Limitation of Funds (LOF) User Guide

Change Summary

Overview

The Limitation Of Funds (LOF) feature on Contracts and CLIN/SLINs allows Contract Managers to automatically receive notifications when an LOF letter needs to be sent to the government Contracting Officer for any Contract or CLIN/SLIN. Additionally, it enables Contract Managers to create the LOF letter that needs to be sent.

The LOF feature estimates the future LOF percentage based on entered field values. If this estimated percentage exceeds the threshold LOF percentage, the system notifies the Contract Manager through email to send the LOF letter. Once the LOF letter is created, another email confirmation is sent to the Contract Manager.

This document is a step-by-step guide on how you can use the LOF feature in Salesforce.

Audience

• Contracts Suite Users

LOF Tab on Our Contracts

1. Open a Contract record and go to the LOF tab.
   Navigate to an Our Contract Record page using App Launcher.
   

2. Click the pencil icon next to any field.
   

   NOTE

   If an Our Contract record contains POP and CLIN/SLIN records, then the following fields on the LOF tab are auto-populated. For more information on using POPs and CLIN/SLINs, refer to the CLIN/SLINs on Contracts and Subcontracts .
   If the LOF calculation uses Total Contract Funding:
   
   If the LOF calculation uses Total Funded Cost:
   
   LOF for CLIN/SLINs:

3. Specify the field values and click Save.
   The LOF record is created.

   NOTE

   • The Average Monthly Revenue field is auto-populated based on the value entered in the Net Revenue field.

   • If you are unsure about the value to enter in the Net Revenue field, you can directly specify a value in the Average Monthly Revenue field.

LOF for Our Contracts with CLIN/SLIN Records

1. Open a Contract record with CLIN/SLIN records and go to the LOF tab.
   If the LOF calculation uses Total Contract Funding:
   
   If the LOF calculation uses Total Funded Cost:
   
   

   NOTE

   • The Total Contract Funding / Total Funded Cost field values are calculated based on the exercised CLIN/SLIN records.

   • Net Revenue as a Share of Funding and Estimated Future LOF Percent are calculated based on Net Revenue, Average Monthly Revenue, Total Contract Funding / Total Funded Cost, and Base Period - Start Date.

2. If the Estimated Future LOF Percent field value exceeds the LOF Percent (Threshold) field value, then the LOF Status field value changes to LOF letter required, accompanied by a corresponding message at the top.
   
   
   

   An email notification is also sent to the Contract Manager, along with the link to the Contract record.
   
   

   

3. Once you click Generate LOF, the LOF letter is created, and the LOF Status field value changes to LOF letter created. An email notification is sent to the Contract Manager again. The message Last LOF Letter was created... also displays at the top of this tab.
   
   
   
   
   

   NOTE

   • If third-party document generation is configured by your administrator, you can click Generate LOF to be redirected to the LOF generation page. The Generate LOF button is enabled only if the LOF Status field has either of the following two field values - LOF letter created or LOF letter required.

   • You can click Send Notification to send the same email again to the Contract Manager, at any point in time. The Send Notification button is enabled only if the LOF Status field has either of the following two field values: LOF letter created or LOF letter required.

IMPORTANT

If the Total Contract Funding / Total Funded Cost field value is zero, then the LOF Status field is disabled.
Additionally, if the essential LOF fields, Funding details, and Start Date field values are not specified, the following error message displays once you click Save.

LOF for CLIN/SLINs Section

1. On the LOF tab, scroll down to the LOF for CLIN/SLINs section. Here, you can view all the CLIN/SLINs associated with this LOF record. By default, Table View is displayed.
   

   NOTE

   You can select a pre-defined value in the Show entries drop-down menu to display a certain number of CLIN/SLIN records on this page.

2. Click the Table View toggle button.
   The most recent CLIN/SLIN records display. 
   
   
   

3. If the Estimated Future LOF Percent field value exceeds the LOF Percent (Threshold) field value, then the LOF Status field value changes to LOF letter required, accompanied by a corresponding message at the top.
   An email notification is also sent to the Contract Manager, along with the link to the Contract record.
   

4. Once you click Generate LOF, the LOF letter is created, and the LOF Status field value changes to LOF letter created. An email notification is sent to the Contract Manager again. The message Last LOF Letter was created... also displays at the top of this tab.
   

   NOTE

   • You can filter LOF records based on the LOF Status field value by selecting a pre-defined value from the Search LOF Status drop-down menu. This displays the CLIN/SLIN records matching the selected LOF Status.

   • You can also search for a particular CLIN/SLIN record using the Search CLIN/SLINs field.
     

LOF Tab on CLIN/SLINs

1. In the LOF for CLIN/SLINs section, click a CLIN/SLIN record.

2. You can then view and edit the details of the associated LOF record on the CLIN/SLIN LOF tab.
   
   
   

Auto-Population of LOF Period and LOF Percent Fields

When the LOF Period and LOF Percent fields are updated at the Contract level, these updates are applied to existing CLINs where these fields are currently blank. This section highlights the auto-population of these fields.

1. Navigate to an Our Contract record containing CLIN/SLIN records where the LOF Period (in Days) and LOF Percent (Threshold) fields are blank.

2. Go to the LOF tab.
   You can view the CLIN/SLINs associated with the Contract record in the LOF for CLIN/SLINs section. 

3. Click the pencil icon against any field. 

4. Specify values in the LOF Period (in Days) and LOF Percent (Threshold) fields and click Save.
   

5. Select Push LOF Days/% to CLIN in the drop-down menu.
   

6. Click Finish.
   The LOF Period and LOF Percent fields for CLINs are automatically populated. If LOF Period and LOF Percent fields are already specified in the CLINs, updates to the LOF Period and LOF Percent fields at the Contract level do not overwrite the values at the CLIN level. 

   NOTE

   • If the LOF Period and LOF Percent fields are already specified for all CLINs or CLINs are unavailable for the Contract, performing step 5 displays the following message.
     

   • If the LOF Period and LOF Percent fields are not specified for the Contract, performing step 5 displays the following message.