select the desired results and the Project General Information page displays OR navigate from the Award Profile Award page, select the Project hyperlink to navigate to Project page.
Project General or Award page
  1. On the General Information tab, enter or look up a Project Type.    
  2. Note that there is a Contract Number associated with the Grant/Project.  
  3. Select Save.
  4. Section complete.

Select the following link to access a downloadable .pdf version Grant: How to Pick Project Type.

Enter the Project Type
For "Capital Project Grants" Only

For Capital Project Grants, please follow the next few steps. If not a Capital Project Grant, continue to the next section, 7. Finalizing the Budget.

For Capital Project Grants, please follow the steps 'A' through 'D' to navigate to the User Fields tab and enter the SBCTC provided capital project number into Field 5.

  1. On the General Information tab page, select the right arrow icon to view additional tabs (like the User Fields tab).
Select side arrow to view more fields
  1. Select the User Fields tab.
  2. In the User Fields section, enter the SBCTC provided capital project number, for example P031, P279 or P123.
  3. Select Save.
  4. Section complete.
User Fields tab to enter the SBCTC Capital Project ID

For more information, please visit the SBCTC website pages Capital Budget, Planning & Facilities and the Allocation and Monitoring page to access CapTrack.

Verify your Fund and Appropriation values within CapTrack matches your PeopleSoft Budget ChartString.

Allocation schedule
7. Finalize the Budget

Navigation: Grants > Awards > Project Budgets

  1. On the Project Budgets search page, enter or look up the Business Unit.
  2. Enter or look up the Project.
  3. Select Search. Select the desired results and the Budget Detail page displays.

Utilize the Search Criteria feature when searching for a specific Grant. For example, select the Description and select the drop down arrow to select 'contains' and enter part of your local college Grant Name, such as WorkF, BEDA, or EHSP.

  1. On the Budget Detail page displays. Select the General Ledger Detail tab.
  2. For each Budget line item or row, enter or look up the following ChartField values;
    1. Operating Unit.
    2. Fund Code.
    3. Class Field.
    4. If required, enter or look up the Subsidiary, State Purpose, and/or Program if needed to complete your college's ChartString. Use the scroll bar to scroll to the right.
  3. Notice that the Sponsor F&A line has been automatically added (depends upon if F&A was added during the Activity set up at the Proposal stage).  
  4. Select the Finalize button. A Budget Finalization message box will be displayed.

NOTE: Only the following Fund Accounts can be used within the Grants/Projects Modules:  057, 060, 145, 147, 253, and 357.  

Notice these fields are editable and the boxes are 'open'. The budget is successfully finalized when the boxes are no longer editable or 'closed'.

Enter budget detail and select finalize button
  1. Select OK. The Budget Detail page will redisplay.
  2. Select the Process Monitor link to insure that the process completes successfully. For more details on Process Monitor, see QRG Process Scheduler/Process Monitor for steps such as select the Refresh button until the Run Status is 'Success' and Distribution Status is 'Posted'.
  3. Select the hyperlink Go back to Project Budgets for confirmation that the Budget was finalized.
  4. The Project Budgets page displays. Enter or look up the Project.
  5. The Budget Detail page displays.
  6. Verify your Budget has Finalized successfully or has no editable boxes.
  7. Sections complete.

If 'yes', the Budget posted successfully (no editable boxes), please continue to Finalize and Activate a Cost Reimbursable Contract. If 'no', enter in the missing ChartField(s), select the Finalize button and go back to continue from 'Step 8. Select OK. The Budget Detail page will display.'

Update missing chartfield and select finalize button again

Video Tutorial  

The video below demonstrates the process actions described in the steps listed above. There is no audio included with this video. Select the play button to start the video.

Video Tutorial Via Panopto

View the external link to Grant Terms, Project Type, and Finalize the CRC Budget. This link will open in a new tab/window.

Customer Contracts

8. Finalize and Activate a Prepaid Contract

Prepaid Grants have a similar setup process to Cost Reimbursable Grants. The difference is when activating the contract.

Navigation: Customer Contracts > Create and Amend > Define Contract General Info

Utilize the Search Criteria feature when searching for a specific Grant. For example, select the Description and select the drop down arrow to select 'contains' and enter part of your local college Grant Name, such as WorkF, BEDA, Master, or EHSP.

  1. On the Find an Existing Value tab of the General Information search page, look up or enter the Business Unit.
  2. Look up or enter the Award number in the Contract field.
  3. Select Search.  Select the desired results and the General Information page displays.
  4. On the General Information page, select on the Lines tab.
  5. In the Contract Lines section, select the Details tab.
  6. Select on the Accounting Distribution link.
Navigate to Accounting Distribution
  1. The Accounting Distribution page displays.  
  2. Select the Correct History button which enables you to enter information in the following required fields.
  3. In the Revenue Forecast section, enter the required field values:
    1. Account. The GL Account associated to the Project Type (5 digits) used in the Project Definitions pages, i.e. 02012 becomes (7 digits) 4020120.
    2. Department. Value should be the same from the Budget setup process.
  4. In the Contract Asset section, enter the Accounting Distribution fields that was used in Grant Budget setup process:
    1. Operating Unit.
    2. Fund.
    3. Department.
    4. Class.
    5. State Purpose = N.
    6. Project Number.
    7. Optional field values: Program if your college utilizes this field.
  5. Select the Save button.

Your Revenue Distribution should match the Grant Project Type from the Award Profile. Per SBCTC OBIS Awards, the Project Type was suggested to be 02012 for Intercollege Reimbursement. Corresponding in the Contract, the Revenue Distribution should be set to 4020120 to match the 7 digit requirement of GL Accounts.

Correct History and enter field values

Note:  The valid ChartString in the Contract Asset section. This will be inherited into Billing sort of like a place-holder. If you have multiple Projects to select from within your Grant, colleges usually select the Primary Project's ChartString. Primary Projects are marked with an asterisk.  

  1. A message displays 'Contract Asset accounting distribution has been changed.' Select OK.
Contract Asset has been changed message
  1. Use the scroll bar to scroll all the way to the right to verify if the Contract Asset line is marked as 'Valid'.
  2. Select the Return to General Information link.  The Lines tab displays.
Review Accounting Distribution
  1. On the General Information page, select Prepaids from the Go to More drop-down list.  The Prepaids page will display.
Contract Lines section General tab
  1. Use the Prepaids page to establish prepaid balance amounts for the contract.

The Status on the General tab of the Prepaids page is set to Pending. The Status controls the actions that can be performed on an advance line and what the system can perform in the way of processing.

  1. Enter the full amount of the advance provided by the contracting sponsor in the Purchased Amount field. This amount will remain static throughout the prepaid advance process.
  2. Enter the appropriate date of the advance into the Expiration Date field.
  3. Select the Utilization tab.
Prepaids tab
  1. Use the Utilization tab to provide the contract line item details. Enter or select the contract line item number into the Contract Line Num field.
  2. Enter a description in the Utilization Descr for Billing field.  This will be applied to the utilization line that is included in the bill.
  3. Select Save.  The General tab will display in the Prepaids for this Contract section.
Prepaids tab

The Purchased Amount and Remaining Amount fields show the amount of the prepaid.

  1. Select the Initial Billing tab.
Prepaids for this Contract General tab
  1. On the Initial Billing tab use the Prepaid Tax Timing drop-down list to select when to tax the prepaid amount.
  2. Select Save.  The General tab will display.
Prepaids for this Contract Initial Billing tab
  1. On the General tab, select the Billing Plans link.  The Assign Billing Plan page will display.
Prepaids for this Contract General tab

Use the Assign Billing Plan page to assign bill plans to contract lines. Define bill plans and assign the contract lines to these existing bill plans, or assign the lines to a new billing plan and then define the details of the bill plan.

  1. Select the checkbox for the first line in the Prepaids to be Assigned/Unassigned segment of the page. It represents Contract Line 1 and Sequence 1.
  2. In the Bill Plan to Assign/Unassign section, enter or select:
    1. the Billing Method drop-down list to select Milestone.
    2. In the 'Description' field, enter Prepaid Billing.
    3. In the 'Billing Plan Template' field, select FIX_PRICE.
    4. In the 'Bill Plan Detail Template ID' field, select FIX_PRICE.
  3. Select the Assign button.

Prepaid Grants are actually As Incurred/Cost Reimbursable Grants however, the Prepaid Billing Plan must set to Milestone/FIX_PRICE as in the example below.

Assign Billing Plan page

The Plan field in the Prepaids to be Assigned/Unassigned section now contains a link to the newly assigned billing plan.

  1. Select the B102 link (or the Bill Plan on the new second line).  The Billing General page will display.
Assign Billing Plan

Use the Billing Plan General tab to confirm that the Billing Status is Pending. When the new bill plan is first opened, several fields in the Customer Information, Billing Options, and Billing Default Overrides sections are pre-populated. These values come from setup that is defined at the contract level on the Billing Options page or in the Billing Plan Detail template.

Options selected in the Billing Options section impact other aspects of the bills. For example, the selections made for Bill Type and Bill Source impact the format of the final invoice.

  1. Enter or select the appropriate invoice format for the bills that needed to generate from this bill plan in the Invoice Form field.
  2. Use the Cycle ID field to associate a billing plan with a bill cycle that is defined on the Bill Cycle page. When running the Contracts Billing Interface process, specify that it should process only billing plans of a specific billing cycle type.
  3. Use the Bill By ID field to enter an ID for grouping bill lines on invoices.
  4. Use the Billing Specialist field to enter a code for a billing specialist. Billing Specialists are established on the Billing Specialist page.
  5. Select Save.
  6. Select the Events tab.
Billing Plan General tab
  1. Use the Events page to enter the prepayment event details.
  2. Use the Event Status drop-down list to change the status to Pending.

This makes all the fields available for entry. If an Event Detail line is not already included, select the Add multiple new rows [+] button.

  1. Update the Event Status from 'Ready' to 'Pending'.
  2. Enter or select the date the Prepaid amount was received in the Event Date field.
  3. In the Define Events section, select the Percent or Amount radio button depending on how the grant sponsor awarded the prepaid amount.
  4. Enter the Percentage or Amount of the contract amount that was prepaid. The Amount field will update when the record is saved.
  5. Now that you have updated the necessary fields, use the Event Status drop-down to change the status to Ready.
  6. Select Save.
  7. Select the Return to Assign Billing Plan link.
Events tab
  1. On the Assign Billing Plan page, select the Return to Prepaid Balances link.
Assign Billing Plan page
  1. On the Prepaid Balances page, select the Contract Liability Distribution tab.
Prepaids tab
  1. Use the Contract Liability Distribution tab to enter the Chartfield details.
  2. Enter or select a separate deferred revenue distribution code for the prepaid advance amounts Distribution Code field. This allows easy tracking of expenditures. Enter or lookup valid values for:
    1. Account.
    2. Operating Unit.
    3. Fund.
    4. Department.
    5. Class.
    6. Project.
    7. State Purpose.
  3. Select the Save button. The General tab will display.

Distribution Codes input a pre-determined accounting string. Once this information is available, enter any fields that were not defined. When entering these fields, the selection in the Distribution Code field is removed, but the accounting string remains.

Prepaids contract liability Distribution
  1. To update the status of the prepaid contract, use the Status drop-down to change the status to Ready.
  2. Select Save.
  3. Select the Return to General Information link.
Prepaids tab
  1. On the General Information page, select the Amount Allocation link.  The Billing Allocation page will display.
Lines tab
  1. Use the Billing Allocation page to update the billing information.
  2. Enter the amount of the Prepaid Bill Plan in the Fixed Billing field.
  3. Select the Recalculate button.
Billing Allocation tab

The Allocation field changes from Incomplete to Complete.

  1. Select Save. Select the Return to General Information link.
Billing Allocation tab
  1. On the General Information page, select the General tab. .
Lines tab
  1. To update the overall status of the prepaid contract enter or select ACTIVE in Contract Status.
  2. Select Save.

If there are any required values missing, the status will not change and the error message displays what required values are missing.

General tab

The next step for the Prepaid contract is to follow the QRG Fixed Priced Grant/Contract Billing for the prepaid amount.

Check with your local college business practice or supervisor for the process to setup applicable Combo Codes and/or Item Types. After expense transactions occur, the next step would be to follow the QRG Reimbursable Grant Contract Billing.

Video Tutorial

The video below demonstrates the process actions described in the steps listed above. There is no audio included with this video. Select the play button to start the video.

View Tutorial via Panopto

View the external link to Prepaid Contract - Creation to Activation. This link will open in a new tab/window.

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