Contracts Overview

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Although QuickBooks has many great and easy-to-use features, its inherent flexibility can result in unintended consequences when setting up a federal contract for DCAA compliance. One issue is that QuickBooks does not enforce certain business rules when setting up a contract. For instance, a federal contract may require the set up of CLINs and labor categories, but QuickBooks does not enforce this. Another example is that QuickBooks does not require that job costs be coded to contracts but federal contracts have this requirement. To overcome these limitations in QuickBooks, we have designed GovBooks to enforce the proper set up of federal contracts by creating a strict and logical hierarchy.

The hierarchy is structured as follows:

  1. First, set up the Customer Name by selecting a QuickBooks customer from the Customer Setup screen.

  2. Then, set up the contract in the Contract Setup screen.

  3. If the contract has CLINs, set up the CLINs next in the CLIN Setup screen.

  4. If the contract has Sub-CLINs, set up the Sub-CLINs next in the CLIN Setup screen.

  5. All revenue and job costs are collected at the project level. QuickBooks jobs are mapped to projects in GovBooks. Set up the project in the Project Setup screen. Projects are associated with CLINs or Sub-CLINs if the contract has CLINs, or directly with a contract if the contract does not have CLINs.

  6. Items are associated with projects and may be used to further break down billings and job cost by labor categories or ODCs. Set up items in the Item Setup screen.

The hierarchy is enforced by requiring the set up of a higher level in the hierarchy before a lower level can be set up. For instance, the customer must first be set up before a contract can be set up. A contract must first be set up before a CLIN can be set up. Either a contract or CLIN must first be set up before a project can be set up. Finally, a project must first be set up before an item can be set up. The business rules in GovBooks ensures that all the elements required for federal contracting are set up in the proper sequence.

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