| # Using Contract Funding In Infor LN, for certain types of contracts (for example, Aerospace and Defense contracts) specific funding limits (amounts) can be defined. Based on these limits, the maximum amount that can be invoiced to the customer is set. Funding Distribution You can distribute the funding amount by: Sequence: The funded amount for the contract line is distributed based on the sequence defined by the user. Percentage: The funded amount for the contract line is distributed based on the percentage specified by the user. Note The total percentage of all the distribution lines must be 100%. Funded Amount: The funded amount for the contract line is distributed based on the amount specified in the Funded Amount field. Infor LN populates the percentage value of the amount in the Percentage field. Defining funding limits You can specify the funding limit (amount to be invoiced) available to the contractor from the total funded amount allocated for the contract. Funding limits can be applied to all contract types ( Fixed Price, Time & Materials and Cost Reimbursement, see Contract types for more information). To define the funding limit, in the Contract Lines (tpctm1110m000) session: Enter the funding amount for each contract line, in the Funded Amount field. Select the distribution method using the Funding Distribution field. Click the Distribution button. The Funding Distribution (tpctm0170m000) session starts, wherein you distribute the amount by creating distribution lines. Note Funding amount must be equal to or lower than the contract line amount. You can also view the total funded amount and specify the distribution method in the Contract (tpctm1600m000) session. Using the Funding Distribution field, in the Selling tab, Infor LN defaults the value of the distribution method field in the Contract Lines (tpctm1110m000) session. Invoicing Before the contract line is invoiced, you must adjust the funded amount to ensure that the amount does not exceed the contract line amount. Infor LN only approves the distribution line for invoicing, if the amount to be invoiced is less than or equal to the funded amount. Note The funding amount must not exceed the ceiling amount, if defined in the Contract Lines (tpctm1110m000) session. Infor LN invoices the distribution lines based on the distribution sequence. The distribution line with the least sequence number is processed first. In case, the invoice amount is more than the amount linked to the distribution line, Infor LN selects the next distribution line consequentially. By Sequence For example, a funded amount of 8000 Euro is allotted for a distribution line of sequence 1. The amount of 12,000 Euro is allotted for a distribution line of sequence 2. For an invoice of 15,000 Euro the distribution line with sequence 1 is processed first. For the remaining amount of 7000 Euro, Infor LN selects the distribution line with sequence 2 and invoiced amount is processed by 7000 Euro. To process the next invoice, Infor LN considers the distribution line with sequence 2 that has the unallocated amount of 5000 Euro and only then considers the subsequent distribution line (sequence 3, 4 and on), if existing. By Percentage/Amount For example, the specified percentage for a distribution line A is 10% and distribution line B is 5%. For an invoice of 20000 Euro for the contract line, 2000 Euro (10% of the invoice) is invoiced for the distribution line A and 1000 Euro (5% of the invoice) for distribution line B. After the contract line is invoiced, Infor LN displays the Approved Amount, Invoiced Amount, and the Composed Amount (initially hidden) in the Funding Distribution (tpctm0170m000) session. Note The funding distribution sequence defined for the contract line cannot be modified after the contract line is approved. Infor LN does not consider the advance payments for the contract line, when calculating the amounts to be approved. To see the examples of distributing the funded amount, see Funding Distribution by Sequence, Funding Distribution by Percentage, Funding Distribution by Amount. Related topics Funding Distribution by Sequence Funding Distribution by Percentage Funding Distribution by Amount To define a contract Contract lines data setup |