R12.1 Grants Accounting: Burden Rounding Enhancement Code Fix Released (Doc ID 1630469.1)

Last updated on OCTOBER 27, 2022

Applies to:

Goal

Standard Accounting practices, and federal and nonfederal sponsor invoicing requirements, require invoices to match award expenditure amounts. 

When awards are cost based for revenue and invoicing, differences arise due to burden calculations differing between actuals, revenue and invoices. 

These pennies add up over every month on awards impacting payment on cost based awards, letter of credit awards, where the invoicing does not equal actual expenditures including burden cost.

Previous enhancement requests for this issue:

• Bug:13864021 IMPACT BUG FOR THE ROUNDING ISSUE IN THE REVENUE AND BURDEN
• Bug:6475626 - OPTION FOR REVENUE & INVOICING TO NOT PERFORM ITS OWN BURDEN CALCULATIONS

Workaround for Existing Transactions:

If you use burdened cost (as reflected in pa_expenditure_items_all and pa_cost_distribution_lines_all) as the number to reconcile to, one solution is to create a pre-approved batch charging an expenditure type with a burden expenditure type class creating both a positive and negative transaction for the difference, only one of which is billable.

For example, suppose revenue and invoices are .02 greater than expenditures.

• Create two burden expenditures (one for +.02 and one for -.02) so that the net impact on burdened cost is $0.
• Flag the positive (+.02) item as non-billable
• Generate revenue/invoices and only the negative item (-.02) will be processed bringing the revenue/invoices back into balance with burdened costs.

Solution

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