How to Create a PPM Contract in Order to Bill External Customers


Overview


This article will demonstrate how to create a PPM Contract in order to bill external customers.

Critical Concepts


Steps to Take


Procedure A: Set up a Contract

  1. Log into Oracle Financials Cloud (OFC) using single sign-on
  2. Select Projects and Awards, then click on Contracts
  3. On the right-hand side, click on the Tasks icon for the drop-down menu, under Contracts, select Manage Contract Templates
  4. To create a Service Agreement, which is for department use
    1. Search using the following method:
      1. in Template Number, enter "Service" and then click Search
    2. Under Search Results, highlight the Service Agreement line
    3. Click on Actions and select Create Contract from Template
    4. In the Create Contract from Template dialog box, use the Search function to complete the field Primary Party with your Customer Name
    5. Start Date will default to today’s date, change it as needed
    6. Enter an End Date, even though it is not required with an asterisk *
      1. You will get an error if an End Date is not entered
      2. If this is available in the contract, it must be entered into the system
    7. Click OK
  5. Navigate to the Overview tab
    1. The Name will default to Service Agreements
    2. Under Additional Information, enter the Revenue Account that the Contract should collect Revenue on and the Fund Number that the contract revenue should post to; if unknown, use the Search function from the drop-down
      1. The following Funds will be rejected: 13991, 13992, 20000, 20400, 20700
    3. Click Save on the top
  6. Navigate to the Billing tab
    1. Enter the Contract Organization, which is the UCSD department
    2. In Transaction Type, enter PA Invoice, you will have to search for the words "PA Invoice"
    3. If a recurring PO Number is provided by the customer that is to be stated on every customer Invoice, enter PO Number
    4. Under the Bill Plans section, a default Bill Plan will already be created, complete the following segments:
      1. Bill Plan
        1. Name (rename if desired)
        2. Method Name: Amount Based Invoice
      2. Customer Information
        1. Bill-to Account Number
        2. Bill-to Contact (required to prevent contract exceptions)
        3. Bill-to Site
      3. Invoice Information
        1. Billing Cycle (almost always select Immediate to generate invoices immediately upon creation)
        2. Payment Terms
      4. Invoice Grouping Options: add Associated project from the Invoice Grouping dropdown (required to make the proper Event Types available in Events [Milestone, Fee, Other])
      5. Invoice Summarization Options
        1. Labor Format: UCSD Labor
        2. Nonlabor Format: UCSD Nonlabor
        3. Event Format: UCSD Events
        4. Save
      6. Associated Contract Lines
        1. Select + Sign
        2. Search, then highlight the Bill Plan Number at the bottom
        3. Select Submit
      7. Save and Close
    5. Under the Revenue Plans section, a default Revenue Plan will already be created, complete the following segments:
      1. Revenue Plan
        1. Name (rename if desired)
        2. Method Name: Amount Based Revenue
        3. Press Save
      2. Associated Contract Lines
        1. Select + Sign
        2. Search, then highlight the Revenue Plan Number at the bottom
        3. Select Submit
      3. Save and Close
    6. DO NOT add any Billing Resources to the Billing Controls segment
    7. Click on Save
  7. Navigate to the Lines tab
    1. Navigate to the Overview Minitab
      1. Update Line Name as desired
      2. Enter Line Amount, Estimated Variable Consideration Amount, and Standalone Selling Price with the dollar amount of the Contract
      3. Contracts may NOT have a $0.00 line amount
      4. Click on Save
    2. Navigate to the Billing Minitab
      1. Confirm that Bill Plan and Revenue Plan fields are populated and accurate (if not, add them from the dropdown menus)
      2. Enter the same PO Number from the Billing main tab
      3. DO NOT add any Billing Resources to the Billing Controls segment
      4. To add Sales Tax under Tax Control section, select the necessary code under Classification Code dropdown (separate Contract Lines will be required if there are taxable and non-taxable Events)
      5. When Sales Tax is added, invoices MUST be generated through the system overnight (manually created invoices will NOT generate the Sales Tax)
    3. Navigate to the Associated Projects Minitab
      1. Click on the + sign, then enter the following:
        1. Project Name which will auto-populate Project Number
        2. Task Name
        3. Funded Amount
  8. Navigate to the Parties tab
    1. Confirm your Customer and Supplier names
    2. In the Accounts section, complete the following which is required even though they do not have an asterisk *
      1. Bill-to Account Number
      2. Bill-to Site
      3. Ship-to Account Number (search by Bill-to Account number)
      4. Ship-to Site
      5. Click on Update Lines
      6. Enter a Bill-to Contact, then click the Update button
  9. Click on Save, then Submit
    1. Submit to Approvers
    2. If there are no validation errors, click Next to continue
    3. If the option to click Next is not available or if you can not move forward, recheck that all required fields above are populated
    4. Use the drop-down to Save and Close
  10. Make a note of generated Contract Number which is needed that to create Event and Invoice

Project Administration will Review and Approve, approval could be up to 72 hours, once approved, it will become an active Contract. If you encounter any error messages during the contract creation process, please refer to KBA KB0033600

 

Procedure B: Create an Event

In order to create an Invoice, an Event must be first created. An Event can not be put on multiple Invoices, but an Invoice can have multiple Events

 

  1. Select Projects and Awards, then click on Contract Invoices
  2. On the right-hand side, click on the Tasks icon for the drop-down menu, in Review and Adjust, select Manage Events
  3. In the Search Results, click on the Plus sign to create a new Event, enter the following:
    1. Business Unit with "UCSD Campus"
    2. Contract Number
    3. Contract Line
    4. Event Number is automatically assigned
    5. Event Type must be:
      1. Milestone -  Event to invoice and recognize revenue for a specified amount based on a milestone
      2. Fee - Event to invoice and recognize revenue for fees earned
      3. Other - Event to invoice and recognize revenue for a specified amount
    6. Completion Date although it does not have an asterisk, you will get an error if not entered. If a future date is entered, the invoice will not generate until that date.
    7. Amount in Bill Transaction Currency is the amount of the Invoice
    8. Project Name
    9. Task Name
  4. Expand the Additional Information section by clicking on the left-hand arrow to enter Multiple Services specific to the Event (this data will be visible on the final invoice)
    1. Customer PO (enter if different from Contract PO Number)
    2. Customer Contact
    3. UOM (Unit of Measurement)
    4. Quantity
    5. Unit Price
  5. Save and Close

 

Procedure C: Invoicing

System Generated Invoices

  1. Retrieve the Draft Invoice
    1. Click on the Contract Invoices module, which opens to the Overview tab
    2. Under the Invoice Processing Status section, click on the Draft Invoices tab (see screenshot below)
    3. Click on the Filter icon, and you can search by entering the Contract Number to find the Draft Invoice
    4. Select the desired Draft Invoice hyperlink
    5. On the Invoice Overview tab, review and make changes as needed, make sure to click on Save when making changes
    6. To add attachments to the Invoice, select Show More
      1. Next to Attachments None, select the + sign, and add the desired documents on the popup screen, and select OK
  2. Submit the Invoice for Approval, the status will stay in draft until it is submitted to Project Administration for Review/Approval

Invoice Status is Submit

What to expect after you submit an invoice

 

Instructional Video

PPM Project Billing  (Start at 26 minutes)

 

If you still have questions or need additional assistance, please submit a ticket