ACRN Billing
ACRN is an acronym for Accounting Classification Reference Number. An ACRN is a two-position alpha or alphanumeric code used to relate the line of accounting to detailed line item information in the schedule.
According to government requirements (DFARS 204.7107), contractors have an obligation to invoice at a Contract, Contract Line (CLIN), Subcontract Line (SLIN), Exhibit Line, or an Accounting Classification Reference Number (ACRN) level. ACRN data is used by the government contract administrator and paying office to relate various costs of the project to the appropriate funding source. In return, the contractor/subcontractor submits invoices for payments to the Paying Office with instructions on how to disburse the payments against the funding pools (ACRNs).
With Costpoint, you can invoice using ACRN (Accounting Classification Reference Number) data at the billing level for projects that are calculated using the Calculate Standard Bills application (standard bills only). Manual and progress payment invoices are not included.
To use ACRN billing, you must select the Enable ACRN Billing check box on the Configure Billing Settings screen.
Set up and process the following applications in the order shown:
1. Basic Info tab
Set up project information on the Basic Info tab of the Manage Project User Flow.
2. Project Billing Information screen
On the Manage Project Billing Information screen, use the Billing Formula field to set up project billing information with a transaction-based formula. You cannot use the Enter Bill Manually, Manual Bills with Unbilled Detail, or Progress Payment formulas.
3. Maintain ACRN Bills screen
The Manage ACRN Bills screen stores the project/ACRN combinations that are eligible for calculations. You use this application to define the payment instructions, calculation method, and ACRN data (including funding and allocation amounts). It includes an account mapping mechanism for clients who must segregate ACRN funding based upon specific accounts. The Calculate ACRN Bills application checks the Manage ACRN Bills table, PROJ_BILL_ACRN, to determine which projects to calculate.
Set up an active record on the Manage ACRN Bills screen at or below the same project level at which the record exists on the Manage Project Billing Information screen. You can exclude a project from ACRN calculations by clearing the Active check box. The table window contains another Active check box. If ACRN funding expires, you can select this check box to exclude specific ACRNs from calculations while preserving the historical ACRN data. This is helpful if the funds become available again.
Billing Requirement
Select a Billing Requirement. There are four Billing Requirement options:
- ACRN Only: Select this option to invoice using only an ACRN and dollar amount. You must enter a two-digit ACRN value and the associated ACRN amounts in the table window. No restriction exists on how the costs are distributed to the funds; labor and ODC costs can be paid by any ACRNs with available funds.
- ACRN Only with Mapping: This is a variation of the ACRN Only option. If you select this option:
- You can distribute costs to specific ACRNs based on direct accounts.
- You can link direct labor accounts to one set of ACRNs and link other direct costs to another set of ACRNs. Many government contracts are funded in this manner.
- You must link accounts to each ACRN line.
- You enable the Accounts and the PLC Mapping subtasks.
- ACRN/Line Item: Select this option if you need to invoice using an ACRN, line item, and dollar amount combination. You must enter the following:
3. A two-digit ACRN value
4. A line item value (a maximum of six alphanumeric characters)
5. The associated ACRN amounts in the table window
- ACRN/Line Item with Mapping: This is a variation of the
ACRN/Line Item option. If you select this option:
4. You can distribute costs to specific ACRN/line item combinations based on direct accounts.
5. You can link direct labor accounts to one set of ACRN/line item combinations and link other direct costs to another unique set of ACRN/line item combinations. Many government contracts are funded in this manner.
6. You must link accounts to each unique ACRN/line item.
7. You enable the Accounts and the PLC Mapping subtasks.
If the ACRN Billing Requirement is ACRN Only with Mapping or ACRN/Line Item with Mapping AND the Use Project Mapping check box is cleared, you must enter data on the Accounts subtask or the PLC Mapping subtask for each sequence number before saving the record.
Calculation Method
Select a Calculation Method.
- FIFO (First In, First Out): The FIFO method uses a "First In, First Out" methodology (ACRN AA funds are used before ACRN AB funds).
You enter the ACRN data using a sequence number (the Seq No field on the Manage ACRN Bills screen). The ACRN calculation uses sequence number 1 funds before using sequence number 2 funds, and so on. You must link sequence number 1 to ACRN AA and sequence number 2 to ACRN AB. You can edit the sequence numbers for a funding modification.
- LIFO (Last In, First Out): The LIFO method uses a "Last In, First Out" methodology (ACRN AB funds are used before ACRN AA funds).
You enter the ACRN data using a sequence number (the Seq No field on the Manage ACRN Bills screen). The ACRN calculation uses the ACRN funds from the highest sequence number before using the ACRN funds linked to a lower sequence number. You must link sequence number 2 to ACRN AB and sequence number 1 to ACRN AA. You can edit the sequence numbers for a funding modification.
- Proration: The Proration method uses a ratio of available funds for each individual ACRN to the total remaining funds for ALL ACRNs, then multiplies the ratio by the invoice amount.
The Proration method multiplies the invoice amount by the ratio of available funds for each ACRN to the total remaining funds for all ACRNs:
Individual ACRN/Line Item Remaining Funded Value * Invoice Amount
Total of Remaining ACRN Funded Value
You must enter a Sequence Number with the ACRN data in case a rounding issue occurs. Rounding amounts are applied to the ACRN linked to the lowest sequence number with available funds.
Enter at least one active row in the table window with an ACRN or ACRN/Line Item value and its associated ACRN Value. If the selected Billing Requirement is ACRN Only with Mapping or ACRN/Line Item with Mapping, enter the appropriate data on the Accounts or PLC Mapping subtasks.
This screen stores current ACRN Allocation amounts computed by the Calculate ACRN Bills application and derived from invoice amounts calculated via the Calculate Standard Bills application. You can edit the calculated allocation amounts.
You can also use this screen to initialize ACRN data for projects that were invoiced before you began using Costpoint's ACRN functionality.
4. Post transactions for the given period
Use the appropriate application, such as Post Journal Entries or Post Vouchers, to post transactions for the given period.
5. Update Cash Basis Information screen
You can execute the Update Cash Basis Information screen.
6. Load Labor Rates screen
You can execute the Load Labor Rates screen.
7. Calculate Standard Bills screen
Execute the Calculate Standard Bills screen. The calculated invoice amounts from BILL_EDIT_INVC_HDR and BILL_EDIT_DETL are distributed to individual ACRN or ACRN/line items set up on the Manage ACRN Bills screen.
8. Print ACRN Billing Edit Report screen
You can use the Print ACRN Billing Edit Report screen to review the amounts. You can run this screen at any time. This screen references the Manage ACRN Bills data/tables to print current, cumulative, and remaining ACRN amounts. The report gives you an opportunity to review amounts and make necessary edits before printing the standard bill.
The report may also be beneficial to users responsible for preparing invoices to verify ACRN allocation amounts before printing ACRN data on the Standard Invoice (Form 1035). The report may also be useful for project managers who need to review the remaining ACRN values to ensure that contractual obligations are being met and that resources are being used appropriately.
9. Manage Standard Bills screen
You can make edits to standard bills on the Manage Standard Bills screen.
10. Calculate ACRN Bills screen
Execute the Calculate ACRN Bills screen. This screen references the data stored on the Manage ACRN Bills screen (PROJ_BILL_ACRN, PROJ_ACRN_DETL, and PROJ_ACRN_ACCT) to calculate current, total, and remaining ACRN Allocation amounts.
11. Post Standard Bills screen
When you run the Post Standard Bills application, the Current ACRN Allocation Amount values are posted to two history tables, PROJ_ACRN_HDR_HS and PROJ_ACRN_DETL_HS. In addition, the Current ACRN Allocation Amount values are added to the Previous ACRN Amt values, and the Current ACRN Allocation Amount value is reset to 0.00. The Total ACRN Allocation Amount and Remaining ACRN Value fields are recalculated to ensure the next ACRN invoice amounts are correct.
Hints
- If you calculated your standard bill and your ACRN bill but forgot to add a new ACRN funding modification, you can add the new ACRN funding amount on the Manage ACRN Bills screen, save the record, and calculate the ACRN bill again. You can compute an ACRN bill multiple times as long as the bill exists on the Manage Standard Bills screen.
- In order to calculate ACRN allocation amounts, a standard bill must exist on the Manage Standard Bills screen. If you did not calculate an ACRN bill before posting the standard bill, you can reverse the standard bill using the Reverse Previous Bills screen and post it via the Post Standard Bills screen. Then you can recalculate the standard bill for the same given timeframe, making any necessary edits, and then calculating the ACRN bill. Exercise caution when using the Reverse Previous Bills screen. If you are unfamiliar with the Reverse Previous Bills functionality, please contact Costpoint General Phone support for questions or assistance.
- If a standard bill must be reversed and ACRN allocation amounts were associated with the standard bill, see the "Reverse ACRN Allocation Amounts" topic for the steps you need to perform.
Examples of Calculations
Refer to the topics below to see examples of ACRN billing calculations.
Billing Requirement Includes Mapping, Use Project Mapping check box is selected
- Billing Requirement Includes Mapping and PROJ_MAP_FL is Y - FIFO
- Billing Requirement Includes Mapping and PROJ_MAP_FL is Y - LIFO
- Billing Requirement Includes Mapping and PROJ_MAP_FL is Y - Proration
Billing Requirement Includes Mapping, Use Project Mapping check box is not selected
- Billing Requirement Includes Mapping and PROJ_MAP_FL is N - FIFO
- Billing Requirement Includes Mapping and PROJ_MAP_FL is N - LIFO
- Billing Requirement Includes Mapping and PROJ_MAP_FL is N - Proration
Billing Requirement Does Not Include Mapping, ACRN Only
- Billing Requirement Without Mapping for ACRN Only - FIFO
- Billing Requirement Without Mapping for ACRN Only - LIFO
- Billing Requirement Without Mapping for ACRN Only - Proration
Billing Requirement Does Not Include Mapping, ACRN/Line Item
- Billing Requirement Without Mapping for ACRN Line Item - FIFO
- Billing Requirement Without Mapping for ACRN Line Item - LIFO
- Billing Requirement Without Mapping for ACRN Line Item - Proration