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1Copyright © 2014. Infor. All Rights Reserved. www.infor.comCopyright © 2014. Infor. All Rights Reserved. www.infor.com 1
Infor LN: v10.3 - v10.4
Contract Invoicing Differences
Rollout training
Campus Course Code: 02_0021040_EEN0476_ELN
August 2014
Henk Otjens
2Copyright © 2014. Infor. All Rights Reserved. www.infor.com
Topics
• Advance Payment Request vs. Advance Invoice
• Fees and Penalties
• Billable Overhead extended
• DoD Billing formats
• SF 1443
• SF 1034/1035
3Copyright © 2014. Infor. All Rights Reserved. www.infor.com
Advance Payment Request vs.
Advance Invoice: Why?
• In some countries / environments the status of an advance differs
• It is required to differentiate between an Advance Payment Request and
an Advance Invoice
4Copyright © 2014. Infor. All Rights Reserved. www.infor.com
Advance Payment Request vs.
Advance Invoice: How?
• We allow to differentiate Advance Payment Request vs. Advance Invoice
• Both options result in an open entry
• However, the advance invoice is a legal document and will have an official
invoice number assigned and be included in the Sales Listing and the
advance payment request will not.
• Tax is only on Advance Invoice, not on Advance Request
• Advance Payment Type is set on Contract Line (based on Contract
Parameter)
Parameter allows to fix type or allow choice on contract:
5Copyright © 2014. Infor. All Rights Reserved. www.infor.com
Fees and Penalties: Why?
• Fees and Penalties are an important feature of Contract Management
amongst other in certain US Government specific contract types
• The LN Project application lacked explicit support
6Copyright © 2014. Infor. All Rights Reserved. www.infor.com
Fees and Penalties: How?
• The LN Project 10.4 application supports fees
• Fee types:
• Fixed Fee
• Award Fee
• Incentive Fee
• Penalty
• Invoiced amount can differ from Fee amount defined
• Triggering is manual but the fees and penalties can be linked to activity or
milestone
• Multiple fee types and fees are possible for one contract line
7Copyright © 2014. Infor. All Rights Reserved. www.infor.com
Solution Overview
• Explicit option for Fees and Penalties as part of invoicing process
8Copyright © 2014. Infor. All Rights Reserved. www.infor.com
Fees and Penalties
9Copyright © 2014. Infor. All Rights Reserved. www.infor.com
Billable Overhead
• LN didn’t differentiate between internal and external rates while invoicing
overhead
• LN 10.4 differentiates between Internal (applied) and External (billing)
Overhead Rate
• We exclude non-billable transactions while calculating billable overhead
• Informational option for billing rate whether it is Provisional or Final
• Introduce new status option on overhead base: Expired
10Copyright © 2014. Infor. All Rights Reserved. www.infor.com
Overhead Application Base
11Copyright © 2014. Infor. All Rights Reserved. www.infor.com
DoD Billing Formats
• We cater for some US Government specific formats:
• SF 1443
• SF 1034 / 1035
12Copyright © 2014. Infor. All Rights Reserved. www.infor.com
Progress Payment Billing: Why?
• An Invoice Format specific for US: SF1443
• The Progress Payment Request allows to charge the customer based on
the costs so far while installment or delivery cannot be invoiced. This
invoicing is in order to improve the cash flow of the contractor.
13Copyright © 2014. Infor. All Rights Reserved. www.infor.com
Standard Form 1443
• Contractor’s Request for Progress
Payment, aka SF1443
• “Progress payments are payments
made based on the cost incurred
by the contractor/vendor as work
progresses under a
contract. When authorized in the
contract, DFAS can make
payments of 80% or more of the
accumulated costs on certain
items.”
• US Government specific
• Requires Infor Reporting
14Copyright © 2014. Infor. All Rights Reserved. www.infor.com
Solution Overview
• Added option for progress payment requests
15Copyright © 2014. Infor. All Rights Reserved. www.infor.com
Progress Payment Billing (cont’d)
• Progress Payment Request as part of Installment or Delivery based
Contract (only relevant for Fixed Price Contracts)
• New contract parameter and setting on contract line whether to use
• Progress Payment Rate:
Maximum percentage of cost to consider for invoicing
• Liquidation Rate:
Percentage of progress payment to settle against later invoice
• Billable Cost Report option as annex to invoice to detail cost
• Capture Actual Cost and ETC
(business type will impact what costs to take into account)
16Copyright © 2014. Infor. All Rights Reserved. www.infor.com
Progress Payment Setup on Contract
17Copyright © 2014. Infor. All Rights Reserved. www.infor.com
Progress Payment Request Details
18Copyright © 2014. Infor. All Rights Reserved. www.infor.com
Progress Payment Steps
• Setup
• Default Revenue Code
as part of General Project Parameters
• Activate as part of Contract Parameters
• Small Business default as part of Contract Parameters
• Procedure
• Settings on Contract / Contract Line
• Billable Cost Details evaluation
• Create Progress Payment Request
• Manually
• Generate
• Invoicing (approve, transfer and invoice)
• Billable Cost Report (optional)
19Copyright © 2014. Infor. All Rights Reserved. www.infor.com
Standard Forms 1034 and 1035
• Why?
• The amount claimed for reimbursement under cost-reimbursement type
contracts while working for US Government:
• Public Voucher for Purchases and Services Other Than Personal (SF1034)
• Public Voucher for Purchases and Services Other Than Personal - Continuation
Sheet (SF1035)
• Create Invoice having SF 1034 / 1035 Layout
Note: we improved the Infor Reporting variant of the commercial invoice
20Copyright © 2014. Infor. All Rights Reserved. www.infor.com
SF 1034 / 1035
• US Government specific
• Requires Infor Reporting
21Copyright © 2014. Infor. All Rights Reserved. www.infor.com
• Invoicing Method is to control
when to use the commercial
(standard) invoice and when to
use Standard Forms
• The aggregation settings will drive
the level of detail printed
Invoicing Method
22Copyright © 2014. Infor. All Rights Reserved. www.infor.com
Topics
• Advance Payment Request vs. Advance Invoice
• Fees and Penalties
• Billable Overhead extended
• DoD Billing formats
• SF 1443
• SF 1034/1035
23Copyright © 2014. Infor. All Rights Reserved. www.infor.com

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Inforln.com ERP LN 10.3 & 10.4 Contract Invoicing Differences

  • 1. 1Copyright © 2014. Infor. All Rights Reserved. www.infor.comCopyright © 2014. Infor. All Rights Reserved. www.infor.com 1 Infor LN: v10.3 - v10.4 Contract Invoicing Differences Rollout training Campus Course Code: 02_0021040_EEN0476_ELN August 2014 Henk Otjens
  • 2. 2Copyright © 2014. Infor. All Rights Reserved. www.infor.com Topics • Advance Payment Request vs. Advance Invoice • Fees and Penalties • Billable Overhead extended • DoD Billing formats • SF 1443 • SF 1034/1035
  • 3. 3Copyright © 2014. Infor. All Rights Reserved. www.infor.com Advance Payment Request vs. Advance Invoice: Why? • In some countries / environments the status of an advance differs • It is required to differentiate between an Advance Payment Request and an Advance Invoice
  • 4. 4Copyright © 2014. Infor. All Rights Reserved. www.infor.com Advance Payment Request vs. Advance Invoice: How? • We allow to differentiate Advance Payment Request vs. Advance Invoice • Both options result in an open entry • However, the advance invoice is a legal document and will have an official invoice number assigned and be included in the Sales Listing and the advance payment request will not. • Tax is only on Advance Invoice, not on Advance Request • Advance Payment Type is set on Contract Line (based on Contract Parameter) Parameter allows to fix type or allow choice on contract:
  • 5. 5Copyright © 2014. Infor. All Rights Reserved. www.infor.com Fees and Penalties: Why? • Fees and Penalties are an important feature of Contract Management amongst other in certain US Government specific contract types • The LN Project application lacked explicit support
  • 6. 6Copyright © 2014. Infor. All Rights Reserved. www.infor.com Fees and Penalties: How? • The LN Project 10.4 application supports fees • Fee types: • Fixed Fee • Award Fee • Incentive Fee • Penalty • Invoiced amount can differ from Fee amount defined • Triggering is manual but the fees and penalties can be linked to activity or milestone • Multiple fee types and fees are possible for one contract line
  • 7. 7Copyright © 2014. Infor. All Rights Reserved. www.infor.com Solution Overview • Explicit option for Fees and Penalties as part of invoicing process
  • 8. 8Copyright © 2014. Infor. All Rights Reserved. www.infor.com Fees and Penalties
  • 9. 9Copyright © 2014. Infor. All Rights Reserved. www.infor.com Billable Overhead • LN didn’t differentiate between internal and external rates while invoicing overhead • LN 10.4 differentiates between Internal (applied) and External (billing) Overhead Rate • We exclude non-billable transactions while calculating billable overhead • Informational option for billing rate whether it is Provisional or Final • Introduce new status option on overhead base: Expired
  • 10. 10Copyright © 2014. Infor. All Rights Reserved. www.infor.com Overhead Application Base
  • 11. 11Copyright © 2014. Infor. All Rights Reserved. www.infor.com DoD Billing Formats • We cater for some US Government specific formats: • SF 1443 • SF 1034 / 1035
  • 12. 12Copyright © 2014. Infor. All Rights Reserved. www.infor.com Progress Payment Billing: Why? • An Invoice Format specific for US: SF1443 • The Progress Payment Request allows to charge the customer based on the costs so far while installment or delivery cannot be invoiced. This invoicing is in order to improve the cash flow of the contractor.
  • 13. 13Copyright © 2014. Infor. All Rights Reserved. www.infor.com Standard Form 1443 • Contractor’s Request for Progress Payment, aka SF1443 • “Progress payments are payments made based on the cost incurred by the contractor/vendor as work progresses under a contract. When authorized in the contract, DFAS can make payments of 80% or more of the accumulated costs on certain items.” • US Government specific • Requires Infor Reporting
  • 14. 14Copyright © 2014. Infor. All Rights Reserved. www.infor.com Solution Overview • Added option for progress payment requests
  • 15. 15Copyright © 2014. Infor. All Rights Reserved. www.infor.com Progress Payment Billing (cont’d) • Progress Payment Request as part of Installment or Delivery based Contract (only relevant for Fixed Price Contracts) • New contract parameter and setting on contract line whether to use • Progress Payment Rate: Maximum percentage of cost to consider for invoicing • Liquidation Rate: Percentage of progress payment to settle against later invoice • Billable Cost Report option as annex to invoice to detail cost • Capture Actual Cost and ETC (business type will impact what costs to take into account)
  • 16. 16Copyright © 2014. Infor. All Rights Reserved. www.infor.com Progress Payment Setup on Contract
  • 17. 17Copyright © 2014. Infor. All Rights Reserved. www.infor.com Progress Payment Request Details
  • 18. 18Copyright © 2014. Infor. All Rights Reserved. www.infor.com Progress Payment Steps • Setup • Default Revenue Code as part of General Project Parameters • Activate as part of Contract Parameters • Small Business default as part of Contract Parameters • Procedure • Settings on Contract / Contract Line • Billable Cost Details evaluation • Create Progress Payment Request • Manually • Generate • Invoicing (approve, transfer and invoice) • Billable Cost Report (optional)
  • 19. 19Copyright © 2014. Infor. All Rights Reserved. www.infor.com Standard Forms 1034 and 1035 • Why? • The amount claimed for reimbursement under cost-reimbursement type contracts while working for US Government: • Public Voucher for Purchases and Services Other Than Personal (SF1034) • Public Voucher for Purchases and Services Other Than Personal - Continuation Sheet (SF1035) • Create Invoice having SF 1034 / 1035 Layout Note: we improved the Infor Reporting variant of the commercial invoice
  • 20. 20Copyright © 2014. Infor. All Rights Reserved. www.infor.com SF 1034 / 1035 • US Government specific • Requires Infor Reporting
  • 21. 21Copyright © 2014. Infor. All Rights Reserved. www.infor.com • Invoicing Method is to control when to use the commercial (standard) invoice and when to use Standard Forms • The aggregation settings will drive the level of detail printed Invoicing Method
  • 22. 22Copyright © 2014. Infor. All Rights Reserved. www.infor.com Topics • Advance Payment Request vs. Advance Invoice • Fees and Penalties • Billable Overhead extended • DoD Billing formats • SF 1443 • SF 1034/1035
  • 23. 23Copyright © 2014. Infor. All Rights Reserved. www.infor.com

Editor's Notes

  1. Version: August 29, 2014
  2. Configurable deliverables and customer furnished material are related to contract management but not to invoicing and therefore not covered in this presentation. Check separate presentations.
  3. We will not exclude fee types for specific contract types. For example one is able to combine contract type Fixed Price with fee type Fixed Fee. Whether or not to include award and incentive fees in revenue recognition requires capturing probability percentage that user finds acceptable.
  4. We will not exclude fee types for specific contract types. For example one is able to combine contract type Fixed Price with fee type Fixed Fee. Whether or not to include award and incentive fees in revenue recognition requires capturing probability percentage that user finds acceptable.
  5. LN 10.3 used billable flag to decide whether overhead was billable. If billable, the same amount was used for cost and sales.
  6. SF 1443 or Progress Payment Requests
  7. The funded amount displays as it might justify updates of the contract amount in case of for example Indefinite Dates, Indefinite Quantity kind of contract lines. Important to point out that several data elements can be changed and will result in some amounts to be recalculated. User should always evaluate to update the base figures and recreate (new) progress payment requests or update the figures on the already created lines. Note: we still allow for tax data but don’t expect these as invoicing is to government. Possibly personalize not to show tax tab.
  8. The voucher and continuation sheet may be on reproduced copies of the forms providing they conform to the official Government forms in format and are marked “Original".
  9. Configurable deliverables and customer furnished material are related to contract management but not to invoicing and therefore not covered in this presentation. Check separate presentations.