What are OLTs and how do they impact invoicing and letter of credit draws?

Every transaction expensed to the award goes through a pricing process to determine if the transaction is below the billing limit established for the award.  If the transaction is below the billing limit then the transaction is given an analysis type of BIL (the transaction is available for the next weekly LOC Cash Draw or the next NON-LOC monthly billing activity).  However, if the transaction does not pass the billing limit check, an analysis type of OLT is assigned and the transaction is not eligible for any billing activity (including the LOC draw down) indicating the award is in deficit.

  • BIL (Expense is within limit to be billed)
  • OLT (Expense is over the limit and not eligible to be billed.)
  • Revenue is recognized for BIL expenses.
  • Revenue is NOT recognized for the OLT expenses

An award is in deficit when the total expenses recorded to an award total more than the awarded funds and exceeds the authorized billing limits established for the award.  Deficit on awards should be identified and rectified as soon as possible to ensure the Compass billing system is able to perform efficiently.  Most Federal awards are billed weekly through the LOC draw down, so it is especially important to identify and rectify OLTs and deficits on these types of awards quickly.

The contract workbench and the related content area in COMPASS is a good place to verify your budget and billing limits on specific awards.  It will also identify if any OLT’s exist for the award.

  • The billing limit and the revenue recognized for your award can be located on the Contracts Limits section of the workbench.
  • The budget and expenditures information is located on the Balances Tab (related content area).
  • On the related content billing summary tab, you can view transaction have been billed to the sponsor (BLD analysis type), transactions eligible to the billed on the next billing activity (BIL analysis type) and transaction that are OLT’s (not eligible for billing).

Compass Navigation:  Main Menu>Customer Contracts>Contracts Workbench

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