Billing and Revenue Rules
Exhibit E
BILLING AND REVENUE RULES
Legacy MOP Number / Funding Category / Description / Billing / Revenue / Billing Cycle/Terms/DaysLOC / Letter of Credit / Many government grants and contracts are on a letter of credit system meaning that the grantee (StanfordUniversity) submits an invoice to the government agency and money is wired electronically into Stanford’s bank account. Generally the money is received for expenses already incurred but there are circumstances when money can be pulled in advance in anticipation of upcoming expenses. / Cost / Cost / Daily
Immediate
Zero
1034, 1035, 270, 272, ED, EDI, EDI270, 270EDI, FD, FADS, GAR/GR, MAN, MANB, MN, WE / Reimbursement of actual expenses incurred / These grants and contracts specifically make payments on expenses already incurred. An invoice is submitted by Stanford and money is sent by check or electronically. / Cost / Cost / Monthly or Quarterly
30 Net
Zero
L2 Format
PS, MS, PD, AD,AI,AP, / Payment Schedule / This category consists of awards that provide a particular payment schedule by date. Sometimes the payments take a pattern (the same amount every month, quarter, year) and sometimes they are quite varied (one amount on Sept. 3, another amount on June15, etc.). This category includes awards that pay all of the funding at the inception of the award. / Event / Cost / Daily
30 Net
Zero
No print
or
if invoice required: L1
Clinical Trials / Event/Milestone / These types of projects provide funding as certain events or milestones occur. A common example is a clinical trial where funding is incremental based on numbers of patients participating in the trial.
Funding may provide an initial payment to cover start-up costs and a certain number of patients (i.e. 25), then provide funding once the next 25 patients participate and so on. / Event / Event / Daily
30 Net
Zero
Either
No Print or
if invoice required: L1
Various / Fixed Price / This type of contract sets a fixed price for the delivery of the work stipulated in the contract or an amount per hour for each hour of the project. The awardee is paid the fixed price regardless of whether total costs end up totaling more or less than the agreed fixed price. Government contracts that are fixed-price will clearly state this on the award document. / Event / Cost / Daily
30 Net
Zero
No Print
Early Sponsored Account / Early Sponsored Account / Early accounts are set up in anticipation of an award. These awards are set up as an award status of “At Risk”.
Revenue is not accrued and billing is not allowed with the award in “At Risk” status. However, we do need to assign billing and revenue rules to the award. These rules should coincide with the rules associated with the award.
Because we do not accrue revenue or bill on the account, we should be able to change the billing/revenue rules if they do not agree with the award when it is received.
If unsure, or complete T&Cs have not been received, setup as Event/Event. Since the installment is not billable the Revenue and Billing Rules can be changed when NONA comes in. / See above / See above
N/A / Not Billed / Many non-sponsored awards are not billed and do not generate revenue through the 11i billing and revenue process. However, 11i does require the billing and revenue rules to be populated. For these awards, distinguished by “generic” customer, we will use the event / event billing/revenue rules. / Event / Cost