Creating Government Contracts

This chapter provides an overview of creating government contracts, lists prerequisites and common elements, and discusses how to:

Define general contract information.
Define contract lines.
Select products for contract lines.
Define contract terms.
Assign projects to a contract.
Create amendments.

Understanding Creating Government Contracts

Government contracts are typically long-term agreements awarded for a specific amount or defined estimated amounts and then are managed to that amount. The government has specific requirements that the contractors must meet to be awarded the contract, and then also must manage the contract according to government rules and regulations. Ultimately, these requirements are centered on cost control, billing, and cash settlement. Contracts enables you to comply with government regulations, run required reports, and perform required analysis using data captured in the Contract Entry component (CA_HDR_PNG).

The features and functions of PeopleSoft Contracts are the foundation for government contracts specific features. Once a contract has been created and assigned a contract classification of Government, identifying it as a government contract, the contract can be built according to the requirements that are specific to the government contract.

The contact itself is broken into two main parts: the contact header and the contract lines. You use the header level contract pages to capture the overall customer data as well as the overall contract terms and conditions. The line level data consists of the products and services that make up the contract. This can be any combination of amount-based products, rate-based products, or rate-based products associated with fee types (cost-plus). At the line level, you can enter specific awarded amounts, set up limits for costs, fees, revenue (optional), define withholding criteria to control how much of your costs and fees get billed and when, define and manage progress payments, and associate fee types with contract lines to set up and manage cost-plus contract line scenarios. After the contract has been defined and contract lines have been added to the contract, you can set up and manage billing and revenue at the contact line level according to the needs of each individual line.

Setting up a government contract to make it available for billing and revenue recognition processing consists of the following tasks:

Define the contract header data.

This includes entering the overall customer data, terms and conditions of the contract, legal entity, signed date, and so on.

See Defining General Contract Information.
Add products to the contract and enter contract line details.

This includes associating projects and activities to rate-based contract lines, setting up progress payment details for contract lines associated with progress payment amounts, setting up withholding and limit amounts where applicable, defining fee details as needed, and so on.

See Defining Contract Lines.
Perform contract line pricing.

This includes setting up and assigning rates to rate-based contract lines and allocating contract line amounts across all amount-based contract lines.

See Pricing Government Contracts.
Review and update account distribution data for the contract lines.

This includes setting up accounting rules for rate-based contract lines, setting up and assigning account distributions and deferred revenue options to amount-based contract lines.

See Structuring PeopleSoft Contracts for Government Contracting.
Create and assign billing plans to contract lines and any progress payments worksheet.

Use templates to automatically create and assign billing plans to contract lines or manually define them. Billing plans are required and are the vehicles by which billable contract line transaction data is passed to PeopleSoft Billing. If progress payments are assigned to any amount-based contract lines, then a billing plan must be defined and assigned to the progress payment worksheet to process the progress payment requests.

See Setting Up Billing Plans.
Create and assign revenue plans to contract lines.

Use templates to automatically create and assign revenue plans to contract lines or manually define them. Revenue plans are required and are the vehicles by which contract line transactions accounting data is passed to PeopleSoft General Ledger.

See Setting Up Revenue Plans.
Set the contract processing status to Active.

Only contracts with a processing status of Active are available for any processing.

Prerequisites

Before creating government contracts, you must first complete all of the underlying setup steps.

See Structuring PeopleSoft Contracts for Government Contracting.

See Also

Structuring Contracts

Common Elements Used in This Chapter

Amendment Number	Displays the current amendment number assigned by the system. When the contract is activated, the system displays the amendment number 0000000000. As amendments are processed on the contract, the amendment number is automatically increased by one.
Amend Contract	Click this button on an active contract to make adjustments to the current contract by creating an amendment. If a pending amendment exists, click to edit the existing, pending amendment. When you click this button, the system transfers you to amendment mode, and the button name changes to View Current.
Amendment Status	Displays the status of the last processed amendment.
View Current	In amendment mode, this button appears on the pages of the contract component. Click to view and edit the current contract. When you click this button, the button name changes to Amend Contract.
Business Unit	Establishes defaults for billing and accounting data for a contract defined using this business unit.
Contract Classification	Select a value for the contract classification when creating a new contract. The contract classification displays on the contract header and cannot be changed. Values for the Contract Classification field include: Standard, Internal, Government, and Federal Reimbursable Agreement. To access the features and functions associated with government contracts, you must select the contract classification of Government.
Contract Number	Displays the contract number that you entered when first defining the contract. If automatic numbering is enabled and you select a value of NEXT, the system generates a contract number. The contract number is a unique number used to identify a contract. The parameters that you establish for a contract number affect all components of the contract.
Contract Status	Displays a user-defined value that provides a visual indicator of where the contract is within the contract lifecycle. This element also controls what processing can occur against the contract, as it is associated with a processing status. When you define a new contract, the contract status that was set up as the defaulting contract status appears, and can be overridden and changed to a different contract status. If you select a contract status that is mapped to a different contract processing status, the system performs edit checking to ensure that the contract is eligible for the new processing status that you selected.
Contract Type	Enter the user-defined contract type for the contract. This value is used for reporting and for determining what milestones may be applied to an amount-based contract line's revenue plans and billing plans.
Go To	Click one of the following links to navigate to key contract pages to set up billing and revenue or to perform pricing for amount-based contract lines: Billing Plans: Click this link to assign contract lines for this contract to new or existing billing plans. Revenue Plans: Click this link to assign contract lines for this contract to new or existing revenue plans. Milestones: Click this link to add new milestones or edit existing milestones on this contract. Amount Allocation: Click this link to allocate the fixed contract amount across amount-based contract lines. Once the contract is activated, this link no longer appears.
More	Select from the drop-down list box options to navigate to the additional contract pages. Values include: Attachments: Click to attach document files such as letters, spreadsheets, or drawings to the contract or to view or delete already attached files. Billing Options: Click to enter billing option defaults for the contract. These billing options appear by default on the billing plans created for contract lines within this contract. You can override these options at the billing plan level. Conversations: Click to create conversations to attach to the contract. Internal Notes: Click to add both standard and custom notes for the company’s internal reference to various contract components. Payment Terms: Click to define early out options and bonus and penalty information to be applied to the contract. Prepaids: Click to administer prepaid purchases. Progress Payments: Click to administer progress payment amounts. Revenue Forecast: Click to create a revenue forecast. Sales Order: Click to create sales order lines from the associated shippable amount-based contract lines. Service Orders: If you have installed PeopleSoft Enterprise Resource Management, click this link to define a service order to associate with this contract. Sold To Address: Click to view, and optionally select, a different address for a contract’s sold to customer. Support Teams: Click to add support teams to the contract. View Forecast: Click to launch a revenue forecast.
Processing Status	Displays the processing status corresponding to the selected contract status.
Sold To Customer	Displays the name and customer ID of the customer to whom this contract was sold. A sold to customer can be associated with multiple ship to and bill to customers, enabling you to associate different contract lines with different ship to customers and different billing plans with different bill to customers.

Defining General Contract Information

This section provides an overview of defining contract header data and discusses how to:

Set up and manage contract header information.
Define the sold to address.

Understanding Defining Contract Header Data

At the contract header level you identify the contract as a government contract by setting the contract classification to Government. This setting enables you to view and utilize all of the fields that are specific to government contracting. The contact header enables you to define the customer data as well as the overall terms and conditions for the contract, such as billing options, payment terms, contract start date and relationship, if any, to other contracts. Contract headers have a one-to-many relationship with contract lines. That is, many contract lines can be assigned to one contract header, and data assigned at the contract header level can appear by default on the contract lines. Much of the processing associated with the contract takes place at the contact line level.

See Also

Defining General Contract Information

Pages Used to Define General Contract Information

Page Name	Object Name	Navigation	Usage
Contract - General	CA_HDR_PNL	Customer Contracts, Create and Amend, General Information, Contract - General Customer Contracts, Contracts Center, Contracts, General Information, Contract - General	Set up and manage contract header information.
Sold To Address	CA_CONTACT_PNL	Select Sold To Address from the More drop-down list box on the Contract - General page.	View and optionally select a different address for a contract’s sold to customer.

Setting Up and Managing Contract Header Information

Access the Contract - General page.

Copy From Contract

Click to create a new contract using an existing contract. For government contracts, when you use this method to copy a contract that contains rate-based contract lines assigned a fee type other then None, the system does not copy any fee types associated with the rate-based contract lines. Instead, when the system copies the rate-based contract line that was assigned a cost-plus fee type, the system replaces the fee type for the new contract line with a fee type of None.

Add to My Contracts

Click to add the current contract to the My Contracts page.

Contract Admin (contract administrator)

Select an administrator for this contract.

Region Code

Select a region code, which enables you to break your business out into smaller or larger areas for operational purposes.

Currency Code

Enter the currency code for the contract. The currency code defined at the contract header level is inherited by all contract lines that are added to the contract. Once you set up the contract, enter the currency code at the header level, and save the contract, this field is no longer editable.

Contract Signed

Enter the date on which the contract was signed. You must enter a value in this field before you can assign the contract a status that is mapped to an Active processing status.

Last Amended

Displays the date of the last amendment processed for the contract.

Last Update Date/Time

Displays the time stamp of the last amendment processed for the contract.

Last Update User ID

Displays the user ID of the user that entered the last amendment for the contract.

Other Information

Template Contract	Select to designate this contract as a template. You can then use this template when creating subsequent contracts. Contracts designated as templates can contain header and line data but can never be set to an active processing status or have billing or revenue performed against them.
Master Contract (check box)	Select to designate this contract as a master. This check box is not available on active contracts.
Legal Review Complete	Select to indicate that the legal group has reviewed this contract. This check box is informational only.
Credit Check Complete	Select to indicate that a credit check was completed for this customer. This check box is informational only.
Parent Contract	Select a parent contract to create a parent-child relationship with another contract.
Master Contract (field)	To link this contract to a master contract, enter the master contract number in this field. If you have designated this contract as a master by selecting the Master check box, this field is unavailable.
Legal Entity	Enter the organizational or legal owner of the contract. The system can populate this field with the value associated with the PeopleSoft Contracts business unit.
Purchase Order	Enter the sold to customer's purchase order (PO) number associated with this contract. The PO is used in billing processing and placed on the bill header.
Proposal ID	Enter the proposal ID associated with this contract. This field is informational only.

Summary of Amounts

Awarded Cost	Displays the summarized amount of awarded costs defined for cost-plus contract lines (rate-based contract lines associated with a fee) that are assigned to this contract.
Awarded Fee	Displays the summarized amount of awarded fees defined for rate-based contract lines associated with a fee type (cost-plus) that are assigned to this contract. This field represents all awarded fees for the contract and not only the fees associated with the award fee type.
Awarded Subtotal	Displays the summarized total of the awarded costs and awarded fees defined for rate-based contract lines associated with a fee type (cost-plus) that are assigned to this contract.
Awarded T&M (awarded time and materials)	Displays the summarized total of any awarded amounts entered at the contract line level on the Contract Amounts page for rate-based contract lines not associated with fees (not cost-plus).
Fixed Price	Displays the summarized total of any amount-base contract lines associated with the contract.
Total Contract Value	Displays the summarized total of all awarded costs, fees, time and material, and fixed price amounts associated with the contract lines.
Funded Cost	Displays the total limit amount for billable costs that have been entered for rate-based contract lines associated with a fee type (cost-plus) on the Contract Amounts page.
Funded Fee	Displays the total fee limit amount for billable fees that have been entered for rate-based contract lines associated with a fee type (cost-plus)
Funded T&M (funded time and materials)	Displays the total limit amount for billable costs that have been entered for rate-based contract lines not associated with a fee type (not cost-plus) on the Contract Amounts page.
Revenue Cost	Displays the total revenue limit amount defined for rate-based contract lines associated with a fee type (cost-plus) associated with the contract. Revenue cost limit amounts are only entered when the Separate Billing and Revenue option is selected on the Installation Options-Contracts page.
Revenue Fee	Displays the see Revenue Fee Worksheet link. Click the link to navigate to the revenue fee worksheets where the revenue fee amount is managed for rate-based contract lines associated with a fee type (cost-plus). This link is active only if the Separate Billing and Revenue option is selected on the Installation Options-Contracts page.

See Also

Defining General Contract Information

Defining the Sold To Address

Access the Sold To Address page.

Address Sequence Number

Select the address location for the sold to customer. Select from addresses previously defined for the customer on the Customer Information - General Info page.

Contact

Select the contact for the selected sold to address for the customer.

Defining Contract Lines

This section provides an overview of defining contract lines, lists common elements, and discusses how to:

Add general contract line information.
Add contract line details.
View contract line amount details.
Set the contract line deferred revenue option.

Understanding Defining Contract Lines

After you create a contract header, you can begin creating contract lines for the contract by adding products onto the contract. Products represent the goods and services that you are contracted to provide to the government entity. These products can be defined in advance, or can be created on an ad hoc basis specifically for the contract. Attributes assigned to the product appear by default on the contract line along with any contract header level data that pertains to the contract line, but can be overridden at the line level. After selecting products for the contract, you can assign the following additional attributes to your amount-based contract lines:

Accounting distribution data.
Projects and activities.
Fixed Price.
Progress payment data.

The following additional attributes can be added to your rate-based contract lines:

Fee information.

This includes fee types, fee rates, and other data used for fee calculations.
Rate sets or rate plans.
Projects and activities.
Limits.
Withholding and release criteria.

To price the contract lines, you can assign a fixed amount to your amount-based contract lines using either a list price defined for the product, or using the PeopleSoft Enterprise Pricer, and then adjust the amount as needed using the Amount Allocation page. For contract lines that are rate-based or rate-based associated with a fee type (cost-plus), pricing is done using rate sets or rate plans, and projects and activities assigned to the contract line on the Related Projects page. As transactions are accumulated for these contract lines in PeopleSoft Project Costing for the projects and activities associated with the contract lines, the PeopleSoft Project Costing Pricing Engine prices the transactions using the rates associated with those same contract lines.

After the contract is activated and pricing is complete for the contract lines, you can bill and recognize revenue for the contract line transactions as needed. Billing and revenue recognition plans are required to perform billing and revenue processing and can be assigned to the contract lines before or after the contract has been activated. However, before billing or revenue recognition can occur for the contract line, the contract line must have a processing status of Active, and be assigned to a billing or revenue recognition plan respectively.

See Defining Contract Lines.

See Setting Up Products.

See Setting Up Revenue Plans.

See Setting Up Billing Plans.

Common Elements Used in This Section

	Click the Header Details icon to view the contract header data for the contract lines.
Add Contract Lines	Click to navigate to the Add Contract Lines page to add existing products or define new products to add to this contract. You can add contract lines to contracts in Pending processing status or after the contract becomes active, you can add contract lines using amendment processing. When you activate a contract, the Add Contact Lines button no longer appears, and will only reappear when the contract is opened using amendment mode.
Add Default Kit	Select to add a default product kit to the contract. You must first have defined a default product kit for the contract's contract type to use this default feature.
Line	Displays the contract line number assigned to the product once it has been added to the contract.
Price Type	Displays the price type associated with the product. Amount and Rate are the only applicable price types for government contracts.
Product	Displays the product identifier for the product assigned to the contract line.

Page Used to Define Contract Lines

Page Name	Object Name	Navigation	Usage
Contract - Lines	CA_OBLIGATIONS	Customer Contracts, Create and Amend, General Information, Lines	Add products to a contract. Each product appears on the contract as a distinct contract line number. From this page you can view or access all details defined for a contract line.

Adding General Contract Line Information

Access the Contract - Lines page: General tab.

After selecting products onto the contract, the Contract - Lines tabs enable you to view and enter all required details for the contract lines. Each contract line represents a unique contract product that can be associated with its own accounting distributions, limits, fees, progress payments, billing and revenue plans, and so on.

Fee Type	Displays the fee type, if any, assigned to the rate-based contract lines. Fee types are assigned on the Add Contract Lines page. If you will be using cost-plus functionality for the contract line, you must select a fee type for the product before the product is added to the contract.
Start Date	Displays the period of performance start date entered on the Contract Amounts page for rate-based contract lines. For amount-based contract lines, the start date represents the beginning of a recurring bill schedule or renewal term. Recurring billing and renewal processing are not applicable to government contracts.
End Date	Displays the period of performance end date entered on the Contract Amounts page for rate-based contract lines. For amount-based contract lines, the end date represents the end of a recurring bill schedule period or renewal term. Recurring billing and renewal processing are not applicable to government contracts.
Status	Select the status of the contract line. Values include: Pending: Setting the contract line status to pending enables you to capture commitments for contract lines that can be exercised at a future date. Contract lines in pending status are editable, but cannot be assigned to billing or revenue plan and are not available for processing. Active: Appears by default as the line status when you create a contract line. To assign contact lines to billing and revenue plans, and to make them available for processing, the contract lines must have an active status. Cancelled: Setting the contract line status to cancelled prevents any additional processing from occurring against the contract line. You can cancel a contact line using amendment processing. When cancelling an amount-based contract line, you will also need to specify whether any billing or revenue processed for the contract line must be reversed.

Adding Contract Line Details

Access the Contract - Lines page: Detail tab

The Contract - Line Details page provides links for each contract line to enable you to set up billing and revenue plans, contract terms, accounting distribution, and add any internal notes.

Billing Plan	Displays the status of the billing plan assigned to the contract line as a link. To access the Billing Plan General page for the billing plan created and assigned to the contract line, click the status link for the contract line.
Revenue Plan	Displays the status of the revenue plan assigned to the contract line as a link. To access the Revenue Plan page for the revenue plan created and assigned to the contract line, click the status link for the contract line.
Contract Terms	Click the Contract Terms link to access the Contract Terms component (CA_DETAIL_PROJ). The Contract Terms component enables you to define limits for contract line funded amounts and fees, associate projects and activities with the contract line, and set up withholding parameters.
Accounting	Click the Distribution link to access the Accounting Distribution page. Use this page to manage account distribution data for amount-based and rate-based contract lines. For amount-based contract lines, specify the unbilled accounts receivable, revenue and deferred revenue accounting distributions used by the system to generate accounting entries for the contract line. For rate-based contract lines, specify the Revenue Forecasting account distribution data used by the system when generating a revenue forecast for the contract line. If an error occurs during processing, an Action Required link appears instead of the Distribution link. Errors may occur for the following reasons: The combination editing check failed. You allocated the accounting by amount, and the amount does not match the value on the contract line. See Accounting Distributions.
Internal Notes	Click to access the Internal Notes page to add or view notes related to this contract line.
Ship to Customer Name	Click to access the Ship To Address page to manage the ship to customer information for this contract line. Defaults are based on the sold to customer that you selected on the Billing Options page. You can select an alternate ship to ID.

Viewing Contract Line Amount Details

Access the Lines page: Amount Detail tab.

The Contact - Lines Amount Detail page enables you to view the pricing information for a contract line. The system updates these fields to reflect any changes that you make to the price detail for amount-based contract lines on the Amount Allocation page and for rate-based contracts on the Contract Amounts page.

List Price	Displays the list price defined on the Product Price page for amount-based products. The list price displays in the contract currency.
Quantity	Displays the quantity for the product that you added to the contract line. For amount-based products, the system uses the quantity as a multiplier to determine the total fixed price amount for the contract line. This field is display-only. If you want to change the quantity prior to contract activation, you can do so on the Amount Allocation page. After contract activation, you can change the quantity through an amendment on the Amendment Amount Allocation page.
UOM (unit of measure)	Displays the unit of measure defined on the Product Price page for amount-based products.
Fixed Price	Displays the fixed price amount for amount-based contract lines, allocated for this contract line, on the Amount Allocation page, and then multiplied by the quantity. This field is updated when any changes are made on the Amount Allocation page.
Awarded Amount	Displays the awarded limit amount defined on the Contract Amounts page for rate-based contract lines.

Setting the Contract Line Deferred Revenue Option

Access the Lines page: Deferred Revenue tab.

Generating accounting entries for deferred revenue enables you to post revenue that you expect to realize in a future accounting period for amount-based contact lines to the general ledger. If the contract is in Pending status, you can enable deferred revenue by selecting this check box. If the contract is in Active status, you cannot change this setting unless you are in amendment mode.

Deferred Revenue

Select to enable deferred revenue processing at the contract line level for amount-based contract lines. The deferred revenue option can also be set up on the Product Group Options page, so that it appears on this page when the product associated with that product group is added to the contract.

Note. If you choose to set up the deferred revenue option at the Contracts Product Group Options level, you will not be able to override the deferred revenue setting at the contract line level unless you have also selected the Deferred Revenue Override option at the PeopleSoft Contracts business unit level.

Deferred Revenue Status

Displays the status of the deferred revenue processing for this contract line. This field only appears when the Deferred Revenue check box is selected.

Deferred Revenue Acctg Date (deferred revenue accounting date)

Select the deferred revenue accounting date for the amount-based contract line. The Deferred Revenue process does not process any contract line until you specify the deferred revenue accounting date. In addition, if deferred revenue is enabled, any related amount-based revenue processes do not process until the deferred revenue process is run. This field only appears when the Deferred Revenue check box is selected.

Selecting Products for Contract Lines

This section provides an overview of selecting products for contract lines and discusses how to select products to add to a contract line.

Understanding Selecting Products for Contract Lines

When you select a product onto a contract line, the system creates a single contract line. If products or services are sold as part of a product kit (a collection of products), then when you select a product kit onto a contract, the system creates an individual contract line for each product within the product kit. When selecting products for government contracts, you can select from amount- and rate-based product types. You can add any combination of these contact line types onto the same contract according to your business needs. For rate-based contract lines associated with a fee type other than None (cost-plus), you must assign the fee type on the Add Contract Lines page, so that the various contract pages are displayed with the appropriate fee information after the product is added to the contract.

The Add Contract Lines page provides a number of automation features to reduce the amount of data entry needed after the product is added to the contract. For example, by assigning billing or revenue plan templates to the products, the system automatically creates billing and revenue plans for the contract lines, combining contract lines onto the same billing and revenue plans where applicable. For rate-based contract lines that are assigned a fee type (cost-plus), you can use billing and revenue plan templates to automatically create billing and revenue plans, but the contract lines cannot be combined onto a single billing or revenue plan, even if they use the same fee type, as the various fees must be managed separately for each individual contract line.

When using templates to automatically create billing and revenue plans, only certain billing and revenue plan methods can be used for your amount- and rate-based contract products. The following table displays the available billing and revenue methods that can be associated with the amount- and rate-based contract lines assigned to government contracts:

Contract Line Price Type	Eligible Billing Method	Contract Line Price Type	Eligible Revenue Method
Amount	Milestone Immediate Percent Complete	Amount	Milestone Apportionment
Rate (Time and Material)	As-Incurred Value-Based	Rate (Time and Material)	As-Incurred
Rate (Cost-Plus)	As-Incurred	Rate (Cost-Plus)	As-Incurred

See Also

Setting Up Revenue Plans

Setting Up Billing Plans

Page Used to Select Products for Contract Lines

Page Name	Object Name	Navigation	Usage
Add Contract Lines	CA_OFFERING_SRCH	Customer Contracts, Create and Amend, General Information, Lines Click the Add Contract Lines button.	Search for and select existing products to be added to a contract. From this page you can also create and add ad hoc products to a contract line.

Page Name

Object Name

Navigation

Usage

Add Contract Lines

CA_OFFERING_SRCH

Customer Contracts, Create and Amend, General Information, Lines

Click the Add Contract Lines button.

Search for and select existing products to be added to a contract. From this page you can also create and add ad hoc products to a contract line.

Selecting Products to Add to a Contract Line

Access the Add Contract Lines page.

Search Products

Use the Search Products group box to search for predefined amount- and rate-based contract products. Optionally, filter the search using this search criteria:

Product Group	Select a product group. Product groups are optional. If they are set up, they provide a logical grouping of products.
Product	Search for products by entering all or part of a product name.
Product Description	Search for products by entering all or part of a product description as entered on the Product Definitions page.
Price Type	Search for products by price type associated with the product. Select from a price type of Amount or Rate.
Physical Nature	Search for products by the physical nature if assigned to the product on the Product Definitions page. Select Goods or Services.
Product Kits	Select this check box to only search for product kits.
Search	Click the Search button for the system to carry out the search based on the search criteria that you entered, and populate the Search Results grid with all products meeting the criteria.

Search Results: General Tab

In the Search Results grid, the system displays the products that meet the search criteria.

To add a product to the contract, select the check box and click Add Contract Lines to add the products to the contract, but remain on the Add Contract Lines page. When you select multiple products, the system adds each selected product to the contract as a new contract line.

Product	Displays the product identifier defined for the product on the Product Definition page.
Price Type	Displays the price type associated with the product. Values include: Amount: Identifies the product as an amount-based product type. Rate: Identifies the product as a product that is priced using rate sets and rate plans.
Physical Nature	Displays the physical nature of the product if one was assigned on the Product Definition page.
Product Kit	Displays whether the product is part of a product kit.
Fee Type	Select a fee type to assign to products with a price type of Rate to enable cost-plus functionality to be used for the contract line.
Start Date	Enter a start date for the contract line. The value that you enter here populates onto the Contract – Lines page. The system uses this start date to initiate billing for products with recurring price types. In addition, if this contract line is associated with a template with a basis date source option of Contract Line Start Date, the system uses this start date when populating events onto the contract line. Note. You must enter a value in the Contract Line Start Date field if a template with a basis date source option of Contract Line Start Date is associated with the product that you are adding to the contract. Note. This field is not available for entry if you selected the Product Kits check box in the Search group box.
End Date	Enter an end date for the contract line. The value that you enter here populates onto the Contract – Lines page. The system displays the latest end date from all contract lines that are defined for the contract on the Contract – General page. Note. This field is not available for entry if you selected the Product Kits check box in the Search group box. This field is also not available for entry if you selected Recurring in the Price Type field.
Quantity	Enter the quantity of the product selected.
UOM (unit of measure)	Displays the default unit of measure assigned to the product. You can select a different unit of measure from those values previously defined for the product.
Select All	Select the check box to select all products returned by the search process and add to the contract.
Clear All	Select the check box to clear the selection box for any products returned by the search process that were selected to be added to the contract.

Search Results: Templates Tab

Access the Add Contract Lines page: Templates tab.

Revenue Plan

Add a revenue plan template or override the existing revenue plan template before adding the contract line to the contract. Adding a revenue plan template to the contract line enables the system to automatically set up a revenue plan for the contract line once the product is added to the contract and the contract is saved. For rate-based contract lines assigned a fee type (cost-plus), revenue plan templates must use the As-Incurred revenue plan method.

Note. When selecting a revenue plan template for contract lines, all active revenue plan templates appear in the drop down selection. However, if a revenue plan template is selected that uses a method that is not valid with the price type, the system displays an error message when you attempt to add the contract line to the contract.

Billing Plan

Add a billing plan template or override the existing billing plan template before adding the contract line to the contract. Adding a billing plan template to the contract line enables the system to automatically set up a billing plan for the contract line once the product is added to the contract and the contract is saved. For rate-based contract lines assigned a fee type (cost-plus), billing plan templates must use the As-Incurred billing plan method.

Note. When selecting a billing plan template for contract lines, all active billing plan templates appear in the drop-down list box selection. However, if a billing plan template is selected that uses a method that is not valid with the price type, the system displays an error message when you attempt to add the contract line to the contract.

Billing Plan Detail

Add a billing plan detail template or override the existing billing plan detail template before adding the contract line to the contract. Billing plan detail templates enable you to automatically enter or override data on the Billing Plan - General page.

Add Contract Lines

Click to add any currently selected products to the contract. Clicking this button does not automatically return you to the Contract - Lines page, but enables you to perform any additional product searches using the Add Contract Lines page.

Create Adhoc Product

Click to access the Create Adhoc Product page, where you can create a new product to use only on this contract.

Return to Contract Lines

Click to return to the Contract - Lines page and view any newly added contract lines.

Create Plans from Template

Billing Plans	Select this check box to enable the system to automatically create a billing plan using a specified template when adding the contract line to the contract. Clear this check box if you do not want the system to automatically create a billing plan using templates, when the contract line is added to the contract.
Revenue Plans	Select this check box to enable the system to automatically create a revenue plan using a specified template when adding the contract line to the contract. Clear this check box if you do not want the system to automatically create a revenue plan using templates, when the contract line is added to the contract.

Combine Like Templates

If you choose to combine like templates and you select a revenue or billing plan template with a basis date source option of Contract Line Start Date for more than one product, only products with the same contract line start date are assigned to the same billing or revenue plan. If the start date is different for different products, the system assigns them to separate billing or revenue plans.

Billing Plans

Select this check box to combine multiple contract lines with the same billing plan template into one billing plan. To keep each contract line and its respective billing plan separate, clear this check box. To combine like billing plans, you must have the same billing plan template and billing plan detail template.

Note. This option does not apply to rate-based products associated with fee types (cost-plus) as they are required to have their own billing plan and cannot be combined with other contract lines, even if they have the same fee type.

Revenue Plans

Select this check box to combine multiple contract lines with the same revenue plan template into one revenue plan. To keep each contract line and its respective revenue plan separate, clear this check box.

Note. This option does not apply to rate-based products associated with fee types (cost-plus) as they are required to have their own revenue plan and cannot be combined with other contract lines, even if they have the same fee type.

Defining Contract Terms

This section provides an overview of defining contract terms and discusses how to:

Define contract terms and amounts.
Set up withholding terms.

Understanding Defining Contract Terms

Government contractors bill for their contracts according to terms and conditions specified by the government. After funding is received for a contract, the contractor may bill for a specified amount over the duration of the contract within a specified date range (referred to as the period of performance, or POP). Government contractors manage revenue recognition according to a different set of dates and different limits.

Although any costs incurred during the completion of the contract must be tracked and managed, the contractor may only be able to bill or recognize revenue for a portion of those costs depending on the terms of the contract. PeopleSoft Contracts enables you to enter, track, and manage billing, revenue and fee details, as well as project, activity, and rate data for your rate-based contract lines on your government contracts. The Contract Terms component (CA_DETAIL_PROJ) enables you to:

Enter and manage funding and revenue limits.
Link to transaction limit details.
Link to the Review Limits page.
Enter, track, and manage billing and revenue fee amounts and calculations.
Set period of performance constraints.
Define withholding and release terms and criteria.
View and assign projects, activities, and rates to rate-based contract lines.

See Also

Creating and Managing Limits

Setting Up and Processing Withholding

Defining Cost-Plus Contract Fees

Pages Used to Define Contract Terms

Page Name	Object Name	Navigation	Usage
Contract Amounts	CA_AMT_TERMS	Customer Contracts, Determine Price and Terms, Contract Terms, Contract Amounts Click the Contract Terms link on the Detail tab of the Contract – Lines page. Then, select the Contract Amounts tab.	Define contract terms and conditions and set up limit processing parameters for rate-based contract lines (cost-plus and non-cost-plus).
Withholding	CA_WTH_TERMS	Customer Contracts, Determine Price and Terms, Contract Terms, Withholding	Set up withholding and release terms and conditions for rate-based contract lines.

Defining Contract Terms and Amounts

Access the Contract Amounts page.

The Contract Amounts page enables you to enter funded, revenue, transaction, and fee limit details for contract lines associated with a government contract. For rate-based contract lines associated with a fee type other than None (cost-plus), this page will contain fields specific to the fee type selected for the contract line.

See Defining Cost-Plus Contract Lines.

See Creating and Managing Limits.

Limit Details

Awarded T&M (awarded time and materials)	Enter the awarded amount for the contract line. This amount is used as a control amount and cannot be exceeded by the entered funded amount.
Funded T&M (funded time and materials)	Enter the funded costs amount for the contract line. This amount is used for limit processing for transactions occurring against this contract line, where the amount to be billed cannot exceed this amount. The amount that you enter here cannot exceed the awarded amount.
Transaction Limits	Click to access the Transaction Limits page and enter transaction limit criteria and amounts for this contract line. See Setting Up Transaction Limits.
Review Limits	Click to access the Review Limits component. The Review Limits component enables you to review overall limit amounts, amounts remaining, and any amounts in excess for the contract line. For excess limit amounts, you can also view the details of the excess transactions. See Pages Used to Review Limit Processing.
Perform Limit Checking	Click this button to perform ad hoc limit checking for this contract line. Clicking this button will launch the Limits (CA_LIMIT) process and run limit checking for the contract line's billing and revenue limit amounts if changes were made using amendment processing.

Period of Performance

Start Date	Enter the start date for the contract line. PeopleSoft Contracts enables you to control billing and limit processing within a specified date range per contract line. After the contract is set to an active processing status, this date can no longer be changed if the Control Limits and Billing check box is selected. Otherwise, you can change this date using amendment processing.
End Date	Enter the end date for the contracts line. After the contract is set to an active processing status, this date can be changed using amendment processing, but can not be set to a date prior to the current system date, if the Control Limits and Billing check box is selected.
Control Limits and Billing	Select the check box to control billing and limit processing for rate-based and rate-based contract lines associated with a fee type (cost-plus). When this option is selected, the Contracts/Billing Interface (CA_BI_INTFC) process and the Limits (CA_LIMIT) process will not select transactions for processing if the transaction date falls outside the period of performance date range.

Setting Up Withholding

Access the Withholding page.

ITD Withheld (inception to date withheld)

Displays the amount that has been withheld from billing for the contract line from the inception date of the contract to the current date, upon opening the page. This amount is based on transaction data stored in the Project Costing Project Transaction table. This amount does not include any withholding in progress, such as, withholding amounts calculated by the Contracts to Billing Interface process (CA_BI_INTFC) but not yet reported back to PeopleSoft Project Costing by the Retrieve Billing Items process (PC_BI_TO_PC).

ITD Released (inception to date released)

Upon opening the page, displays the withholding amount that has been released to billing for the contract line from the inception date of the contract to the current date. This amount is based on transaction data stored in the Project Costing Project Transaction table.

Amount Remaining

Displays the calculated difference between the amount withheld to date and the amount released to date upon opening the page.

Withholding Terms

Withholding Rate	Enter the withholding percentage that the system will use to calculate withholding amounts on withholding applicable billed or billable project transactions.
Start Amount Billed	Enter the actual amount that must be billed for the contract line before the system should apply the withholding terms. Leave this field blank if the system should apply the withholding terms for all applicable transactions that occur for this contract line.
Maximum Applicable	Select this check box to indicate that there is a maximum amount that can be withheld from this contract line. If you select this check box, then you should also enter a maximum withholding amount. The system issues a warning message if you do not enter a maximum withholding amount.
Max Withholding Amount (maximum withholding amount)	Enter the maximum amount that can be withheld from this contract line. Use this field in conjunction with the Maximum Applicable check box.
Withholding Source	Select the type of project transactions that are eligible for withholding calculations. Select from: All Costs: Select this option to include every cost associated with the contract line in the withholding calculations. Fees: Select this option to include only fee transactions associated with the contract line in the withholding calculations. Specific: Select this option to specify the transaction types associated with the contract line to be included in the withholding calculations. This option works in conjunction with the Transaction Identifier field.
Transaction Identifier	Select the transaction identifier that the system should use to determine which transactions to include in the withholding calculations for the contract line. Transaction identifiers must first be defined in PeopleSoft Project Costing and enable you to predefine groupings of valid project ChartFields that can be used to identify specific transactions. Note. This option must be used when the Withholding Source option of Specific is selected.

Withholding/Release Target

PC Bus Unit (PeopleSoft Project Costing business unit)	Displays the PeopleSoft Project Costing business unit associated with the rate-based contract line on the Related Projects page.
Project	Enter the project identifier that the system assigns to the summary withholding and release bill lines sent from PeopleSoft Contracts to PeopleSoft Billing and back to the PeopleSoft Project Costing project transaction tables. Select from projects that are associated with the contract line on the Related Projects page. This field is required.
Activity	Enter the activity identifier that the system assigns to the summary withholding and release bill lines sent from PeopleSoft Contracts to PeopleSoft Billing and back to the PeopleSoft Project Costing project transaction tables. Select from activities that are associated with the contract line on the Related Projects page. This field is required.
Source Type	Select the Source Type project ChartField value that the system assigns to the withholding and release summary lines that are passed to PeopleSoft Billing from PeopleSoft Contracts and to PeopleSoft Project Costing from PeopleSoft Billing. Source types are defined in PeopleSoft Project Costing and enable you to define a value that identifies a transaction's purpose. Source types can be used to track, analyze and report on transactions. Note. This field is required if the Input Control for Source Type is set to Required on the PeopleSoft Project Costing Business Unit-Project Costing Options page.
Category	Select the Category project ChartField value that the system assigns to the withholding and release summary lines that are passed to PeopleSoft Billing from PeopleSoft Contracts and to PeopleSoft Project Costing from PeopleSoft Billing. Categories are defined in PeopleSoft Project Costing and enable you to further define source types to better track the types of costs occurring against your project and activities. Note. This field is required if the Input Control for Category is set to Required on the Project Costing Business Unit-Project Costing Options page.
Subcategory	Select the Subcategory project ChartField value that the system assigns to the withholding and release summary lines that are passed to PeopleSoft Billing from PeopleSoft Contracts and to PeopleSoft Project Costing from PeopleSoft Billing. Subcategories are defined in PeopleSoft Project Costing and enable you to further define source types to better track the types of costs occurring against your project and activities. Note. This field is required if the Input Control for Subcategory is set to Required on the Project Costing Business Unit-Project Costing Options page.
Description	Enter the description that you want to appear on the billing invoice for the withholding bill line. This field is required.

Requested Releases

If any of the fields in the Requested Release section are populated, even if it is a zero value, then all fields become required by the system.

Option	Select the release option for the release amount row. Select from the following options: Bill: Select this option to pass the release row billing data to PeopleSoft Billing and add the release row amount to the invoice as a billable amount. Write-Off: Select this option to write off the release row amount and pass the write off data to PeopleSoft Billing and PeopleSoft Project Costing.
Release Amount	Enter the amount to be released. When entering a release amount, it cannot exceed the withholding Amount Remaining for the contract line.
Description	Enter the description that you want to appear on the billing invoice for the release bill line.
Release Status	Displays the processing phase for the release row during release processing. The release row may be set to or display one of the following statuses: Pending: Set by the system as a default status. Release rows with a status of Pending are not selected and processed by the withholding process. Note. You can only have one release row in Pending status for a contract line. No additional rows may be added until the pending row displays a status of Complete. Ready: Set by the user to indicate that the release row is available for processing. The withholding process will not select release rows for processing unless they are set to Ready status. Note. You can only have one release row in Ready status for a contract line. No additional rows may be added until the ready row displays a status of Complete. In Process: Set by the system once the withholding process is initiated by the system. Release rows with a status of In Process are display only and cannot be deleted. Note. You cannot add any additional release rows if the previous release row has a status of In Process. Complete: Set by the system once the PeopleSoft Billing to Projects/Contacts interface process is run. Additional release rows can only be added once the previous release row has a status of Complete.
Justification	Click the link to open a free-form text box that enables you to enter details to justify the release amount. This data is informational only and does not prohibit any processing from occurring.

Assigning Projects and Activities to a Contract Line

This section provides an overview of assigning projects and activities to a contract line and discusses how to assign projects and activities to a contract line.

Understanding Assigning Projects and Activities to a Contract Line

Government contracts typically have one project in a contract or many projects in one contract, but the project does not span multiple contracts. To track direct costs for a project and to calculate indirect costs and fees, PeopleSoft Contracts partners with PeopleSoft Project Costing. As transactions are accumulated against a project and its activities, the system prices and stores the transaction data in Project Transaction tables in PeopleSoft Project Costing where it can be used to generate invoices and recognize revenue for rate-based contract lines.

You set up the processing rules for your government contract transactions in PeopleSoft Contracts. The contract-related transactions are tracked and stored in PeopleSoft Project Costing. To determine which transactions apply to which contract lines, and how these transactions should be priced, the system uses the data specified on the Related Projects page. To define the relationship between your rate-based contract lines and their associated projects and activities, you select a rate-based product onto a contract line, associate that contract line with a PeopleSoft Project Costing business unit and rate set or rate plan, and then link projects and activities to that contract line. From the Related Projects page you can create new projects and activities or link to existing ones. After you define the relationship between the contract line and the projects and activities, the system also uses this relationship to determine which transactions should be considered for limit and withholding processing.

Note. Progress payment processing has its own mapping between the contract lines associated with progress payment amounts and related projects and activities, and does not use the setup on the Related Projects page for processing.

See Defining Progress Payment Terms for Projects.

See Also

Working with PeopleSoft Project Costing

Page Used to Assign Projects and Activities to Contracts

Page Name	Object Name	Navigation	Usage
Related Projects	CA_DETAIL_PROJ	Customer Contracts, Determine Price and Terms, Contract Terms, Related Projects Click the Contract Terms link on the Detail tab of the Contract – Lines page. Then, select the Related Projects tab.	Review existing projects and activities, add new links to projects and activities for a contract line and associate rate sets or rate plans to the contract line.

Assigning Projects and Activities to Contracts

Access the Related Projects page.

PC Business Unit (PeopleSoft Project Costing business unit)

Select the PeopleSoft Project Costing business unit used to filter the list of projects and rate templates that you can associate with this contract. You can associate each contract line with only one PeopleSoft Project Costing business unit.

Transaction Limits

Click to access the Transaction Limits page. Transaction level limits are assigned to a contract line. Transaction level limits consist of a transaction identifier, a description, limit amount, and use sequence. These are used to specify limits for a set of project transactions, defined by a grouping of valid project ChartFields.

Review Limits

Click to access the Review Limits page. This page enables you to search for and review limits that have been exceeded, all limits remaining, or review all limits.

Associated Rates

Effective Date	Enter the effective date for the rate set or rate plan. The contract signed date appears in this field by default, but can be overridden. Only transactions that occur against the contract line on or after the effective date will be picked up and priced by the Pricing Engine process.
Status	Specify whether the associated rates for the contract line are active or inactive. You can only have one active associated rate row on the contract line at one time.
Rate Selection	Select a rate structure for this contract line that the system uses to price transactions associated with this contract line. If you have associated a rate structure to the product, then that value will appear by default, but can be overridden. Values include: Rate Set: Select this option to assign an existing, standard rate set to the contract line. Rate Plan: Select this option to assign an existing, standard rate plan to the contract line. Contract Rate Set: Select this option to assign an existing, contract specific rate set to the contract line. Contract Rate Plan: Select this option to assign an existing contract specific rate plan to the contract line. Note. If using contract-specific rate sets or rate plans, you must first define these rate sets or plans for the specific contract and contract line using the Rate Set (PC_RATE) or Rate Plan (PC_RATE_PLAN) components. See Defining Rate Sets and Plans.
Rate Set or Rate Plan	Select a predefined rate set or rate plan or define a new rate set or rate plan to use for transaction pricing for the contract line. Depending on whether you select Rate Set, Contract Rate Set, Rate Plan, or Contract Rate Plan for the Rate Selection option will dictate which field label appears, and the rate sets or rate plans that can be selected.
Rate Set or Rate Plan	Click the link to view the rate set or rate plan details selected for the contract line or to add a new rate set or rate plan if a rate set or rate plan is not selected for the contract line. Depending on whether you select Rate Set, Contract Rate Set, Rate Plan, or Contract Rate Plan for the Rate Selection option determines whether the link displays as Rate Set or Rate Plan.

Associated Projects and Activities

Project	Select a project to associate to the contract line. For rate-based contract lines, you must associate at least one project and one activity to price transactions for the contract line, as well as, bill or recognize revenue for those transactions. Note. You can add multiple projects to a rate-based contract line. You can add only a single project to an amount-based contract line.
Description (project)	Click to review and manage the details of this project.
Activity	Select an activity to associate with the contract line. After you have assigned an activity to a rate-based contract line, you cannot assign that same activity to any other rate-based contract line. Note. You can add multiple project and activity combinations to a rate-based contract line. You can add only a single project and activity combination to an amount-based contract line. Projects and activities can be assigned to amount-based contract lines for project tracking and reporting purposes.
Description (activity)	Click to review and manage the details of this activity.
Target Fee	Select this check box to stamp the fee rows created for a cost plus contract line with the selected project and activity. This data can be viewed in the PeopleSoft Project Costing, Project Transaction table (PROJ_RESOURCE).
Create Project	Click to create a new PeopleSoft Project Costing project for this contract line from the Related Projects page.
Create Activity	Click to create a new PeopleSoft Project Costing activity for this contract line from the Related Projects page.
All Activities	Click to add all of a project’s existing activities to the contract line. If the project has activities associated with other contract lines, you receive a message stating that only available activities will be added to the contract. This option is only available for rate-based contract lines.

Creating Amendments

After a contract is activated, much of what is entered is controlled by amendment processing. A contract amendment is any change made to an active contract where you are altering the fundamental obligations and entitlements of the contract. This could include modifications to the data contained in the contract entry component, limit changes, changes to withholding terms and conditions, changes to progress payment terms, and so on. By using amendment processing, PeopleSoft Contracts enables you to maintain an audit trail, as well as a historical record, of any changes made to the contract throughout its lifecycle.

See Managing Government Contracts.

See Also

Managing Contracts

Copy From Contract	Click to create a new contract using an existing contract. For government contracts, when you use this method to copy a contract that contains rate-based contract lines assigned a fee type other then None, the system does not copy any fee types associated with the rate-based contract lines. Instead, when the system copies the rate-based contract line that was assigned a cost-plus fee type, the system replaces the fee type for the new contract line with a fee type of None.
Add to My Contracts	Click to add the current contract to the My Contracts page.
Contract Admin (contract administrator)	Select an administrator for this contract.
Region Code	Select a region code, which enables you to break your business out into smaller or larger areas for operational purposes.
Currency Code	Enter the currency code for the contract. The currency code defined at the contract header level is inherited by all contract lines that are added to the contract. Once you set up the contract, enter the currency code at the header level, and save the contract, this field is no longer editable.
Contract Signed	Enter the date on which the contract was signed. You must enter a value in this field before you can assign the contract a status that is mapped to an Active processing status.
Last Amended	Displays the date of the last amendment processed for the contract.
Last Update Date/Time	Displays the time stamp of the last amendment processed for the contract.
Last Update User ID	Displays the user ID of the user that entered the last amendment for the contract.

Address Sequence Number	Select the address location for the sold to customer. Select from addresses previously defined for the customer on the Customer Information - General Info page.
Contact	Select the contact for the selected sold to address for the customer.

Revenue Plan	Add a revenue plan template or override the existing revenue plan template before adding the contract line to the contract. Adding a revenue plan template to the contract line enables the system to automatically set up a revenue plan for the contract line once the product is added to the contract and the contract is saved. For rate-based contract lines assigned a fee type (cost-plus), revenue plan templates must use the As-Incurred revenue plan method. Note. When selecting a revenue plan template for contract lines, all active revenue plan templates appear in the drop down selection. However, if a revenue plan template is selected that uses a method that is not valid with the price type, the system displays an error message when you attempt to add the contract line to the contract.
Billing Plan	Add a billing plan template or override the existing billing plan template before adding the contract line to the contract. Adding a billing plan template to the contract line enables the system to automatically set up a billing plan for the contract line once the product is added to the contract and the contract is saved. For rate-based contract lines assigned a fee type (cost-plus), billing plan templates must use the As-Incurred billing plan method. Note. When selecting a billing plan template for contract lines, all active billing plan templates appear in the drop-down list box selection. However, if a billing plan template is selected that uses a method that is not valid with the price type, the system displays an error message when you attempt to add the contract line to the contract.
Billing Plan Detail	Add a billing plan detail template or override the existing billing plan detail template before adding the contract line to the contract. Billing plan detail templates enable you to automatically enter or override data on the Billing Plan - General page.
Add Contract Lines	Click to add any currently selected products to the contract. Clicking this button does not automatically return you to the Contract - Lines page, but enables you to perform any additional product searches using the Add Contract Lines page.
Create Adhoc Product	Click to access the Create Adhoc Product page, where you can create a new product to use only on this contract.
Return to Contract Lines	Click to return to the Contract - Lines page and view any newly added contract lines.

ITD Withheld (inception to date withheld)	Displays the amount that has been withheld from billing for the contract line from the inception date of the contract to the current date, upon opening the page. This amount is based on transaction data stored in the Project Costing Project Transaction table. This amount does not include any withholding in progress, such as, withholding amounts calculated by the Contracts to Billing Interface process (CA_BI_INTFC) but not yet reported back to PeopleSoft Project Costing by the Retrieve Billing Items process (PC_BI_TO_PC).
ITD Released (inception to date released)	Upon opening the page, displays the withholding amount that has been released to billing for the contract line from the inception date of the contract to the current date. This amount is based on transaction data stored in the Project Costing Project Transaction table.
Amount Remaining	Displays the calculated difference between the amount withheld to date and the amount released to date upon opening the page.

PC Business Unit (PeopleSoft Project Costing business unit)	Select the PeopleSoft Project Costing business unit used to filter the list of projects and rate templates that you can associate with this contract. You can associate each contract line with only one PeopleSoft Project Costing business unit.
Transaction Limits	Click to access the Transaction Limits page. Transaction level limits are assigned to a contract line. Transaction level limits consist of a transaction identifier, a description, limit amount, and use sequence. These are used to specify limits for a set of project transactions, defined by a grouping of valid project ChartFields.
Review Limits	Click to access the Review Limits page. This page enables you to search for and review limits that have been exceeded, all limits remaining, or review all limits.