Can I Save This GCS Premier Contract Setup?

There are occasions when you may want to change the contract type (such as from a T&M contract type to a FP or CPFF contract type). This guide from Cordia Partners will help you make those conversions cleanly.

Files

Changing from a T&M contract type to a FP or CPFF contract type

  1. Do a complete backup of your data directory before you start!
  2. Prepare a negative billing in the Billing Edit File to back out the cumulative total of all billings posted inception to date.
    • If you bill your contract by task, you will need to prepare a negative billing for each contract and task.
    • If you bill your contract at the summary level, you will need to prepare a negative billing for the 000 task.
  3. Post the negative bill(s) in the Print/Post Contract Billing Journal. This will clear out the Prior Years’ Billable Data screen.
    • Note: You can skip step 2 & 3 if the contract has never been invoiced.
  4. In the Contract Master File, change the Contract Type to CPFF or FP for all tasks that should be changed.
    • You can update a range of tasks within a contract by using the ALL record and telling the system to update all tasks.
    • Browse through all the tasks to verify they have been updated.
    • This process will update the Contract Type in the Billing Master File.
  5. Update the Billing Master File and Contract Master File with all pertinent CPFF or FP information.
  6. Prepare a billing as a CPFF contract for all costs incurred thus far. If you put the charges for the previous fiscal year in the “Prior Year Cost and Fee” field in the Billing Edit File, the system will populate both the Prior Years’ Billable Data file and the Current Year Billing Data file for the costs that should have been billed in each fiscal year period.
    • Note: The charges input into the “Prior Year Cost and Fee” line in the Billing Edit File will populate the “Unallocated Cost” field in the Prior Years’ Billable Data screen. You will have to allocate the costs from this line to the correct suffixes, indirect costs, and fee lines.
    • The Job Status Report will be helpful in determining the current fiscal year costs.
  7. Delete the T&M Billing Rate file for each task that you had setup for this contract.
  8. Compute Revenue. There will probably be an adjustment in the Fee Line that represents the YTD revenue as adjusted in the current period.
  9. Print and post your revenue.

Changing from a FP/CPFF contract type to a T&M contract type

  1. Do a complete backup of your data directory before you start!
  2. Do a screen capture of page 2 in the Current Year Billing Data screen for the contract and tasks you are changing.
  3. Clear out or delete the Current Year Billing Data screen for the contract and tasks you are changing.
  4. Using the screen captures as a reference, put the “Total” billed amount on the “Other Charges” line in the Prior Years’ Billable Data screen.
  5. In the Contract Master File, change the Contract Type to T&M for all tasks that should be changed.
    • You can update a range of tasks within a contract by using the ALL record and telling the system to update all tasks.
    • Browse through all the tasks to verify they have been updated.
    • This process will update the Contract Type in the Billing Master File.
  6. Update the Billing Master File and Contract Master File with all pertinent T&M information.
  7. Set up the T&M Billing Rate File.
  8. Verify that the Labor Category Hours are correct in the Labor Summary File for each contract, task and labor category.
    • Any corrections must be done as timesheet corrections. You should never do any journal entries to labor accounts.
  9. Compute Revenue.
  10. Run a T&M Sales Worksheet. On the report, there will be an amount on the Revenue Adjustment line for the difference between the amount the system has recognized as revenue in the current year and what has just been computed for the T&M.
  11. Add the amount from step 10 to the “Revenue Adjustment” field on the 2nd page of the Contract Master File.
  12. Recompute revenue.
  13. Compute Billings. This will give you the total hours to date that have been incurred times the billing rates found in the T&M Billing Rates File and any ODC’s that have been charged.
  14. On the “Other Charges” line in the Billing Edit File, enter as a negative, the amount that was input in the “Other Charges” line in the Prior Year Billing Data screen. This represents the total FP/CPFF previously billed.
  15. Print and post your journals.

Changing Revenue and A/R requirements from 'Selected' to 'Unselected'

The following steps must be performed after the final posting of revenue through the sales journal, just before closing the month.

  1. Set up a "000" task if one doesn't exist. It will need 11, 12, and 30 suffix accounts in the Chart of Accounts File screen in the General Ledger module.
  2. Review the billing setup. Add together all data for tasks in the Billing Master File screen, the Prior Years' Billable Data screen, the Current Year Billing Data screen, the Progress Payment File screen, the SC Progress Payment File screen, and the Open A/R File screen and set up these amounts under the "000" task. (These screens are in the Billing * Accounts Receivable module.) If necessary, update the A/R History File screen for billing history. After amounts have been moved to the "000" task, delete the other tasks from these screens. When you are combining tasks, the Contract Billing Worksheet will provide the rolled up amounts for the Prior Years' Billable Data screen and the Current Year Billing Data screen. The 1443 Progress Payment Worksheets also provide combined task options.
  3. For the "000" task, do not select the Task Revenue Requirements and Task A/R Requirement checkboxes in the Contract Master File screen. Go to the appropriate tab in the Contract Master File screen and select the revenue formula in the Revenue Basis group box.
  4. Enter the full Contract Value (CV) for the "000" task in the Contract Master File screen, and delete the CVs for the other tasks. The "ALL" record for the contract can include the total CV for reference only.
  5. Remove the checkmarks in the Task Revenue Requirement and Task A/R Requirement checkboxes in the Contract Master File screen for tasks "001" through the ending task. This may be done in the "ALL" task.
    • You can also delete the revenue formulas for these tasks since only the "000" task formula will be used.
  6. A journal entry will be needed to transfer any unbilled receivables and revenue amounts from each task to the "000" task accounts (i.e., -12 and -30 suffix accounts). Transfer billed receivables in the Enter/Edit Cash Receipts screen in the Billing and Accounts Receivable module.

Changing Revenue and A/R requirements from 'Unselected' to 'Selected'

The following steps must be performed after the final posting of revenue through the sales journal, just before closing the month.

  1. Using the Chart of Accounts File screen in the General Ledger module, make sure that -11, -12, and -30 suffix accounts are set up for each task.
  2. Use a journal entry to transfer any unbilled receivables and revenue from the "000" task to all the other tasks. Transfer any billed receivables (-11) in the Enter/Edit Cash Receipts screen in the Billing and Accounts Receivable module.
  3. For all tasks ("000" through the ending task), make the following changes in the Contract Master File screen.
    • Select the Task Revenue Requirements and Task A/R Requirements checkboxes.
    • Add revenue formulas to each task and delete the revenue formula for the "000" task.
    • Enter the CV for each task, and any unallocated CV on task "000." When the Task Revenue Requirement checkbox is selected, the "000" task is used only to store the unallocated CV.
    • The "ALL" record can include the total CV, for reference purposes only.
  4. Review the Billing and Accounts Receivable module. If revenue is computed by task, then billing must be computed by task. Set up all data for tasks in the Billing Master File screen, the Prior Years' Billable Data screen, the Current Year Billing Data screen, the Progress Payment File screen, and the SC Progress Payment File screen. (These screens are in the Billing * Accounts Receivable module.) The amounts for the "000" task in these screens must be deleted. Remember that you will still be able to combine tasks on billings if needed.
  5. For T&M contracts with ceiling limit flags on labor category hours, make sure the Ceiling Limit checkbox is selected in the T&M Billing Rates File screen for the "ALL" task. If the Task Revenue Requirements checkbox is selected in the Contract Master File screen, ceilings must be at the task level if revenue is recognized at the task level. You will probably also need to move some Budget Hours from the "ALL" task to individual tasks.

Changing Revenue requirements to ‘Selected’ and changing A/R requirements to 'Unselected'

  1. If one is not already set up, create a "000" task in the Contract Master File screen. This task normally would have a contract value of zero, since contract values are recorded on each task. Select the Task Revenue Requirements checkbox in the Contract Master File screen; however, do not select the Task A/R Requirements checkbox. Set the other tasks to this same configuration.
  2. Since the Billing Master File, the Prior Years' Billable Data screen, the Current Year Billing Data screen, the Progress Payment File screen and the SC Progress Payment File screen (in the Billing * Accounts Receivable module) will still be tracking costs as well as fee and revenue ceilings by task, no change is necessary for these screens. You will need to set up a record for the "000" task if there is not one.
  3. Make a journal entry to move the unbilled -12 suffix accounts for each task to the -12 suffix account of the "000" task. Use the Enter/Edit Cash Receipts screen in the Billing * Accounts Receivable module to transfer the -11 suffix billed receivable accounts. These changes are important if you plan to post revenue or billings.
  4. Print an Aged A/R Report from the Aged A/R Report screen in the Billings and Accounts Receivable module. In the Open A/R File screen, delete all the records for individual tasks on this contract. Then enter one record to task "000" for the total of each bill that is outstanding. For example, unpaid Bill #1 might have been recorded as Bill #1 on three tasks. You would add up these three billings to arrive at the proper amount to add for the "000" task Bill #1. Reprint the Aged A/R Report to make sure that the total is the same as in the report you printed previously.
  5. The Accounts Receivable History File (the A/R History File screen) could be changed in the same manner as the open accounts receivable, but it won't affect the processing (the change is for informational purposes and for the A/R History report).

 

These guidelines have been provided by Cordia Partners, a TBS Consulting Partner.

Cordia Partners
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