Narrative State of Connecticut Page 1 of 4

Projects/Contracts/Billing Project Billing

Business Process Benefits:
The Project Billing Business Process is intended to demonstrate the following benefits in Core-CT
!n increased level of data integrit" between s"stems due to the integration within #inancials modules$
!llow billing for costs incurred on a %roject according to defined billing rules& including limits and billing
c"cles$
!llow for adjustments or u%dates to be %assed from the Billing 'odule to the Project Costing 'odule$
!llow for review& trac(ing and re%orting on Project transactional data for State and #ederal Com%liance$
Process Narrative:
Project Costing wor(s with Customer Contracts to generate %roject-related customer billing& also (nown as rate-
based %roject billing$ #or rate-based billing& Customer Contracts retrieves information from %roject transactions
using rate sets to determine which transactions will %o%ulate the Billing interface tables with the billing
information$
)hen "ou bill rate-based contract lines& the flow of data is controlled b" Customer Contracts& and the data source is
Project Costing$ Project Costing trac(s wor( %erformed& accumulates costs against a %roject and stores the
information in the Project Transaction table *P+,-.+/S,0+C/1$ +ate-based %roject billing is activated b"
a%%l"ing the rate sets that are identified in Customer Contracts against the %ending unbilled rows in the Project
Transaction table$
Project Billing in Core-CT re2uires the following
o Configuration *S%ecific to New !genc" 3m%lementation1
o ! Project
o ! Customer Contract
o Project Budget *o%tional1
o Project /4%enditures
o Batch Processes
o Billing& 3nvoice 5eneration
o !ccounts +eceivable
Configuration
!gencies wor( with the Core-CT Project Costing and Customer Contracts staff to discuss current business
%rocesses and assess their needs$ The Core teams assist the agencies in determining how to a%%l" the best %ractice&
and im%lement the configuration set u%$
Sam%le configuration items are
Project Costing
o !ctivit" - a s%ecific tas( associated to a Project where transactional data gets recorded and monitored& *i$e$
contractual e4%enses& incidental costs1$
o Project T"%e - 6efines a %roject with similar attributes *i$e$ construction %rojects& ca%ital %rojects1$
o Status - 6efines and identifies the %rogression of the %roject and controls what t"%es of transactions are
allowed *i$e$ ,%en& Closed1.
o !nal"sis T"%e - 3dentifies the t"%e of transaction *i$e$ P!78Pa"roll Costs& !CT 8 9ouchers1$
o !nal"sis 5rou% - ! grou%ing of anal"sis t"%es *i$e$ CT/:P ma" include the anal"sis t"%es of !CT& #+5&
5;/& P!71$
Customer Contracts
o +ate Set - +ate Sets re%resent and define how transactions are %riced for costing& billing& and revenue
recognition$ The" allow cost transactions to be %riced into new transactions that aid in costing& billing or
re%orting$
o +ate %lan - ! collection of rate sets that the s"stem e4ecutes in a s%ecified order$
o !ccounting +ules - Ca%tures State accounting rules& and defines how costs and revenue are shared and
recogni<ed$
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Narrative State of Connecticut Page = of 4
Projects/Contracts/Billing Project Billing
o Contract Classification - Categor" of a contract& either standard or government$ This functionalit" a%%lies
limits and can hold information such as funded and awarded amounts$
o Product - ! standard set of %roducts with attributes that include %ricing structure& bill %lans& and revenue
%lans$
Billing
o Bill Plan - ! bill %lan stores a schedule of billing events& it defines when to bill and what lines need to be
billed$
o Bill T"%e - Categori<es billing b" customer t"%e *federal or state1 and service and/or goods received$
o Bill B" 3dentifier - 6efines how to grou% billing activit"& *i$e$& b" %roject& b" contract1$
Projects
3n Project Costing& a %roject serves as an identifier for cost collection and allows monitoring of %rogress and status
of a %roduct or service$ Before an !genc" can bill transactions using Project Costing& the Project 'anager will
create a Project& using an agenc" defined Project 36$ 'ost %rojects can be created from a tem%late that defines the
agenc" business activitiesD the use of tem%lates minimi<es data entr"$ ,nce the %roject is established and in active
status the %roject is read" to accumulate costs and facilitate billing$
Customer Contracts
3n Customer Contracts, a contract re%resents an agreement between a state agenc" and the customer that the" are
billing$ The customer *funding source1 ma" be another State agenc"& a #ederal agenc"& or a third %art"$ This
module serves as an integration %oint between Project Costing and Billing& this integration allows labor and/or
other costs incurred on a %roject to be billed through an automated %rocess$
Create a Customer Contract
The !genc" Contract S%ecialist will create a Customer Contract& defining a contract number& customer name and
contract classification$ Then using the ;ines %age& the !genc" Contract S%ecialist will select a %roduct for a
contract line$ Predefined billing %lans and revenue %lans are attached to each %roduct to minimi<e data entr" for
the user$
Set Limit on Contract Line (optional)
The !genc" Contract S%ecialist can enter& for each line on a contract a single billing limit amount& funded and
awarded amounts and/or transactional limit amounts$ ,nce the limit is reached& the onl" wa" to bill against this
contract line is to amend the limit$
Associate a Project/Activity to a Contract Line
The !genc" Contract S%ecialist will then lin( the %rojectEs activities to the contract line on the +elated Projects
Page$ 0sers can select either a s%ecific activit" or multi%le activities from a %roject to associate with the contract$
Attach Rate Set/Rate Plan in a Customer Contract
,nce defined& the +ate Set/+ate Plan can be attached to the rate-based contract using the +elated Projects %age$
The s"stem will create billable lines based on the criteria defined in the +ate Set when the %ricing engine is run$
+ate sets have two %arts
o The source criteria that the Pricing %rocess uses to allow cost transactions coming in from feeder s"stems
*i$e$ !CT F 9oucher& P!7 F Pa"roll1$
o The target definition of the cost or billing row that the Pricing %rocess creates *i$e$ B3; F Billable1$
Project Budgets (optional)
Budget journals load budget details into Commitment Control and will continue to be entered as the" are toda"
using the ,nline Budget -ournal or the S%readsheet Budget -ournal$ Budget journals for Project Costing are %osted
using the GG.PC> ledger grou%$ Commitment Control creates entries for the Parent budgets GG.PC1 and
GG.PC= from the GG.PC> entr"$ /ach level can have its own control o%tion& for e4am%leD Trac(& Trac(
w/Budget& or Control$ The GG.PC> journal identifies the PC Business 0nit& Project and !ctivit" Chartfields
which will integrate bac( into the Project Costing module with the anal"sis t"%e of B61$
Project !penditures
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Narrative State of Connecticut Page > of 4
Projects/Contracts/Billing Project Billing
The State will accumulate costs in the Core-CT source modules *!P& 5;& H Pa"roll1 and utili<e delivered
integration features to transmit the a%%ro%riate level of information into the Project Costing and 5eneral ;edger
modules$
The following modules ca%ture costs
o !ccounts Pa"able F 9endor %a"ments include vouchers which feed an !CT row to P+,-.+/S,0+C/$
o Time H ;abor / Pa"roll F Pa"roll Combo codes with Project values& selected on a userEs timesheet or
through additional %a"& feed P!7 rows to P+,-.+/S,0+C/$
o 5eneral ;edger F -ournal entries to correct e4%enditures not made in the originating module and entries
made directl" in the 5eneral ;edger to ca%ture inventor" costs& feed 5;/& 5;+ and/or agenc" defined
rows to P+,-.+/S,0+C/$
/ach of these source modules %rovides a Chart#ield string at the lowest level of detail$
Batch Processes
Nightl" the State will run %rocesses that will distribute/co%" the transactional information from Core-CT source
modules *!P& 5;& and Pa"roll1 and utili<e the delivered integration features to transmit information into the
P+,-.+/S,0+C/ record$
)ithin the nightl" batch a Pricing Engine runs. This %rocess loo(s at the +ate Set/+ate Plan and the
%roject/activit" attached to the contract line$ The %ricing engine creates the B3; rows which are sent to the
Customer Contracts and evaluated against the limit on the contract line associated to that %roject/activit"
combination$ 3f the B3; rows are below the contract limit then those rows will be sent to the Billing module
through the batch *C!.B3.3NT#C1 %rocess$ ,nce the bill is finali<ed *invoiced1 those B3; rows are re%laced with
B;6 rows and are fed bac( to the P+,-.+/S,0+C/ record$ 3f however& the !CT or P!7 rows are over the limit&
an ,;T row is created in the P+,-.+/S,0+C/ record$ The %rocess of creating ,;T lines allows Project
'anagers to identif" what lines were not billed because the limit on the contract has been reached$ The Contract
S%ecialist can either amend the Customer Contract to change the limit or move the %roject and activit" to another
contract that has available funding$ ,nce the contract limit is amended& ,;T rows will re-%rice through an
automated batch %rocess and become B3; rows$
Billing" #nvoice $eneration
,nce bills have been created in the Billing module from the Customer Contracts/Project Costing modules& the
newl" created bills will run through the billing invoice generation batch job schedule$ /ach agenc" can determine
if the" want the bills to come into billing in a new or a read" status$ 3f the bills are in new status& the Billing
S%ecialist will need to go into the billing module and set the newl" created invoice to a status of read" and then run
the finali<e and %rint %rocess$
Accounts Receiva%le
The billing invoice %rocess will automaticall" create o%en receivables in !ccounts +eceivable b" a scheduled batch
!+ %osting %rocess$ The integration of !ccounts +eceivables to Project Costing %rovides Project Costing with
accounts receivable information when %a"ment is received *+/9 rows1$
#mportant Concepts to &nderstand for Project Costing'
The !genc" Project 'anager or !genc" Contract S%ecialist will lin( Project 36Es to Customer Contracts
to allow for %roject billing$
The !genc" Billing S%ecialist will be involved in the billing %rocess for %rojects$
! determination will need to be made in regard to who will be involved in creating rate sets and
accounting rules$
,nl" authori<ed users should have access to the Project Costing& Customer Contracts and Billing %ages to
insure that correct invoices are issued$
The !genc" Contract S%ecialist will not have the abilit" to create new %rojects and activities from the
Customer Contracts module$
!gencies will not& unless given clear instructions and authori<ation from Core-CT staff& utili<e the over
the limit *,;T1 override functionalit"$
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Narrative State of Connecticut Page 4 of 4
Projects/Contracts/Billing Project Billing
6,T will need the abilit" to change the funding source& source t"%e field$
Training material regarding the integration between the Project Costing& Customer Contracts& and Billing
have been develo%ed and can be found at the State of Connecticut C,+/-CT website *htt%//www$core-
ct$state$ct$us1$
,%en contracts will be manuall" converted with the negotiated amount e2ual to the original contracted
amount$ The line limit amount will e2ual the remaining amount that can still be billed$ ! summar"
IB;6E resource row will be u%loaded into the Project Costing module& utili<ing the S%readsheet 0%load
Tool& to reflect the amount that has alread" been billed$ !gencies will be re2uired to manuall" u%load this
amount for ever" %roject/activit" associated with a Customer Contract$
Configuration #mpacts for Agencies Considering &sing Project Costing'
!ccounting +ules will need to be configured$
+ate Sets will need to be configured$
New Bill T"%es ma" need to be configured$
(ajor )utput *ocuments'
6escri%tions and job aids for all C,+/ CT Project Costing Custom +e%orts can be accessed at
http://www.core-ct.state.ct.us/reports/finentries.asp?minorCat=Project+Costing
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