Step 3: CLIN Setup and Contract Funding

Meets the following DCAA Requirement:

  • Limitation of Costs or Limitation of Payments
  • Reliable data for use in pricing follow-on acquisitions

synopsis

Federal contracts are typically funded at the contract line item (CLIN) level. A CLIN is a line in your contract, typically found in Schedule B, which lists the services and products to be delivered, with a price or ceiling which cannot be exceeded.  When billing the federal government, it is important to not bill in excess of funding.  Your DCAA auditor will want to ensure that you have a system in place to prevent overbilling.

ENTERING CONTRACT FUNDING

Step 1: To enter your contract funding into Quickbooks, you'll need to ensure that the "Estimates" feature is enabled in Quickbooks.  To enable "Estimates", navigate to the Preferences screen and then select "Job & Estimates" and select "Yes" in the box "Do you create estimates".

Step 2: Open the Estimates screen in the Customer Center.  Select the job that you will be funding.  Set the date to the start date of the funding.  Select the Items to be funding, based on your contract setup.  Enter the dollar amount of the funding and number of hours, if applicable.

Creating the Funded Backlog Report

Now that you have entered contract funding into Quickbooks, you'll need to create a custom report that compares the amount of funding you have entered to the amount that you have billed against the funding.

Step 3: Open the report called "Item Estimates vs. Actuals" and modify the report by selecting only the columns for Revenue.

Step 4: Change the report title to "Funded Contract Backlog".  Memorize the report.  You will use this report to track your billings versus funding.

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