Funding Lines

The purpose of the Funding Line attribute is to provide the information related to each internal or external funding participant within the associated funding agreement. The Funding Line table allows you to identify the billing information related to a specific Customer within Funding Profiles and Funding Priorities. For data entry ease, the customer funding type is inferred from Vendor/Customer table for Cost Accounting customers.

Within a Funding Priority, one or more Funding Lines must exist to identify the funding sources. If you do not intend to bill the expenditures to any funding source, then you should set up only one Funding Line with an internal distribution to which the expenditure should be classified. In addition, only one Funding Line can be set up if the Major Program uses Task Order Billing. If the expenditure will be billed to multiple funding sources (such as a Federal, entity, and other non-entity), then define one Funding Line for each funding source. During setup, your program accountants specify the percentage match for each Funding Line in the priority. When billing occurs, these percentages will be used to calculate the amount submitted for reimbursement.

The combination of Funding Profile, Funding Priority, and Funding Line captures the information necessary to support billing. Multiple funding sources (for example, State, Federal, and Other Non-State) can be defined as multiple Funding Lines within a profile and priority. You can set up various combinations of funding: 100% State, 100% Federal, or any mix of funding sources.  The Reimbursement Billing process that uses these rates is described in the "Reimbursement Processing" section.

There are many key fields in the Reimbursement Options section of the Funding Line table which have a significant impact on the reimbursement process. The Reimbursement Output Type field is discussed below due to the impact upon overall business process (others can be reviewed in the systems on-line field help):

• Reimbursement Output Type

  Reimbursement Output Type –  This field determines the Output Type for reimbursements. Values are: Generate Receivables Only Generate Receivables and Cash Receipts Internal Sale (Internal Exchange Transactions) Internal Reimbursement (Internal Exchange Transactions) None The Reimbursement Output Type is specified on the Funding Line or the Task Order depending on the Task Order Billing setting of the Major Program.  If Task Order Billing is not used, the Funding Line can use any of the above options and the Task Order must use the None option.  Conversely, if Task Order Billing is used, then the Reimbursement Output Type on the Funding Line must be blank and the Task Order can use Internal Sale, Internal Reimbursement, or None. The first two options (Generate Receivables Only and Generate Receivables and Cash Receipts) are used to request and record reimbursements from external parties.  These may be other governmental entities or may be departments within the same governing body but not on Advantage Financial.  Either way, they are established on the Vendor/Customer tables with a Cost Accounting Funding Type value.  Chart of account (COA) values used on the generated documents are those from the Ready for Reimbursement table overlaid with any values entered in the Reimbursement section of the Funding Line tab of the Funding Priority table. The second two options (Internal Sale and Internal Reimbursement) are used to record reimbursements from internal parties that share the same Advantage Financial application.  The first will record revenue for the seller/provider.  The second will record an expenditure credit for the seller/provider.  In each case, the COA for the seller/provider is that from the Ready for Reimbursement table overlaid with any values entered in the Reimbursement section of the Funding Line tab of the Funding Priority table or the Reimbursement Seller Line section of the Task Order table.  If Internal Sale, object fields (Object, Sub Object, and Department Object) are not used from the Reimbursement section but the revenue fields (Revenue Source, Sub Revenue Source, and Department Revenue Source) are used.  The opposite is true if Internal Reimbursement. As the Internal Exchange Transactions created record information for 2 parties, information is needed for the buyer/receiver, which is in this case the internal entity that is reimbursing the project.  COA values for the second party come from those established on the Internal Buyer Funding Line for a given Funding Line or the Task Order Buyer Line for a given Task Order. If None is chose for those funding lines or Task Orders that are not to provide reimbursement.  Most often this choice is used when the Program is to fund a portion of its own expenses. Note: Not all information for generated documents exists on the Funding Line or the Task Order table.  Please see the Reimbursement Output Parameters table for additional values used for document generation.

Two sections of Chart of Account (COA) fields exist at the Funding Line level that are essential for how Cost Accounting related transactions post:

• Reimbursement

  Reimbursement – This section determines the codes that should be written to the generated RE/CR/IET documents.  All codes not entered in this section will come from the expenditure.  This section must be updated, with a Revenue Source at a minimum, when the Reimbursement Frequency is anything other than None. This section is used by Reimbursement Output when the Major Program does not use Task Order Billing.

• Front End Split

  Front End Split – This section determines the codes that should be reassigned on the original document.  Instead of performing an actual cost allocation, the funding line has the ability to automatically reassign all expenditures to the COA values entered in this section.  In turn, this section contains COA values that will overlay values from an accounting line when the posting lines from that accounting line undergoes front end split.  For example, a GAX document is entered with a Fund Code of “002” on the Accounting Line whereas the funding line associated with the program code reassigns the code to equal “092”.  Then upon document processing, the Fund Code will be reassigned on the posting line to “092” although the Accounting Line retains the manually entered code.  Blank values in this section will ensure that the document uses the Accounting Line’s COA information. The Debt ID field on the Front-End Split tab should be populated when you need to have the split routine use the Debt ID for the provider of goods and services.  Two of the most common uses are loan or bond proceeds used to fund a Program.   Care should be taken when setting up a Funding Line with either a Fund or Sub Fund code where the code is established on the FUND or SFUND page with a different defaulting Debt ID than the one being entered on the Funding Line.  In this case the Debt ID from FUND or SFUND will override the one from the Funding Line setup. A Debt ID for a Lease really has no applicability to a Funding Line.  There are also some system limitations on the Debt ID field: An Authorization Debt ID is not allowed. A Loan Application Debt ID is not allowed. The Debt Instrument Status should not be one that is closed or completed.