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 (e.g., 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:
|
Line Item |
Subline Item |
ACRN |
Accounting Appropriation Number |
Funding Amt |
|
0001 |
0001AA |
AA |
5793400309475A110704040004081572806F503000 F03000 |
15,000.00 |
|
0001 |
0001AB |
AA |
5793400309475A110704040004081572806F503000 F03000 |
11,000.00 |
|
0002 |
0002AA |
AB |
8893400309475A110704040004081572806F336000 F07700 |
12,000.00 |
|
0002 |
0002AB |
AB |
8893400309475A110704040004081572806F336000 F07700 |
14,000.00 |
|
0003 |
0003AA |
AA |
5793400309475A110704040004081572806F503000 F03000 |
10,000.00 |
|
0003 |
0003AB |
AB |
8893400309475A110704040004081572806F336000 F07700 |
15,000.00 |
|
0004 |
0004AA |
AC |
7765658810475A110704040004081572806F336000 C15500 |
30,000.00 |
|
0004 |
0004AB |
AC |
7765658810475A110704040004081572806F336000 C15500 |
50,000.00 |
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\Maintain\Billing). Line and Subline data would not be entered based upon the Billing Requirement selection of ACRN Only. Accounts are not mapped.
|
Sequence Number |
Active |
ACRN |
Original ACRN Funding |
ACRN Modification Value |
Total ACRN Funded Value |
Previous ACRN Allocation Amt |
Current ACRN Allocation Amount |
Remaining ACRN Value |
|
1 |
Y |
AA |
36,000.00 |
0.00 |
36,000.00 |
0.00 |
0.00 |
36,000.00 |
|
2 |
Y |
AB |
41,000.00 |
0.00 |
41,000.00 |
0.00 |
0.00 |
41,000.00 |
|
3 |
Y |
AC |
80,000.00 |
0.00 |
80,000.00 |
0.00 |
0.00 |
80,000.00 |
The ACRN Modification Value column is used for illustration purposes only.
A Standard Bill (calculated by the Calculate Bills application (Projects\Process\Billing)) 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:
|
ACRN_FUNDED_AMT |
1,000.00 |
Remains unchanged. |
|
ACRN_BILLED_AMT |
0.00 |
Remains unchanged because invoice has not been posted. |
|
ACRN_CUR_ALLOC_AMT |
200.00 |
Amount of current computation. |
|
ACRN_AVAIL_AMT |
800.00 |
Remaining ACRN Value after computation. |
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 2nd 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 3rd 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: |
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, 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 |
Allocation Amount |
|
AA |
36,000.00 |
|
AB |
41,000.00 |
|
AC |
5,500.00 |
|
Total Allocation |
82,500.00 |