Another feature of CGS is to calculate retroactive adjustments to the indirect cost. In each of the cases, the program will calculate the total direct costs subject to overhead and calculate the indirect cost generated based on the base and rate assigned to the account. This amount is compared to the total amount posted to the account and a transaction is generated for the difference. Then it generates the amount of overhead which should have been posted by multiplying the total expenditure amount by the indirect cost rate. That amount is compared against the total amount posted to subcode 9100 and any difference is used to generate an expenditure transaction.
Revenue is recognized on all expenditures posted to a contract or grant.
Unlike other types of accounts, CGS accounts record revenue when an expenditure is posted, not at the time payment is made from the sponsor. CGS generates revenue transactions on a weekly basis. FHWR954, accumulates all of the expenditures posted to an account and compares the total against the total amount of revenue posted to the account. If there is a difference, then it generates a revenue transaction for the difference amount. The revenue transaction debits the accounts receivable and credits fund addition.