## Setting Up ACRNs

This chapter provides an overview of accounting classification reference numbers (ACRNs) and discusses how to set up ACRNs for a project and government contract accounting (PGCA) contract.

### Understanding ACRNs

Contract terms for contracts with the U.S. federal government may require that you track the funding for the U.S. federal government. To accomplish this, you set up ACRNs for the funding level contract. ACRNs are numbers that are provided to you by the U.S. federal government and they identify the source of the funding. You assign portions of the funded amounts from the contract to ACRNs and then as you generate invoices, the system depletes the amounts based on the depletion method that is set up on the contract. Three methods for depleting ACRNs are available:

- First-in, first-out (FIFO)

  You assign a sequence number to each ACRN for the funding level contract, and the system depletes the ACRNs in the order that you specify.

- Ratio

  You assign percentages to each ACRN for the funding level contract, and the system determines how to depletes the ACRNs by accumulating the invoice amounts based on the base method of the ACRN and then multiplying the amount by the percentage that you specify for each ACRN. The percentages must total 100.

- Manual

  You manually enter the amount by which to deplete the ACRN for each invoice.

When you enter ACRNs, you select one of five tabs on which to enter them. The five tabs represent the different base methods for entering ACRNs. Base methods determine the invoice amounts that deplete the ACRN. These are the five base methods:

- Sum

  You set up ACRNs using portions of the total of the funded cost and fee amounts. The system uses the cost and fee amounts from the invoice to deplete the ACRN.

- Total

  You set up ACRNs using portions of the total of the funded cost, fee, and award fee amounts. The system uses the total of the cost, fee, and award fee amounts from the invoice to deplete the ACRNs.

- Award Fee

  You set up ACRNs using portions of the funded award fee amount. The system uses the award fee amounts from the invoice to deplete the ACRNs.

- Cost

  You set up ACRNs using portions of the funded cost amount. The system uses the cost amounts on the invoice to deplete ACRNs.

- Fee

  You enter ACRNs using portions of the funded fee amount. The system uses the fee amounts on the invoice to deplete the ACRNs.

Depending on which base method you select, you enter amounts on either one tab or multiple tabs. For example, if you select the Total tab, you enter amounts only on that tab. If you select the Cost tab, you might enter cost amounts on the Cost tab, but also enter fee amounts on the Fee tab.

If you need to change the base method, you must first revise the base method by selecting Base Method Revision from the Form menu on the ACRN Detail Revisions form. The system then moves the ACRNs to the tab that corresponds to the new method that you selected.

If the total of the ACRNs for a funding level contract exceeds the funded amounts for the contract, the system generates a warning.

The system stores detail information for ACRNs in the ACRN Detail table (F52G05). The system stores ACRN history in the ACRN History Table (F52G05H). You can use the ACRN History Inquiry program to review ACRN history by invoice.

Voucher Accounting Classification Information Program (R52G509)

When you submit invoices to the U.S. federal government for contracts that use ACRNs, you are also required to submit a report listing the ACRNs for the invoice and the associated amounts. You use the Voucher Accounting Classification Information report (R52G509) for this listing. For each ACRN for the invoice, the R52G509 report lists the ACRN number, description, and the associated funded amount, current amount, cumulative amount, and remaining balance.

The system runs the R52G509 report when you run the Print U.S. Government 1034 Invoice (R52G508) program. The system runs the R52G508 program when you run the Print U.S. Government 1035 Invoice program (R52G507), but only when you have set up the processing options for the R52G507 program to do so. To ensure that you generate the R52G509 report when you print invoices for contracts with the U.S. federal government, perform one of the following actions:

- On the funding level contract, enter an invoice format code that uses a version of the R52G507 program with the processing options set to run the R52G508 program.

- Set up the processing options on the Project and Gov Print tab for the R48504 program to run a version of the R52G507 program that has the processing options set to run the R52G508 program.

See Additional Setup for Invoice Processing for PGCA Contracts.

### Setting Up ACRNs for a PGCA Contract

This section provides an example of processing ACRNs and discusses how to:

- Set up ACRNs.

- Revise the base method for an ACRN.

- Review ACRN History Details.

#### Forms Used to Set Up ACRNs for a PGCA Contract

Form Name | FormID | Navigation | Usage
Search for ACRN Details | W52G05A | Select Daily Processing-Project and Government Contract Accounting (G5215), Work With ACRNs. | Review ACRNs.
ACRN Detail Revisions | W52G05C | Click Add on the ACRN Detail Revisions form. | Set up ACRNs for a Funding Level Contract.
ACRN Base Method Revisions | W52G05D | Select Base Method Revision from the Form menu. | Revise the base method for an ACRN.
ACRN History Inquiry | W52G05HA | Select Daily Processing-Project and Government Contract Accounting (G5215), ACRN History Inquiry. | Review ACRN history details for a funding level contract.

#### Example: Processing ACRNs

In this example, you set up a funding-level contract to use ACRNs, set up the ACRNs, and then generate two invoices for the contract.

Contract Setup

This example shows how you set up the funding-level contract to use ACRNs:

The contract has been set up to use the FIFO method for depleting cost and fee amounts, and the ratio method for depleting award fee amounts.

This example shows the funded amounts for the contract:

ACRN Setup: Cost and Fee Amounts

You set up four ACRNs for funding-level contract 815 and assign $50,000.00 USD to the first three ACRNs and $70,000.00 USD to the fourth ACRN. This example shows the four ACRNs, amounts, and sequence numbers:

You select the By Sum tab and set up four ACRNs using portions of the total of the funded cost and fee amounts. The system uses the cost and fee amounts from the invoice to deplete the ACRNs. You also assign sequence numbers to each ACRN to specify the order in which the system depletes the four ACRNs.

ACRN Setup: Award Fee Amounts

You then select the By Award Fee tab and set up three ACRNs for award fee amounts. Because funding-level contract 815 is set up to use the ratio method for award fees, you assign percentages to each ACRN. This example shows the ACRNs for award fee amounts:

ACRN Depletion: First Invoice

The total cost and fee amount for the first invoice for funding-level contract 815 is $87,000.00 USD. This example shows how the system depletes the ACRNs for the cost and fee amounts on the first invoice:

The system depletes ACRN 1001 first and then depletes the remaining amount ($37,000.00 USD) from ACRN 1002.

The award fee amount for the first invoice is $8,000.00 USD. This example shows how the system depletes the ACRNs for award fees for the first invoice:

The system depletes the award fee ACRNs as follows:

- Depletes $1,600.00 USD from ACRN 2001.

  20 percent of $8,000.00 USD = $1,600.00

- Depletes $2,400.00 USD from ACRN 2002.

  30 percent of $8,000.00 USD = $2,400.00

- Depletes $4,000.00 USD from ACRN 2003.

  50 percent of $8,000.00 USD = $4,000.00

ACRN Depletion: Second Invoice

The total cost and fee amount for the second invoice for contract 815 is $62,000.00 USD. This example shows how the system depletes the ACRNs for the cost and award fee amounts for the second invoice:

The system depletes $13,000.00 USD from ACRN 1002 and then depletes $49,000.00 USD from the next ACRN, which is ACRN 1003.

The award fee amount for the second invoice is $6,000.00 USD. This example shows how the system depletes the ACRNs for award fee amounts for the second invoice:

The system depletes the award fee ACRNs as follows:

- Depletes $1,200.00 USD from ACRN 2001.

  20 percent of $6,000.00 USD = $1,200.00

- Depletes $1,800.00 USD from ACRN 2002.

  30 percent of $6,000.00 USD = $1,800.00

- Depletes $3,000.00 USD from ACRN 2003.

  50 percent of $6,000.00 USD = $3,000.00

#### Setting Up ACRNs

Access the ACRN Detail Revisions form.

1. Select one of the following tabs, depending on which base method you want to use:

   - By Sum

   - By Total

   - By Award Fee

   - By Cost

   - By Fee

2. Complete these fields:

   Accounting Class Reference Number | Enter the ACRN number that is provided to you by the customer.
   Description | Enter a description for the ACRN.
   ACRN Group (accounting classification reference number group) | Reserved for future use by Oracle.
   Sequence | Enter the number that represents the sequence in which the ACRN should be depleted. The system enables this field only if you have selected FIFO as the method for depletion for the funding level contract in the Create/Edit Projet and Government Contracts program (P52G01M). The system depletes the ACRNs using the sequence numbers that you enter.
   Percent | Enter a percentage for the ACRN. The percentages for all ACRNs for the funding level contract must total 100. The system enables this field only if you have selected Ratio as the method for depletion for the funding level contract in the P52G01M program. The system determines the amounts by which to deplete the ACRNs by accumulating the invoice amounts based on the base method of the ACRN and then multiplying the amounts by the percentage that you specify.
   Funded Amount | Enter the amount for the ACRN.
   Current Billed Amount | Displays the current amount for which you have billed the customer.
   Cumulative Billed Amount | Displays the cumulative amount for which you have billed the customer.
   Active Flag | Determines whether the ACRN is active or inactive. Only active ACRNs are depleted when invoices are generated. Enter 0 or N if the ACRN is inactive.
   Expiration Date | Enter the date on which the ACRN expires. This field is for informational purposes only.
   ACRN Category 1 through ACRN Category 5 | Enter additional information to identify the ACRN. The system stores valid values for these fields in user-defined code tables 52G/A1 through 52G/A5.
   User Date 1 through User Date 5 | Enter additional dates to identify the ACRN.
   Invoice Number | Displays the number of the invoice when the funding level contract for the ACRN is included in an invoice batch.
   Invoice Type | Displays the document type of the invoice when the funding level contract for the ACRN is included in an invoice batch.
   Invoice Co (invoice company) | Displays the company number of the invoice when the funding level contract for the ACRN is included in an invoice batch.

#### Revising the Base Method for an ACRN

Access the ACRN Base Method Revisions form.

Revise the base method for an ACRN, or revise the sequence number or percentages.

Base Method | Revise this field to change the base method for the ACRN.
Sequence | Revise the sequence numbers of the ACRNs
Percent | Revise the percentage for the ACRN.

#### Reviewing ACRN History Details

Access the ACRN History Inquiry form.