The following guide is intended for all stakeholders of the Sponsored Awards Process including Grants Account Receivables Specialist, Award Administrator, IADF Administrator, and Project Billing Specialist.

Action

• Process Residual Funds (Retained)
• Process Residual Funds (Refund Fully Invoiced)

Terminology

• 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, direct and indirect costs, 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: POETAF is 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.

 

N/A

 

Use this scenario when the University has received sponsor payments greater than the sum of expenses on a given award and the sponsor or contract terms permit the University to retain rather than return the excess funds. This occurs most frequently for fixed-price awards.

 

Prior to commencing this process, calculate the direct and indirect portions of the residual if applicable (i.e. the award has an F&A Rate greater than 0%). If the direct portion needs to be split among different parties (e.g., faculty and dean accounts) calculate those amounts as well.

 

Additionally, for multi-project awards where there is a residual balance on more than one of the projects, it is suggested that the entire amount of the unexpended balance be rebudgeted to a single project (i.e. reduce all but one project budget to the amount expended on the project; move the entire remaining balance to a single project) prior to executing the steps in this scenario. See the “Re-budget an Award and Project Allocation Correction” scenario in the “Modify Awards, Projects, and Contracts” QRG for a complete list of process steps.

 

           

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

2. Navigate to Projects.
3. Select Costs.           

4. Select the Taskbar.
5. Select Manage Unprocessed Costs.

 

6. Select the + icon to create an Unprocessed Cost.        

7. Enter the below information:

• Expenditure Batch: (This is a unique identifier. Record it for future reference. Suggestion: Initials_Residual_DateLetter, e.g. KSA_Residual_20240320a)
• Business Unit: University Sponsored Awards
• Source: Residual Funds
• Document: Unaccounted Residual Funds
• Document Entry: Unaccounted Residual Funds

8. Select OK.

 

9. Enter the transaction information below for the sponsored project with the balance of unspent funds to be retained:

• Project Number
• Task Number
• Expenditure Item Date: Enter today's date
• Expenditure Type: 76908-OGC: Residual Funds Retention
• Expenditure Organization: Use the Organization listed on the Project Overview.
• Contract Number: It should be auto-populated based on the Project ID.
• Funding Source: Select the Sponsor if it does not default.

 

10. Scroll down to the Miscellaneous Transaction Details section and enter the following information:

• Quantity: Variable, generally “1”
• Original Transaction Reference: A unique reference number (e.g., UserInitials_Date_Number)
• Expenditure Comments, e.g., “transfer residual funds from project “x” to department “x”. “(optional)
• Transactional Currency: USD, the default value
• Transaction Raw Cost: Monetary amount of the transaction.

 

Note: The Raw Cost should be the direct cost portion of the residual which you calculated before commencing this process. If the funds are being split between multiple parties, enter the amount for only one of them, then add additional unprocessed costs for the other(s).

11. Navigate to the Accounting Details tab.
12. Select the magnifying glass icon next to the Raw Cost Credit Account field.       

13. Enter the Chart of Account details. Note that COA values are variable. They represent the COA string to which the residual funds are transferred in the General Ledger.

• Entity: e.g. 607 Biological Sciences Division
• Organization: e.g. 26090
• Account: 95000 Transfer - General
• Fund: e.g. 270500 Individual Discretionary
• Purpose: e.g.130 Research - Departmental
• Program: 9999
• Activity: 99999
• Site: 999
• Affiliate: 999
• Future: 9999

14. Select OK.

 

15. Use the same COA string populated in the Raw Cost Credit Account for the Burdened Cost Credit Account field.
16. Select Save and Create Another if the residual is split between parties, then repeat from step 9. Otherwise, select Save and Close.       

17. Select Import Costs for the highlighted transaction. (If there is more than one unprocessed cost for the same expenditure batch, they will be imported together.)          

18. On the Warning pop up select Yes.         

19. Select the Taskbar.
20. Select Manage Project Costs.    

21. Enter the Project Name or Project Number as the search parameter.
22. Select Search.

Note: you can reduce the number of results returned by using Advanced Search to enter additional criteria, such as date criteria or the expenditure batch ID you created.  

23. Highlight the row for the Residual Funds transaction you created.  

24. Select Actions.
25. Select Accounting.
26. Select Account and Post to Ledger.    

27. Select View Accounting to ensure the accounting is correct.           

28. Review accounting details and select Done.

Repeat steps 23 to 28 if you created multiple transactions.         

Run Generate Burden Costs

29. Select Taskbar.
30. Select Generate Burden Cost.   

31. Select Business Unit and enter Project ID in the From Project Number and To Project Number fields.

Accept other defaults.

32. Select Submit.        

33. On the Manage Project Costs confirm that Burdening processed successfully. 

[External to Oracle] Contact the party or parties who will increase the budget of the non-sponsored Project(s) or COA(s) receiving the residual funds.

You have now completed the steps to Process Residual Funds (Retained).

 

Use this scenario when the University has received sponsor payments greater than the sum of expenses on a given award, and the sponsor or contract terms require that the University return any unspent funds at award closeout. This scenario is most common for cost-reimbursable awards that are invoiced based on milestones or scheduled events rather than expenses. As such, it includes the creation of a credit Invoice Event as step 1.

 

Note: while much rarer, awards that are invoiced based on expenses will occasionally receive credits to expense after the sponsor has paid the University’s final invoice. In those cases, the credit invoice would be created by the standard cost-reimbursable invoice process for the award.

           

1. To Create a credit Billing Event and Generate and Approve an Invoice for the amount to be refunded. (The individual who creates the invoice should record the AR Transaction ID for provision in a later step to the AR Specialist.)   

• Relevant Audience can follow this link to see the steps.

2. To Process Invoice through to Receivables.

• Relevant Audience can follow this link to see the steps.

 

Steps for individuals with the Project Billing Specialist or Accounts Receivable Manager role to post the invoice to the General Ledger (GL):

3. Select Company Single Sign-On to access your Oracle account.

 

4. Navigate to Receivables.
5. Select Billing.          

6. Select the Taskbar.
7. Select Manage Transactions.     

8. Enter the search parameters below:

• Business Unit: UNIVERSITY SPONSORED AWARDS
• Transaction Number: Refer to Invoice (use the AR Transaction number for the invoice created in step 1).

9. Select Search.
10. Highlight the Invoice.         

11. Select Actions.
12. Select Post to Ledger.      

13. Select OK.    

Steps for individuals with the Accounts Receivable Specialist role to associate the credit invoice with an existing receipt:

14. Enter the username and password. Select Sign In to access the Oracle account.         

15. Select Receivables.
16. Select Account Receivables.     

17. Select Taskbar.
18. Select Manage Receipts. 

19. Enter the search parameters, e.g., Business Unit and Receipt Number. If the latter is not known, use other criteria to refine your search.
20. Select Search.
21. Select the desired Receipt from the results.     

22. Scroll down to the Receipt Detail section and select Add Open Receivables.     

23. Search for an invoice to apply to this receipt by entering the following information

• Receipt Match by: Transaction Number (or Contract Number)
• Receipt Reference Number: AR Transaction number provided by the Billing Specialist (or Contract Number)
• Transaction Customer Name (optional)
• Transaction Customer Account Number (optional)

24. Select Search.

25. Highlight the Transaction.
26. Select Add and then select Done.          

27. The user can update the Applied Amount (if required).
28. Select Save.
29. Highlight the row for the new Open Receivables you added to the Receipt in the Receipt Details grid.  

30. Select Actions.
31. Select More.
32. Select Issue Refund.        

33. Enter the following details on the Issue refund page

• Refund amount
• Customer Party Name
• Customer Party Number
• Customer Party Site
• Refund Date
• Accounting Date
• Refund Payment Method: Check or ACH (only if banking details are populated on the customer record). Do not select Manual Check – the Refund cannot be issued from AP with this Payment Method.
• Delivery Channel (optional)
• Remittance Messages 1-3: as applicable

34. Select OK.

 

35. Select Save.

• Note the AP invoice number under the Application Reference column

36. Select the AP refund invoice hyperlink. 

37. Review the AP refund Invoice.    

38. The Refund will automatically integrate from the Accounts Receivable to the Accounts Payable module. A check will be issued from AP, and check details written back to the AR refund.
39. Select Done.

 

You have now completed the steps to Process Residual Funds (Refund Fully Invoiced).