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Administrator Guide
Last Updated: 2024-09-20
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Process: Award Cost Reimbursable Spend to Billing

Process: Award Cost Reimbursable Spend to Billing

You can use this checklist to take you from spending on an award to reimbursing from the sponsor.
For a use case related to this topic, see in the Use Case Library.
  1. Spend on the award.
    Charge an expense to a grant on the award by associating the spend transaction with the grant worktag on the award line that you want to charge to, and completing the business process. Example, for:
    • Payroll costing, add the grant worktag to the payroll costing allocation of the worker and complete the pay calculation. See Define Cost Allocations for a Worker.
    • Spend within Financial Management, such as a supplier invoice or expense report, add the grant worktag to the spend transaction and complete the business processes for the transaction. See for supplier invoices, for expense reports, or for manual accounting journals transactions.
  2. .
    Settle the spend amount. After you complete the settlement run, the spend is ready to bill.
    Workday generates the facilities and administration (F&A) costs and recognizes revenue when you complete the spend transaction business process or settlement run, depending on how the award costs processing rules is set up for the company.
    To view the F&A and revenue recognition accounting for the expenditure:
    1. Select
      Accounting
      View Accounting
       from the related actions menu of the operational journal initiating the spend transaction.
    2. Select the:
      • Facilities and Administration
         tab for F&A details.
      • Award Revenue Recognition
         tab for award revenue recognition details.
  3. When you change the spend budget date or any F&A settings that could affect the F&A amount, run Reprocess Award Costs to recalculate the F&A costs and revenue for the award.
  4. Create an invoice for the ready-to-bill amount on the award. The ready-to-bill amount includes the direct spend amount and any applicable F&A costs.
    You can find the
    Ready to Bill
     amount on the:
    • Award contract, under the
      Award Lines
       tab in
      Award Summary
      .
    • Find Cost Reimbursable Lines
       report.
    For more information, see Steps: Create Invoices for Cost Reimbursable Award Transactions.
  5. When you receive payment from the sponsor, .
  6. (Optional) If the sponsor reimburses you by a letter of credit, draw down the letter of credit, and Record Letter of Credit Draw Downs.