costpoint interim/final rates and consolidated billing review · · 2016-11-01costpoint...
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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
©2016 Deltek, Inc. All Rights Reserved 3
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?
©2016 Deltek, Inc. All Rights Reserved 4
©2016 Deltek, Inc. All Rights Reserved 5
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.
©2016 Deltek, Inc. All Rights Reserved 6
� 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
©2016 Deltek, Inc. All Rights Reserved 7
©2016 Deltek, Inc. All Rights Reserved 8
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
©2016 Deltek, Inc. All Rights Reserved 9
The Process
©2016 Deltek, Inc. All Rights Reserved 10
©2016 Deltek, Inc. All Rights Reserved 11
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
©2016 Deltek, Inc. All Rights Reserved 12
Complete the steps in your handout for our workshop scenario
Our Scenario – Exercise 3 –Combination Billing
©2016 Deltek, Inc. All Rights Reserved 13
Complete the steps in your handout for our workshop scenario
Evaluation of Changes
Reports
©2016 Deltek, Inc. All Rights Reserved 14
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
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Project Status Report - example
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Revenue Summary - example
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Many choices
with Prior Year
amounts
Fiscal Year End Steps
©2016 Deltek, Inc. All Rights Reserved 19
Update G/L Beginning Balances
20 CONFIDENTIAL ©2014 Deltek, Inc. All Rights Reserved
� 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
21 CONFIDENTIAL ©2014 Deltek, Inc. All Rights Reserved
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
22 CONFIDENTIAL ©2014 Deltek, Inc. All Rights Reserved
Update Prior Year History - Parameters
23 CONFIDENTIAL ©2014 Deltek, Inc. All Rights Reserved
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
24 CONFIDENTIAL ©2014 Deltek, Inc. All Rights Reserved
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
25 CONFIDENTIAL ©2014 Deltek, Inc. All Rights Reserved
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
26 CONFIDENTIAL ©2014 Deltek, Inc. All Rights Reserved
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
©2016 Deltek, Inc. All Rights Reserved 27
Scenarios that work
28 CONFIDENTIAL ©2014 Deltek, Inc. All Rights Reserved
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.)
29 CONFIDENTIAL ©2014 Deltek, Inc. All Rights Reserved
� 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
30 CONFIDENTIAL ©2014 Deltek, Inc. All Rights Reserved
� Example 3 (recognize prior year adjustment period revenue in prior and current FY):
– Compute and Post Revenue in Adjustment Periods
– 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
31 CONFIDENTIAL ©2014 Deltek, Inc. All Rights Reserved
� Example 4 (recognize adjustment period revenue in same fiscal year):
– Compute and Post Revenue in Adjustment Periods
– 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.
©2016 Deltek, Inc. All Rights Reserved 32
Questions & Contacts
If you have any questions or need further assistance please contact:
� Your Deltek Account Representative or
� Deltek Customer Care
– CostpointCustomerCareManagers@Deltek.com
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