Costpoint Interim/Final Rates and Consolidated Billing Review · · 2016-11-01Costpoint Interim/Final Rates and Consolidated Billing Review PCW12 Chesapeake L, ... Costpoint to

Costpoint Interim/Final

Rates and Consolidated

Billing Review

PCW12 Chesapeake L, Nov 14, 9am – 12pm

©2016 Deltek, Inc. All Rights Reserved 2

Agenda

� Introduction

� Interim and Final Rates – What are they? How can Costpoint help?

� Our Workshop Scenario (also see separate hand outs)

� The Set Up – Checklist – Exercise 1

� The Process

– Revenue – Exercise 2

– Combination Billing – Exercise 3

� Evaluations of Changes

� Fiscal Year End Steps

� Scenario Types that Work and those that do not…

� Contacts for help


Introduction

Presenter is Lynda Porter

Deltek Snr Principal Designer

Lynda has been with Deltek for over 9 years. She is an

Accountant and has worked for Deltek as a Principal A&F Consultant

And a Principal Instructor for Deltek University.

Currently Lynda is the functional designer for Deltek’s

New forecasting tool, Costpoint Enterprise Insights (CEI).

She lives in Wisconsin with her husband, two dogs and two horses.

Interim and Final Rates – What are they? How can Costpoint help?



Interim and Final RatesWhat are they?

� Interim Rates are claimed indirect pool rates negotiated with the government but are not yet audited by the Government Agency, such as the Defense

Contract Audit Agency (DCAA).

� Final Rates are approved, audited rates for a fiscal year or contract. Used

for final billing and revenue recognition. As Final Rates are usually different

from the Interim Rates a billing and revenue change usually result.

How can Costpoint assist in the process? Costpoint allows the ability to….

� Enter and post rate adjustments in a closed prior year.

� Enter and post preliminary adjustments to prepare the Incurred Cost Submission report annually immediately after a fiscal year is closed.

� Evaluate the effect of the rate adjustments on indirect pool rates, project costs/revenue and the financial statements in that prior year.


� Preserve previously submitted financial statements, project costs/revenue and G/L balances for that prior year.

� Recognize revenue from that prior year in the current year.

� Use the prior year ceilings, project owning org, formulas to calculate that prior year revenue.

� Create retroactive bills for the audited year using the new rate and combine the retroactive bill with the current bill in the current year.

Our Workshop Scenario



Our Scenario

� Your company receives DCAA audit adjustments for 2015 that need to be

recorded on your books for 2015, when the current fiscal year is 2020.

� Management needs to see the effect of the DCAA audit changes on financial statements and project profitability for 2015, without restating published 2015 financials and project reports.

� Costpoint to use the 2015 ceilings, project owning org, etc. to calculate the

2015 revenue.

� Project accountants need to be able to recognize revenue changes from the

2015 year in 2020, and bill final amounts to the customer, based on the final

rates, with their current billing.

� Management also needs to better understand the financial basis of the

company’s indirect rates as a basis for negotiating bids with government.

The Setup – Checklist

Our Scenario – Exercise 1 – The Setup Review and some ‘To Do’s’

To begin our workshop scenario we will follow the setup steps


The Process



The Process

Step Description

1 Enter and post audit adjustments in the prior year Adjustment Period

2

Revenue - Recognize revenue from that prior year in the current year,

using the prior year PLC rates, project owning org, and formulas to

calculate the prior year revenue

3Billing - Create retroactive bills for the prior year and combine that bill

with the current bill in the current year

4

Evaluate the effect of the adjustments on indirect pool rates, project

costs/revenue and the financial statements for the prior year

Our Scenario – Exercise 2 –The Revenue Process


Complete the steps in your handout for our workshop scenario

Our Scenario – Exercise 3 –Combination Billing


Complete the steps in your handout for our workshop scenario

Evaluation of Changes

Reports


Print Comparative Financial Statements

15 CONFIDENTIAL ©2014 Deltek, Inc. All Rights Reserved

� No option for Statement of Cash Flows

� Periods do not have to be consecutive

� Selection options are: Org, Ref 1, Ref 2, Alternate Reporting, Reorg

YTD Comparative Income Statement - example


Project Status Report - example


Revenue Summary - example


Many choices

with Prior Year

amounts

Fiscal Year End Steps


Update G/L Beginning Balances


� Option to include adjustment periods when rolling forward G/L Beginning Balances

� Option be selected by default if selected in Configure General Ledger Settings

– Cannot be changed unless user is allowed to change default as specified in Configure General Ledger Settings

Audit table for GL Balances


When Update G/L Beginning Balances process is run, rows will be inserted into

an audit table in order to track:

– Fiscal year rolled into history and fiscal year updated

– Whether adjustment periods were included

– Whether option was selected to close the fiscal year and closing rate selected

– Who ran the update process and when for which company

– Table is GL_BEGBAL_AUDIT_HS

Update Prior Year History


Update Prior Year History - Parameters


Project LedgerSelect this check box to include all cost and revenue amounts in this update. Costs and

revenue from the PROJ_SUM and PROJ_BURD_SUM tables are summarized by fiscal

year and are copied into the PSR_PY_SUM and PSY_PY_BURD_SUM tables. The

Manage Prior Year Cost and Revenue screen displays the amounts in the PSR_PY_SUM

and PSR_PY_BURD_SUM tables. You normally select this check box only when you are

closing your fiscal year or when an audit or other adjustment to prior year amounts has

been completed.

Labor HistorySelect this check box to include all labor history hours in this update. Actual and allowable

hours from the Manage Project Labor History screen (LAB_HS table) are summarized by

fiscal year, project, organization, account, GLC, PLC, and employee or vendor.

PY_PROJ_LAB_HS is updated with these summarized amounts. PY_PROJ_LAB_HS

captures actual and allowable hours for projects that have established hours-based ceilings.

Update Prior Year History - Parameters


UnitsSelect this check box to include all units amounts in this update. Actual and allowable units

from the UNITS_USAGE_HS table are summarized by fiscal year, project/CLIN/item, or

price catalog/item. PY_UNITS_PRICING is updated with these summarized amounts.

PY_UNITS_PRICING captures actual and allowable units for projects that have unit

maximum billing quantities.

Billing ValueSelect this check box to update all billing value amounts. Billing value amounts are

summarized by fiscal year, project, account, organization, employee, vendor, vendor

employee, GLC, and PLC. PY_GOAL is updated with these summarized amounts from the

PROJ_GOAL_DETL table. The data in the PY_GOAL table is displayed on the Manage

Prior Year Billable Value screen.

Project Setup History Tables Updated


Project setup history tables contain Fiscal Year/Project ID as part of primary key and will be used when computing revenue for prior fiscal year/project. If no project setup history exists for fiscal year/project, process will use regular setup tables

Below is a list of project setup tables:

– HS_CEIL_DIR_CST HS_CEIL_DIR_CST

– HS_EMPL_CEIL HS_OVRIDE_FEE_ON_DIR

– HS_OVRIDE_MLT_ON_DIR HS_PROJ

– HS_PROJ_ACCT_DISC HS_PROJ_BILL_INFO

– HS_PROJ_MOD HS_PROJ_REV_PROJ

– HS_PROJ_REV_SETUP HS_PROJ_VOLUME_DISC

– HS_VEND_CEIL

Audit table for Update Prior Year History


When Update Prior Year History process is run, rows will be inserted into an audit table which tracks:

– Tables that were updated (Project Ledger, Labor History, Units History, Goal and Cobra History)

– Rate Type used to update Project Ledger

– Costs updated to Project Ledger to include Cost Only, No Revenue (C), Both Cost and Revenue (B), No Adjustment Period Data (N)

– Whether to copy project setup history and whether to overwrite any existing project setup history

– User and date process was run

– Table is PJ_PRIORYR_AUDIT_HS

Scenario Types that Work…and those that do not


Scenarios that work


Note: All scenarios assume that the only entries made in the adjustment period(s) were entries to reclassify costs, and that the total costs for the prior fiscal year did not change.

� Example 1 (recognize prior year adjustment period revenue in current FY):

– Compute and Post Revenue in Adjustment Periods (Note: “Post” is optional, but is needed to see the adjustment period revenue on financial reports for the original FY)

– Run Update G/L Beginning Balances WITHOUT adjustment period data (or, ONLY if you did NOT post revenue, you could include adjustment period data)

– Run Update Prior Year (Project) History using either “No Adjustment Period Data” or “Cost Only, no Revenue” option

– Print financial statements and PSRs for final “regular” period as “real” financials

– Print financial statements and PSRs for adjustment periods as “what if” comparative financials

– Compute and Post Prior Year Adjustment Period revenue in current year

Scenarios that work (cont.)


� Example 2 (recognize prior year adjustment period revenue in original FY):

– Compute and Post Revenue in Adjustment Periods

– Run Update G/L Beginning Balances WITH adjustment period data

– Run Update Prior Year (Project) History using “All Adjustment Period Data”

– Print financial statements and PSRs for final “regular” period as “original” financials for

comparison to the final adjustment period statements, which will be the final “real”

financials

– Print financial statements and PSRs for adjustment periods as “real” financials

Scenarios that cause problems


� Example 3 (recognize prior year adjustment period revenue in prior and current FY):


– Compute and Post Prior Year Adjustment Period revenue in current year

– Run Update G/L Beginning Balances WITH adjustment period data

– Run Update Prior Year (Project) History using “Both Cost and Revenue” option

– Print financial statements and PSRs for final regular period as “real” financials

– Print financial statements and PSRs for adjustment periods as “what if”

comparative financials

– Problem: This results in double-counting of the revenue from the adjustment period

on both the PSRs and the financial statements, because the revenue was

computed/posted/rolled forward for the original fiscal year and then also

recognized in the current fiscal year.

Scenarios that cause problems


� Example 4 (recognize adjustment period revenue in same fiscal year):


– Update G/L Beginning Balances without adjustment period data

– Run Update Prior Year (Project) History using “Cost Only, No Revenue”

– Do not include PY Revenue in current fiscal year

– Print financial statements and PSRs for final “regular” period as “real” financials

– Print financial statements and PSRs for adjustment periods as “what if” comparative

financials

– Problem: Adjustment period revenue is never recognized in financial statements or

in project revenue, since adjustment periods amounts are not rolled forward, and the

revenue is not recognized as PY Revenue.


Questions & Contacts

If you have any questions or need further assistance please contact:

� Your Deltek Account Representative or

� Deltek Customer Care

– [email protected]

Documents

Costpoint Interim/Final Rates and Consolidated Billing Review · · 2016-11-01Costpoint Interim/Final Rates and Consolidated Billing Review PCW12 Chesapeake L, ... Costpoint to