Integrating with Other Applications

This chapter provides an overview of product integration and discusses how to integrate with:

PeopleSoft Project Costing.
PeopleSoft Billing.
PeopleSoft General Ledger.

Understanding Product Integration

PeopleSoft Contracts for Government Contracting is designed to fully integrate with PeopleSoft Project Costing, Billing, General Ledger, and Order Management. To fully utilize the features and functionality for government contracts, you are required to install PeopleSoft Project Costing and PeopleSoft Billing and to complete the setup required for PeopleSoft Contracts.

You must set up the PeopleSoft Contracts system to enable you to create and effectively manage government contracts, as the government contracts processing and functionality relies on the core structure set up in PeopleSoft Contracts.

The following table identifies the core Contacts features used by contracts assigned a contract classification of Government:

PeopleSoft Contracts Feature	Usage
Business Units	Whether you are creating government or non-government contracts, you must define a business unit. Business units represent a high level organization of your business. PeopleSoft Contracts enables you to define progress payment rates, contract entry defaults, and cost-plus contract line fee definitions at the business unit level for contracts assigned the contract classification of Government.
Accounting Distributions	To create accounting entries for amount-based contract lines, you must set up accounting distributions and associate them to the contract lines and progress payment terms.
Accounting Rules	If you select to split billing and revenue, to create accounting entries for your rate-based contract lines and rate-based contract lines assigned to a fee type (cost-plus), you must define accounting rules for all analysis types that are included in the analysis groups of PSWKS, PSCST, PSREV, and PSRV2.
Contract Entry	All of the government contracts features require that you create a contract. When you create a contract, you must associate the contract with a contract classification of Government to activate all of the fields related to government contracting. Many of the government contract specific fields and features are hidden unless the contract is associated with a government contract classification.
Contract Lines	Amount and rate-based contract lines represent the products that you deliver to the customer (the U.S. government). Every contract must have at least one contract line associated with it. Use the contract lines as the basis for the following actions for your contract: Generating bills. Recognizing revenue. Associating projects and activities. Associating rate sets and rate plans. Associating withholding and limit amounts. Associating progress payment terms. Associating cost-plus billing and revenue fees.
Milestones	Milestones represent an event in the life of the contract that is usually associated with billing or revenue recognition activities. You can use PeopleSoft Contracts milestones to manage billing or revenue for your contract lines, or you can use them to schedule award or incentive fee events. To use milestones to control billing and revenue processing, you must define the milestones in your PeopleSoft Contracts system, assign them to the government contract, assign them to the billing and revenue plans as events, manage when the conditions for the milestone have been met, and update the milestone statuses to Complete.
Billing Plans	Billing plans control the timing of billing for your contractual obligations. You must associate a billing plan to your contract lines to generate an invoice for the contract lines, billing fees associated with the contract lines, and progress payments.
Revenue Plans	Revenue plans control the timing of revenue recognition for your contractual obligations. You must associate a revenue plan to your contract lines to recognize revenue for the contract lines and revenue fees associated with the contract lines.
Bill Processing	Bill processing for your government contract lines is controlled by PeopleSoft Contracts. Using billing plans, PeopleSoft Contracts retrieves bill data from PeopleSoft Project Costing and PeopleSoft Contracts tables and submits the data for processing through to PeopleSoft Billing to generate invoices.
Revenue Processing	Revenue processing for your government contracts is controlled by PeopleSoft Contracts, with the exception of when PeopleSoft Billing manages revenue for an amount-based contract line. Using revenue plans, PeopleSoft Contracts passes the revenue accounting entries to PeopleSoft General Ledger for processing.
Prepaids	PeopleSoft Contracts enables you to define and manage prepaid amounts for your rate-based contract lines that are not assigned to a fee type and are not withholding-applicable. The prepaid amount can be included in the overall contract amount and PeopleSoft Contracts enables you to define the criteria for using the prepaid amount over the life of the contract.
Amendment Processing	After a contract has been activated, you must make most changes or adjustments using amendment processing. Amendment processing enables you to maintain a historical record of the various changes that may occur during the contract's life cycle. Withholding terms, progress payment rates or terms, limit changes, and cost-plus fee or limit changes are only a few of the features that are controlled by amendment processing.
Revenue Forecasting	Use the revenue forecasting features of PeopleSoft Contracts to estimate your revenue for future periods for amounts not yet recognized for your amount-based, rate-based, and rate-based contract lines assigned to fee types (cost-plus).
Online Contract Summary Views and Inquiries	View summarized data for your government contract, billing, or revenue entries using the Contract Summary, Billing, and Revenue Management pages.
Reporting	You can run delivered reports to view, manage, and track overall contract processing related to billing, revenue, milestones, and limits. Note. Additional reporting that is specific to government contracting is discussed in the reporting chapter. See PeopleSoft Contracts for Government Contracting Reports.

See Structuring PeopleSoft Contracts for Government Contracting.

See Also

Structuring Contracts

Understanding Integrations with Other Applications

Integrating with PeopleSoft Project Costing

You associate contract lines with product IDs on a government contract. The contract lines represent the goods or services that are contracted with the government for delivery. These goods and services are typically associated with projects and activities that are contract specific and do not span multiple contracts. To manage these projects and activities and their various attributes, PeopleSoft Contracts uses its integration with PeopleSoft Project Costing. Data relating to projects and activities is primarily managed by PeopleSoft Project Costing, while associations between activities and contract lines is managed by PeopleSoft Contracts.

PeopleSoft Contracts links to the following data in PeopleSoft Project Costing:

Project and activity data.
Inception-to-date costs.
Estimated costs.
Transaction costs.
Rate sets.
Rate plans.
Variance rates.
Accounting distribution data for rate-based contracts lines.

Tracking Costs for Rate-Based Contract Lines for Government Contracts

For government contracts, PeopleSoft Contracts uses the project, activity, and transaction data stored in PeopleSoft Project Costing to track and calculate costs and fees for billing and to create accounting entries for revenue recognition for rate-based products or services. Any transactions generated by government contracts (for example, fees and withholding) are sent back to PeopleSoft Project Costing for analysis.

For progress payments, PeopleSoft Contracts enables you to assign projects and activities to progress payment terms to track costs for progress payment and progress payment liquidation processing. When you define a progress payment amount and associate it to an amount-based contract line, you can assign one project and activity to the contract line. However, you must also assign at least one project and activity to the progress payment terms and conditions. The project and activity assigned to the progress payment terms is used by the system to determine which set of costs to use when calculating allowable progress payment amounts and progress payment liquidation amounts. The project and activity assigned to the amount-based contract line is used to stamp the Project Transaction (PROJ_RESOURCE) rows with the project and activity information

See Creating Government Contracts, Establishing Progress Payments.

Pricing Rate-Based Contract Lines for Government Contracts

Before you activate a contract, you must fully allocate your contract amounts across your contract lines. For amount-based contract lines, you perform amount allocation using the Amount Allocation page within the contract. For rate-based contract lines and rate-based contract lines associated with fee types (cost-plus), you must define rate sets or rate plans and assign them to the contract line.

Rate sets and rate plans are set up using PeopleSoft Project Costing. Rate sets or rate plans can be defined and made available for all contract lines, or you can define contact-specific rate sets or rate plans. Contract-specific rate sets and rate plans are defined for use only with a specific contract line.

When transactions occur in feeder systems for the contract lines, they are passed to PeopleSoft Project Costing and priced using the standard or contract-specific rate sets or rate plans assigned to the contract line. The resulting cost rows are used for billing, revenue recognition, fee processing, progress payment calculations, and so on for government contracts. Only one assigned rate set or rate plan can be active for a contract line at any one point in time.

A rate set enables you to define a rate structure for costing, billing, or revenue. A rate plan enables you to combine multiple rate sets of multiple rate definition types so that you can calculate direct and indirect costs and then bill and recognize revenue for the results.

See Pricing Government Contracts.

Defining Rate-Based Contract Lines Accounting Distributions for Government Contracts

You must assign accounting distributions to contract lines to generate appropriate accounting entries for billing and revenue. For amount-based contract lines, you define your accounting distributions in the system and then assign the accounting distributions to the product and contract line. For rate-based contract lines and rate-based contract lines assigned to fee types (cost-plus), you must define the accounting distributions using accounting rules.

Accounting rules are defined in PeopleSoft Project Costing and enable you to define the double sided accounting distribution entries used by the system to generate the accounting entries for billing and revenue when the Contracts/Billing Interface (CA_BI_INTFC) process and As-Incurred revenue (PSA_ACCTGGL) process are run, respectively.

See Understanding Accounting Distributions.

See Also

Working with PeopleSoft Project Costing

PeopleSoft Enterprise Project Costing 9.0 PeopleBook

Integrating with PeopleSoft Billing

Billing data for amount-based contract lines is sent from PeopleSoft Contracts to PeopleSoft Billing. Billing information for rate-based contract lines is sent from PeopleSoft Project Costing through PeopleSoft Contracts to PeopleSoft Billing. Billing information for progress payments uses the costing data from PeopleSoft Project Costing to generate progress payment billing data.

PeopleSoft Billing generates invoices for the government contract lines and then sends the billed data back to PeopleSoft Contracts and PeopleSoft Project Costing.

PeopleSoft Enterprise Billing 9.0 PeopleBook

Integrating with PeopleSoft General Ledger

You can post revenue to your general ledger system for the government contracts that you set up in PeopleSoft Contracts. PeopleSoft Contracts stores the accounting distributions to be applied to amount-based contract lines and to transactions for rate-based contract lines. PeopleSoft Contracts then generates accounting entries in the appropriate currency. The Journal Generator, using specific accounting entry definitions and journal generator templates for both amount and rate-based contract lines posts the accounting entries to the general ledger. Journal references for the posted accounting data is updated and sent back to PeopleSoft Contracts.

See Also

Processing Revenue Recognition

General Ledger Integrations