CP304 - Completethe ContractCloseout inCostpointPart I: BillingPresented by:Greg D Luczyk, Deltek
Enabling Success                       Project                      Human               Financial          Project        ...
Know More                       Project                      Human             Financial          Project                 ...
Agenda Definition of the Contract Closeout Review of the Process Flow for Billing An Example of the Closeout Process4  ...
Key TakeawaysBy the conclusion of this session, you will be able to… Identify the type of data that must be in Costpoint ...
Part 1: Introduction…6   5/22/2012   ©2011 Deltek, Inc. All Rights Reserved
DefinitionContract Closeout… The Contract is physically complete and moved to “Section 2” status in  MOCAS. All performa...
Contract Closeout in Costpoint   Deactivation of the Project.   Definition of Final Rate by Fiscal Year [Pd 13].   Gene...
Costpoint Contract Close OutPart I: Billing                                            Part II: Revenue Bill for retainag...
Accounting                       Final Indirect Rate                           System                              Proposa...
Prerequisites     These prerequisites relate to using Costpoint in the Contract Close out     process, as opposed to a com...
Cautionary Statements! Every company has policies that govern the reporting and maintenance  within the General Ledger an...
13   5/22/2012   ©2011 Deltek, Inc. All Rights Reserved
The Process: Billing14   5/22/2012   ©2011 Deltek, Inc. All Rights Reserved
The Closeout: Examining thePieces        OPEN BILLING          DETAIL                                                     ...
Close-Out: Process Flow    Review & Update Modifications.    Make adjustments to Open Billing Detail for unbillable tran...
To RevenueActivate Project                                                                                       Close Out...
Part 3: The Example18   5/22/2012   ©2011 Deltek, Inc. All Rights Reserved
The Project Master: Active?                 Verify that the Project is “Active” for processing.                 Verify tha...
Open Billing Detail Clean-Up     Identify those transactions to be “written-off” [W], that is, reclassified to a non-     ...
JE: Reclassifies ExpenseThe reclass will impact the General Ledger and the Project Ledger.21   5/22/2012   ©2011 Deltek, I...
Purge Written Off TransactionsThe utility will clear the “written-off” transactions from Open Billing Detail.22    5/22/20...
Bill Out Retainage Access “Project Bill Summary” to ascertain whether there is any retainage on the  project. This numbe...
Calculate Billings: ZeroRetainage Row Enable the “Zero Retainage Rows” will add a line specifically for the retainage bil...
The Retainage Invoice IsGenerated25   5/22/2012   ©2011 Deltek, Inc. All Rights Reserved
Clear Retainage Settings                                                           Returning to the Billing              ...
Input: Pd 13 Provisional “Final”Rates     Making use of a Period 13, usually established as a single day (12/31 or     01/...
Calculate Retroactive Billings By Fiscal Year, for the specific Project, point to the appropriate Fiscal Period.28   5/22...
Indirect Rate Variance - Billed29   5/22/2012   ©2011 Deltek, Inc. All Rights Reserved
Review Bill    Any other reconciling items?    Adjustments made?    Discuss with Program Management.    Alternative: C...
Final Review    Is Open Billing Detail cleared?    Billing Formula set to “Enter Bill Manually”?    All supporting pape...
In Summary…    Verify that Project is “active” for processing.    Bill out retainage.    Reclassify and clean out of OB...
Questions           www.twitter.com/deltek           www.facebook.com/deltekinc           www.linkedin.com/company/163414 ...
Call to Action     E-mail me at       gregluczyk@deltek.com      More to learn in… “Part 2”.      Schedule an appointmen...
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Deltek Insight 2011: Complete the Contract Closeout in Costpoint Part I: Billing

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  • The Call to Action slide is a smart additional to all presentations. This slide is not required, but speakers should be encouraged to include one.For Deltek presentations, a note to visit the product kiosks should always be included. Any related sessions could be included and attendees encouraged to attend.
  • Deltek Insight 2011: Complete the Contract Closeout in Costpoint Part I: Billing

    1. 1. CP304 - Completethe ContractCloseout inCostpointPart I: BillingPresented by:Greg D Luczyk, Deltek
    2. 2. Enabling Success Project Human Financial Project Manufacturing Resources Management Management Do More Market Teaming CRM and Capture Win More Intelligence Solutions Management Know More Business Performance Management Winning More Increasing Project Improving Cash Reducing the Cost Business Visibility Flow of Compliance2 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved
    3. 3. Know More Project Human Financial Project Manufacturing Resources Management Management Do More Market Teaming CRM and Capture Win More Intelligence Solutions Management Know More Business Performance Management Project & Org Resource Enterprise Analytical Budgeting Visibility Reporting Workspace3 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved
    4. 4. Agenda Definition of the Contract Closeout Review of the Process Flow for Billing An Example of the Closeout Process4 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved
    5. 5. Key TakeawaysBy the conclusion of this session, you will be able to… Identify the type of data that must be in Costpoint in order to complete the closeout in a semi-automated manner. Identify the processing steps. Identify the changes in setup. Identify potential pitfalls to this process.5 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved
    6. 6. Part 1: Introduction…6 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved
    7. 7. DefinitionContract Closeout… The Contract is physically complete and moved to “Section 2” status in MOCAS. All performance activity is complete. The customer has accepted all goods and services. Provision of FAR 4.804-5 can commence. MOCAS: Mechanization Of Contract Administration Services7 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved
    8. 8. Contract Closeout in Costpoint Deactivation of the Project. Definition of Final Rate by Fiscal Year [Pd 13]. Generate Final Bill. Clear Open Billing Detail. Recognize Write-Offs of Non-Billable Items. Recognize Adjustment to Revenue. Reconcile Unbilled Receivable Account. Take “Hit” for Unreconciliable Items.8 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved
    9. 9. Costpoint Contract Close OutPart I: Billing Part II: Revenue Bill for retainage.  Re-calc Revenue for PROJ_SUM. Clean out OBD.  Regenerate PSR’s. Use retroactive billing.  Revenue adjustment in current FY for Submit final bill. G/L. Analyze Unbilled Account for billing  Unbilled Account analysis and items. adjustment.9 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved
    10. 10. Accounting Final Indirect Rate System Proposal Fiscal Year End Submitted Audit Cycle Adjustment of Indirect Proposal Costs from Transmitted forProvisional Rates Audit to Actual Final Indirect Audit Performed & Rates Negotiated Report Issued10 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved
    11. 11. Prerequisites These prerequisites relate to using Costpoint in the Contract Close out process, as opposed to a completely manual process in a spreadsheet. Historical Billing & Necessary for doing billing and revenue Revenue calculations retroactively. In Costpoint Cost Pool Cost pools must exist for these prior years. Established for Close Out Years [Optional] Period “13” is helpful in isolating cumulative Period 13 variance. Helps to maintain visibility. For Final Rate11 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved
    12. 12. Cautionary Statements! Every company has policies that govern the reporting and maintenance within the General Ledger and Project Ledger. Whether you consider these techniques “controversial” is your decision to make. Some organizations might never want to take “the hit” on their P&L’s.12 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved
    13. 13. 13 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved
    14. 14. The Process: Billing14 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved
    15. 15. The Closeout: Examining thePieces OPEN BILLING DETAIL Closed Billing Detail BILLING_DETL_HS Maintain Billing History BILLING_SUM Maintain Project Bill Summary PROJ_BILL_HS Unbilled Receivable [GL_POST_SUM] Unbilled Receivable [RPT_PROJ_UNBILL ED]15 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved
    16. 16. Close-Out: Process Flow Review & Update Modifications. Make adjustments to Open Billing Detail for unbillable transactions. Post reclass /writeoff. Bill out any Retainage. Per Fiscal Year, set rate. Process Retroactive Billing. Review, Print, Post Final Bill. Repeat process for each Fiscal Year.16 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved
    17. 17. To RevenueActivate Project Close Out For Final Post Processing Standard Bills No Review OBD for Unbillable Additional Print Standard Edit Standard Years? Items; Make Bills Bills Adjustments Yes Process 1 Year At a Time Review Post JEs Retroactive Worksheet Bill Out Billing Set Approved Calculate Retroactive Retainage Indirect Rates Billing for Year (If Applicable) for Year X…n X17 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved
    18. 18. Part 3: The Example18 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved
    19. 19. The Project Master: Active? Verify that the Project is “Active” for processing. Verify that tasks are flagged as “Allow Charging” if there is a possibility that reclassifications will be necessary.19 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved
    20. 20. Open Billing Detail Clean-Up Identify those transactions to be “written-off” [W], that is, reclassified to a non- billable account or project node. Note: that the associated PAG must have an account(s) with a function code of “UNALLOWABLE NON-LABOR” and “UNALLOWABLE LABOR”. Objective: Clear Open Billing Detail, reclassify transactions in both the General Ledger and Project Ledger, plus correct the revenue computation.20 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved
    21. 21. JE: Reclassifies ExpenseThe reclass will impact the General Ledger and the Project Ledger.21 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved
    22. 22. Purge Written Off TransactionsThe utility will clear the “written-off” transactions from Open Billing Detail.22 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved
    23. 23. Bill Out Retainage Access “Project Bill Summary” to ascertain whether there is any retainage on the project. This number is necessary in the retainage bill out process.23 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved
    24. 24. Calculate Billings: ZeroRetainage Row Enable the “Zero Retainage Rows” will add a line specifically for the retainage bill out.24 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved
    25. 25. The Retainage Invoice IsGenerated25 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved
    26. 26. Clear Retainage Settings  Returning to the Billing Master, clear the retainage section. This is necessary to prevent retainage of the Final Invoice.26 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved
    27. 27. Input: Pd 13 Provisional “Final”Rates Making use of a Period 13, usually established as a single day (12/31 or 01/01 for calendar year end companies), helps to create more control and visibility. It keeps “Period 12” of all special activity. For the appropriate fiscal year and indirect pools, input the Final Rate in the “Provisional Columns”. This process will occur for each fiscal year where there has been a sign off on the billing rate.27 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved
    28. 28. Calculate Retroactive Billings By Fiscal Year, for the specific Project, point to the appropriate Fiscal Period.28 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved
    29. 29. Indirect Rate Variance - Billed29 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved
    30. 30. Review Bill Any other reconciling items? Adjustments made? Discuss with Program Management. Alternative: Contract “Quick” Close-out.30 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved
    31. 31. Final Review Is Open Billing Detail cleared? Billing Formula set to “Enter Bill Manually”? All supporting paperwork stored? Continue to Revenue & Unbilled Analysis…31 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved
    32. 32. In Summary… Verify that Project is “active” for processing. Bill out retainage. Reclassify and clean out of OBD. Indirect Rate Billing. Proceed to Revenue Recognition.32 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved
    33. 33. Questions www.twitter.com/deltek www.facebook.com/deltekinc www.linkedin.com/company/163414 www.youtube.com/user/deltekinc33 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved
    34. 34. Call to Action E-mail me at gregluczyk@deltek.com  More to learn in… “Part 2”.  Schedule an appointment… “Meet the Experts”.  Let’s chat… between sessions or at lunch.  Thanks for your participation!34 5/22/2012 ©2011 Deltek, Inc. All Rights Reserved
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