Error! Bookmark not defined. GM-GTE Customizing: Indirect Costs 

Purpose

If you are required to record sponsor indirect costs (IDC), also known as overhead costs and F&A costs,  as part of your Grants Management - Grantee (GM-GTE) processing, you must create and configure rules to control that processing.

The GM-GTE IDC calculation documents and calculates IDC based on the sponsor’s administrative guidelines and the overhead function in SAP’s Controlling (CO) application component calculates overhead based on the organization’s requirements. The two processes are separate, but can be used in tandem.

For example, if a sponsor’s IDC rate is less than the organization’s IDC rate, the GM IDC functionality would be used to calculate and post the IDC expense the sponsor has agreed to fund. Meanwhile, the CO overhead feature would be used to calculate the organization’s actual overhead costs. You can then determine the difference in the amounts by comparing the calculations.

Note that the GM-GTE IDC calculation supports cost ceilings that are time-dependent and can be maintained at sponsored class and grant levels. Multiple IDC recovery general accounts can be selected, be made time-dependent, and be assigned a ceiling amount.

Prerequisites

You have created:

·        A chart of accounts relevant to GM-GTE

·        The grant type to which you want to apply IDC settings

Process Flow

Proceed as follows:

...

       1.      In the GM-GTE part of the Implementation Guide (IMG), choose Indirect Costs  ®Configure Indirect Cost Rules.

The Display View: “IDC Rules”: Overview screen appears, showing any existing rules.

       2.      To add a new rule, switch to change mode and choose New Entries. Then enter:

¡        A number or short name to identify the rule

¡        A more detailed text, giving a name for the rule

       3.      Save your entries. Then choose the rule and click Rule Elements in the dialog structure.

       4.      In the resulting screen, enter the value type(s) for which IDC processing is required.

       5.      When you have finished, save your entries.

       6.      You must also configure the additional account settings in the chart of accounts, so that it  can handle indirect costs. To do this, return to the GM-GTE IMG and choose Chart of Account Settings for GM Indirect Costs.

The Change View “Chart of Account Settings – Grants Management”: Overview screen appears, showing existing settings.

       7.      To add new rules, choose New Entries.

       8.      In the resulting screen, enter the following:

¡        Grant type

¡        Chart of accounts

¡        The general ledger account where costs are to be reimbursed

¡        Use the IDCR Class field to stipulate the sponsored class where IDC reimbursements are to be allocated.

¡        The general ledger account that is to act as the IDC expense account

¡        Use the IDCE Class field to stipulate the sponsored class where IDC expenses are to be charged.

¡        The G/L account to be used to hold cash transfers.

       9.      When you have finished, save your entries.

   10.      To verify these settings, go to the Indirect Costs tab of the grant master data. The GL Accounts section shows a summary of the account detail you have entered.

   11.      There are some additional settings you need to make in the Grant Master:

¡        In the IDC Rule field, specify the rule applicable to this grant.

¡        For each sponsored program + sponsored class combination you defined as IDC relevant on the Dimensions tab, enter the IDC recovery rate in the Indirect Cost Rate section of the screen.

¡        Do the same for funds in the Fund section of the screen.

¡        You may need to set an absolute cap on the IDC that can be recovered in the grant. You can either do this for the whole grant by entering an amount in the IDC Cap field or you can enter a separate cap for each sponsored program + sponsored class combination.

   12.      When you have finished, save your entries.

   13.      There is also a Business Add-In (BAdI) you can use to assign alternative cost objects for the IDC calculation in GM-GTE. If you do not use this BAdI, the system defaults the CO object from the original posted document.

Result

You are now ready to process grant-related indirect costs, as described in Processing Indirect Costs.