Process: Award Cost Reimbursable Spend to Billing

You can use this checklist to take you from spending on an award to reimbursing from the sponsor.

For a use case related to this topic, see Use Case: Award Cost Reimbursable Spend to Billing in the Use Case Library.

Spend on the award.

Charge an expense to a grant on the award by associating the spend transaction with the grant worktag on the award line that you want to charge to, and completing the business process. Example, for:

Payroll costing, add the grant worktag to the payroll costing allocation of the worker and complete the pay calculation. See Define Cost Allocations for a Worker.

Spend within Financial Management, such as a supplier invoice or expense report, add the grant worktag to the spend transaction and complete the business processes for the transaction. See Create Supplier Invoices for supplier invoices, Create Expense Reports for expense reports, or Create Accounting Journals for manual accounting journals transactions.

Create Manual Settlement Runs.

Settle the spend amount. After you complete the settlement run, the spend is ready to bill.

Workday generates the facilities and administration (F&A) costs and recognizes revenue when you complete the spend transaction business process or settlement run, depending on how the award costs processing rules is set up for the company.

To view the F&A and revenue recognition accounting for the expenditure:

Select

Accounting

View Accounting

from the related actions menu of the operational journal initiating the spend transaction.

Select the:

Facilities and Administration

tab for F&A details.

Award Revenue Recognition

tab for award revenue recognition details.

When you change the spend budget date or any F&A settings that could affect the F&A amount, run Reprocess Award Costs to recalculate the F&A costs and revenue for the award.

Create an invoice for the ready-to-bill amount on the award. The ready-to-bill amount includes the direct spend amount and any applicable F&A costs.

You can find the Ready to Bill
amount on the:

Award contract, under the

Award Lines

tab in

Award Summary

Find Cost Reimbursable Lines

report.

For more information, see Steps: Create Invoices for Cost Reimbursable Award Transactions.

When you receive payment from the sponsor, Record Customer Payments.

(Optional) If the sponsor reimburses you by a letter of credit, draw down the letter of credit, and Record Letter of Credit Draw Downs.

(Optional) Print and Email Sponsor Statements.

Reference: Facilities and Administration Spend Transactions