The purpose of this document is to define the "First Billing Offset Days" functionality, provide guidance on its use, and explain how to calculate the offsetting value.
The "First Billing Offset Days" located in the Grants Management module of the Oracle business application defines the number of days that elapse between the award start date and the generation of the first Accounts Receivable (AR) invoice. The offsetting value entered in this field is the difference between the number of days in billing cycle less the award start date. Completion of this field is required in order to ensure the first invoice is generated on schedule.
The functionality provided by the First Billing Offset Days is used when the start date of the award compared to the total number of days in the billing cycle requires an offsetting value. Important! The numeric value of First Billing Offset Days must be between 0 and 366.
The following situations require an offsetting value greater than zero:
Note: “Monthly” and “Quarterly” billing cycles are still available in the list of values due to older awards utilizing these cycles. However, these cycles
should not be used on new awards.
The following situations require an offsetting value of zero:
Important! AR staff should review the first invoice on all awards prior to invoice approval and release to determine whether the invoice has been generated on schedule. If the invoice has not been generated on schedule, appropriate corrective action should be taken. (e.g., amend first billing offset days, place expenditure items on-hold, delete invoice, regenerate invoice.)
The numeric value in the billing offset days field represents the total number of days in the billing cycle less the award start date.
Formula: (Total Number of Days in Billing Cycle) - (Award Start Date) = First Billing Offset Days.
The following scenarios represent a comparison of the offsetting value. This comparison is based on awards with the same billing cycle and varying award start dates.
Note: "Bill Through Date" refers to the end of the period for which expenditures should be included in the invoice.
Billing Cycle Name |
Days in Billing Cycle |
Award Start Date |
Billing Offset Days Calculation and Value |
First Draft Invoice Generated with Bill Through Date Of |
Last Day of Month |
31 days in July 31 days in cycle |
July 1 |
(31 - 1) = 30 |
July 31st |
July 15 |
(31 - 15) = 16 |
|||
Qtr End MAR, JUN, SEP, DEC |
31 days in July 31 + 31+ 30 = 92 days in cycle |
July 1 |
(92 - 1) = 91 |
September 30th |
July 15 |
(92 - 15) = 77 |
|||
Qtr End FEB, MAY, AUG, NOV |
31 days in July 31 + 31 = 62 days in cycle |
July 1 |
(62 - 1) = 61 |
August 31st |
July 15 |
(62 - 15) = 47 |
|||
Qtr End JAN, APR, JUL, OCT |
31 days in July 31 days in cycle |
July 1 |
(31 - 1) = 30 |
July 31st |
July 15 |
(31 - 15) = 16 |
The First Billing Offset Days is displayed on the Award Billing Information Report. This calculation should be reviewed by the person who established the award. In addition, a second review should be preformed by the AR staff based on normal review procedures of new award billing information.
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