Manage Interest Income


Purpose

The following guide is intended to show all stakeholders of the Sponsored Awards Process, including Grants Award Administrator, how to:

 

Terminology

ADFdi: Application Development Framework Desktop Integration integrates with Microsoft Excel to load moderate amounts of data into Oracle Cloud. The tool is accessed from the user interface and offers online data validation using lists of values.

Award: An award is the umbrella record that contains comprehensive demographic and financial information for a sponsored research agreement.

Award Funding: The total anticipated funding, both direct and indirect, per Funding Source for an award.

Award Personnel: The key members associated with an award.

Billing Events: Fixed fee monetary amounts used for billing in lieu of invoicing costs incurred.

Burdening: The process of calculating indirect expense.

Contract: A record incorporating the necessary billing attributes and revenue attributes for the generation of invoices and revenue recognition to occur for an award.

Expenditure Item: A cost transaction that includes POETAF attributes along with a transaction date and other attributes.

Funding Allocation: The proportion of total anticipated funding dedicated to a project.

Funding Sources: Funding Sources refer to the organizations or entities that provide the financial resources for a specific project(s) in an award.

Invoice Method: Billing attributes associated with one or more contract lines on a contract and used to generate sponsor invoices for the contract.

Letter of Credit (LOC): A payment method whereby the research institution is authorized to draw government funds in lieu of sending an invoice.

POETAF: An acronym that represents the most granular level of detail of a project. It is a combination of project segments that describe an expenditure item, including Project, Expenditure Organization, Expenditure Type, Task, Award, and Funding Source.

Principal Investigator: The person leading and managing the research agreement.

Project: A primary unit of work that can be broken down into one or more tasks containing demographic and financial information at a more detailed level than an award. Multiple projects may exist to differentiate among funding years, departments, PIs, physical locations, F&A rates, or purposes such as capitalizable & non-capitalizable.

Project Budget: An estimate of planned expenses.

Revenue Method: Revenue attributes associated with one or more contract lines on a contract and used to generate revenue entries for the contract.

Revenue Recognition: The process that creates revenue entries for a contract.

Sponsor: A sponsor is an organization that provides funding for a sponsored research agreement.

Task: The lowest level of a project used to organize project work into smaller, more easily manageable/reportable, units of work such as subawards and participant support.

 

Prerequisites

N/A

 

Process Interest Income on Award (Interest Income available for expenses) and Generate Unapplied Receipt Report

Users with AwardAdmin access (e.g. a URA Contract Administrator, or post-award RA) have access to both run the Interest Bearing Awards report and to create the Unprocessed Cost to post the interest credit expense to the project.

If you are processing interest credits to multiple projects at the same time, you have the option to use an Excel spreadsheet upload instead of manual entry on the user interface after first running the Interest Bearing Awards report. Steps are described in the following scenario, “Create Unprocessed Cost using ADFdi.”

 

  1. Login using Company Single Sign-On to access your Oracle account.

  1. Navigate to Reporting Hub.
  2. Select Central Finance Reporting Hub.

  1. Select the Reporting Links hyperlink under Grants.

  1. Select Interest Bearing Awards Dashboard.

  1. Enter the following as a filter:
    • Award Number: Variable
    • Award Name: Variable
    • Interest Bearing Award: Yes
    • Sponsor Number: Variable
    • Sponsor Name: Variable
  2. Select Apply.

Run the Interest Bearing Awards Report to see the total unapplied receipt amount on the award for that month.

  1. Calculate interest earned based on the monthly interest rate from the Treasury (Offline system step)

REMINDER:  If you are processing interest credits to multiple projects at the same time, you have the option to use an Excel spreadsheet upload instead of the steps described in the reminder of this scenario. Skip instead to the following scenario, Create Unprocessed Cost using ADFdi.

  1. If not logged in, Login using Company Single Sign-On to access your Oracle account (as seen in Step 1).

  1. Navigate to Projects.
  2. Select Costs.

  1. Select the Taskbar.
  2. Select Manage Unprocessed Costs.

  1. On the Manage Unprocessed Costs page, select the + icon under Search Results to Create Unprocessed Cost.

  1. Enter the following details:
    • Expenditure Batch: (user-defined)
    • Business Unit: University Sponsored Awards
    • Source: Interest Income
    • Document: Unaccounted Interest Income
    • Document Entry: Unaccounted Interest Income.
  2. Select OK.

  1. In the General Details section enter the following details:
    • Project Number
    • Task Number: (usually Task 1)
    • Expenditure Item Date: (If entering for multiple months of interest, just use a date in the last month that the negative expense is attributed to and make sure the date chosen is within the active dates of the Project being billed/credited)
    • Expenditure Type: 90110-EAR: Interest Income to Sponsors
    • Expenditure Organization: (organization associated with the project)
    • Contract Number
    • Funding Source:  (If there is more than one, it will always be the “exterior” funding source)

  1. Scroll down and enter the following details in the Miscellaneous Transaction Details section:
    • Quantity: 1
    • Original Transaction Reference: This is user-defined that acts as a reference number for this transaction.
    • Transaction Currency: USD
    • Transaction Raw Cost: Enter the amount of interest income as a negative amount, which will indicate that this entry is a Credit to the project (example: -257.00)
    • Transaction Burdened Cost: Same amount that was entered in Transaction Raw Cost.

  1. Select Save and Close.

Optional: Select Save and Add Another from the dropdown if you are crediting interest for multiple projects.

  1. Highlight the Unprocessed transaction from Search Results.

  1. Select Actions.
  2. Select Import Costs.

  1. On the Warning pop-up, select Yes.

NOTE: The remaining steps in this scenario are optional, as the Create Accounting process they describe will be run as part of the batch schedule.

  1. Select the Taskbar.
  2. Select Manage Project Cost.

  1. Enter the Project Name or Project Number.
  2. Select Search.

  1. Scroll down and select the Transaction Number hyperlink from Search Results.

  1. Select Actions.
  2. Select Accounting.
  3. Select Post to Ledger.

  1. If you want to view accounting information select View Accounting, else select OK.

 

You have now completed the steps to Process Interest Income on Award (Interest Income available for expenses) and Generate Unapplied Receipt Report.

 

Create Unprocessed Cost using ADFdi (Interest Income available for expenses)

Use this option to upload multiple interest expense credits via ADFdi Excel spreadsheet upload, in lieu of entering multiple unprocessed cost transactions manually on the user interface.

 

  1. Login using Company Single Sign-On to access your Oracle account.

  1. Navigate to Projects. 
  2. Select Costs.

  1. Select the Taskbar.
  2. Select Capture Costs.

  1. Select Create Costed or Accounted Transactions for Third-Party Applications in the pop-up window.

  1. Open the downloaded file from the dropdown in the upper right corner of your Chrome browser.

Other browsers may have different options. Alternately, open the file from the Downloads folder on your hard drive.

  1. Select Enable Editing.

  1. On the Connect message pop-up, select Yes.

  1. Select Company Single Sign-On to Sign In.
  2. Review / Enter the following information:
    • Business Unit: University Sponsored Awards
    • Source: Interest Income
    • Document: Unaccounted Interest Income
    • Expenditure Batch: Enter a unique identifier
    • Batch Description: optional
    • Document Entry: search for and select Unaccounted Interest Income by double-clicking in the cell.
    • Expenditure Item Date: (If entering for multiple months of interest, use a date in the last month that the negative expense is attributed to and make sure the date chosen is within the active dates of the Project being billed/credited).
  3. To insert additional rows in the Expenditure Items grid, right click the 12 on row 12, then select Insert.

  1. Scroll to the right and select (by double-clicking in the cell) or enter values for the following columns (Note that some columns have been hidden in the screenshots):
    • Document Entry: Unaccounted Interest Income
    • Expenditure Item Date: If inputting interest from multiple months, enter a date from the latest date that part of this transaction.
    • POETAF Information:
      1. Project Name:
      2. Project Number:
      3. Task Name:
      4. Task Number:
      5. Expenditure Type:
      6. Expenditure Organization:
      7. Contract Number:
      8. Funding Source Number:
    • Quantity: always 1.000
    • Original Transaction Reference: always enter a unique value
    • Accounting Date: the current date
    • Transaction Currency: USD
    • Transaction Raw Cost: Enter the amount of interest income as a negative amount, which will indicate that this entry is a Credit to the project (example: -11.190)
    • Transaction Burdened Cost: Same amount that was entered in Transaction Raw Cost.

 

No other fields are required for the spreadsheet.

  1. Select ADF Desktop Integration at the top of the page.
  2. Select Export.

  1. Select Validate transactions and Process transactions.
  2. Select OK.

  1. The Status (or Error Message) column should be updated to Row inserted. For rows with the message Insert failed, review and correct the errors, the Export again. (In this case, it was a row with no data entered, which does not require correction.)

  1. Back in Oracle, select the Home icon.
  2. Select Projects, then Costs.

  1. Select the Taskbar.
  2. Select Manage Project Costs.

  1. Select Advanced.

  1. Select the Search icon on the Expenditure Batch line.
  2. On the Name Line, select Starts with or Contains, then enter part of your expenditure batch name.
  3. Select Search.
  4. Highlight the row for your batch in the Results.
  5. Select OK.

  1. Review the results to confirm that all the earned interest rows you created were successfully processed.
  2. Optional: Use the Export to Excel icon to review the results in Excel.

 

You have now completed the steps to Process Interest Income on Award (Interest Income available for expenses) using Excel upload (ADFdi).

 

Return interest income to sponsor for Interest-Bearing Award (Interest Income not available for Expense)

Interest should be returned to the sponsor when the terms of the Grant or Contract require it. The timing will be at the end of the award/project, or according to the cadence established by the sponsor in the award documentation.

 

  1. Login using Company Single Sign-On to access your Oracle account.

  1. Navigate to Reporting Hub.
  2. Select Central Finance Reporting Hub.

  1. Select the Reporting Links hyperlink under Grants.

  1. Select Interest Bearing Awards Dashboard.

  1. Enter the following as a filter:
    • Award Number: Variable
    • Award Name: Variable
    • Interest Bearing Award: Yes
    • Sponsor Number: Variable
    • Sponsor Name: Variable
  2. Select Apply.

Run the Interest Bearings Awards Report to see the total unapplied receipt amount on the award for that month or the  current period.

  1. If not still logged in, log in to Oracle, using Company Single Sign-on (same as Step 1)

  1. Navigate to Procurement.
  2. Select Purchase Requisitions (New).

  1. Search for Payment Request.
  2. Select Create Request.

  1. Create a Payment Request for the designated supplier using the Payment Request SmartForm.
    • Item Description: user-defined
    • Category Name: 90110 – Interest Income to Sponsors
    • Amount: variable
    • Currency: USD
    • Supplier: (Sponsor associated with the Award)
    • Supplier Site

If the supplier does not exist on the Smart Form in the procurement module, the user will need to reach out to the Procurement team to add the Sponsor as a Supplier)

  1. Select Yes in the Certifying Checkbox.
  2. Select Add to Cart.

  1. Select the Shopping Cart icon.

  1. Select the pencil icon next to Requisition Summary.

  1. Select the icon next to the Charge account.

  1. Enter the COA value for the following segments:
    • Entity: 600
    • Organization: 98000
    • Account: 90110
    • Fund: 100000
    • Purpose: 530
    • Program: 9999
    • Activity: 99999
    • Site: 999
    • Affiliate: 999
    • Future: 9999
  2. Select Apply.
  3. Select Update.

  1. Select the pencil icon next to the Payment request.

  1. Review the payment request requisition.  Scroll down to the Note to Supplier field to add a comment.
  2. Select Update.

  1. Select Submit.
  2. Select the Home icon.

  1. Navigate to Contract Management.
  2. Select Contracts.

  1. Enter Contract Number.
  2. Select Search.
  3. Select the Contract Number hyperlink.

  1. Navigate to the Notes tab.
  2. Select the + icon.

  1. Document the Payment Request Details and any other detail you wish to add:
    • Requisition Number
    • PO Number
    • Amount
  2. Select OK.

  1. Select Save.

You have now completed the steps to Return interest income to the sponsor for Interest-Bearing Award (Interest Income not available for Expense).