BILLING REQUIREMENT WITHOUT MAPPING

ACRN Only using FIFO methodology

Requirement:  the payment office will make payment in sequential ACRN order within the contract, exhausting all funds in the smallest ACRN before paying from the next ACRN. 

Using the FIFO method, the funds from ACRN AA would be exhausted before using funds from ACRN AB.  The user will be responsible for assigning the correct sequence number to the ACRN value (for example, the user will need to link ACRN AA to sequence number 1 and ACRN AB to sequence number 2).

Example:

A contract is awarded with the following Accounting Classification data:

Project Setup Data:

Project Number:  USN0418

Billing Level:      USN0418

You would set up the ACRN data as follows in the Maintain ACRN Bills screen (Projects » Billing » Billing Master). Line and Subline data would not be entered based upon the Billing Requirement selection of ACRN Only.  Accounts are not mapped.

The ACRN Modification Value column is used for illustration purposes only.

A Standard Bill (calculated by the Calculate Billings screen (Projects » Billing » Calculate Billings)) produces the following invoice amounts for Project USN0418 (SUM (MU_INVC_AMT) in BILL_EDIT_INVC_HDR):

USN0418                                     82,500.00

Calculation Logic

The system calculates the ACRN allocation amounts by performing the following:

Determine amount remaining to be allocated.

Amount Remaining to be Allocated equals SUM (MU_INVC_AMT) in BILL_EDIT_INVC_HDR minus allocation amounts already calculated for the CURRENT invoice:

SUM (MU_INVC_AMT) in BILL_EDIT_INVC_HDR for Project USN0418                      

                                                                  82,500.00

Minus all allocation amounts already calculated for the current invoice

     None exists                                         -         0.00

Amount Remaining to be Allocated     82,500.00

Determine the available ACRN AA remaining funded value balance. 

This amount is calculated by using the following formula: 

PROJ_ACRN_DETL.ACRN_FUNDED_AMT - PROJ_ACRN_DETL.ACRN_BILLED_AMT

It may seem logical to use the ACRN_AVAIL_AMT value in the PROJ_ACRN_DETL table, but this column cannot be used because you have the capability to recalculate ACRN Bills and an incorrect allocation calculation would occur on the subsequent calculation.  For example, if the ACRN Value (ACRN_FUNDED_AMT) is 1,000.00 and the Previous ACRN Allocation Amount (ACRN_BILLED_AMT) is 0.00, the Remaining ACRN Value (ACRN_AVAIL_AMT) would be 1,000.00.  If you calculate the ACRN Bill for the first time and the amount computed is 200.00, the table values would change to:

If you were to compute the invoice again and the application was using the ACRN_AVAIL_AMT as the basis for available funds, 800.00 would be used when, in actuality, 1,000.00 of ACRN funds is available. 

Remaining ACRN Funded Value amount for ACRN AA: 36,000.00

(PROJ_ACRN_DETL.ACRN_FUNDED_AMT – (PROJ_BILL_ACRN.DETL.ACRN_BILLED_AMT)

The system allocates the smaller of the Remaining ACRN Funded Value or Amount Remaining to be Allocated.

The Project USN0418 Amount Remaining to be Allocated, 82,500.00, is greater than the Remaining ACRN Funded Value of 36,000.00 for ACRN AA; so the system allocates 36,000.00 to ACRN AA for Project USN0418.

The system checks for the existence of an ACRN Sequence Number > 1. Sequence Numbers 2 and 3 exist. The system uses the smallest ACRN Sequence Number remaining for the next step of the calculation.

ACRN AB is the 2^nd ACRN Sequence Number.  (SEQ_NO = 2) 

Verify the PROJ_ACRN_DETL.ACTIVE_FL value for the Sequence Number.  If the PROJ_ACRN_DETL.ACTIVE_FL = Y, continue calculation.  If PROJ_ACRN_DETL.ACTIVE_FL = N, end calculation.

The PROJ_ACRN_DETL.ACTIVE_FL = Y for SEQ_NO = 2.  Continue calculation.

The system calculates the ACRN AB allocation amount by performing the following:

Determine Amount Remaining to be Allocated.

Amount Remaining to be Allocated equals SUM (MU_INVC_AMT) in BILL_EDIT_INVC_HDR minus Allocation amounts already calculated for the CURRENT invoice.

SUM (MU_INVC_AMT) in BILL_EDIT_INVC_HDR for Project USN0418:  82,500.00

Subtract any allocation amounts with an ACRN Sequence Number < 2:

ACRN Sequence #1, ACRN AA:  36,000.00

Project USN0418 Amount Remaining to be Allocated:  46,500.00

Determine the available ACRN AB funding balance:

PROJ_ACRN_DETL.ACRN_FUNDED_AMT - PROJ_ACRN_DETL.ACRN_BILLED_AMT

Remaining ACRN Funded Value for ACRN AB:  41,000.00

Allocate the smaller of the Remaining ACRN Funded Value or Amount Remaining to be Allocated.

The Project USN0418 Amount Remaining to be Allocated, 46,500.00, is greater than the Remaining ACRN Funded Value of 41,000.00 for ACRN AB; so the system allocates 41,000.00 to ACRN AB for the project.

The system checks for the existence of an ACRN Sequence Number > 2.  Sequence Number 3 exists.

ACRN AC is the 3^rd ACRN Sequence Number.  (SEQ_NO = 3)

Verify the PROJ_ACRN_DETL.ACTIVE_FL value for the Sequence Number.  If the PROJ_ACRN_DETL.ACTIVE_FL = Y, continue calculation.  If PROJ_ACRN_DETL.ACTIVE_FL = N, end calculation.

The PROJ_ACRN_DETL.ACTIVE_FL = Y for SEQ_NO = 3.  Continue calculation.

The system calculates the ACRN AC allocation amount by performing the following:

Determine Amount Remaining to be Allocated.

Amount Remaining to be Allocated equals SUM (MU_INVC_AMT) in BILL_EDIT_INVC_HDR minus Allocation amounts already calculated for the CURRENT invoice.

SUM(MU_INVC_AMT) in BILL_EDIT_INVC_HDR for Project USN0418:  82,500.00

Subtract any allocation amounts with an ACRN Sequence Number < 3

     ACRN Sequence #1, ACRN AA:  36,000.00

     ACRN Sequence #2, ACRN AB       - 41,000.00

Project USN0418 Amount Remaining to be Allocated:  5,500.00

Determine the available ACRN AC funding balance. 

PROJ_ACRN_DETL.ACRN_FUNDED_AMT - PROJ_ACRN_DETL.ACRN_BILLED_AMT

The Remaining ACRN Funded Value amount is used:  80,000.00

Allocate the smaller of the Remaining ACRN Funded Value or Amount Remaining to be Allocated.

The Project USN0418 Amount Remaining to be Allocated, 5,500.00 is less than the Remaining ACRN Funded Value of 80,000.00 for ACRN AC; so the system allocates 5,500.00 to ACRN AC.

Check for the existence of an ACRN Sequence Number > 3.  None exists, calculation ends. 

Summary of ACRN Allocation Amounts:

ACRN Only using LIFO methodology

Requirement:  The payment office will make payment in sequential ACRN order within the contract, exhausting all funds in the greatest ACRN before paying from the lower ACRNs.

Using the LIFO method, the funds from ACRN AB would be exhausted before using funds from ACRN AA.  The user will be responsible for assigning the correct Sequence Number to the ACRN value (for example, the user will need to link ACRN AA to Sequence Number 1 and ACRN AB to Sequence Number 2).  The sequencing of ACRNs will be the same with the FIFO and LIFO methodologies.  When calculating using FIFO, the lowest Sequence Number will be used first.  When calculating using LIFO, the highest Sequence Number will be used first.

ACRN Modification Value column is used for illustration purposes only.

A contract is awarded with the following Accounting Classification data:

Project Setup Data:

Project Number:  USN0418

Billing Level:      USN0418

The ACRN data would be setup as follows in the Maintain ACRN Bills screen (Projects » Billing » Billing Master).  Line and Subline data would not be entered based upon the Billing Requirement selection of ACRN Only.  Accounts will not be mapped.

A Standard Bill (calculated by the Calculate Billings screen (Projects » Billing » Calculate Billings) - BLPGBILL) produces the following invoice amounts for Project USN0418 (SUM(MU_INVC_AMT) in BILL_EDIT_INVC_HDR).

USN0418                                     82,500.00

Calculation Logic

Calculate the ACRN allocation amounts by performing the following calculation:

Determine Amount Remaining to be Allocated.

Amount Remaining to be Allocated equals SUM (MU_INVC_AMT) in BILL_EDIT_INVC_HDR minus allocation amounts already calculated for the CURRENT invoice.

SUM (MU_INVC_AMT) in BILL_EDIT_INVC_HDR for Project USN0418:  82,500.00

Minus all allocation amounts already calculated for the current invoice

     None exists     -              0.00

Project USN0418 Amount Remaining to be Allocated:  82,500.00

Determine the available ACRN AC funding balance.

PROJ_ACRN_DETL.ACRN_FUNDED_AMT - PROJ_ACRN_DETL.ACRN_BILLED_AMT

The Remaining ACRN Funded Value amount is used:  80,000.00

Allocate the smaller of the Remaining ACRN Funded Value or Amount Remaining to be Allocated.

The Project USN0418 Amount Remaining to be Allocated, 82,500.00, is greater than the Remaining ACRN Funded Value of 80,000.00 for ACRN AC; so the system allocates 80,000.00 to ACRN AC for Project USN0418.

The system checks for the existence of an ACRN Sequence Number < 3.  Sequence Numbers 1 and 2 exist.  Use the highest Sequence Number remaining for the next step in the calculation.

ACRN AB is the highest remaining ACRN Sequence Number. SEQ_NO = 2.

Verify the PROJ_ACRN_DETL.ACTIVE_FL value for the Sequence Number.  If the PROJ_ACRN_DETL.ACTIVE_FL = Y, continue calculation.  If PROJ_ACRN_DETL.ACTIVE_FL = N, end calculation.

The PROJ_ACRN_DETL.ACTIVE_FL = Y for SEQ_NO = 2.  Continue calculation.

Calculate the ACRN AB allocation amount by performing the following calculation:

Determine Amount Remaining to be Allocated.

Amount Remaining to be Allocated equals SUM (MU_INVC_AMT) in BILL_EDIT_INVC_HDR minus Allocation amounts already calculated for the CURRENT invoice.

SUM (MU_INVC_AMT) in BILL_EDIT_INVC_HDR for Project USN0418:  82,500.00

Subtract any allocation amounts with an ACRN Sequence Number > 2:

ACRN Sequence #3, ACRN AC:  - 80,000.00

Project USN0418 Amount Remaining to be Allocated:  2,500.00

Determine the available ACRN AB funding balance. 

PROJ_ACRN_DETL.ACRN_FUNDED_AMT - PROJ_ACRN_DETL.ACRN_BILLED_AMT

The Remaining ACRN Funded Value amount is used:  41,000.00

Allocate the smaller of the Remaining ACRN Funded Value or Amount Remaining to be Allocated.

The Project USN0418 Amount Remaining to be Allocated, 2,500.00, is less than the Remaining ACRN Funded Value of 41,000.00 for ACRN AB; so the system allocates 2,500.00 to ACRN AB for the project.

Check for the existence of an ACRN Sequence Number < 2.  Sequence Number 1 exists.

ACRN AA is the 1st ACRN Sequence Number.  (SEQ_NO = 1)

Verify the PROJ_ACRN_DETL.ACTIVE_FL value for the Sequence Number.  If the PROJ_ACRN_DETL.ACTIVE_FL = Y, continue calculation.  If PROJ_ACRN_DETL.ACTIVE_FL = N, end calculation. 

The PROJ_ACRN_DETL.ACTIVE_FL = Y for SEQ_NO = 1.  Continue calculation.

Calculate the ACRN AA allocation amount by performing the following calculation:

Determine Amount Remaining to be Allocated.

Amount Remaining to be Allocated equals SUM (MU_INVC_AMT) in BILL_EDIT_INVC_HDR minus allocation amounts already calculated for the CURRENT invoice.

SUM (MU_INVC_AMT) in BILL_EDIT_INVC_HDR for Project USN0418:  82,500.00

Subtract any allocation amounts with an ACRN Sequence Number > 1

     ACRN Sequence #3, ACRN AC:  80,000.00

     ACRN Sequence #2, ACRN AB:      - 2,500.00

Project USN0418 Amount Remaining to be Allocated:  0.00

Determine the available ACRN AA funding balance. 

PROJ_ACRN_DETL.ACRN_FUNDED_AMT - PROJ_ACRN_DETL.ACRN_BILLED_AMT

The Remaining ACRN Funded Value amount is used:  36,000.00

Allocate the smaller of the Remaining ACRN Funded Value or Amount Remaining to be Allocated.

The Project USN0418 Amount Remaining to be Allocated, 0.00, is less than the Remaining ACRN Funded Value of 36,000.00 for ACRN AA; so the system allocates 0.00 to ACRN AA.

Check for the existence of an ACRN Sequence Number < 1.  None exists, calculation ends. 

Summary of ACRN Allocation Amounts:

 ACRN                                   Allocation Amount

AA           0.00

AB           2,500.00

AC           80,000.00

  Total Allocation             82,500.00

ACRN Only using Proration methodology

Requirement:  the payment office will make payment from each ACRN within the contract in the same proportion as the amount of funding currently unliquidated for each ACRN. 

Unliquidated is defined as the Remaining ACRN Funded Value.

The mathematical equation to determine the Proration amounts will be:           

      Individual Remaining ACRN Funded Value (each ACRN)                                          

               Total of ALL Remaining ACRN Funded Values

A contract is awarded with the following Accounting Classification data:

Project Setup Data:

Project Number:  USN0418

Billing Level:      USN0418

The ACRN data would be set up as follows in the Maintain ACRN Bills screen (Projects » Billing » Billing Master).  Line and Subline data would not be entered based upon the Billing Requirement selection of ACRN Only.  Accounts will not be mapped.

ACRN Modification Value column is for illustration purposes only.

The ACRN Sequence Number for this calculation is used only for rounding amounts.

A Standard Bill (calculated by the Calculate Billings screen (Projects » Billing » Calculate Billings) - BLPGBILL) produces the following invoice amounts for Project USN0418 (SUM (MU_INVC_AMT) in BILL_EDIT_INVC_HDR).

USN0418:  82,500.00

Calculation Logic

Calculate the ACRN allocation amounts by performing the following calculation:

Determine Amount Remaining to be Allocated.

Amount Remaining to be Allocated equals SUM(MU_INVC_AMT) in BILL_EDIT_INVC_HDR                                   

Project USN0418 Amount Remaining to be Allocated:  82,500.00

Determine the Remaining ACRN Funded Value for each ACRN as a ratio to the Sum of ALL Remaining ACRN Funded Value amounts for active ACRNs.

If the individual ACRN Remaining ACRN Funded Value (PROJ_ACRN_DETL.ACRN_FUNDED_AMT - PROJ_ACRN_DETL.ACRN_BILLED_AMT) is less than or equal to 0.00, do not include that specific ACRN Funded Value in the calculation as part of the numerator or denominator.  If the PROJ_ACRN_DETL.ACTIVE_FL = N, do not include that specific ACRN Funded Value in the calculation.

Gather individual ACRN Remaining ACRN Funded Values where PROJ_ACRN_DETL.ACTIVE_FL = Y and Remaining ACRN Funded Value (PROJ_ACRN_DETL.ACRN_FUNDED_AMT - PROJ_ACRN_DETL.ACRN_BILLED_AMT) > 0:

ACRN AA Remaining ACRN Funded Value:  36,000.00

ACRN AB Remaining ACRN Funded Value:   41,000.00

ACRN AC Remaining ACRN Funded Value:   80,000.00

Total Remaining ACRN Funding Value          157,000.00

Next, convert ACRN Remaining ACRN Funded Values as a ratio to Total of ALL Remaining ACRN Funded Values:

ACRN Proration:

Multiply the SUM (MU_INVC_AMT) from BILL_EDIT_INVC_HDR for the Billing Level project ID by the appropriate ACRN ratio from the preceding table.

ACRN Allocation:

If any residual amounts result due to rounding (Total ACRN Allocation Amount not equal to Invoice Amount, SUM(MU_INVC_AMT)), apply the residual to the ACRN linked to the smallest ACRN Sequence Number with a Remaining ACRN Funded Value > 0.

The smallest ACRN Sequence Number with a Remaining ACRN Funded Value is ACRN AA (SEQ_NO = 1).

Distribute the .01 rounding amount to ACRN AA.

Summary of ACRN Allocation Amounts

ACRN/Line Item using FIFO Methodology

Requirement:  If there is more than one ACRN within a contract line item, the payment office will make payment in sequential ACRN order within the line item, exhausting all funds in the previous ACRN before paying from the next ACRN. 

Using the FIFO method, the ACRN value is compared to each Line Item/Subline Item to determine which ACRN funds to exhaust first.  ACRN AA/0001AA would be exhausted before using funds from ACRN AB/0001AB.  The user will be responsible for assigning the correct Sequence Number to the ACRN value (for example, the user will need to link AA/0001AA to Sequence Number 1 and AB/0001AB to Sequence Number 2).

Example:

 A contract is awarded with the following Accounting Classification data:

Project Setup Data:

Project Number:  USN0418

Billing Level:      USN0418

The ACRN/Line Item data would be set up as follows in the Maintain ACRN Bills screen (Projects » Billing » Billing Master).  Within the Maintain ACRN Bills screen, you have the option of using the ACRN/Line Item combination or the ACRN/Subline Item combination, but you cannot use an ACRN/Line Item/Subline Item combination. You can mix the combinations for one project (for example, link AA/0001AA (ACRN/Subline Item) and link AE/0003 (ACRN/Line Item) to the same project).

Using the preceding Accounting Classification data, let's assume you enter data into the Maintain ACRN Bills screen as follows:

A Standard Bill (calculated by the Calculate Billings screen (Projects » Billing » Calculate Billings)) produces the following invoice amounts for Project USN0418 (SUM (MU_INVC_AMT) in BILL_EDIT_INVC_HDR).

USN0418 :  55,477.50

Calculation Logic

Calculate the AA/0001AA allocation amount by performing the following calculation:

Determine Amount Remaining to be Allocated.

Amount Remaining to be Allocated equals SUM (MU_INVC_AMT) in BILL_EDIT_INVC_HDR minus Allocation amounts already calculated for the CURRENT invoice.

Determine the available AA/0001AA funding balance. 

PROJ_ACRN_DETL.ACRN_FUNDED_AMT – PROJ_ ACRN_DETL.ACRN_BILLED_AMT

The Remaining ACRN Funded Value amount is used:  15,000.00

Allocate the smaller of the Remaining ACRN Funded Value or Amount Remaining to be Allocated.

The Project USN0418 Amount Remaining to be Allocated, 55,477.50, is greater than the Remaining ACRN Funded Value of 15,000.00 for AA/0001AA; so the system allocates 15,000.00 to AA/0001AA for the project.

Check for the existence of a Sequence Number > 1.  Sequence Numbers 2, 3, 4, 5, 6 and 7 exist. Use the smallest Sequence Number remaining for the next step in the calculation.

AB/0001AB is the 2^nd Sequence Number. (SEQ_NO = 2)

Verify the PROJ_ACRN_DETL.ACTIVE_FL value for the Sequence Number.  If the PROJ_ACRN_DETL.ACTIVE_FL = Y, continue calculation.  If PROJ_ACRN_DETL.ACTIVE_FL = N, end calculation. 

The PROJ_ACRN_DETL.ACTIVE_FL = Y for SEQ_NO = 2.  Continue calculation.

Calculate the AB/0001AB allocation amount by performing the following calculation:

Determine Amount Remaining to be Allocated.

Amount Remaining to be Allocated equals SUM(MU_INVC_AMT) in BILL_EDIT_INVC_HDR minus Allocation amounts already calculated for the CURRENT invoice.

SUM (MU_INVC_AMT) in BILL_EDIT_INVC_HDR for Project USN0418:  55,477.50

Subtract any allocation amounts with a Sequence Number < 2

ACRN Sequence #1, AA/0001AA:  15,000.00

Project USN0418 Amount Remaining to be Allocated:  40,477.50

Determine the available AB/0001AB funding balance. 

PROJ_ACRN_DETL.ACRN_FUNDED_AMT – PROJ_ACRN_DETL.ACRN_BILLED_AMT

The Remaining ACRN Funded Value amount is used:  11,000.00

Calculate the AB/0001AB allocation amount by performing the following calculation:

Allocate the smaller of the Remaining ACRN Funded Value or Amount Remaining to be Allocated.

The Project USN0418 Amount Remaining to be Allocated, 40,477.50, is greater than the Remaining ACRN Funded Value of 11,000.00 for AB/0001AB; so the system allocates 11,000.00 to AB/0001AB for the project.

Check for the existence of a Sequence Number > 2.  Sequence Numbers 3, 4, 5, 6 and 7 exist.  Use the smallest Sequence Number remaining for the next step in the calculation.

ACRN/Line Item AB/0001AC is the smallest remaining Sequence Number. SEQ_NO = 3.

Verify the PROJ_ACRN_DETL.ACTIVE_FL value for the Sequence Number.  If the PROJ_ACRN_DETL.ACTIVE_FL = Y, continue calculation.  If PROJ_ACRN_DETL.ACTIVE_FL = N, end calculation. 

The PROJ_ACRN_DETL.ACTIVE_FL = Y for SEQ_NO = 3.  Continue calculation.

Calculate the AB/0001AC allocation amount by performing the following calculation:

Determine Amount Remaining to be Allocated.

Amount Remaining to be Allocated equals SUM (MU_INVC_AMT) in BILL_EDIT_INVC_HDR minus Allocation amounts already calculated for the CURRENT invoice.

SUM (MU_INVC_AMT) in BILL_EDIT_INVC_HDR for Project USN0418:  55,477.50

Subtract any allocation amounts with a Sequence Number < 3:

Determine the available AB/0001AC funding balance. 

PROJ_ACRN_DETL.ACRN_FUNDED_AMT – PROJ_ACRN_DETL.ACRN_BILLED_AMT

The Remaining ACRN Funded Value amount is used:  12,000.00

Calculate the AB/0001AC allocation amount by performing the following calculation:

Allocate the smaller of the Remaining ACRN Funded Value or Amount Remaining to be Allocated.

The Project USN0418 Amount Remaining to be Allocated, 29,477.50, is greater than the Remaining ACRN Funded Value of 12,000.00 for AB/0001AC; so the system allocates 12,000.00 to AB/0001AC for the project.

Check for the existence of a Sequence Number > 3.  Sequence Numbers 4, 5, 6 and 7 exist.  Use the smallest Sequence Number remaining for the next step in the calculation.

AC/0002AA is the 4^th Sequence Number. (SEQ_NO = 4)

Verify the PROJ_ACRN_DETL.ACTIVE_FL value for the Sequence Number.  If the PROJ_ACRN_DETL.ACTIVE_FL = Y, continue calculation.  If PROJ_ACRN_DETL.ACTIVE_FL = N, end calculation. 

The PROJ_ACRN_DETL.ACTIVE_FL = Y for SEQ_NO = 4.  Continue calculation.

Calculate the AC/0002AA allocation amount by performing the following calculation:

Determine Amount Remaining to be Allocated.

Amount Remaining to be Allocated equals SUM (MU_INVC_AMT) in BILL_EDIT_INVC_HDR minus Allocation amounts already calculated for the CURRENT invoice.

SUM(MU_INVC_AMT) in BILL_EDIT_INVC_HDR for Project USN0418:  55,477.50

Subtract any allocation amounts with a Sequence Number < 4:

Determine the available AC/0002AA funding balance. 

PROJ_ACRN_DETL.ACRN_FUNDED_AMT – PROJ_ACRN_DETL.ACRN_BILLED_AMT

The Remaining ACRN Funded Value amount is used:  14,000.00

Allocate the smaller of the Remaining ACRN Funded Value or Amount Remaining to be Allocated.

The Project USN0418 Amount Remaining to be Allocated, 17,477.50, is greater than the Remaining ACRN Funded Value of 14,000.00 for AC/0002AA; so the system allocates 14,000.00 to AC/0002AA for the project.

Check for the existence of a Sequence Number > 4.  Sequence Numbers 5, 6 and 7 exist.  Use the smallest Sequence Number remaining for the next step in the calculation.

AC/0002AB is the 5^th Sequence Number. (SEQ_NO = 5)

Verify the PROJ_ACRN_DETL.ACTIVE_FL value for the Sequence Number.  If the PROJ_ACRN_DETL.ACTIVE_FL = Y, continue calculation.  If PROJ_ACRN_DETL.ACTIVE_FL = N, end calculation. 

The PROJ_ACRN_DETL.ACTIVE_FL = Y for SEQ_NO = 5.  Continue calculation.

Calculate the AC/0002AB allocation amount by performing the following calculation:

Determine Amount Remaining to be Allocated.

Amount Remaining to be Allocated equals SUM (MU_INVC_AMT) in BILL_EDIT_INVC_HDR minus Allocation amounts already calculated for the CURRENT invoice.

SUM(MU_INVC_AMT) in BILL_EDIT_INVC_HDR for Project USN0418:  55,477.50

Subtract any allocation amounts with a Sequence Number < 5:

Determine the available AC/0002AB funding balance. 

PROJ_ACRN_DETL.ACRN_FUNDED_AMT – PROJ_ACRN_DETL.ACRN_BILLED_AMT

The Remaining ACRN Funded Value amount is used:  10,000.00

Allocate the smaller of the Remaining ACRN Funded Value or Amount Remaining to be Allocated.

The Project USN0418 Amount Remaining to be Allocated, 3,477.50, is less than the Remaining ACRN Funded Value of 10,000.00 for AC/0002AB; so the system allocates 3,477.50 to AC/0002AB for the project.

Check for the existence of a Sequence Number > 5.  Sequence Numbers 6 and 7 exist.  Use the smallest Sequence Number remaining for the next step in the calculation.

AD/0002AC is the 6^th Sequence Number. (SEQ_NO = 6)

Verify the PROJ_ACRN_DETL.ACTIVE_FL value for the Sequence Number.  If the PROJ_ACRN_DETL.ACTIVE_FL = Y, continue calculation.  If PROJ_ACRN_DETL.ACTIVE_FL = N, end calculation.

The PROJ_ACRN_DETL.ACTIVE_FL = Y for SEQ_NO = 6.  Continue calculation.

Calculate the AD/0002AC allocation amount by performing the following calculation:

Determine Amount Remaining to be Allocated.

Amount Remaining to be Allocated equals SUM (MU_INVC_AMT) in BILL_EDIT_INVC_HDR minus Allocation amounts already calculated for the CURRENT invoice.

SUM(MU_INVC_AMT) in BILL_EDIT_INVC_HDR for Project USN0418:  55,477.50

Subtract any allocation amounts with a Sequence Number < 6:

Determine the available AD/0002AC funding balance. 

PROJ_ACRN_DETL.ACRN_FUNDED_AMT – PROJ_ACRN_DETL.ACRN_BILLED_AMT

The Remaining ACRN Funded Value amount is used:  12,500.00

Allocate the smaller of the Remaining ACRN Funded Value or Amount Remaining to be Allocated.

The Project USN0418 Amount Remaining to be Allocated, 0.00, is less than the Remaining ACRN Funded Value of 12,500.00 for AD/0002AC; so the system allocates 0.00 to AD/0002AC for the project.

Check for the existence of a Sequence Number > 6.  Sequence Numbers 7 exists.  Use the smallest Sequence Number remaining for the next step in the calculation.

AE/0003 is the 7^th Sequence Number. (SEQ_NO = 7)

Verify the PROJ_ACRN_DETL.ACTIVE_FL value for the Sequence Number.  If the PROJ_ACRN_DETL.ACTIVE_FL = Y, continue calculation.  If PROJ_ACRN_DETL.ACTIVE_FL = N, end calculation for this ACRN and move to next ACRN, if any. 

The PROJ_ACRN_DETL.ACTIVE_FL = Y for SEQ_NO = 7.  Continue calculation.

Calculate the AE/0003 allocation amount by performing the following calculation:

Determine Amount Remaining to be Allocated.

Amount Remaining to be Allocated equals SUM (MU_INVC_AMT) in BILL_EDIT_INVC_HDR minus Allocation amounts already calculated for the CURRENT invoice.

SUM (MU_INVC_AMT) in BILL_EDIT_INVC_HDR for Project USN0418: 55,477.50

Subtract any allocation amounts with a Sequence Number < 7:

Determine the available AE/0003 funding balance.

PROJ_ACRN_DETL.ACRN_FUNDED_AMT – PROJ_ACRN_DETL.ACRN_BILLED_AMT

The Remaining ACRN Funded Value amount is used:  45,000.00

Allocate the smaller of the Remaining ACRN Funded Value or Amount Remaining to be Allocated.

The Project USN0418 Amount Remaining to be Allocated, 0.00, is less than the Remaining ACRN Funded Value of 45,000.00 for AE/0003; so the system allocates 0.00 to AE/0003 for Project USN0418.

Check for the existence of a Sequence Number > 7. None exists, end calculation.

Summary of Allocation Amounts:

ACRN/Line Item using LIFO Methodology

Requirement:  If there is more than one ACRN within a contract line item, the payment office will make payment in sequential ACRN order within the line item, exhausting all funds in the previous ACRN before paying from the next ACRN. 

Using the LIFO method, the ACRN value is compared to each Line Item/Subline Item to determine which ACRN funds to exhaust first.  AB/0001AB would be exhausted before using funds from AA/0001AA.  The user will be responsible for assigning the correct Sequence Number to the ACRN value (for example, you will need to link AA/0001AA to Sequence Number 1 and AB/0001AB to Sequence Number 2).

Example:

 A contract is awarded with the following Accounting Classification data:

Project Setup Data:

Project Number:  USN0418

Billing Level:      USN0418

The ACRN/Line Item data would be set up as follows in the Maintain ACRN Bills screen (Projects » Billing » Billing Master).  Within the Maintain ACRN Bills screen, you have the option of using the Line Item/ACRN combination or the Subline Item/ACRN combination, but you cannot use a Line Item/Subline Item/ACRN combination.  You can mix the combinations for one project (for example, link ACRN/Subline AA/0001AA and link ACRN/Line Item AE/0003 to the same project).

Using the preceding Accounting Classification data, let's assume you enter data into the Maintain ACRN Bills screen as follows:

A Standard Bill (calculated by the Calculate Billings screen (Projects » Billing » Calculate Billings)) produces the following invoice amounts for Project USN0418 (SUM(MU_INVC_AMT) in BILL_EDIT_INVC_HDR).

USN0418 :  82,500.00

Calculation Logic

Determine the ACRN/Line Item linked to greatest ACRN Sequence Number value and available balance;

AE/0003 is the 7^th Sequence Number.  (SEQ_NO = 7)

Verify the PROJ_ACRN_DETL.ACTIVE_FL value for the Sequence Number.  If the PROJ_ACRN_DETL.ACTIVE_FL = Y, continue calculation.  If PROJ_ACRN_DETL.ACTIVE_FL = N, end calculation.  

The PROJ_ACRN_DETL.ACTIVE_FL = Y for SEQ_NO = 7.  Continue calculation.

Calculate the ACRN/Line Item allocation amounts by performing the following calculation:

Determine Amount Remaining to be Allocated.

Amount Remaining to be Allocated equals SUM(MU_INVC_AMT) in BILL_EDIT_INVC_HDR minus Allocation amounts already calculated for the CURRENT invoice.

Determine the available AE/0003 funding balance.

PROJ_ACRN_DETL.ACRN_FUNDED_AMT – PROJ_ACRN_DETL.ACRN.BILLED_AMT

The Remaining ACRN Funded Value amount is used:  45,000.00

Allocate the smaller of the Remaining ACRN Funded Value or Amount Remaining to be Allocated.

The Project USN0418 Amount Remaining to be Allocated, 82,500.00, is greater than the Remaining ACRN Funded Value of 45,000.00 for AE/0003; so the system allocates 45,000.00 to AE/0003 for Project USN0418.

Check for the existence of an ACRN Sequence Number < 7.  Sequence Numbers 1, 2, 3, 4, 5, and 6 exist.  Use the highest Sequence Number remaining for the next step in the calculation.

AD/0002AC is the 6^th Sequence Number. (SEQ_NO = 6)

Verify the PROJ_ACRN_DETL.ACTIVE_FL value for the Sequence Number.  If the PROJ_ACRN_DETL.ACTIVE_FL = Y, continue calculation.  If PROJ_ACRN_DETL.ACTIVE_FL = N, end calculation.

The PROJ_ACRN_DETL.ACTIVE_FL = Y for SEQ_NO = 6.  Continue calculation.

Calculate the AD/0002AC allocation amount by performing the following calculation:

Determine Amount Remaining to be Allocated.

Amount Remaining to be Allocated equals SUM (MU_INVC_AMT) in BILL_EDIT_INVC_HDR minus Allocation amounts already calculated for the CURRENT invoice.

Determine the available AD/0002AC funding balance. 

PROJ_ACRN_DETL.ACRN_FUNDED_AMT – PROJ_ACRN_DETL.ACRN_BILLED_AMT

The Remaining ACRN Funded Value amount is used:  12,500.00

Allocate the smaller of the Remaining ACRN Funded Value or Amount Remaining to be Allocated.

The Project USN0418 Amount Remaining to be Allocated, 37,500.00, is greater than the Remaining ACRN Funded Value of 12,500.00 for AD/0002AC; so the system allocates 12,500.00 to AD/0002AC for the project.

Check for the existence of an ACRN Sequence Number < 6.  = Sequence Numbers 1, 2, 3, 4, and 5 exist.  Use the highest Sequence Number remaining for the next step in the calculation.

AC/0002AB is the 5^th Sequence Number. (SEQ_NO = 5)

Verify the PROJ_ACRN_DETL.ACTIVE_FL value for the Sequence Number.  If the PROJ_ACRN_DETL.ACTIVE_FL = Y, continue calculation.  If PROJ_ACRN_DETL.ACTIVE_FL = N, end calculation. 

The PROJ_ACRN_DETL.ACTIVE_FL = Y for SEQ_NO = 5.  Continue calculation.

Calculate the AC/0002AB allocation amount by performing the following calculation:

Determine Amount Remaining to be Allocated.

Amount Remaining to be Allocated equals SUM (MU_INVC_AMT) in BILL_EDIT_INVC_HDR minus Allocation amounts already calculated for the CURRENT invoice.

Determine the available AC/0002AB funding balance. 

PROJ_ACRN_DETL.ACRN_FUNDED_AMT – PROJ_ACRN_DETL.ACRN_BILLED_AMT

The Remaining ACRN Funded Value amount is used:  10,000.00

Allocate the smaller of the Remaining ACRN Funded Value or Amount Remaining to be Allocated.

The Project USN0418 Amount Remaining to be Allocated, 25,000.00, is greater than the Remaining ACRN Funded Value of 10,000.00 for AC/0002AB; so the system allocates 10,000.00 to AC/0002AB for the project.

Check for the existence of an ACRN Sequence Number < 5.  = Sequence Numbers 1, 2, 3, and 4 exist.  Use the highest Sequence Number remaining for the next step in the calculation.

AC/0002AA is the 4^th Sequence Number. (SEQ_NO = 4)

Verify the PROJ_ACRN_DETL.ACTIVE_FL value for the Sequence Number.  If the PROJ_ACRN_DETL.ACTIVE_FL = Y, continue calculation.  If PROJ_ACRN_DETL.ACTIVE_FL = N, end calculation. 

The PROJ_ACRN_DETL.ACTIVE_FL = Y for SEQ_NO = 4.  Continue calculation.

Calculate the AC/0002AA allocation amount by performing the following calculation:

Determine Amount Remaining to be Allocated.

Amount Remaining to be Allocated equals SUM(MU_INVC_AMT) in BILL_EDIT_INVC_HDR minus Allocation amounts already calculated for the CURRENT invoice.

Determine the available AC/0002AA funding balance. 

PROJ_ACRN_DETL.ACRN_FUNDED_AMT – PROJ_ACRN_DETL.ACRN_BILLED_AMT

The Remaining ACRN Funded Value amount is used: 14,000.00

Allocate the smaller of the Remaining ACRN Funded Value or Amount Remaining to be Allocated.

The Project USN0418 Amount Remaining to be Allocated, 15,000.00, is greater than the Remaining ACRN Funded Value of 14,000.00 for AC/0002AA; so the system allocates 14,000.00 to AC/0002AA for the project.

Check for the existence of an ACRN Sequence Number < 4.  = Sequence Numbers 1, 2, and 3 exist.  Use the highest Sequence Number remaining for the next step in the calculation.

AB/0001AC is the 3^rd Sequence Number. (SEQ_NO = 3)

Verify the PROJ_ACRN_DETL.ACTIVE_FL value for the Sequence Number.  If the PROJ_ACRN_DETL.ACTIVE_FL = Y, continue calculation.  If PROJ_ACRN_DETL.ACTIVE_FL = N, end calculation. 

The PROJ_ACRN_DETL.ACTIVE_FL = Y for SEQ_NO = 3.  Continue calculation.

Calculate the AB/0001AC allocation amount by performing the following calculation:

Determine Amount Remaining to be Allocated.

Amount Remaining to be Allocated equals SUM(MU_INVC_AMT) in BILL_EDIT_INVC_HDR minus Allocation amounts already calculated for the CURRENT invoice.

Determine the available AB/0001AC funding balance. 

PROJ_ACRN_DETL.ACRN_FUNDED_AMT – PROJ_ACRN_DETL.ACRN_BILLED_AMT

The Remaining ACRN Funded Value amount is used:  12,000.00

Allocate the smaller of the Remaining ACRN Funded Value or Amount Remaining to be Allocated.

The Project USN0418 Amount Remaining to be Allocated, 1,000.00, is less than the Remaining ACRN Funded Value of 12,000.00 for AB/0001AC; so the system allocates 1,000.00 to AB/0001AC for the project.

Check for the existence of an ACRN Sequence Number < 3.  = Sequence Numbers 1 and 2 exist.  Use the highest Sequence Number remaining for the next step in the calculation.

AB/0001AB is the 2^nd Sequence Number. (SEQ_NO = 2)

Verify the PROJ_ACRN_DETL.ACTIVE_FL value for the Sequence Number.  If the PROJ_ACRN_DETL.ACTIVE_FL = Y, continue calculation.  If PROJ_ACRN_DETL.ACTIVE_FL = N, end calculation. 

The PROJ_ACRN_DETL.ACTIVE_FL = Y for SEQ_NO = 2.  Continue calculation.

Calculate the AB/0001AB allocation amount by performing the following calculation:

Determine Amount Remaining to be Allocated.

Amount Remaining to be Allocated equals SUM (MU_INVC_AMT) in BILL_EDIT_INVC_HDR minus Allocation amounts already calculated for the CURRENT invoice.

Determine the available AB/0001AB funding balance. 

PROJ_ACRN_DETL.ACRN_FUNDED_AMT – PROJ_ACRN_DETL.ACRN_BILLED_AMT

The Remaining ACRN Funded Value amount is used:  11,000.00

Allocate the smaller of the Remaining ACRN Funded Value or Amount Remaining to be Allocated.

The Project USN0418 Amount Remaining to be Allocated, 0.00, is less than the Remaining ACRN Funded Value of 11,000.00 for AB/0001AB; so the system allocates 0.00 to AB/0001AB for the project.

Check for the existence of an ACRN Sequence Number < 2.  Sequence Number 1 exists.  Use the highest Sequence Number remaining for the next step in the calculation.

AA/0001AA is the 1^st Sequence Number. (SEQ_NO = 1)

Verify the PROJ_ACRN_DETL.ACTIVE_FL value for the Sequence Number.  If the PROJ_ACRN_DETL.ACTIVE_FL = Y, continue calculation.  If PROJ_ACRN_DETL.ACTIVE_FL = N, end calculation. 

The PROJ_ACRN_DETL.ACTIVE_FL = Y for SEQ_NO = 1.  Continue calculation.

Calculate the AA/0001AA allocation amount by performing the following calculation:

Determine Amount Remaining to be Allocated.

Amount Remaining to be Allocated equals SUM(MU_INVC_AMT) in BILL_EDIT_INVC_HDR minus Allocation amounts already calculated for the CURRENT invoice.

Determine the available AA/0001AA funding balance. 

PROJ_ACRN_DETL.ACRN_FUNDED_AMT – PROJ_ACRN_DETL.ACRN_BILLED_AMT

The Remaining ACRN Funded Value amount is used:  15,000.00

Allocate the smaller of the Remaining ACRN Funded Value or Amount Remaining to be Allocated.

The Project USN0418 Amount Remaining to be Allocated, 0.00, is less than the Remaining ACRN Funded Value of 15,000.00 for AA/0001AA; allocate 0.00 to AA/0001AA for the project.

Check for the existence of an ACRN Sequence Number < 1.  None exists, end calculation.

ACRN/Line Item using Proration Methodology

If there is more than one ACRN within a contract line item, the payment office will make payment from each ACRN in the same proportion as the amount of funding currently unliquidated for each ACRN.

Unliquidated is defined as the Remaining ACRN Funded Value.

The mathematical equation to determine the ACRN/Line Item Proration amounts will be:     

        Individual Line Item/ACRN Funded Value                                              

          Total of Remaining ACRN Funded Value

A contract is awarded with the following Accounting Classification data:

Project Setup Data:

Project Number:  USN0418

Billing Level:      USN0418

The ACRN data would be set up as follows in the Maintain ACRN Bills screen (Projects » Billing » Billing Master). Within the Maintain ACRN Bills screen, you can use the ACRN/Line Item combination or the ACRN/Subline Item combination, but you cannot use an ACRN/Line Item/Subline Item combination.  You can mix the combinations for one project (for example, link ACRN AA/0001AA and link Line Item ACRN AE/0003 to the same project).

Using the preceding Accounting Classification data, let's assume you enter data into the Maintain ACRN Bills screen as follows:

The ACRN Sequence Number for this calculation is used only for rounding amounts.

A Standard Bill (calculated by the Calculate Billings screen (Projects » Billing » Calculate Billings)) produces the following invoice amounts for Project USN0418 (BILL_EDIT_INVC_HDR).

USN0418 :  82,500.00

Calculation Logic

Calculate the ACRN allocation amounts by performing the following calculation:

Determine the Amount to be Allocated.

Amount to be Allocated equals SUM (MU_INVC_AMT) in BILL_EDIT_INVC_HDR

Amount to be Allocated:

SUM (MU_INVC_AMT) in BILL_EDIT_INVC_HDR for Project USN0418:  82,500.00

Determine the Remaining Line Item/ACRN Funded Value for each ACRN as a ratio of the Sum of ALL Remaining ACRN Funded Value amounts.

If the individual ACRN/Line Item Remaining ACRN Funded Value (PROJ_ACRN_DETL.ACRN_FUNDED_AMT – PROJ_ACRN_DETL.ACRN_BILLED_AMT) is less than or equal to 0.00, do not include that specific ACRN/Line Item Funded Value in the calculation as part of the numerator or denominator.  If the PROJ_ACRN_DETL.ACTIVE_FL = N, do not include that specific ACRN Funded Value in the calculation.

The individual ACRN/Line Items which have a Remaining ACRN Funded Value > 0 and are active are:             

Table 1 – ACRN/Line Item Remaining ACRN Funded Values

Next, convert ACRN/Line Item Remaining ACRN Funded Values as a ratio to Total of ALL Remaining ACRN Funded Values:

Table 2 – ACRN Proration                                                                             

For individual ACRN/Line Items that are Active and have a Remaining ACRN Funded Value greater than 0.00, multiply the SUM (MU_INVC_AMT) from BILL_EDIT_INVC_HDR for the Billing Level project number by the appropriate ACRN ratio (preceding calculation).

Table 3 – ACRN/Line Item Allocation Calculation