VPF’s Sponsored Accounting team bills for most sponsored research agreements using one of four methods—letter of credit, cost reimbursable, request for an advance, or scheduled billing. The method used is based on the terms of the grant or contract.

SAP reports

VPF’s Sponsored Accounting team generates SAP reports that include all the information needed to complete the monthly billing process. The team uses these reports to identify which WBS elements it should invoice and which billing methods it should use.

Letter of credit drawings

“Letter of credit” billing is used to request money for a group of sponsored accounts. Two to three times a month, the team compares the cash on hand for a group of accounts with estimated expenses then makes a request to cover the difference, if any.

Cost reimbursable billing

“Cost reimbursement” billing (billing for actual prior month expenses) is used to request money based on the actual monthly expenses associated with a specific sponsored account. Once a month, the team submits invoices to the sponsor requesting reimbursement for the actual expenses posted for the prior month. See Industrial Sponsor Invoice example and Government Sponsor Invoice example.

Money for anticipated monthly expenses

A Request for an Advance government form is used to request money based on the anticipated monthly expenses associated with a specific sponsored account. At least once a month, the team submits Form SF 270 to the sponsor requesting the difference between the cash on hand and the anticipated monthly expenses.

Fixed amounts on a regular schedule

Sponsored Accounting uses a Scheduled Billing form to request fixed amounts of money on a periodic basis as required by the sponsor. This procedure is based on contract requirements rather than actual project costs.

These scheduled amounts could be invoiced monthly, quarterly, or annually. Some scheduled amounts may not be invoiced until your DLC meets certain milestone goals for the research you are conducting.

Look up a Sponsored Invoice

There are many ways to look up a sponsored invoice, depending on what kind of information you have available. The following forms are available to assist you to find the correct invoice. Use this form when you know the invoice number, and this form when you do not have the invoice number. Use forms to review customer account balances, to determine a customer number and to determine a billing type.

Coordinate with VPF

Check with VPF to determine next steps for contacting the sponsor. See additional information provided in the Invoice Collections Process PDF.

The Details

SAP reports

VPF’s Sponsored Accounting team generates SAP reports that include all the information needed to complete the monthly billing process. The team uses these reports to identify which WBS elements it should invoice and which billing methods it should use.

Letter of credit drawings

“Letter of credit” billing is used to request money for a group of sponsored accounts. Two to three times a month, the team compares the cash on hand for a group of accounts with estimated expenses then makes a request to cover the difference, if any.

Cost reimbursable billing

“Cost reimbursement” billing (billing for actual prior month expenses) is used to request money based on the actual monthly expenses associated with a specific sponsored account. Once a month, the team submits invoices to the sponsor requesting reimbursement for the actual expenses posted for the prior month. See Industrial Sponsor Invoice example and Government Sponsor Invoice example.

Money for anticipated monthly expenses

A Request for an Advance government form is used to request money based on the anticipated monthly expenses associated with a specific sponsored account. At least once a month, the team submits Form SF 270 to the sponsor requesting the difference between the cash on hand and the anticipated monthly expenses.

Fixed amounts on a regular schedule

Sponsored Accounting uses a Scheduled Billing form to request fixed amounts of money on a periodic basis as required by the sponsor. This procedure is based on contract requirements rather than actual project costs.

These scheduled amounts could be invoiced monthly, quarterly, or annually. Some scheduled amounts may not be invoiced until your DLC meets certain milestone goals for the research you are conducting.

Look up a Sponsored Invoice

There are many ways to look up a sponsored invoice, depending on what kind of information you have available. The following forms are available to assist you to find the correct invoice. Use this form when you know the invoice number, and this form when you do not have the invoice number. Use forms to review customer account balances, to determine a customer number and to determine a billing type.

Coordinate with VPF

Check with VPF to determine next steps for contacting the sponsor. See additional information provided in the Invoice Collections Process PDF.

Did You Know?

When a sponsor’s F&A (facilities and administration) costs are less than the current MIT negotiated research rate, Institute policy requires you to treat the difference as underrecovery.
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