Managing Program Income
Desk Procedures
Page 1 of 49
Table of Contents
Overview ........................................................................................................................................................ 3
Roles and Responsibilities Applicable to Business Process .......................................................................... 4
Financial Policies and Procedures ................................................................................................................. 5
Program Income Oversight Reports Review ................................................................................................. 6
Roles Applicable to Sub Process ............................................................................................................... 6
Run the Program Income Oversight Report UM_FAR_PROG_INCOME_DEPT_DEP and review ... 7
Run Program Income Oversight Report UM_FAR_PROG_INCOME_BI and review ........................ 9
Run Program Income Oversight Report UM_FAR_PROG_INCOME_JRNL_ENT and Review ..... 11
Review Terms and Conditions for Program Income ................................................................................... 13
Roles Applicable to Sub Process ............................................................................................................. 13
Review Grants for Program Income Terms and Conditions ................................................................ 14
Notify GA of Missing Grants Terms and Conditions for Program Income ........................................ 15
Update Grants Terms and Conditions for Program Income ................................................................ 15
Determine if Program Income is Reportable or Non-Reportable ........................................................ 15
Processing Non-Reportable Program Income .............................................................................................. 16
Roles Applicable to Sub Process ............................................................................................................. 16
Create GL Journal to move Program Income to Non-Sponsored Program ......................................... 17
Notification to Department of GL Journal to Non-Sponsored Program .............................................. 21
Processing Reportable Program Income ...................................................................................................... 22
Roles Applicable to Sub Process ............................................................................................................. 22
Add Award Modification Notes for Program Income ......................................................................... 23
Processing Program Income Match Method ........................................................................................ 26
Processing Program Income Additional Method (Add/Deduct) .......................................................... 29
Processing Program Income Deduct Method ...................................................................................... 36
Understanding the Program Income Process as it applies to Rate Based Contracts .................................... 44
Rate Based Contracts - Pricing of Program Income Revenue transactions ......................................... 44
Rate Based Contracts – Invoicing billable rows including Prog Income ............................................ 45
Rate Based Contracts – Budget Adjustments: When and Why ........................................................... 46
Rate Based Contracts – Billing Limit Adjustments: When and Why................................................. 46
Rate Based Contracts – Reporting Program Income ........................................................................... 46
Rate Based Contracts – Accounting and Revenue Recognition Prog Income..................................... 47
Understanding the Program Income Process as it applies to Amount Based Contracts .............................. 48
Amount Based Contracts – Invoicing/Billing Event Adjustments Prog Income ................................. 48
Amount Based Contracts – Budget adjustments: When and Why ...................................................... 49
Amount Based Contracts – Reporting Program Income...................................................................... 49
Amount Based Contracts – Revenue Recognition w/Prog Income ..................................................... 49
Page 2 of 49
Overview
The Program Income Business Process incorporates delivered Financial System functionality in
order to create and collect Program Income revenue transactions into the Project Costing
Proj_Resource table for reporting, revenue recognition and, when needed, to utilize billable
transactions during invoicing (spend out Program Income prior to invoicing Sponsor).
Depending on the Contract product used, (Rate Based vs. Amount Based) will determine the
effect these revenue transactions will have on revenue recognition and invoicing.
This document will walk the user through all of the sub-processes that are associated with the
Managing Program Income Business Process.
 Program Income Oversight Reports Review
 Review Grants Terms and Conditions for Program Income
 Update Grants Terms and Conditions for Program Income
 Processing Non-Reportable Program Income
 Processing Reportable Program Income
 Understanding the Program Income Business Process as it relates to Rate Based
Contracts
 Understanding the Program Income Business Process as it relates to Amount Based
Contracts
Frequency
Module/Tables
Documents Used
Approval Points
Daily
Grants and General Ledger
NOA and Program Income Oversight Reports
NA
Page 3 of 49
Roles and Responsibilities Applicable to Business Process
Program Income Oversight Reports Review – AR Accountant
Review Grants Terms and Conditions for Program Income – AR Accountant
Update Grants Terms and Conditions for Program Income – Grant Administrator/AR
Accountant
Processing Non-Reportable Program Income – AR Accountant
Processing Reportable Program Income – AR Accountant
Understanding the Program Income Business Process as it relates to Rate Based Contracts –
AR Accountant
Understanding the Program Income Business Process as it relates to Amount Based Contracts
– AR Accountant
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Financial Policies and Procedures
TBD
Page 5 of 49
Program Income Oversight Reports Review
Program Income will be deposited to the Sponsored Program Income Unapplied Cash Account.
This account will be reconciled and cleared by Sponsored Financial Reporting (SFR). Three
specific Program Income Oversight queries will be used to monitor the activity of this account.
Portion of Business Process
Flow covered in this section
Roles Applicable to Sub Process

AR Accountant
Page 6 of 49
Run the Program Income Oversight Report
UM_FAR_PROG_INCOME_DEPT_DEP and review
Detailed description: This report will be used by Sponsored Financial Reporting (SFR) to
identify department deposit activity that was recorded against the Sponsored Program Income
Unapplied Cash account. After determining what type of program income the deposit
represents, SFR will create a GL Journal to apply the program income deposits to a Sponsored
Project (if, applicable) and credit the program income revenue account.
This report deals exclusively with program income that originates in Financial System as
departmental deposits.
The report will contain the fund, deptid, project number, deposit number, preparer name and
phone number.
This process is accomplished by accessing the Financial System Query Manager page,
selecting and running the query UM_FAR_PROG_INCOME_DEPT_DEP.
Navigation: Reporting Tools > Query > Query Manager
Query Manager Search Page
Field Values and Search Criteria Descriptions for the Query Manager Search Page
Field
Query Name
Values Entered
Description
UM_FAR_PROG_INCOME_DEPT_DEP This field is the name given to the
query. User can enter the first
portion of the name to display the
query in a list.
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1. Enter the Search Criteria then click the “Search” pushbutton. If a portion of the query
name is used then a list of queries meeting the criteria will display, run from list query
UM_FAR_PROG_INCOME_DEPT_DEP.
2. Click the Run to HTML OR the Run to Excel hyperlink to run the query.
3. Enter the date prompts for the query – From Date: and To Date: and then click the “view
results” pushbutton.
4. At the Excel Pop up to open file, click “Open”.
5. Print/Review query results for continued processing in later steps. In review, make sure a
Project Number is displayed for each Deposit ID in the query. If a Project number is
missing contact the Preparer for the Project Number.
Query Results
Note: Query will also return Fund and DeptID (Query not
updated at time of completing this document.
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Run Program Income Oversight Report UM_FAR_PROG_INCOME_BI and
review
Detailed description: This report will be used by Sponsored Financial Reporting (SFR) to
identify non-sponsored billing activity against the Sponsored Program Income Unapplied Cash
account. After determining what type of program income the invoice represents, SFR will create
a GL Journal to apply the program income to a Sponsored Project (if, applicable) and credit the
program income revenue account.
This report deals exclusively with program income that originates in the Financial System Billing
module.
The report will contain the fund, deptid, project number, project description, invoice number and
user name.
This process is accomplished by accessing the Financial System Query Manager page,
selecting and running the query UM_FAR_PROG_INCOME_BI.
Navigation: Reporting Tools > Query > Query Manager
Query Manager Search Page
Field Values and Search Criteria Descriptions for the Query Manager Search Page
Field
Query Name
Values Entered
Description
UM_FAR_PROG_INCOME_BI
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This field is the name given to the
query. User can enter the first
portion of the name to display the
query in a list.
1. Enter the Search Criteria then click the “Search” pushbutton. If a portion of the query
name is used then a list of queries meeting the criteria will display, run from list query
UM_FAR_PROG_INCOME_BI.
2. Click the Run to HTML OR the Run to Excel hyperlink to run the query.
3. Enter the date prompts for the query – From Date: and To Date: and then click the “view
results” pushbutton.
4. At the Excel Pop up to open file, click “Open”.
5. Print/Review query results for continued processing in later steps. In review, make sure a
Project number is displayed for each Invoice number in the query. If a Project number is
missing, research using the Invoice number to determine the preparer of the invoice and
contact the preparer for the Project number.
Note: Query will also return Fund and DeptID (Query not
updated at time of completing this document.
Query Results
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Run Program Income Oversight Report
UM_FAR_PROG_INCOME_JRNL_ENT and Review
Detailed description: This report will be used by Sponsored Financial Reporting (SFR) to
identify on-line journal entries against the Sponsored Program Income Unapplied Cash account.
After determining what type of program income the entry represents, SFR will create a GL
Journal to apply the program income to a Sponsored Project (if, applicable) and credit the
program income revenue account.
This report deals exclusively with program income that originates in General Ledger on-line
journal entry.
The report will contain the journal id, user id, project id, fund, deptID, project description, journal
amount, journal line reference and journal date.
This process is accomplished by accessing the Financial System Query Manager page,
selecting and running the query UM_FAR_PROG_INCOME_JRNL_ENT.
Navigation: Reporting Tools > Query > Query Manager
Query Manager Search Page
Field Values and Search Criteria Descriptions for the Query Manager Search Page
Field
Query Name
Values Entered
Description
UM_FAR_PROG_INCOME_JRNL_ENT
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This field is the name given to the
query. User can enter the first
portion of the name to display the
query in a list.
1. Enter the Search Criteria then click the “Search” pushbutton. If a portion of the query
name is used then a list of queries meeting the criteria will display, run from list query
UM_FAR_PROG_INCOME_JRNL_ENT.
2. Click the Run to HTML OR the Run to Excel hyperlink to run the query.
3. Enter the date prompts for the query – From Date: and To Date: and then click the “view
results” pushbutton.
4. At the Excel Pop up to open file, click “Open”.
5. Print/Review query results for continued processing in later steps. In review, make sure a
Project number is displayed for each Journal ID in the query. If a Project number is
missing contact the “user” for the Project number.
Note: Query will also return Fund and DeptID (Query not
updated at time of completing this document.
Query Results
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Review Terms and Conditions for Program Income
Using the Project number from the Program Income queries, the SFR AR Accountant role will
review the Award Profile page – Terms Tab for the Program Income Terms and Conditions;
request assistance from the Grant Administrator (GA) when the Program Income Terms are
missing the Terms, update the Terms per GA’s direction and determine if the program Income is
Reportable vs. Non-Reportable.
Portion of Business Process
Flow covered in this section
Roles Applicable to Sub Process


AR Accountant
Grant Administrator
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Review Grants for Program Income Terms and Conditions
Detailed description: The AR Accountant role will access the Award Profile Terms Tab to
obtain details of the Program Income Terms and Conditions for the project. The Program
Income Terms and Conditions, include the following:
(NOTE: A Non-Reportable Program Income Term and Condition will be added to list of terms)
Navigation: Grants > Awards > Award Profile
1. Enter the Project number from the Program Income Oversight into the selection
criteria of the Award Profile Search Page to access the Award for which the project
is related and click the “Search” pushbutton.
2. At the Award Profile Page, select the Terms Tab, and then click “View All” on the
header of the Detail section.
3. Search for Terms and Conditions that begin with a “PIN...” and note the details on
the print out of the Program Income Oversight queries for continued processing in
later steps.
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Notify GA of Missing Grants Terms and Conditions for Program Income
Detailed description: If the Terms and Conditions for Program Income are missing per the
review of the Award Profile Terms Tab, the AR Accountant role will contact (via email) the Grant
Administrator of the Award, to provide the missing Program Income Terms and Conditions.
1. Make a note on the print out of the Program Income Oversight queries that an email
has been sent to the Grant Administrator to provide the Program Income Terms.
Update Grants Terms and Conditions for Program Income
Detailed description: The Grant Administrator will review the Notice of Award (NOA) for the
Program Income Terms and Conditions and will communicate these terms to the AR Accountant
role (via email). The AR Accountant role will then update these Terms and Conditions on the
Award Profile – Terms Tab.
See the Award Setup Desk Procedures “Define Terms and Conditions” to update the Program
Income Terms and Conditions.
Determine if Program Income is Reportable or Non-Reportable
Detailed description: The Terms and Conditions for the Award will indicate if the Program
Income is Reportable or Non-Reportable. Continue as follows:


If the Terms and Conditions indicate that the Program income is “Non-Reportable”, refer
to the “Processing Non-Reportable Program Income” sub process within these Desk
Procedures.
If the Terms and Conditions indicate that the Program income is “Reportable”, refer to the
“Processing Reportable Program Income” sub process within these Desk Procedures.
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Processing Non-Reportable Program Income
Since Financial Reporting is not required for Non-reportable program income, the income is
deposited to a Non-Sponsored account; it therefore loses its tie to the project. Non-reportable
Program Income is handled by External Sales or PTM. If Program Income is Non-Federal and
award terms are silent regarding program income, it is considered non-reportable.
Portion of Business Process
Flow covered in this section
Roles Applicable to Sub Process

AR Accountant
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Create GL Journal to move Program Income to Non-Sponsored Program
Detailed description: The AR Accountant role will contact the department for a valid NonSponsored Chart of Account (COA) string to record the Non- Reportable Program Income. This
COA string will consist of the Fund, Dept, and Program. The AR Accountant role will then create
a GL Journal to debit the Sponsored Program Income Unapplied Cash account and credit a
program income revenue account using the Non-Sponsored chartfields.
Navigation: General Ledger > Journals > Create/Update Journal Entries
Add A New Value Tab
Field Values and Description for the Create/Update Journal Entries – Add a New Value
Field
Values Entered
Description
Business Unit
Enter UMN01
This field is the Business Unit value for General Ledger
This field is required. The U of M General Ledger
Business Unit is “UMN01”.
Journal ID
Defaults “Next”
This is the Journal ID that will be assigned to the
Journal; keep the default of “Next” and the system will
assign the next available Journal ID.
Journal Date
Defaults with
This is the date of the Journal; keep default of Today’s
Today’s Date
Date.
1. Enter the “Add a New Value” values then click the “Add” pushbutton and the Journal
Header page will be displayed.
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Journal Header
Field Values and Description for the Journal Header page
Field
Values Entered
Description
Ledger Group
Actuals
This field is the Ledger Group for which the entry will be
recorded.
Source
ONN
This is the source of the Journal Entry – ONN – Using
this Source will not require a Certified Approver.
Journal Class
10010
This is the Sponsored Financial Reporting DeptID.
1. Enter the “Journal Header” values then click the “Lines” tab and the Journal Lines page
will be displayed.
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Journal Lines
Field Values and Description for the Journal Lines page
Field
Values Entered
Description
Fund
Enter valid Fund
This is the Fund value for the Journal Line; Sponsored
Fund values begin with 3XXX. This is required.
DeptID
Enter DeptID
This is the DeptID value for the Journal Line. This is
required
Program
Enter Program; if This is the Program value for the Journal Line; required
applicable
for Non-Sponsored or Cost Share Journal Lines.
PC Bus Unit
Blank
This is the PC Bus Unit value for the Journal Line; This
is required for Sponsored Journal Lines (UMSPR)
Project
Blank
This is the Project value for the Journal Line; This is
required for Sponsored Journal Lines.
Activity
Blank
This is the “Project” Activity value; this value will always
be “1” for Sponsored Journal Lines ONLY or Blank for
Non-Sponsored Journal lines.
Analysis Type
Blank
This is the Analysis Type value and is required for
Sponsored Journal Lines ONLY.
Account
Enter Account
This is the Account value for the Journal Line; this is the
COA Level 3 Actuals account value.
Amount
Enter Amount
This is the Amount of the Journal Line.
Reference
Project ID – Do
This is the Journal Line Reference field – enter the
not enter on Non- Project Number – Only on the Journal Line for the
Sponsored line
Sponsored Program Income Unapplied Cash account.
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1. Enter Journal Line 1; enter values to debit the Sponsored Program Income Unapplied Cash
account using an appropriate chartfield string. The required chartfields string is Fund,
DeptID, and Account. (Include the Project ID in the Journal Line Ref Field)
2. Enter Journal Line 2; enter values to credit a Program Income Revenue account using an
appropriate Non-Sponsored chartfield string. The required chartfields string is Fund,
DeptID, Program and Account.
3. In the “Process” drop down box at the top of page select “Edit Journal”; then click the
process pushbutton to edit the journal.
4. Once the edit process is complete, verify that the Journal Status and Budget Status is “V”.
5. In the “Process” drop down box at the top of page select “Submit Journal”; then click the
process pushbutton to submit the journal for SFR workflow approval. Click “OK” at the
warning.
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Notification to Department of GL Journal to Non-Sponsored Program
Detailed description: The AR Accountant role will notify the department via email that the
program income was booked to a program income revenue account using Non-Sponsored
chartfield values; External Sales/PTM will be cc: on the email.
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Processing Reportable Program Income
In processing Reportable Program Income, the AR Accountant role will determine the steps to
complete within this sub process based on the Program Income Method obtained during the
review of the Award Profile Terms and Conditions. The Program Income Methods are as follows:




Match (Cost Share)
Additional
Add/Deduct
Deduct
The “Add Modification Notes” step will be completed for all Program Income Methods (excluding
Non-Reportable Program Income).
Portion of Business Process
Flow covered in this section
Roles Applicable to Sub Process

AR Accountant
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Add Award Modification Notes for Program Income
Detailed description: The AR Accountant role will record the Reportable Program Income
earned as an Award Modification note to the Award. This is specifically important for any
additional type program income as the sponsored budget will be increased for additional program
income and included in the Award Funded amount. With the program income amount recorded
here in Award Modifications, it will be easier to determine, of the Total Award Funded, what
portion is program income vs. Sponsored Funded. Other details will be recorded here as well.
The Award Modifications page will also aid in determining the amount of additional program
income “earned to date” to determine if the sponsor limit has been reached for the Add/Deduct
Method. Once the limit is reached for the Award, then the subsequent program income will be
recorded as Deduct.
Navigation: Grants > Awards > Award Profile
1. Enter the Project number from the Program Income Oversight into the selection
criteria of the Award Profile Search Page to access the Award for which the project is
related and click the “Search” pushbutton.
2. At the Award Profile Page, select the “Award Modifications” hyperlink at the bottom of
the page; this will display the Award Modifications page.
Award Profile Page
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Award Modifications Page
3. At the Award Modifications page, select the “period” icon to access the “Award
Modifications for Period” page. Note: Each Budget Period will have a separate line on
this page; make sure the correct period is selected based on when the program
income was earned.
Award Modifications for Period
4. Use the (+) plus sign to add an Award Modification sequence and enter below fields.
Field Values and Descriptions for the Award Modifications for Period Page
Field
Values Entered
Description
Modification Type
Program Income
This is the Program Income Method for the amount
Method
that is being recorded. Use drop down and select
value.
Reference Award
Enter Deposit ID,
Use this field to record the Program Income source
Number
Invoice Number or document number. Use the specific Program
Journal ID.
Oversight query to obtain the source document
number – Deposit ID, Invoice Num or Journal ID.
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Issue Date
Enter Date on
Source Document
Begin Date
Defaults
End Date
Defaults
Amount
Amount of
Additional ONLY
Comments Icon
Select Icon and
enter Project ID
and amounts for
Match or Deduct
Award
Modifications
This field is the date of the source document.
Refer to the specific Program Oversight query to
obtain the date of the source document.
This is the Begin Date of the Budget Period; keep
default.
This is the End Date of the Budget Period; keep
default.
This Amount field records the amount of program
income earned – Only the Additional program
income amounts will be recorded here as this
amount will be added to the Total Period Amount.
Deduct and Match Program Income amounts will
be recorded in the Comments box.
This comments box will be used to record the
Project ID that earned the Program income and if
the Program Income Method is Match or Deduct,
enter the method and amount.
1. Once all values have been entered, click the “Ok” pushbutton.
2. At the Award Modifications page, click the “Save” pushbutton.
3. Continue to the next step based on the Program Income Method for the Award.
Important Notes: For the Add/Deduct method, determine the amount of program
income “earned to date” to verify if the Sponsor Limit has been reached. It may be necessary to
record two Award Modification sequence rows here, one to represent the amount of additional up
to Sponsored Limit and one to record remaining balance of program income as the deduct.
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Processing Program Income Match Method
Detailed description: The Program Income Match method is a form of Cost Share as this Program Income will be used by
the Academic Department to match some of the research expenses. The AR Accountant role will create a GL Journal to
reclass the Match method program Income to a Program Income Revenue account with Non-Sponsored chartfield values and
this income will be used to fund Cost Share expenditures. In addition, a review of the Project Budget will be completed to
determine if a Cost Share Budget has been created during Award Setup for the Match Method program income, if not then a
cost share budget adjustment will be created.
1. Create the GL Journal to reclass the Program Income. See the “Create GL Journal to move Program Income to NonSponsored Program” step to create this GL Journal.
2. Review the Project Activity page and write down the funded F&A rate to calculate the Direct and Indirect amounts for
the Cost Share Budget Adjustment.
Navigation: Grants > Awards > Project Activity – F&A Rates Tab
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3. If not already established during Award Setup, create a Cost Share Budget adjustment for the total amount of the
anticipated Match Method program income per the Terms and Conditions, if specified, OR for the amount that is
currently being recorded.
Navigation: Grants > Awards > Project Budgets
The Analysis Type CBU denotes
that this budget row is a Cost
Share Budget row.
Page 27 of 49
Field Values and Description for the Budget Details page
Field
Values Entered
Description
Fund
Enter valid Fund
This is the Fund value for the Budget row; Sponsored
Funds begin in the 3XXX range. If the budget row is for
Cost Share a Non-Sponsored Fund must be used. This
field is required.
DeptID
Enter DeptID
This is the DeptID value for the Budget row. This field is
required.
Program
Enter Program; if This is the Program value for the Budget row;
applicable
Sponsored budget rows do not required this field value.
If the budget row is for Cost Share a Non-Sponsored
Program must be used.
Activity
Enter “1”
This is the “Project” Activity value for the Budget row.
This field is required. The value in this field will always
be “1”.
Analysis Type
BUD or CBU
This is the Analysis Type value for the Budget row;
Sponsored budget rows will have the value of “BUD”
and Cost Share budget rows the value of “CBU. This
field is required.
Account
Defaults
This is the Account value for the Budget row. This value
will default when the Budget Item is selected. This
Account value is the Level 2 COA Budget Account
value. This field is required.
Cost Share (CS)
Blank or “CS”
This is the Cost Share value for the Budget row; for
Sponsored budget rows this field is Blank. If the budget
row is for Cost Share this field must be “CS”.
Budget Item
Select from list
This is the Budget Item value for the Budget row; select
the appropriate budget category for the budget row.
This field will default the Level 2 Account value. This
field is required.
Quantity
Enter 1.00
This is the quantity value for the Budget row. This field is
not required.
Amount
Enter Amount
This is the Amount of the Budget row.
4. Once all values have been entered, click the “Save” button.
5. To launch the PC_WRAPPER budget finalization process, click the “
” push button.
This will post the budget to Commitment Control and Project Costing.
6. Select the Process Monitor hyperlink to monitor PC_WRAPPER for completion.
7. Once PC_WRAPPER has completed, verify that the Budget Finalization process has no
errors by accessing the Budget Detail General Page after finalization. See “Award Setup –
Finalize Project Budget” Desk procedures on how to complete this verification.
8. Send email notification to the department (cc: SFR Accountant/Billing Specialist) that the
Match Method Program Income has been recorded and a Cost Share Budget has been
established (if applicable).
Page 28 of 49
Processing Program Income Additional Method (Add/Deduct)
Detailed description: The Program Income Additional (Add/Deduct) Method is when the
program income earned will be added to the amount allowable for project costs.
The AR Accountant role will create a GL Journal to reclass the Additional program Income to a
Program Income Revenue account with Sponsored chartfield values. The Program Income
revenue side of the Journal Entry will include the ProjectID and a GPA analysis type to indicate
the Program Income Method (GPA = Additional). In addition, the Project Budget will be
increased for the amount of the program income earned.
1. Create the GL Journal to reclass the Program Income from the Sponsored Program
Income Unapplied Cash account to the Program Income Revenue account.
Navigation: General Ledger > Journals > Create/Update Journal Entries
Add A New Value Tab
Field Values and Description for the Create/Update Journal Entries – Add a New Value
Field
Values Entered
Description
Business Unit
Enter UMN01
This field is the Business Unit value for General Ledger
This field is required. The U of M General Ledger
Business Unit is “UMN01”.
Journal ID
Defaults “Next”
This is the Journal ID that will be assigned to the
Journal; keep the default of “Next” and the system will
assign the next available Journal ID.
Journal Date
Defaults with
This is the date of the Journal; keep default of Today’s
Today’s Date
Date.
2. Enter the “Add a New Value” values then click the “Add” pushbutton and the Journal
Header page will be displayed.
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Journal Header
Field Values and Description for the Journal Header page
Field
Values Entered
Description
Ledger Group
Actuals
This field is the Ledger Group for which the entry will be
recorded.
Source
ONN
This is the source of the Journal Entry – ONN – Using
this Source will not require a Certified Approver.
Journal Class
10010
This is the Sponsored Financial Reporting DeptID.
3. Enter the “Journal Header” values then click the “Lines” tab and the Journal Lines page
will be displayed.
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Journal Lines
Note: The Analysis Types will identify Program Income
Method for the Program Income Revenue Journal line.
GPA = Additional
GPD = Deduct
TIP – TIP income
Field Values and Description for the Journal Lines page
Field
Values Entered
Description
Fund
Enter valid Fund
This is the Fund value for the Journal Line; Sponsored Fund values begin with 3XXX. This is
required.
DeptID
This is the DeptID value for the Journal Line. This is required
Enter DeptID
Program
Enter Program; if This is the Program value for the Journal Line; required for Non-Sponsored or Cost Share
applicable
Journal Lines.
PC Bus Unit
UMSPR
This is the PC Bus Unit value for the Journal Line; This is required for Sponsored Journal Lines
and the value will always be “UMSPR”
Project
Project ID for
This is the Project value for the Journal Line; This is required for Sponsored Journal Lines.
oversight query
Activity
“1”
This is the “Project” Activity value; this value will always be “1” for Sponsored Journal Lines
ONLY or Blank for Non-Sponsored Journal lines.
Analysis Type
Per Program
This is the Analysis Type value and is required for Sponsored Journal Lines ONLY, available
Income Method
values includes the following but in not limited to this list:
GPA = Additional
GPD = Deduct
TIP = TIP Income
Account
Enter Account
This is the Account value for the Journal Line; this is the COA Level 3 Actuals account value.
Amount
Enter Amount
This is the Amount of the Journal Line.
Reference
Enter Project ID
This is the Journal Line Reference Field; enter on the Journal Line with the Sponsored Program
Income Unapplied Cash Account.
Page 31 of 49
4. Enter Journal Line 1; enter values to debit the Sponsored Program Income Unapplied Cash
account using an appropriate chartfield string. The required chartfields string is Fund,
DeptID, and Account. (Include the Project ID in the Journal Line Ref Field)
5. Enter Journal Line 2; enter values to credit a Program Income Revenue account using an
appropriate Sponsored chartfield string. The required chartfields string is Fund, DeptID, PC
Bus Unit, Project ID, Activity, Analysis Type and Account
6. Click the “Save” pushbutton.
7. In the “Process” drop down box at the top of page select “Edit Journal”; then click the
process pushbutton to edit the journal.
8. Once the edit process is complete, verify that the Journal Status and Budget Status is “V”.
9. In the “Process” drop down box at the top of page select “Submit Journal”; then click the
process pushbutton to submit the journal for SFR workflow approval. Click “OK” at the
warning.
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10. Review the Project Activity page and write down the funded F&A rate to calculate the Direct and Indirect amounts for the
Budget Adjustment.
Navigation: Grants > Awards > Project Activity – F&A Rates Tab
11. Write down the funded F&A rate and calculate the Direct and Indirect amounts for the Budget Adjustment.
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12. Create a Budget Adjustment to increase the Project Budget for the amount of Program Income earned.
Navigation: Grants > Awards > Project Budgets
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Field Values and Description for the Budget Details page
Field
Values Entered
Description
Fund
Enter valid Fund
This is the Fund value for the Budget row; Sponsored Funds
begin in the 3XXX range. If the budget row is for Cost Share
a Non-Sponsored Fund must be used. This field is required.
DeptID
Enter DeptID
This is the DeptID value for the Budget row. This field is
required.
Program
Enter Program; if
This is the Program value for the Budget row; Sponsored
applicable
budget rows do not required this field value. If the budget row
is for Cost Share a Non-Sponsored Program must be used.
Activity
Enter “1”
This is the “Project” Activity value for the Budget row. This
field is required. The value in this field will always be “1”.
Analysis Type
BUD or CBU
This is the Analysis Type value for the Budget row;
Sponsored budget rows will have the value of “BUD” and
Cost Share budget rows the value of “CBU. This field is
required.
Account
Defaults
This is the Account value for the Budget row. This value will
default when the Budget Item is selected. This Account value
is the Level 2 COA Budget Account value. This field is
required.
Cost Share (CS)
Blank or “CS”
This is the Cost Share value for the Budget row; for
Sponsored budget rows this field is Blank. If the budget row
is for Cost Share this field must be “CS”.
Budget Item
Select from list
This is the Budget Item value for the Budget row; select the
appropriate budget category for the budget row. This field will
default the Level 2 Account value. This field is required.
Quantity
Enter 1.00
This is the quantity value for the Budget row. This field is not
required.
Amount
Enter Amount
This is the Amount of the Budget row.
13. Once all values have been entered, click the “Save” button.
14. To launch the PC_WRAPPER budget finalization process, click the “Finalize” push
button. This will post the budget to Commitment Control and Project Costing.
15. Select the Process Monitor hyperlink to monitor PC_WRAPPER for completion.
16. Once PC_WRAPPER has completed, verify that the Budget Finalization process has
no errors by accessing the Budget Detail General Page after finalization. See “Award
Setup” Desk procedures on how to complete this verification.
17. Send email notification to the department (cc: SFR Accountant/Billing Specialist) that
the Additional Program Income has been recorded and the Project Budget has been
increased for the Amount of the Additional Program Income.
Important Note: If the Program Income Method is Add/Deduct, follow the Additional
Program Income steps for the portion that is Additional and follow the Deduct Program Income
steps for the portion that is Deduct.
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Processing Program Income Deduct Method
Detailed description: The Program Income Deduct Method is when the program income earned
will be deducted from the amount reimbursed by the sponsor.
The AR Accountant role will create a GL Journal to reclass the Deduct program Income to a
Program Income Revenue account with Sponsored chartfield values. The Program Income
revenue side of the Journal Entry will include the ProjectID and a GPD analysis type to indicate the
Program Income Method (GPD = Deduct). Also, a contract amendment will be process to lower the
Billing Limit for the amount of the Deduct Program Income. This will ensure that invoicing will not
exceed the authorized amount. NOTE: The Project Budget will NOT be changed as the Program
Income is deducted from the amount reimbursed by the sponsor.
1. Create the GL Journal to reclass the Program Income from the Sponsored Program Income
Unapplied Cash account to the Program Income Revenue account.
Navigation: General Ledger > Journals > Create/Update Journal Entries
Add A New Value Tab
Field Values and Description for the Create/Update Journal Entries – Add a New Value
Field
Values Entered
Description
Business Unit
Enter UMN01
This field is the Business Unit value for General Ledger
This field is required. The U of M General Ledger
Business Unit is “UMN01”.
Journal ID
Defaults “Next”
This is the Journal ID that will be assigned to the
Journal; keep the default of “Next” and the system will
assign the next available Journal ID.
Journal Date
Defaults with
This is the date of the Journal; keep default of Today’s
Today’s Date
Date.
2. Enter the “Add a New Value” values then click the “Add” pushbutton and the Journal Header
page will be displayed.
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Journal Header
Field Values and Description for the Journal Header page
Field
Values Entered
Description
Ledger Group
Actuals
This field is the Ledger Group for which the entry will be
recorded.
Source
ONN
This is the source of the Journal Entry – ONN – Using
this Source will not require a Certified Approver.
Journal Class
10010
This is the Sponsored Financial Reporting DeptID.
3. Enter the “Journal Header” values then click the “Lines” tab and the Journal Lines page will
be displayed.
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Journal Lines
Note: The Analysis Types will identify Program Income
Method for the Program Income Revenue Journal line.
GPA = Additional
GPD = Deduct
TIP – TIP income
Field Values and Description for the Journal Lines page
Field
Values Entered
Description
Fund
Enter valid Fund
This is the Fund value for the Journal Line; Sponsored Fund values begin with 3XXX. This is
required.
DeptID
This is the DeptID value for the Journal Line. This is required
Enter DeptID
Program
Enter Program; if This is the Program value for the Journal Line; required for Non-Sponsored or Cost Share
applicable
Journal Lines.
PC Bus Unit
UMSPR
This is the PC Bus Unit value for the Journal Line; This is required for Sponsored Journal Lines
and the value will always be “UMSPR”
Project
Project ID for
This is the Project value for the Journal Line; This is required for Sponsored Journal Lines.
oversight query
Activity
“1”
This is the “Project” Activity value; this value will always be “1” for Sponsored Journal Lines
ONLY or Blank for Non-Sponsored Journal lines.
Analysis Type
Per Program
This is the Analysis Type value and is required for Sponsored Journal Lines ONLY, available
Income Method
values includes the following but in not limited to this list:
GPA = Additional
GPD = Deduct
TIP = TIP Income
Account
Enter Account
This is the Account value for the Journal Line; this is the COA Level 3 Actuals account value.
Amount
Enter Amount
This is the Amount of the Journal Line.
Reference
Enter Project ID
This is the Journal Line Reference Field; enter on the Journal Line with the Sponsored Program
Income Unapplied Cash Account.
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4. Enter Journal Line 1; enter values to debit the Sponsored Program Income Unapplied Cash
account using an appropriate chartfield string. The required chartfields string is Fund,
DeptID, and Account. (Include the Project ID in the Journal Line Ref Field)
5. Enter Journal Line 2; enter values to credit a Program Income Revenue account using an
appropriate Sponsored chartfield string. The required chartfields string is Fund, DeptID, PC
Bus Unit, Project ID, Activity, Analysis Type and Account
6. Click the “Save” pushbutton.
7. In the “Process” drop down box at the top of page select “Edit Journal”; then click the
process pushbutton to edit the journal.
8. Once the edit process is complete, verify that the Journal Status and Budget Status is “V”.
9. In the “Process” drop down box at the top of page select “Submit Journal”; then click the
process pushbutton to submit the journal for SFR workflow.
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Complete a contract amendment to lower the Billing Limit.
1. Navigate to the Contracts Header General Information Page –
Navigational Path: Customer Contracts > Create and Amend > General Information
– use Search page to the access Contract
2. Then navigate to the Contract Terms Page by clicking on the “Lines” tab, then the
“Details” tab in the Contract Lines section, and then select the “Contract Terms” hyperlink.
Related Projects Page
3. Select the Amend Contract
pushbutton (this will take you to the
Contract Amendment page).
4. Click on the “Related Projects” tab to navigate back to the contract terms page and the
Billing Limit amount field will be open. Decrease the amount of the Billing Limit by the
amount of the Deduct Program Income.
5. Click Save
6. Navigate back to the Contract Amendment Page by clicking on the “Contract
Amendment” tab.
7. Complete the Contract Amendment page; see below:
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Contract Amendment Page
New
Amendment
Field Values and Descriptions for the Contract Amendment Page
Field
Values Entered
Description
Amendment
Defaults (display
Displays an amendment number. Upon the initial
only)
entry of a new amendment, the system
automatically assigns the amendment a value.
Amendment Type
Select Type
Displays an amendment type, which is a high-level
category of amendments.
Reason
Select Reason
Displays an amendment reason, which provides
viewers with a quick reference as to why an
amendment was initiated.
Processing Date
Defaults Current
Displays the date on which the amendment is
Date
eligible for processing.
Amendment Status
Defaults (display
Displays the Amendment's processing status;
only)
available values are: Pending, Ready, Completed
and Cancelled.
Detail hyperlink
Select and add
Opens the Amendment Details Page. Click to enter
detail if necessary
details, such as the negotiated amount and discount
per Modification
change of the contract attributes that are being
amended.
This page is where the “Amend Status” is
changed and the Amendment in Processed.
Review notes
Add Notes (if
Click to review notes attached to this amendment.
hyperlink
necessary)
These notes can be standard notes or custom.
8. Click on the “Details”
hyperlink (this will open the Amendment Details Page)
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Amendment Details Page – Amendment Status Pending
Change Amendment
status to Ready
Note the old and
new value for the
Billing Limit
9. Change “Amend Status” to “Ready” (“Process Amendment” pushbutton will appear)
10. Click the “Save” pushbutton.
Amendment Details Page – Amendment Status Ready
11. Click on the “Process Amendment”
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pushbutton.
Amendment Details Page – Amendment Status is now Complete
Contract Amendment Page – Amendment
12. Send email notification to the department (cc: SFR Accountant/Billing Specialist) that the
Deduct Program Income has been recorded for the project.
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Understanding the Program Income Process as it applies to Rate
Based Contracts
The intent of this section is to highlight how the Managing Program Income Business process
affects Rate Based Contracts in other Sponsored Business processes.
Rate Based Contracts - Pricing of Program Income Revenue transactions
The Project Costing Cost Collection job, which includes the PC_PRICING job, will collect Program
Income Revenue transactions just like it collects other expense transactions that are collected for
Rate Based Contracts. An actuals transaction will be inserted into the PROJ_RESOURCE table;
then these transactions will be “Priced” which will create and insert a billable transaction. A billable
transaction is a transaction with a “BIL” analysis type and is used in the billing process. Since
revenue transactions are credits, the PC_PRICING job will create a negative billable transaction.
See query results below:
Query of PROJ_RESOURCE for selected fields:
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Rate Based Contracts – Invoicing billable rows including Prog Income
The negative billable transactions created from program income transaction will offset positive
billable transaction created from expense transactions, therefore, spending out the program income
prior to billing the sponsor. The Sponsor invoice will reflect a credit and lower the amount due. See
below an Invoice reflecting the negative Program Income billable transaction:
RATE BASED Invoice
Expense details
listed and the
Indirect Cost rate
can be verified.
Program Income
will be a reflected as
a credit on the
Invoice lowering the
total amount due.
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Rate Based Contracts – Budget Adjustments: When and Why
Only the Program Income Additional or Match Method will require a budget adjustment. In the case
of Additional, the income is added to the amount allowable for project costs, therefore an increase
to the project budget is needed. For Match, it is the Cost Share Budget that is increased to allow for
Cost Share expenses to be collected and reported for the Sponsored Project.
Rate Based Contracts – Billing Limit Adjustments: When and Why
Only the Program Income Deduct Method will require a billing limit adjustment. Since there will be a
reduction in the amount the Sponsor is required to fund, lower the Billing Limit for the amount of the
Deduct Program income.
Rate Based Contracts – Reporting Program Income
For Reporting, a query will be used to query the PROJ_RESOURCE table and collect the program
income revenue transactions for a specified project. The analysis types of GPA, GPD or TIP on the
program income revenue transactions will reflect the Program Income Method for reporting
purposes. Analysis will be completed to identify the amount to report and this amount will be
entered (Plugged In) on the Report form template.
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Rate Based Contracts – Accounting and Revenue Recognition Prog Income
The revenue recognition process will recognize revenue on all “Billable” transactions stored in the
PROJ_RESOURCE table. Billable transactions are transaction with a “BIL” Analysis Type. The
revenue recognition process will update the GL Distribution flag for these transactions to indicate
revenue has been recognized. Since the program income revenue transactions created “Billable”
transactions, the revenue recognition process will create accounting entries for these transactions.
The result is a negative debit to unbilled AR and a negative credit to revenue. This will offset
revenue recognition for the related positive billable transactions created for expenses. See below
“T” Accounts illustrating the accounting entries created per the Managing Program Income Process
as it relates to Rate Based Contracts.
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Understanding the Program Income Process as it applies to Amount
Based Contracts
The intent of this section is to highlight how the Managing Program Income Business process
affects Amount Based Contracts in other Sponsored Business processes.
Important Note: During the Project Costing Cost Collection job for Amount Based
Contracts the expense transactions collected will not be priced and a billable transaction will not be
created.
Amount Based Contracts – Invoicing/Billing Event Adjustments Prog Income
The amount to bill for Amount Based Contracts is on the Billing Event in Contracts module.
Specify only the amount to be billed to the sponsor. Adjust Billing Events for the “Deduct” portion of
Program Income ONLY. The Program Income Amount will be displayed in the comments section of
the Invoice Form Template. See below for Invoice example:
AMOUNT BASED Invoice
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Amount Based Contracts – Budget adjustments: When and Why
Same as Rate Based - Only the Program Income Additional or Match Method will require a budget
adjustment. In the case of Additional, the income is added to the amount allowable for project
costs, therefore an increase to the project budget is needed. For Match, it is the Cost Share Budget
that is increased to allow for Cost Share expenses to be collected and reported for the Sponsored
Project.
Amount Based Contracts – Reporting Program Income
Same as Rate Based - For Reporting, a query will be used to query the PROJ_RESOURCE table
and collect the program income revenue transactions for a specified project. The analysis types of
GPA, GPD or TIP on the program income revenue transactions will reflect the Program Income
Method for reporting purposes. Analysis will be completed to identify the amount to report and this
amount will be entered (Plugged In) on the Report form template.
Amount Based Contracts – Revenue Recognition w/Prog Income
Amount Based Contracts will recognize revenue based on the Invoice Creation and for the Amount
of the Invoice. This revenue recognition process is called “Billing Manages Revenue”. The
accounting entries are a debit to Accounts Receivable and a credit to revenue.
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