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Administrator Guide
Last Updated: 2024-03-08
Setup Considerations: Award Billing

Setup Considerations: Award Billing

You can use this topic to help make decisions when planning your configuration and use of award billing. It explains:
  • Why to set it up.
  • How it fits into the rest of Workday.
  • Downstream impacts and cross-product interactions.
  • Security requirements and business process configurations.
  • Questions and limitations to consider before implementation.
Refer to detailed task instructions for full configuration details.

What It Is

Award billing enables you to manage accounts receivables and bill for award costs based on sponsor requirements. You can create separate billing schedules for each award line to specify billing, invoice, and installment details. Workday uses the billing schedule to determine how to bill sponsors for costs on your award lines.

Business Benefits

Award billing enables you to track revenue and expense associated with an award and invoice your sponsors based on the unique billing schedules and requirements of each sponsor.

Use Cases

You can:
  • Generate sponsor invoices for award costs using installment and transaction billing types.
  • Consume prepaid balances and specify a billing frequency for installments.
  • Place the billing schedule or sponsor billing status on hold to prevent billing on active awards.
  • Define billing limits to control the amount of spending you can bill to the sponsor.
  • Track the billing status of billed and unbilled invoices using reports.
  • Bill sponsors on a recurring basis.

Questions to Consider

Questions
Considerations
When do you need to bill the sponsor?
You can bill the sponsor according to a predetermined schedule, or as you incur expenses.
You can also bill installments for prepayments, then expense your cost reimbursable spendings against the prepaid balances as you incur them.
How do you want to bill the sponsors for the expenses you incur?
When you want to:
  • Reimburse expenses as you incur them, use a cost reimbursable award line type for transaction-based billing.
  • Bill against predetermined installment amounts, use a cost reimbursable or fixed amount award line type for installment-based billing.
Do you bill sponsors in different currencies than the company currency?
If you bill in multiple currencies, you can create an award contract and award billing schedule that are in the currency of the bill-to sponsor. When you create:
  • A billing schedule and generate billing installments, the installments display in the award currency.
  • A sponsor invoice, the invoice remains in the award currency, and the accounting displays in the award currency and company currency.
At what level do you want to control the billable expenses for your awards?
You can set billing limits on:
  • Awards.
  • Billing schedule using transaction billing type.
  • Cost reimbursable award line using installment billing type.
Do you want to separate direct costs from facilities and administration on a sponsor invoice?
Workday displays separate sponsor invoice lines for direct costs and facilities and administration when you override an object class. You can specify an object class to override facilities and administration transactions in your award costs processing rules.
When do you need to recognize revenue for your award?
You can recognize award revenue for:
  • Cost reimbursable award line types at the time of expense.
  • Fixed amount award line types at the time of billing. When you enable deferred revenue, you can create an award revenue recognition schedule to recognize revenue separate from billing.
Do sponsors send you payments without invoices?
You can record revenue without invoice on fixed amount award lines without deferred revenue. See Record Cash Sales.

Recommendations

Use a cost reimbursable award line type with an installment billing type instead of a prepaid award line type when you create a prepaid billing schedule. This enables you to:
  • Receive advance payments from your sponsor before you incur direct costs and facilities and administration.
  • Automate tracking of your prepaid balance.

Requirements

Before you generate the invoice to bill your sponsors, you must:
  • Create and approve an award.
  • Create or assign an award billing schedule to each award line.
  • Generate the eligible installments for installment-type billing.

Limitations

  • You can only enable deferred revenue for fixed amount award line types when creating an award.
  • You can only view transactions on a sponsor invoice after you generate the invoice. Workday doesn't support invoice previews.
  • You can't change amounts on cost reimbursable invoices.

Tenant Setup

To set up billing for facilities and administration, you can configure the award costs processing rules for your company. Select
Company
Edit Award Costs Processing Rules
 from the related actions menu of the company, and use this task to determine whether Workday:
  • Generates award costs at settlement or business process completion.
  • Ignores the award line dates for award costs.
  • Overrides the object class worktag on facilities and administration transactions.

Security

Domains
Considerations
Process: Award Billing
 in the Grants Management functional area
  • Schedule the creation of sponsor invoices for cost reimbursable transaction billing.
  • Maintain the billing status for cost reimbursable award transactions.
Process: Billing
 in the Customer Contracts and Project Billing functional areas
  • Create billing schedules for awards.
  • Schedule the creation of sponsor invoices for installment billing.
Set Up: Customer Contracts
 in the Customer Contracts and Project Billing functional areas
Create schedule types to display as options on billing schedules.
Set Up: Grants Management
 in the Grants Management functional area
  • Override the object class for facilities and administration transactions in your award costs processing rules.
  • Create billing schedule templates for awards.

Business Processes

Business Processes
Considerations
Award Event
Create and approve an award before billing.
Billing Schedule Event
Create and approve a billing schedule.
Award Billing Schedule Event
Create and approve a billing schedule during award creation.

Reporting

Reports or Dashboards
Considerations
Cost Reimbursable Line Status
View the billing status for cost reimbursable transaction lines.
Find Cost Reimbursable Lines
View cost reimbursable transaction lines for an award using a faceted search.
Find Sponsor Invoices for Company
View sponsor invoices for a company using a faceted search.
Prepayment Balances for Awards
View prepayment balances for your awards.
View Sponsor Invoices for Award
View sponsor invoices for an award.
You can add this report to the award contract composite view.
You can use these report data sources in custom reports:
  • Cost Reimbursable Transaction Lines
     displays cost reimbursable transaction lines and award billing information.
  • Customer Invoices
     displays sponsor invoices for companies and awards.
  • Journal Lines for Financial Reporting
     displays all journal lines created against awards.

Integrations

You can use the
Submit Billing Schedule
 web service to submit billing schedules for awards.

Connections and Touchpoints

Award billing interacts with Financial Accounting using:
Features
Considerations
Facilities and administration journals
You can override an object class worktag for facilities and administration transactions to display separate invoice lines for direct costs and facilities and administration.
Award revenue recognition journals
Workday generates revenue recognition journals for cost reimbursable award line types at the time of expense.
Workday offers a Touchpoints Kit with resources to help you understand configuration relationships in your tenant. Learn more about the Workday Touchpoints Kit on Workday Community.