E-Rate Invoicing

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E-Rate Invoicing. Prior to E-Rate Modernization FY2015 State E -rate Coordinator Alabama State Department of Educatioin. General Overview. $$. Service Providers. Two Methods of Invoicing USAC. BEAR. SPI. Service Providers. Service Provider Invoice Method. Service Providers. EASY. - PowerPoint PPT Presentation

Transcript of E-Rate Invoicing

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E-Rate InvoicingPrior to E-Rate ModernizationFY2015State E-rate CoordinatorAlabama State Department of Educatioin

General Overview2


Service ProvidersThe invoice process must start with a Form 486 that has been filed and a Form 486 (Receipt) Notification Letter by you the applicant. As discussed in USACs Step 10 of the process, the Form 486 is the trigger that tells USAC that you have started to receive services that have been funded with E-Rate Discounts and USAC is now authorized by you to begin paying the awarded Service Provider . Our primary topic for this session is the exchange of funding between the Service Providers and the applicants, in our case the students, educators, and support staff of Alabama Schools.2Two Methods of Invoicing USAC


Service ProvidersSPIBEARThere are two methods of invoicing USAC called the SPI and the BEAR methods. Lets discuss each of these methods separately beginning >3Service Provider Invoice Method


Service ProvidersSPI

EASYwith the Service Provider Invoice Method or SPI. This is the easiest , at least initially for you the applicant to choose. In this method the Service Provider bills you for your portion of the bill or bills , you pay your portion to the Service Provider, and then the Service Provider Invoices USAC for the discounted amount using a specific FORM 474. Once USAC settles the Form 474 coupled with your payment the Service Provider is paid in full for the bill. It is important to know that USAC will not pay the vendor until you have paid your portion of the bill.4

Billed Entity Applicant ReimbursementOCT 19, 20106

Service ProvidersBEAR

The other method of Invoicing USAC is the Billed Entity Applicant Reimbursement method. This method is not as easy as the SPI but it does have its advantages. Using the BEAR method you pay your bills in full including the portion of the bill you have been (or could be) awarded in discounts by USAC throughout the funding year.

You may choose to file a BEAR to get the eligible discounts reimbursed that were awarded at any point of time in the process quarterly, semi-annually or a period to be determined by you. Most do this annually.

The BEAR form is available in Paper Form or Online. The Online Format should be the best choice for you however there may be an instance that a paper form is necessary. In either format, the BEAR is partially completed by you the applicant and then sent to the Service Provider. You will have to work with the provider during the process so be sure to locate the correct Service Provider contact that deals with BEAR/INVOICING USAC. Once you send the form to the Service Provider, they verify the information you entered on the form, complete and sign a certification portion of the form then send the completed form back to you .

You will then certify and send the form to USAC for processing. USAC processes the form through reviews, that may require collaboration and changes between you, the service provider and USAC.

Finally when USAC agrees to pay, USAC cuts a check to the Service Provider for the discounted amount owed to you and sends the check to the Service Provider. The Service Provider then will (supposedly within 20 days per USAC rule) send you a check for that amount.

You can then use those funds for school and/or school system purposes depending on local policies. 6

What are the Advantages or Disadvantages of the methods? < Wait for Responses Use tablet or WhiteBoard to record responses>


From a procedural standpoint the SPI methods has the most advantages. But >>>


The BEAR methods has a pretty good advantage as far as actually holding the discounts in your hand for possible dedicated use.10BEAR DeadlineOCT 19, 201011

http://www.usac.org/sl >Deadlines >

The Deadline to file a BREAR through the Online Tool or Paper for is based on a postmark or submission as follows:120 days after the last date to receive service, or 120 days after the date of the Form 486 Notification Letter, whichever is later.

One of the useful tools available on the USAC website is the Deadline tools. 11Deadline Tool

The prime example in using this tool is to use the Funding Year. If the Form 486 Notification Letter date was July 1, 2009 and the last date of services is June 30, 2010 then after clicking on Calculate the calculator tool indicates the deadline in this situation to be October 28, 2010. This is a very important deadline because it usually involves all funded applications especially those Telecommunications/Internet ACCESS of the monthto-month type in general that were funded on or before July 1 of the funding year.12BEAR Deadline Extensions13


You can and should always request an extension based on these items. Once the extension has been approved USAC will posted the approved FRN extensions on a online table called the FRN Extension Table >>14

Here is the information needed to file the Extension. This information is also on the USAC website.15FRN Extension TableOCT 19, 201016

This is a sample of the list that is posted.


Completed Documents Needed

FCDLForm 486Form 471 Block 5(s)

Form 486 Notification Letter

Before starting the process of filing a Form 472 or BEAR, you will need several documents to obtain information during the application process. One of the most important document or documents that will be need is the Service Provider Bills for the FRN.17BEAR Form 472Online PaperEACH format requires Service Provider OCT 19, 201018OR Required Forms

BEAR Paper Form OCT 19, 201020

http://www.usac.org/sl >Require Forms >21

Download Instructions:OCT201022

BEAR FormOCT201023

BEAR FormOCT201024




Column (9) - FCC Form 471 Application Number.

This is the number USAC assigned to the Form 471 with which this line of the BEAR is associated. This number must be obtained from your FCDL.27OCT201028

Column (10) - Funding Request Number (FRN).

This is the number USAC assigned to each distinct row or line of your Form 471. Each FRN is set forth in your FCDL.


Column (11) - Bill Frequency.

Please do not complete this Column, as this Column will be completed by the fund administrator.OCT201030

Column (13) - Shipping Date or Last Day of Work Performed. This Column should be used primarily for internalconnections and other non-recurring products/services billed one-time only. The date in Column (13) should be either thedate that the products were shipped or the last date that the service provider performed its work. This date should be inOCT201031

Column (13) - Shipping Date or Last Day of Work Performed. This Column should be used primarily for internal connections and other non-recurring products/services billed one-time only. The date in Column (13) should be either the date that the products were shipped or the last date that the service provider performed its work. This date should be in month/day/four-digit year (mm/dd/yyyy) format.Please note that only Column 12 OR Column 13 should be completed for each FRN. Please do NOT complete BOTHColumns 12 and 13 for the same FRN.OCT201032

Column (14) - Total (Undiscounted) Amount for Service per FRN. The total undiscounted amount represents the total amount paid per FRN beginning with the service start date as reported in your Form 486 Notification Letter, and ending with the date of the last bill you paid in full and for which you are seeking reimbursement of the discount on the BEAR.

This figure can be no more than 14.2 digits, including dollars and cents.OCT201033

Column (15) - Discount Amount Billed to USAC. The discount amount represents the total amount of funds for which you are seeking reimbursement that is, your discounted portion of Column (14). Before applying the approved discountpercentage to the amount in Column (14), you must deduct charges for any ineligible services, or for eligible servicesdelivered for ineligible recipients or used for ineligible purposes. (For help breaking out these charges, use the OptionalPrediscount Cost Calculation Grid available on the USAC website.) After deducting these charges from the amount inColumn (14), apply the approved discount percentage reflected in your FCDL for this FRN, and enter the resulting total inColumn (15). This figure can be no more than 14.2 digits, including dollars and cents.OCT201034


Finish & MailComplete all parts except Block 4FAX or send entire document to Service ProviderService provider Complete and sign block 4Service Provider must send it back to you signed by FAX.Be sure Block 3 is complete and send to USAC as instructed.Work with the Service Provider to be sure correctness of information.

OCT201036BEAR OnlineOCT 19, 201037

RecommendedUSAC 2006 Training Presentation no other access available37Online BEARHas validation rules to help avoid common errors.Separate BEAR ONLY PINs can be assigned so a third party can enter the billing.ONLINE BEAR Presentation

Online BEAR40Pins will be sent to previous signers of BEAR for the specific Billed Entity.

Online BEAR41This is the Home Page. Any incomplete invoices, created but not submitted, will be displayed. These are NOT active BEARs but only those that have been started and saved.

Online BEAR42This is the initial screen after pressing the New BEAR Form link. Information from the PIN data is automatically inserted into fields. Fields surrounded by blocks may be entered o