Establishing Progress Payments

This chapter provides an overview of progress payment amounts and discusses how to:

Define progress payment terms.
Manage progress payment worksheets.
Manage progress payments.

Understanding Progress Payment Amounts

Some government contracts may include progress payments as part of the contract's financing terms. Progress payments enable the contractor to receive payment prior to a regular bill being issued for item delivery (which may occur late in the contract period).

Progress payment requests are issued from the contractor to the government, as costs are incurred, using an approved progress payment rate percentage. Such requests can be issued regularly, based on a schedule, or progress of work.

Once the items in the contract are delivered, and a regular bill is issued, progress payment amounts are liquidated according to progress payment liquidation rates.

This section discusses:

Progress payment business process flow.
Progress payment statuses.
Progress payment billing.
Progress payment liquidation.
Progress payment accounting.
Progress payment processing.

Progress Payment Business Process Flow

The following list identifies the steps for setting up and processing a progress payment:

Create a contract with a contract classification of Government.
Add amount-based contract lines to the contract associated with progress payment amounts.

Note. Government contracts can include amount-based or rate-based (Time and Material or fee associated) contract lines on the same contract. However, progress payments can only be associated with amount-based contract lines.
Define progress payment terms:
1. Assign progress payment and liquidation rates.
2. Assign a distribution code to the progress payment for progress payment liability.
3. Assign defined projects, activities, and amount-based contract lines to the progress payment terms for use during liquidation.
4. Set the progress payment terms to Ready status.
Define billing and revenue plans for the contract lines.
Perform amount allocation for the contract.
Set the contract processing status to Active.
Prepare the progress payment request using the progress payment worksheet.
Define an immediate billing plan for the progress payment request.
Run the Contracts/Billing Interface process to initiate billing for the progress payment amount.
Complete the billing process for the progress payment request.
After the contract items are ready for delivery and you are ready to bill, set the billing plans (or events) for amount-based contract lines to Ready status.
Run the Contracts/Billing Interface process to generate the regular bill for the items delivered and initiate liquidation of the progress payment amount.
Complete the billing process for the items delivered and liquidation of the progress payment.

Progress Payment Statuses

When defining progress payment terms, you need to assign a status. Progress payment terms statuses are managed by the user, and control the actions that can be performed against the progress payment. Progress payment status values include:

Pending	When creating a new progress payment row, Pending appears by default as the status. All fields for pending progress payment terms rows are fully editable and are not subject to system edit checking. No processing occurs against pending progress payment terms. Progress payment terms rows that have a status of Pending can be deleted.
Ready	After the progress payment terms information is complete, and the progress payment is ready for processing, manually update the status of the progress payment terms row to Ready. Progress payment term rows in Ready status are edit checked by the system, most of the fields become unavailable for edit, and the progress payment terms are eligible for billing and liquidation (if the progress payment amount is greater than zero, and the contract is activated). Progress payment terms cannot be set to Ready status if the Progress Payment Rate or Liquidation Rate is greater than 100, or a negative rate. Note. Progress payment term rows in Ready status can be changed back to Pending status only if the contract has a processing status of Pending. Any changes required after the contract has a processing status of Active must be performed using amendment processing.
Completed	After the progress payment amount has been fully liquidated, manually set the status of the progress payment terms row to Completed. No processing occurs on progress payment rows with a status of Completed. When setting the progress payment terms status to Completed, the system performs the following steps: Verifies that the unliquidated amount equals zero. Verifies that the committed amount equals zero. Verifies that the progress payment amount does not equal zero. Automatically updates the completed date. Note. Progress payment term rows with a status of Completed can be changed back to a status of Ready for an active contract, if additional progress payment requests are required. However, the completed date is not reset in these instances.
Cancelled	Progress payment term rows in either Pending or Ready status can be manually set to a status of Cancelled if the following conditions are true: The progress payment amount equals zero. The unliquidated amount equals zero. The committed amount equals zero. Note. If billing or liquidation has occurred on a progress payment amount, you must first reverse those amounts to bring the corresponding balances to zero before you can set the status to Cancelled.

This table shows the relationship between contract processing statuses and progress payment terms and associated billing plan statuses:

Contract Processing Status	Progress Payment Terms and Billing Plan Statuses
Pending	Set progress payment terms to Pending, Ready, or Cancelled status. Progress payment billing plans cannot be created until the contract processing status is set to Active.
Active	Set progress payment terms to Pending, Ready, Completed, or Cancelled status. Set progress payment billing plans to Pending or Ready status. During processing, the system sets the progress payment billing plan status to In Progress, Complete, or eventuallyRecycled or Reversed.
Closed	You must set progress payment terms toCompleted or Cancelled status. You must set progress payment billing plans statuses to Completed or Cancelled.

Progress Payment Billing

PeopleSoft Contracts enables you to bill the government for progress payment amounts, then liquidate those amounts against regular bills after your contracted items are delivered. To manage this process, you must define billing plans for both your progress payment requests and the contract lines associated with the progress payment amount. Billing plans control the timing and parameters for contract bills.

To bill for progress payment amounts, you must complete the progress payment worksheet, set up a billing plan that uses the Immediate billing method, and assign it to the progress payment worksheet. A separate Immediate billing plan is required for each occurrence of a progress payment request and cannot span multiple progress payment requests or multiple contract lines. Any adjustments made to progress payment bills require a new immediate billing plan to be created.

Note. Although progress payment amounts and prepaid amounts may coexist on the same contract, they cannot be combined onto the same immediate billing plan. Progress payment amounts do not include taxes. Instead, all taxation occurs on the regular bill.

Setting up and assigning Immediate billing plans for your progress payment requests can be done manually or automatically. When you perform computations in the progress payment worksheet, and the worksheet is approved, the system may create an Immediate billing plan in either Ready or Pending status (depending on the billing plan template setup).

To bill for delivered items associated with your contract lines, you can set up billing plans using the Milestone, Percent Complete, or Immediate billing plan method and assign them to the corresponding contract lines. When regular bills are processed for these items, the system liquidates the progress payment amounts against the bill amount according to the progress payment liquidation rate specified for the progress payment terms.

When setting up billing plans for contract lines associated with progress payment terms, it is important to note that PeopleSoft Contracts provides the user complete flexibility when setting up and sharing billing plans across contract lines associated with the same price type. However, for contract lines associated with progress payment terms, consider the following points:

PeopleSoft Contracts enables you to combine contract lines with the same billing parameters onto the same billing plan.
You can combine contract lines that have the same billing parameters, whether or not the contract lines are associated with the same set of progress payment terms, different sets of progress payment terms, or no progress payment terms at all.
Contract lines combined onto a single billing plan, but not associated to the same set of progress payment terms are prorated during the liquidation process based on the contract line net amount.

The system uses this proration calculation to determine how much of the total billed amount is associated with the contract line linked to the set of progress payment terms.

The calculated prorated amount is used to complete the liquidation calculation.

Note. To avoid proration of your billed amount for progress payment liquidation purposes, it is strongly recommended that you only combine contract lines that are associated with the same set of progress payment terms onto a single billing plan.

See Defining Progress Payment Terms, Defining the Progress Payment Worksheet.

Progress Payment Liquidation

To manage progress payments, PeopleSoft Contracts enables you to bill for the progress payment amount, and then subsequently liquidate that amount against the bill when the item is delivered. The amount of the progress payment that can be liquidated against a bill is capped by the liquidation rate specified in the progress payment terms.

To liquidate progress payment amounts against regular bills, you must:

Set up a billing plan for the contract lines associated with the progress payment terms.
Identify a liquidation rate for the progress payment terms.
Associate contract lines, projects, and activities to the progress payment terms.
Run the Contracts/Billing Interface process (CA_BI_INTFC) to initiate billing for the contract line item.

This process triggers the Progress Payment Liquidation process (CA_PGP_LIQ) to evaluate the bill line and liquidate any outstanding progress payments against it.

Note. Progress payment liquidation only occurs if the progress payment amount and remaining amount are greater than zero. The progress payment amount and remaining amount are updated only after the progress payment request is finalized, so a progress payment request cannot be billed and liquidated in the same run of the Contracts/Billing Interface.

The Progress Payment Liquidation process performs the following tasks:
- Calculates the amount available for liquidation (remaining amount minus committed amount).
- Determines if the contract lines associated with the billing line is linked to the same set of progress payment terms.
  
  Note. Contract lines that are not associated with the same set of progress payment terms are subtracted out of the total billed amount used in the liquidation calculations.
- Calculates the maximum liquidation amount (available billing amount multiplied by the liquidation rate factor).
- Liquidates the calculated amount against the regular bill (either the total amount available for liquidation or the maximum calculated liquidation amount; whichever is less).
  
  Note. Liquidation bill lines display on the invoice as a credit amount using the liquidation description that you entered on the Progress Payment Terms - Liquidation page.

Progress Payment Accounting

Progress payment processing creates accounting entries when you bill for the progress payment amount, and when you liquidate the progress payment amount.

Progress payments are booked to a liability account instead of a revenue account. When setting up your progress payment terms, you must define either the account distribution code or ChartField set that the system uses to create the accounting entries. When defining the accounting distribution for the liability account, you must use an account code or distribution code that is associated with an Unbilled Accounts Receivable (UAR) distribution type.

Only one accounting line is created per progress payment request. Project ChartField data specified on the Progress Payment Terms - Accounting Distribution tab is used for accounting purposes and passed to PeopleSoft Billing. You cannot split progress payment liability accounting distributions between multiple projects and activities.

When progress payment request are submitted for processing, the liability account information specified for the progress payment terms is sent to PeopleSoft Billing, creating a debit to billed accounts receivable (AR) and a credit to the progress payment liability account.

When the progress payment amount is liquidated, during regular billing for the contract line items associated with the progress payment terms, the system sends a credit amount to PeopleSoft Billing for the liquidated amount. To create the accounting entries for the billed amount and to relieve the credit liability account for the progress payment; the system creates a debit to billed accounts receivable (AR), a debit to the progress payment liability account, and a credit to revenue. The progress payment liability account is eventually netted out to zero once the progress payment is fully liquidated.

Progress Payment Accounting Example

This example shows the accounting implications for processing a 1,000 USD progress payment amount and its subsequent liquidation using an 80 percent liquidation rate:

Process Step	Accounts Receivable	Progress Payment Credit Liability	Revenue
A 1,000 USD progress payment amount is billed. PeopleSoft Billing creates these accounting entries using the ChartField data sent from PeopleSoft Contracts:	1000	(1000)
A 2,000 USD contract line item is billed that is associated with the progress payment amount. PeopleSoft Billing creates these accounting entries using the ChartField data sent from PeopleSoft Contracts:	1000	1000	(2000)

Note. In this example, even though the liquidation amount for the bill amount is 1,600 USD (2000 x 80%), the liquidation amount is capped at the amount of the progress payment (1,000 USD). So the bill and credit liability are reduced by this amount.

Progress Payment Processing

Processing progress payments involves the following processes:

Calculate Inception to Date Costs process.
Contracts Billing Interface process.
Progress Payment Liquidation process.

Calculate Inception to Date Costs (Calculate ITD Costs process)

To calculate allowable progress payment request amounts based on the projects and activities costs tracked in Project Transactions, you must first run the Calculate ITD Costs (CA_PGP_CALC) process. This batch process retrieves the current inception to date and estimated cost to complete costs from the Project Transactions (PROJ_RESOURCE) table for projects and activities associated to the progress payment terms, then inserts the resulting rows into the Progress Payment Costs (CA_PGP_COSTS) table. Any rows (associated with the same As of Date) that already exist in the table are updated and overwritten by the process. After the process is complete, you can copy the costs data from the Progress Payment Costs table into the various fields in the progress payment worksheet.

See Accumulating Progress Payments Costs.

Contracts Billing Interface Process

The Contracts/Billing Interface process (CA_BI_INTFC) is used to populate the billing interface tables and generate bills for contracts. For progress payment processing, this process is used to process progress payment requests and liquidation through to PeopleSoft Billing.

Progress payment request bills are controlled by the immediate billing plan associated with the progress payment worksheet. The Contacts/Billing Interface processes progress payments that are associated with progress payment terms with a Ready status, have an immediate billing plan associated to the progress payment worksheet in Ready status, and the contract is in Active processing status. If all of these conditions are met, the Contracts/Billing Interface process performs the following actions:

Creates a bill line type of REV.
Updates the billing plan status for the immediate bill plan to In Progress.
Inserts a row into the Contracts/Billing Plan Cross-Reference (CA_BP_XREF) table.

Each row inserted into the Contracts/Billing Plan Cross-Reference table inherits the sequence number (CA_PGP_SEQ) associated with the progress payment terms to uniquely identify that row as a progress payment request row for a specific set of progress payment terms.

After the bills are finalized in PeopleSoft Billing, you must run the Billing to Project Costing/Contracts Interface process (BIPCC000) to update the bill row in the billing plan history page to a status of FIN (finalized) and update the progress payment amount and unliquidated amount to include the finalized progress payment request amount.

Warning! The Billing to Project Costing/Contracts Interface process updates the progress payment tables and fields with the original progress payment amounts that are sent to PeopleSoft Billing. Any manual adjustments made in PeopleSoft Billing for these amounts are ignored by the system and can cause the applications to be out of sync. It is strongly recommended that any required adjustments are made in PeopleSoft Contracts.

See Managing Progress Payments.

Progress Payment Liquidation process

Progress payment liquidation is triggered by the processing of billing plans for amount-based contract lines that are associated with progress payment terms. After the Contracts/Billing Interface process selects contract line amounts for bill processing, but prior to passing the billing data to PeopleSoft Billing, the Progress Payment Liquidation process (CA_PGP_LIQ) is called. This process liquidates eligible progress payment amounts against bills for contract line items that are delivered.

The Progress Payment Liquidation process only liquidates progress payment amounts if the progress payment terms are defined and have a status of Ready, the contract processing status is active, and the progress payment amount has not been fully liquidated.

The Progress Payment Liquidation process performs the following actions:

Creates a bill line type of UTL.
Creates a negative bill line amount that is passed as a credit to PeopleSoft Billing.
Calculates the liquidation amount.
Updates the committed amount with the amount to be liquidated.
Inserts a row in the Contracts/Billing Plan Cross-Reference (CA_BP_XREF) table for the contract's line liquidated billing plan reflecting the credit sent to PeopleSoft Billing.

Each row inserted into the Contracts/Billing Plan Cross-Reference table inherits the sequence number associated with the progress payment terms to uniquely identify that row as a progress payment liquidation row for a specific set of progress payment terms.

After the bills are finalized in PeopleSoft Billing, you must run the PeopleSoft Billing to Project Costing/Contracts Interface process to relieve the committed amount, update the unliquidated amount accordingly and update the row status in the Contracts Billing Cross reference table to Finalized (FIN) status.

Note. Progress payment requests must be finalized to be eligible for liquidation.

Defining Progress Payment Terms

This section provides an overview of progress payment terms and discusses how to:

Define progress payment terms.
Define progress payment terms for contract lines.
Define progress payment terms for projects.

Understanding Progress Payment Terms

Progress payment terms define the parameters and details for both processing progress payment requests and liquidating the progress payment amounts against regular bills after the contracted items are delivered. Progress payment terms must be defined and made ready before you can manage the progress payment. A contract can contain one or multiple sets of progress payment terms.

Progress payment terms include:

Progress payment terms status.
Progress payment rate.
Liquidation rate.
Contact lines to which the progress payment applies.
Project and activity data used to determine costs for progress payment and liquidation calculations.
Immediate billing plan templates used to set up progress payment billing plans (optional).

Progress payment and liquidation rates can be identified at the PeopleSoft Contracts business unit level, and the values appear by default on the Progress Payment page on the General tab.

Pages Used to Establish Progress Payment Terms

Page Name	Object Name	Navigation	Usage
Progress Payment Terms	CA_PGP_TERMS	Customer Contracts, Manage Progress Payments, Terms, Progress Payment Terms Select Progress Paymentsfrom the More drop-down list box on any page of the Contract Entry component (CA_HDR_PNG).	Establish progress payment processing terms.
Progress Payment Terms - Billing	CA_PGP_TERMS	Customer Contracts, Manage Progress Payments, Terms, Progress Payment Terms Select the Billing tab. Select Progress Payments from the More drop-down list box on any page of the Contract Entry component (CA_HDR_PNG), then select the Billing tab.	Assign billing plan templates to automatically create billing plans for progress payment worksheets, and access the progress payment worksheet.
Progress Payment Terms - Accounting Distribution	CA_PGP_TERMS	Customer Contracts, Manage Progress Payments, Terms, Progress Payment Terms Select the Accounting Distribution tab. Select Progress Payments from the More drop-down list box on any page of the Contract Entry component (CA_HDR_PNG), then select the Accounting Distribution tab.	Define the accounting distribution data that the system uses to create accounting entries for progress payment bills and liquidations.
Progress Payment Terms - Liquidation	CA_PGP_TERMS	Customer Contracts, Manage Progress Payments, Terms, Progress Payment Terms Select the Liquidation tab. Select Progress Payments from the More drop-down list box on any page of the Contract Entry component (CA_HDR_PNG), then select the Liquidation tab.	Define the criteria that the system uses to liquidate progress payments.
Contract Lines	CA_PGP_TERMS	Customer Contracts, Manage Progress Payments, Terms, Progress Payment Terms Select the Liquidation tab. Click the Contract Lines link. Select Progress Paymentsfrom the More drop-down list box on any page of the Contract Entry component (CA_HDR_PNG), select the Liquidation tab, then click the Contract Lines link.	Associate amount-based contract lines to the progress payment terms. The system uses the contract lines associated with the progress payment terms to calculate the contract fixed price amount and to determine if a contract line's billing plan is eligible for liquidation.
Projects and Activities	CA_PGP_TERMS	Customer Contracts, Manage Progress Payments, Terms, Progress Payment Terms Select the Liquidation tab. Click the Projects and Activities link. Select Progress Payments from the More drop-down list box on any page of the Contract Entry component (CA_HDR_PNG). Select the Liquidation tab. Click the Projects and Activities link.	Associate the projects and activities considered in cost calculations for the progress payment terms.

Defining Progress Payment Terms

Access the Progress Payments Terms page.

Progress Payment Terms - General

Select the Progress Payment Terms - General tab.

Sequence	Displays a unique sequence identifier for each single set of progress payment terms. The system generated identifier starts at the number one, and is automatically increased sequentially by the system.
Status	Select a status, which controls the actions that you can perform and the system processing that can occur for the progress payment terms defined. Select from the values of: Pending, Ready, Completed, or Cancelled. See Progress Payment Statuses.
Progress Payment Amount	Displays the total amount billed to the customer for the progress payment requests. The calculation is based on inception to date (ITD) incurred costs, total contract amount and progress payment and liquidation rates. This value is updated by the Projects/Contracts Interface process each time that a progress payment bill is finalized. This field is for informational purposes only.
Unliquidated Amount	Displays the total amount of the progress payment not yet applied to a regular bill. The Projects/Contacts Interface process updates this field after the progress payment liquidations are finalized.
Committed Amount	Displays the progress payment amount liquidated, but not yet finalized in PeopleSoft Billing. This field is initially populated when the Contracts/Billing Interface process is run. After the bills are finalized, and the Projects/Contacts Interface process is run, the system clears the committed amount from this field and update the Unliquidated Amount field to adjust for the amount that is liquidated and finalized in PeopleSoft Billing.
Progress Payment Rate	Enter the Federal Acquisition Regulations (FAR) progress payment rate that the system uses to calculate progress payment request amounts. If you define this rate at the PeopleSoft Contracts business unit level, the value appears by default in this field. You can override the field value when the progress payment terms are in Pending status and prior to processing the progress payment request . After the progress payment terms are changed to Ready status, and a progress payment request is processed, the value can be changed only using amendment processing.
Liquidation Rate	Enter the Federal Acquisition Regulations (FAR) liquidation rate that the system uses when determining the portion of the progress payment that can be liquidated against a bill. If you have defined this rate at the PeopleSoft Contracts business unit level, the value appears by default in this field. You can override the field value when the progress payment terms are in Pending status, and prior to processing the progress payment request. After the progress payment terms are changed to Ready status, and a progress payment request is processed, the value can be changed only using amendment processing.
Completed Date	Displays the date that the progress payment was fully liquidated and the progress payment terms status was set to Completed by the user. This date is automatically populated by the system and is not updated or reset if the progress payment terms row is changed back to Ready status for any additional processing.

Progress Payment Terms - Billing

Select the Progress Payment Terms - Billing tab.

Plan Template ID

Select a billing plan template to automatically create Immediate billing plans in the progress payment worksheet. Billing plans control the timing of bill processing for contracts. Billing plan templates enable you to set automation options that the system uses to automatically create a billing plan in Ready status when the Approve button is selected on the progress payment worksheet. Leave this field blank to manually create an Immediate billing plan from the progress payment worksheet.

Note. The system automatically creates a billing plan in Ready status only if you have selected the Approve Progress Payment check box on the Immediate billing plan template. If this check box is not selected on the billing plan template associated with the progress payment terms, then the system automatically creates the billing plan in Pending status.

Bill Plan Detail Template ID

Select a billing plan detail template to automatically create Immediate billing plans in the progress payment worksheet. Billing Plan Detail templates enable you to override the billing field values that are defined for a PeopleSoft Contracts billing business unit and contract header that appear by default on the billing plan.

Leave this field blank to manually create an Immediate billing plan and accept the billing defaults for your progress payment worksheet.

Progress Payment Worksheet

Click to access the progress payment worksheet, where you compute progress payment requests and approve progress payment bills for processing. This link is only available when the progress payment terms row is in Ready status and the contract is in an Active processing status.

Purchase Order Reference

Enter a specific purchase order reference number or any other reference data associated with a progress payment. This information is included on the progress payment request bill. If you enter a purchase order reference on the Contract Entry - General page, the data appears in this field by default.

Progress Payment Terms - Accounting Distributions

Select the Progress Payment Terms - Accounting Distribution tab.

Note. Accounting distribution data for the progress payment must be populated before the progress payment terms can be set to Ready status.

GL Unit (PeopleSoft General Ledger business unit)	Displays the general ledger business unit associated with the contracts business unit for this contract. This field is informational only.
Distribution Code	Select a distribution code that represents the credit liability for the progress payment. Distribution codes represent a combination of general ledger ChartField values. Once a distribution code is selected, the system will automatically populate the ChartField field values associated with the distribution code. Note. Distribution codes set up for progress payment liability accounting must be associated with an Unbilled Accounts Receivable (Unbill AR) Distribution Type.
Alternate Account	Classifies the nature of a transaction for regulatory authorities. Used for statutory accounts. The Alternate Account field displays only if the general ledger business unit associated with the contracts business unit has the Alternate Account enabled.
Department	Used to indicate who is responsible for or affected by the transaction.
Operating Unit	Used to indicate a location, such as a distribution warehouse or a sales center. It can also be used for responsibility reporting, such as a profit center.
Project	Captures additional information useful for project accounting. Progress payment liability accounting cannot be split among multiple projects or activities.
Affiliate	Used as one approach for interunit journal processing and consolidated reporting. Provides a way to map transactions between business units while using a single intercompany account.
Statistics Code	Identifies nonmonetary amounts. Statistic codes are associated with a specific unit of measurement.
Fund Code	Enter the Fund account ChartField value associated with the progress payment liability. Fund codes are the primary structural units of Education and Government accounting.
Program Code	Enter the Program Code ChartField value associated with the progress payment liability. Program codes track revenue and expenditures for programs within or across your organizations. They can be used to identify groups of related activities, cost centers, revenue centers, responsibility centers and academic programs.
Class Field	Enter the Class Field ChartField value associated with the progress payment liability. Class fields can be used to identify specific appropriations.
Budget Reference	Enter the Budget Reference ChartField value associated with the progress payment liability. Budget references are used to identify unique budgets, when individual budgets share budget keys and overlapping budget periods.
Product	Enter the Product ChartField value associated with the progress payment liability. The product ChartField captures additional information useful for profitability and cash flow analysis by product sold or manufactured.
Fund Affiliate	Enter the Fund Affiliate ChartField value associated with the progress payment liability. Fund affiliate codes are used to correlate transactions between funds when using a single intraunit account.
Operating Unit Affiliate	Enter the Operating Unit Affiliate ChartField value associated with the progress payment liability. Operating unit affiliates are used to correlate transactions between operating units when using a single intraunit account.
Valid Comb (valid ChartField combination)	After you enter the Distribution Code or ChartField values for your progress payment terms and save the terms, ChartField combination editing verifies that the accounting distributions are valid for the PeopleSoft General Ledger business unit listed.

Progress Payment Terms - Liquidation

Select the Progress Payment Terms - Liquidation tab.

Use for All Lines in Contract

Select the check box to automatically link the progress payment terms to all amount-based contract lines on the contract. When this check box is selected, no other progress payment term rows can be added to the contract, and any newly added amount-based contract lines are automatically associated with the progress payment terms.

After the check box is selected, it can only be changed if the progress payment terms row is in Pending status. To change the setting after the progress payment terms are in Ready status and the contract is active, open the contract in amendment mode, clear the check box, and then click the Contract Lines link to access the Contract Lines page, where you can delete any amount-based contract lines that should not be included in the liquidation process.

Note. Clearing the Use for All Lines in Contract check box only, does not unassign contract lines from the progress payment terms. You must also navigate to the Contract Lines page to delete the specific contract lines.

This check box is available only if one set of progress payment terms is defined for the contract. If there are multiple sets of progress payment terms defined for the contract, the check box appears as display only.

Contract Lines

Click to access the Contract Lines page, where you can select the amount-based contract lines to link to the progress payment terms and use for the liquidation computations. You also use this page to delete contract lines that no longer apply to the progress payment.

Liquidation Descr for Billing (liquidation description for Billing)

Enter the description that displays on the liquidation rows on the invoice.

Projects and Activities

Click to access the Projects and Activities page, where you can select the projects and activities to use to compute ITD and estimated costs. These costs form the basis for progress payment request amounts and liquidation computations.

Defining Progress Payment Terms for Contract Lines

Access the Contract Lines page.

Add all lines

Click the Add all lines button to automatically load all amount-based contract lines into the Contract Lines page. After contract lines are assigned to a set of progress payment terms, they cannot be assigned to any other set of progress payment terms for the contract. At least one contract line must be associated with a set of progress payment terms before the progress payment terms can be changed to Ready status.

After you use the Add all lines button or manually add a contract line to the page, the Add all lines button becomes unavailable until the page is saved.

Note. If the Use for All Lines in Contract check box is selected on the Progress Payment Terms - Liquidation tab, the contract lines associated with the progress payment are display only, and contract lines cannot be added or deleted from this page.

Delete

Click the Delete button to delete selected rows from the Contract Lines page. After contract lines are deleted from the grid and the Progress Payment Terms page is saved, the contract lines can be associated with another set of progress payment terms on the contract.

Note. If the progress payment terms are in Ready status and the contract is active, you can delete contract lines from the grid only in amendment mode. If liquidation has occurred for the progress payment terms, a warning message will let the user know that he may have to review what has already been billed and liquidated for that contract line and an adjustment to the progress payment amount (credit) or bill plan reversal may be required.

Select

Select the contract lines to be deleted from the contract lines grid that you have loaded manually or by clicking the Add all lines button.

Line Number

Select the contract line number, from all eligible amount-based contract lines on the contract, to associate with your progress payment terms for use in the progress payment liquidation process.

Note. You cannot enter the same contract line multiple times in the grid. The prompt for the contract line number is only updated after the progress payment page is saved. If you delete a contract line from one set of progress payment terms, that contract line is not available to be added to another set of progress payment terms until you have saved the progress payment terms page where the contract line was deleted.

Select All

Select this check box to select all contract lines entered in the grid for deletion.

Clear All

Select the Clear All check box to clear all of the selected check boxes for the contract lines displaying in the grid.

Defining Progress Payment Terms for Projects

Access the Projects and Activities page.

The project and activity information that you enter on this page is used by the system to calculate inception to date and estimated costs for progress payment calculations. You can modify this information at any time. However, if modifications are made, you must run the Calculate Inception to Date Costs process (CA_PGP_CALC) to update the system with your changes. If you add or delete contract lines to the progress payment terms, any associated projects and activities must be manually adjusted using this page.

PC Business Unit (PeopleSoft Project Costing business unit)

Enter the PeopleSoft Project Costing business unit for the progress payment terms. The PeopleSoft Project Costing business unit selected filters the list of projects and activities that you can associate with the progress payment terms and is used to calculate Inception to Date and Estimated costs. At least one PeopleSoft Project Costing business unit, project and activity must be entered before setting the progress payment terms to Ready status. You cannot use the % (percent) symbol in this field to wildcard the field value.

Note. You can associate any PeopleSoft Project Costing business unit, project and activity to the progress payment terms on the contract. You do not have to associate the project and activity to the contract line in order to include them in progress payment liquidation calculations. However, simply assigning the project and activity to the contract line does not automatically include them in the calculation of progress payment costs and no audit is performed to keep the project and activity fields in sync.

To ensure that the projects and activities are included in the Inception to Date and Estimated costs calculations, you must enter them on the Project and Activities page for the progress payment terms.

Project

Enter the project identifier for the project included in progress payment liquidation calculations.

Activity

Enter the activity identifier for the project activity included in progress payment liquidation calculations. To include all activities defined under the project specified in the Project field, you can wildcard the field by entering the % (percent) character.

If only specific project activities should be included in the liquidation calculations, insert a row to enter each activity manually.

Managing Progress Payment Worksheets

This section provides an overview of managing progress payment worksheets and calculations, lists prerequisites, and discusses how to:

Define the progress payment worksheet.
Accumulate progress payment costs.
Review progress payment costs data.

Understanding Progress Payment Worksheets

After you have defined your contract, set up your progress payment terms, and are ready to request a progress payment amount; you can prepare a progress payment request using the progress payment worksheet. Progress payment worksheets enable you to calculate the amount of the progress payment request for invoicing to the customer and then approve it for billing.

When preparing the progress payment request, you can import any costs that are considered for the progress payment request. The system does some of this work for you by retrieving stored cost data in PeopleSoft Project Costing. This data is stored in the Project Transactions (PROJ_RESOURCE) table, under analysis types that are associated with the PeopleSoft Inception to Date (PSITD) and PeopleSoft Estimated Cost to Complete (PSECC) analysis groups.

The PeopleSoft Inception to Date (PSITD) analysis group is used to store costs incurred by the contractor as of the beginning of the contract. All analysis types associated with this analysis group are considered costs and are included in the Inception to Date cost calculations. The PeopleSoft Estimated Cost to Complete (PSECC) analysis group is used to store estimated or anticipated costs to be able to meet contract deliverables between a given date and the end of the contract. These include analysis types associated with budgeted or forecasted costs and are included in the estimated cost to complete calculation.

When you are ready to populate the worksheet, run the Accumulate Progress Payment Costs process (CA_PGP_CALC) to retrieve the most current cost data from the PROJ_RESOURCE table and update various fields in the progress payment worksheet. After the fields are populated, you can update or modify certain fields to include any additional costs that are eligible for progress payment requests. After the worksheet is completed and submitted, it is no longer editable.

Running the Accumulate progress Payment Costs process can be done in batch, right before populating the worksheet, in real time, through the Review Costs page, or not at all. You are not required to run the process prior to populating the worksheet if you are completing the worksheet manually. However, running the process enables you to retrieve the most current costing data from PeopleSoft Project Costing and reduces the amount of data entry required to complete the worksheet.

Progress payment amounts are billed using an immediate billing plan associated with the progress payment worksheet.

Note. The structure of the progress payment worksheet conforms to the requirements and structure of form 1443 to enable you to easily map these values to your form. PeopleSoft Contracts does not support any automatic or direct mapping to these forms.

Understanding Progress Payment Calculations

Calculating progress payment amounts can be a very complex task. To facilitate this process, PeopleSoft Contracts delivers the following features:

A batch process to retrieve cost data that is applicable to progress payment calculations.
A worksheet to assist in determining the allowable progress payment request amount.
Formulas to automatically calculate certain line items within the worksheet.

Retrieve Cost Data

PeopleSoft Contracts stores cost rows in the Project Transactions (PROJ_RESOURCE) table in PeopleSoft Project Costing. When you are ready to process a progress payment request, run the Accumulate Progress Payment Costs process (CA_PGP_CALC) to retrieve the most current eligible costs from the PROJ_RESOURCE table. To determine which costs are eligible for progress payment processing, the system looks at costs rows that meet the following criteria:

Costs rows that have an accounting date that is less than or equal to the as of date specified for the batch process for inception to date costs (PSITD), and costs rows that have an accounting date that is greater than the as of date specified for the batch process for estimated cost (PSECC).
Cost rows with analysis types that are associated with the PSITD or PSECC analysis groups.
Costs rows associated with the projects and activities linked to the progress payment terms being processed.

The system retrieves the cost rows that meet the criteria listed above, and updates the Contracts Progress Payment Costs table (CA_PGP_COSTS). After the system populates the table with the cost data, you can copy the information into the progress payment worksheet to calculate the progress payment request amount.

See Accumulating Progress Payments Costs.

Determine Progress Payment Amounts

PeopleSoft Contracts delivers a worksheet to assist you in calculating the amount of your progress payment request. Using the worksheet, you can:

Determine the progress payment amount.
Approve the worksheet and enable it for billing plan processing.
Automatically create an immediate billing plan to bill for the progress payment request amount.

To populate the worksheet, you can run the Accumulate Progress Payment Costs process to retrieve the eligible costs from PeopleSoft Project Costing, modify the resulting values in the worksheet, and use the delivered formulas to calculate the final amount. Additionally, you can manually enter a progress payment amount, approve the worksheet, and send the request for processing through to PeopleSoft Billing.

See Defining the Progress Payment Worksheet.

Worksheet Calculations

To facilitate the worksheet calculations for progress payment amounts, PeopleSoft Contracts delivers built-in formulas that calculate certain fields in the worksheet. The results of these calculations cannot be manually edited but instead must be modified by updating the factors that are used in the calculations.

This table describes the delivered calculations in the progress payment worksheet:

Worksheet Field	Formula	Example
11. Total Costs Eligible	Item 9 + Item 10	Costs paid to date: 10,000 USD Incurred costs to date: 25,000 USD Total costs eligible: 35,000 USD
12a. Total Eligible Costs Incurred to Date	Item 11 + Item 14a	Total costs eligible: 35,000 USD Progress payments paid to subcontractors: 500 USD Total eligible costs incurred to date: 35,500 USD
13. Item 11 Multiplied By 6a (Total Costs Eligible Multiplied by the Progress Payment Rate)	Item 11 x Item 6a	Total costs eligible: 35,000 USD Progress payment rate: 75% Item 11 multiplied by 6a: 26,250 USD
14c. Unliquidated Progress Payment to Subcontractors	Item 14a - Item 14b	Progress payments paid to subcontractors: 500 USD Liquidated progress payment to subcontractors: 0 USD Unliquidated progress payment to subcontractors: 500 USD
14e. Eligible Subcontractors Progress Payments	Item 14 c + Item 14d	Unliquidated progress payment to subcontractors: 500 USD Subcontractor progress billing approved: 200 USD Eligible subcontractors progress payments: 700 USD
15. Total Amount (Item 13 + 14e)	Item 13 + Item 14e	Item 11 multiplied by item 6a: 26,250 USD Eligible subcontractors progress payments: 700 USD Total amount: 26,950 USD
16. Item 5 x Item 6b (Contract Fixed Price Multiplied by the Progress Payment Liquidation Rate)	Item 5 x Item 6b	Contract fixed price: 100,000 USD Progress payment liquidation rate: 75% Item 5 x item 6b: 75,000 USD
17. Lesser of Item 15 or 16	Min (Item 15, Item 16)	Total amount: 26,950 USD Item 5 x item 6b: 75,000 USD Lesser of item 15 or 16: 26,950 USD
18. Total of previous progress payments requested	Sum (CA_PGP_AMT)	Total Amount of Progress Payments requested to date: 0 USD Note. This field displays the summary total of all progress payment requests that have been finalized or are still in progress, so this amount may be greater than the progress payment amount stored in the Progress Payment table (CA_PGP_TERMS) in the Progress Payment Amount field (CA_PGP_AMT)
19. Maximum Balance Eligible for Progress Payment	Item 17 – Item 18	Lesser of item 15 or 16: 26,950 USD Total amount of previous progress payments requested: 5000 USD Maximum balance eligible for progress payment: 21,950 USD
20b. Costs Eligible Applicable to Items Delivered	Item 11 – Item 20a	Total costs eligible: 35,000 USD Costs included in item 11 (Items delivered): 7500 USD Costs eligible applicable to items delivered: 27,500 USD
20c. Item 20b x Item 6a (Costs Eligible Applicable to Items Delivered Multiplied by the Progress Payment Rate Factor)	Item 20b x Item 6a	Costs eligible applicable to items delivered: 27,500 USD Progress payment rate factor: 75% Item 20b x Item 6a: 20,625 USD
20e. Limitation (Item 20c + 20d)	Item 20c + Item 20d	Item 20b x progress payment rate factor: 20,625 USD Eligible Subcontractor progress payments: 700 USD Limitation (Item 20c + Item 20d): 21,325 USD
21b. Contract Price of Items Not Delivered	Item 5 – Item 21a	Contract fixed price: 100,000 USD Contract price of items delivered: 7500 USD Contract price of items not delivered: 92,500 USD
21c. Item 21b x 6 b (Contract Price of Items Not Delivered Multiplied by the Liquidation Rate factor)	Item 21b x Item 6b	Contract price of items not delivered: 92,500 USD Liquidation rate factor: 75% Item 21b x 6b: 69,375 USD
21e. Limitation (Item 21c + 21d)	Item 21c + Item 21d	Item 21c x progress payment liquidation factor: 69,375 USD Unliquidated advance payments: 0 Limitation (Item 21c + Item 21d): 69,375 USD
22. Maximum Unliquidated Progress Payment: Lesser of 20e or 21e	Min(Item 20e,Item 21e)	Limitation (Item 20c + 20d): 21,325 USD Limitation (Item 21c +Item 21d): 69,375 USD Maximum unliquidated progress payment amount: 21,325 USD
24. Unliquidated Progress Payment (Item 18–23)	Item 18 – Item 23	Total of previous progress payments requested: 5000 USD Total amount applied to reduce progress payments: 2500 USD Unliquidated progress payment: 2500 USD
25. Maximum permissible progress payment (Item 22–24)	Item 22 – Item 24	Maximum unliquidated progress payment amount: 21,325 USD Unliquidated progress payment amount: 2500 USD Maximum permissible progress payment amount: 18,825 USD
26. Progress Payment Amount	Min (Item 25, Item 19)	Maximum Balance Eligible for Progress Payment: 21,950 USD Maximum permissible progress payment amount: 18,825 USD Progress Payment Amount: 18,825 USD

Prerequisites

Before you can prepare and process a progress payment worksheet, you must:

Set up the PeopleSoft Inception to Date (PSITD) analysis group.

For example, this analysis group can contain such analysis types as; Actual Costs (ACT), Actual Time and Labor Costs (PAY), Estimated Time and Labor Costs (TLA) and Actual Cost Sharing Costs (CAC). This analysis group is used to calculate the costs incurred by the contractor as of the beginning of the contract.
Set up the PeopleSoft Estimated Costs to Complete (PSECC) analysis group containing the Budget (BUD) analysis type.

This analysis group is used to calculate the estimated or anticipated costs to meet the contract deliverables between a given date and the end of the contract.
Create a contract that contains amount-based contract lines.
Define progress payment terms.
Associate the progress payment terms to at least one active amount-based contract line.
Associate the progress payment terms to at least one project and activity combination.
Define and associate an immediate billing plan to the progress payment worksheet.

Warning! To prepare and process progress payments using the Accumulate Progress Payment Costs process, you must use the analysis groups PSITD and PSECC that are delivered with the system. Any analysis types that you use to represent your actual and estimated costs must be included in these analysis groups respectively, for the system to perform the progress payment calculations correctly.

Pages Used to Manage Progress Payment Worksheets

Page Name	Object Name	Navigation	Usage
Progress Payment Worksheet	CA_PGP_WKS	Customer Contracts, Manage Progress Payments, Worksheets, Progress Payment Worksheet Click the Progress Payment Worksheet link on the Billing tab of the Progress Payments component.	Calculate progress payment amounts and submit them for billing.
Accumulate Progress Payment Costs	RUN_CA_PGP_COSTS	Customer Contracts, Manage Progress Payments, Accumulate Costs, Accumulate Progress Payment Costs Click the Calculate ITD Costs button on the Costs and Contract Fixed Price page in the Progress Payment Worksheet page.	Retrieve incurred and estimated costs from the Project Transactions (PROJ_RESOURCE) table to determine eligible costs for progress payment requests, update or inserts the resulting rows into the Contracts Progress Payments Costs (CA_PGP_COSTS) table, or calculate contracts fixed price as a batch process.
Costs and Contract Fixed Price	CA_PGP_COST	Click the Costs and Contract Fixed Price button on the Progress Payment Worksheet page.	View incurred or estimated costs used in the progress payment worksheet calculations. When viewing the incurred or estimated costs on the Costs and Contract Fixed Price page, the system retrieves the data from the Contracts Progress Payment Costs table based on the As of Date on the worksheet. If an exact date match is not found, the system uses the closest past As of Date to populate the page. If no data is available then the page is blank.

Defining the Progress Payment Worksheet

Access the Progress Payment Worksheet page.

Progress Payment Request

The progress payment worksheet displays a scroll area which identifies each unique instance of a progress payment request or bill. When you access the worksheet, the system displays the most current worksheet first, with scroll arrows that enable you to view past progress payment requests or bills. If the progress payment terms are set to Completed or Cancelled status, new worksheets cannot be added and any pending worksheets cannot be edited.

Note. Due to progress payment worksheet sequencing requirements, once a worksheet is created and saved, it cannot be deleted.

Contract Fixed Price	Displays the total amount of the amount-based contract lines currently associated with the progress payment terms. This value is impacted by any additions or deletions of contract lines associated with the progress payment terms.
Bill Plan Id	Enter a predefined immediate billing plan to process the progress payment worksheet request. If you specified a billing plan template and billing plan detail template when setting up your progress payment terms, leave this field blank, and the system automatically creates an immediate billing plan using the template data once the request is approved. If using a predefined immediate billing plan, that billing plan cannot be shared with any other progress payment worksheets or contract lines. Note. If you have set up the billing plan template automation to ready the billing plan upon worksheet approval, the system creates an immediate billing plan in Ready status.
Create Bill Plan	Click the Create Bill Plan link to create a billing plan directly from the progress payment request worksheet. This link opens the Billing Plan component (CA_BILLPLAN) for an Immediate billing plan. After you complete the required fields for the billing plan, and click the OK button, the system returns you to the Progress Payment Worksheet page and displays a link for the billing plan identifier in place of the Create Bill Plan link. Note. Billing plans assigned to progress payment worksheets cannot be set to Ready status until the worksheet has been approved.
Calculate Amounts	Click the Calculate Amounts button to automatically recalculate any formula field in the worksheet and incorporate any changes that are made to any of the cost fields or factors. This action recalculates and updates the noneditable fields on the worksheet page. If changes are made to the worksheet and you do not recalculate or save the worksheet prior to approving the worksheet, the system processes the worksheet with the original figures. Note. Clicking the Approve button does not automatically trigger any recalculations of changed fields, but instead saves the worksheet as is.
Approve Worksheet	Click the Approve Worksheet button to submit the progress payment request for billing. After you click the button, the system performs the following actions: Verifies that the progress payment amount does not equal zero. Verifies that the progress payment amount is not greater than the contract fixed price. Updates the Approved status in the Progress Payment Worksheet (CA_PGP_WKS) table to Yes. Automatically creates an immediate billing plan using the following information: Billing plan and billing plan detail templates specified in the Progress Payment Terms component (CA_PGP_TERMS). Billing plan identifier specified on the progress payment worksheet. Note. If you approve the worksheet and have not assigned a billing plan and billing plan detail template, the system issues an error message. Sets or updates the billing plan status to Ready, for billing plans with the Approve Progress Payments check box selected at the billing plan template level. Note. If you manually assign a billing plan to the progress payment worksheet and do not select the Approve Progress Payments check box for the billing plan template, the billing plan is created in Pending status, and you must manually update the billing plan status to Ready after you approve the progress payment worksheet. Verifies that any negative progress payment amounts are not greater than the unliquidated amount. Creates a credit bill for any negative progress payment amounts.
As of Date	Displays the date used to calculate the inception to date costs.
Notes	Click the Notes link to open a free-form text field and enter any additional notes regarding a specific worksheet.
(Attachments)	Click the Attachments button to attach any additional documents containing detailed explanations of the computations for the progress payment amount.
Save	Click the Save button to save the worksheet. If changes are made to the worksheet, it is recommended that you recalculate your worksheet totals prior to saving the worksheet to verify the new totals.

Statement of Costs

The statement of costs section of the worksheet contains the data used to calculate ITD and estimated costs to complete (ECC) costs, which are used to determine the specific progress payment amount as of the date indicated in the Progress Payment Request group box. The numbered fields correspond to the Contractors Request for Progress Payment form 1443.

Eligible Paid Costs	Enter the total amount of any costs associated with the contract that you have already paid and are eligible for progress payment amounts as per the progress payment clause.
Eligible Incurred Costs	Displays the amount of the eligible incurred costs to date for the contract items associated with the progress payment terms. This amount is the results of the most recent ITD costs calculations performed by the system. You can copy the resulting amount from Costs and Contract Fixed Price page or manually enter values to incorporate any additional eligible costs. If you adjust the amount for this field, you must recalculate the worksheet totals before approving the new progress payment request amount.
Total Costs Eligible	Displays the total overall amount of eligible costs available for progress payment requests. This amount is the total of the values entered or displayed in the Eligible Paid Costs and Eligible Incurred Costs fields. This amount is automatically calculated by the system and cannot be modified.
Total Costs Incurred (total costs incurred to date)	Displays the total eligible costs incurred to date. This amount is the total of your contract costs incurred to date plus any progress payments paid to subcontractors to date. These values are stored in the Total Costs Eligible and Subcontractors Payments fields. This total is calculated by the system and cannot be modified.
Estimated Costs to Complete	Displays the estimated additional costs to complete the contract items associated with the progress payment terms. This amount is the result of the most recent estimated additional cost to complete (ECC) calculations performed by the system. You can copy the amount from the Costs and Contract Fixed Price page or manually enter values to incorporate any additional eligible costs.
Item 11 x Item 6a	Displays the calculated results of the total costs that are eligible for progress payment requests multiplied by the progress payment rate factor defined on the Progress Payment Terms - General page. This amount is calculated by the system and cannot be modified.
Subcontractors Payments	Enter the total progress payment amount paid to date to subcontractors for the contract. This amount is not populated by the system and must be manually entered.
Liquidated Payments	Enter the total progress payment amount paid to subcontractors that has been liquidated. This amount is not populated by the system and must be manually entered.
Unliquidated Subcontractors Progress Payments	Displays the difference between the total progress payment amount paid to subcontractors and the amount liquidated (item 14a minus item 14b). This is a calculated amount and cannot be edited.
Subcontractors Progress Billings Approved	Enter the current amount of the progress payment paid to subcontractors that has been approved for billing, but not yet invoiced. This amount is not populated by the system and must be manually entered.
Eligible Subcontractors Progress Payments	Displays the total of the Unliquidated Subcontractors Progress Payments plus the Subcontractors Progress Billings Approved (item 14c plus item 14d). This is a calculated amount and cannot be edited.
Total Amount (Item 13 + 14e)	Displays the total costs eligible for progress payments multiplied by the progress payment rate factor, plus any eligible subcontractor progress payment amounts (unliquidated progress payment amounts and amounts approved for billing but not yet invoiced). This is a calculated amount and cannot be edited.
Item 5 x Item 6b	Displays the total amount of the contract lines associated with the progress payment terms multiplied by the liquidation rate factor. This is a calculated amount and cannot be edited.
Lesser of Item 15 or 16	Compares the total costs eligible for progress payments to the contract line amounts associated with the progress payment terms multiplied by the liquidation factor, and displays the lesser amount. The resulting field value is the total cost amount eligible for consideration for progress payments.
Total of Previous Progress Payments Requested	Displays the total amount of progress payment requests previously requested. This amount includes progress payment bills that are finalized or in progress. This field is automatically calculated when you click the Calculate Amounts button.
Maximum Balance Eligible for Progress Payment	Displays the total of the amount of costs eligible for consideration for progress payments minus the total amount of progress payments previously requested. This is a calculated amount and cannot be edited.

Computation of Limits

The Computations of Limits section of the worksheet contains any costs for items already delivered or invoiced as of the progress payment request date. The system incorporates these costs to take into consideration the costs of items delivered compared to their contract price. These amounts are incorporated into the worksheet calculations to reduce the eligible progress payment amount. The final result of these computations is the maximum amount that you can approve for a progress payment request.

Note. This part of the worksheet must only be populated if you have items that have been delivered or invoiced.

Costs included in Item 11 (Items Delivered)	Of your total paid costs and incurred costs to date, enter the amount that you included in that total for items that have already been delivered, invoiced or accepted to date for the contract.
Costs Eligible Applicable to Items Undelivered	Displays the difference between the total amount of your paid and incurred costs to date that are eligible for progress payments less any amounts associated with items that have already been delivered, invoiced or accepted (item 11 minus item 20a). This is a calculated amount and cannot be edited.
Item 20b x Item 6a	Displays the total costs for contract items eligible for progress payments not delivered, invoiced or accepted, multiplied by the progress payment rate factor. This is a calculated amount and cannot be edited.
Eligible Subcontractors Progress Payments	Displays the total amount entered for progress payments for subcontractors not yet liquidated plus any progress payment amounts that have billing approved but not invoiced.
Limitation (Item 20c + 20d)	Displays the total of the costs eligible for progress payments associated with items not delivered, invoiced or accepted, multiplied by the progress payment rate factor plus any eligible subcontractor progress payment amounts. This is a calculated amount and cannot be edited.
Contract Price of Items Delivered	Enter the total price for items delivered, invoiced and accepted for contract lines associated with the progress payment. This amount is computed based on the billed amounts associated with the contract lines that are associated with the progress payment. You can copy the amount from the Costs and Contract Fixed Price page or manually enter values to incorporate any additional eligible amounts.
Contract Price of Items not Delivered	Displays the total for the contract price associated with the progress payment terms less the total price of items delivered, invoiced or accepted (item 21a). This is a calculated amount and cannot be edited.
Item 21b x Item 6b	Displays the total amount for items not delivered multiplied by the liquidation rate factor specified for the progress payment terms. This is a calculated amount and cannot be edited.
Unliquidated Advanced Payments	Enter the amount of progress payments received to date not yet liquidated, plus any accrued interest for the payments. This amount is not populated by the system and must be manually entered.
Limitation (Item 21c + 21d)	Displays the total of calculated costs for items not delivered multiplied by the liquidation factor plus the amount for any progress payments received but not yet liquidated. This is a calculated amount and cannot be edited.
Maximum Unliquidated Progress Payments	Compares the total costs for items not delivered that are eligible for progress payments, multiplied by the progress payment rate factor, plus any eligible subcontractor progress payments, (item 20e), with the contract costs associated with items not delivered multiplied by the liquidation factor, minus any progress payments that have not been liquidated, (item 21e), and displays the lesser amount. The resulting field value is the maximum unliquidated progress payment amount.
Total Amount Applied to Reduce Progress Payments	Enter the amount to date of progress payments received that have been liquidated. This amount is represented by the difference between the progress payment amount and the unliquidated amount displayed on the progress payment terms page. This field can be manually updated to also include payments and exclude bills where liquidation has occurred but have not yet been paid. This field is calculated when you click the Calculate Amounts button only if the field has a value of zero.
Unliquidated Progress Payments (Item 18 - 23)	Displays the total amount of progress payments requested to date less the total amount of progress payments liquidated to date. This is a calculated amount and cannot be edited.
Maximum Permissible Progress Payments	Displays the maximum permissible progress payment amount.
Progress Payment Amount	Displays the amount of the progress payment calculated by the worksheet that is available for billing. This amount is calculated by comparing the maximum balance available for progress payment requests (item 19) to the maximum amount permissible for progress payment requests (item 25), and displays the lesser amount. This is a calculated amount and cannot be edited. Any manual adjustments or retainages that are required must be manually entered in the Amount Approved field.
Amount Approved	The value from the Progress Payment Amount field (item 26) appears by default in this field when it is first calculated and if the value in the Amount Approved field equals zero. You can manually override the amount or enter a negative amount if a refund or credit note is required. The amount entered in this field is sent to PeopleSoft Billing after the progress payment worksheet is approved and the Contracts/Billing interface process is run. Note. Limited edit checks are performed on this field, so it is recommended that you verify that the progress payment request amount is valid prior to clicking the Approve Worksheet button.

Accumulating Progress Payments Costs

Access the Accumulate Costs page.

As of Date

Enter the date that the system uses to retrieve cost information from the PeopleSoft Project Costing Project Transaction (PROJ_RESOURCE) table. The system retrieves applicable costs data where the accounting date is equal to or less than the as of date and budget data where the accounting date is greater than the as of date. This is a required field.

Sequence

Enter the progress payment sequence identifier associated with a particular set of progress payment terms to retrieve costs for projects and activities associated with that progress payment terms row.

Review Progress Payment Costs Data

Access the Cost and Contract Fixed Price page.

Results

As of Date	Displays the effective date of the inception to date cost rows and estimated costs to complete rows calculated and retrieved by the system from the Project Transaction table. The latest as of date displays first.
Inception to Date Costs	Run the Accumulate Costs process (CA_PGP_CALC) to populate this field with the inception to date costs for the contract whose accounting date is less than or equal to the as of date. Note. Cost amounts are displayed in the contract currency.
Estimated Costs to Complete	Run the Accumulate Costs process (CA_PGP_CALC) to populate this field with the estimated (budgeted) costs to complete for the contract whose budget accounting date is greater than or equal to the as of date. The value can be copied onto the worksheet for inclusion in the progress payment computations. Note. Cost amounts are displayed in the contract currency.
Copy to Item 12b	Select this check box to copy the amount in the Estimated Costs to Complete field to the corresponding field in the progress payment worksheet (item 12b). If a value already exists on the worksheet, the system enables you to select which value to use. Note. This check box can only be selected for one effective dated row on the Cost and Contract Fixed Price page.
Total Costs at Completion	Displays the total of the inception to date costs plus the estimated costs to complete. This is a calculated amount and cannot be edited.
Contract Fixed Price	Displays the total amount of the amount-based contract lines associated with the progress payment terms.
Loss Ratio Factor	Displays the results of the contract fixed price amount divided by the total costs at completion for the contract (inception to date costs plus estimated costs to complete costs). This ratio cannot be greater than 1.0 in order to cap the eligible costs at the total contract price. If the calculated amount exceeds 1.0, the system automatically changes the loss ratio factor to 1.0.
Total Costs Eligible	Displays the calculated total of the total costs at completion multiplied by the loss ratio factor.
Copy to Item 10	Select this check box to copy the calculated results of the total costs eligible to the corresponding Eligible Incurred Costs field. If a value already exists on the worksheet, the system enables you to select which value to use. Note. This check box can only be selected for one effective dated row on the Cost and Contract Price page.
Contract Price Items Delivered	Displays the total amount billed for the contract lines associated to the progress payment terms. This amount is calculated based on billing plans associated to those contract lines that have billing plan lines with statuses of FIN (Finalized).
Copy to Item 21a	Select this check box to copy the calculated amount for items delivered to the corresponding Contract Price of Items Delivered field. If a value already exists on the worksheet, the system enables you to select which value to use. Note. This check box can only be selected for one effective dated row on the Cost and Contract Price page.

Streamline Processing Option

Calculate ITD Costs (calculate inception to date costs)	Click the Calculate ITD Costs button to launch the Accumulate Costs process. The process is run synchronously and the page is refreshed as soon as the process is ended.
As of Date	When using the streamline processing options to run the Accumulate Costs process, enter the date that the system uses when retrieving cost information from the Project Costing Project Transaction (PROJ_RESOURCE).

Managing Progress Payments

Managing progress payments includes monitoring your progress payment balances, evaluating and approving progress payment worksheets, liquidating progress payment balances and making any necessary adjustments over the life of the progress payment. You can make adjustments to the terms of the progress payments using amendment processing, or you can manage the processing of the progress payment terms themselves, including cancelling the progress payment terms, or cancelling the billing plans associated with the progress payment terms.

Throughout the life of the contract, various events can happen which may affect the progress payments billing and liquidation. These can include:

Addition of a new contract line.
Amending an existing contract line amount.
Cancelling an existing contract line.
Removing a contract line from progress payment terms.
Reversing or cancelling a progress payment request.

Warning! Because each of these events can imply a change that directly or indirectly impacts progress payment terms or processing, such as, adding a contract line or issuing a refund, it is important that the user consider the implications of their actions on progress payment bills or liquidations. The complexity of the scenario could potentially lead to invalid progress payment data and should be reviewed by the user when any changes occur on contracts or contract lines associated with progress payments.

If you set the progress payment terms to a status of Complete, no further progress payment requests or liquidation can be processed. If additional progress payments are received, you can reverse the progress payment status to Ready to continue processing. When setting progress payment terms to a Complete status, the unliquidated and committed amount must be equal to zero, and the progress payment amount must be greater than zero.

If you set the progress payment terms status to Cancelled, no progress payment requests or liquidation can occur. However, after progress payment terms are set to a Cancelled status, you cannot reset the status to Ready to resume processing.

Before you can cancel a set of progress payment terms, the progress payment amount, remaining amount and committed amount must all equal zero. To cancel progress payment terms, you must reverse any billing and liquidation that has already occurred. To cancel an immediate billing plan associated with a progress payment worksheet that has already been submitted, delete the bill lines on the Billing Worksheet.

This section discusses:

Tracking progress payment balances.
Reversing progress payment billing plans.
Deleting progress payment billing transactions.
Amending progress payment terms.

Tracking Progress Payment Balances

When managing progress payments for a contract line, the system tracks three main amounts related to the progress payment balance: progress payment amount, unliquidated amount , and committed amount.

The following example describes how the system populates and tracks these amounts throughout the progress payment life cycle.

You approve a progress payment worksheet amount for 1,000 USD and run the contracts/billing interface process. After you finalize the invoice for the progress payment amount, the system posts the following entries in the Contracts Progress Payment table (CA_PGP_TERMS):

Progress Payment Amount

Unliquidated Amount

Committed Amount

1,000 USD

1,000 USD

0
A real bill for the contract line associated with the progress payment is generated for 500 USD. You run the Contracts/Billing Interface process, a utilization row is created and the system posts the following entry to PeopleSoft Contracts:

Progress Payment Amount

Unliquidated Amount

Committed Amount

1,000 USD

1,000 USD

500 USD
The real bill is finalized in PeopleSoft Billing for the contract line and utilization row. The system posts the following entries in PeopleSoft Contracts:

Progress Payment Amount

Unliquidated Amount

Committed Amount

1,000 USD

500 USD

0

Progress Payment Amount	Unliquidated Amount	Committed Amount
1,000 USD	1,000 USD	0

Progress Payment Amount	Unliquidated Amount	Committed Amount
1,000 USD	1,000 USD	500 USD

Progress Payment Amount	Unliquidated Amount	Committed Amount
1,000 USD	500 USD	0

Every time that you approve a progress payment request and finalize the bill for the progress payment request amount, the system updates the progress payment and unliquidated amounts. When a liquidation occurs (from the generation of a contract line bill), the system updates the committed amount with the liquidation amount, and then clears the entry and adjusts the unliquidated balance when the bill is finalized.

The above balances are viewed on the Progress Payment Terms pages and the Progress Payment Worksheet. Progress payment requests as well as liquidation amounts are included in the total billed amount on the Contract Summary page.

Reversing Progress Payment Billing Plans

Before you can cancel a contract associated with progress payment terms, cancel progress payment terms or cancel a billing plan associated with progress payment terms, the progress payment amount, unliquidated amount and liquidated amount must all equal zero. If these fields do not equal zero, then you must first reverse these amounts.

You may need to reverse progress payment billing plans in the following situations:

Progress payment terms must be cancelled, and billing or liquidation has occurred.
The billing plan assigned to the progress payment worksheet must be cancelled and billing has occurred.
An amount-based contract line associated with a set of progress payment terms needs to be cancelled, and a billing plan has already been set up and liquidation has occurred against the contract line.
An amount-based contract line associated with a set of progress payment terms need to be amended to reduce its amount.
A contract containing progress payment terms needs to be reversed or cancelled.
A contract line needs to be unassigned from Progress Payment terms.

Liquidation rows are associated with the bills generated from the billing plans that are assigned to the amount-based contract lines associated with the progress payment terms. As real bills are generated for the items, liquidation occurs against the available progress payment amount for the contract line. When you reverse progress payment bills, you reverse the billing plan attached to the progress payment worksheet. When you reverse bills associated with the contract line linked to the progress payment terms, the system also reverses any liquidation that has occurred, and updates the unliquidated amount and the progress payment amount.

Note. You can only reverse a progress payment billing plan (associated with a progress payment worksheet) for the amount that has not yet been liquidated. You cannot create a negative unliquidated amount.

For example, you have processed two progress payment requests for 5,000 USD each, for a total of 10,000 USD. You then process a bill for items delivered for 12,000 USD which results in an 8,000 USD liquidation amount against the progress payment amounts, and a net billed amount to the customer of 4,000 USD. If you then processed a reversal for one of the progress payment amounts for 5,000 USD, the system would not allow it, as the reversal would create a negative unliquidated amount of –3,000 USD (2,000 USD unliquidated amount remaining less 5,000 USD progress payment reversal equals a –3,000 USD unliquidated amount).

In this scenario, before processing the reversal for the progress payment request, you would first need to reverse the billed amount for 4,000 USD (reversal of the billed 12,000 USD and also reverses the 8,000 USD liquidated amount), and then process the reversal for the 5,000 USD progress payment bill.

When cancelling progress payment terms all billing and liquidation that has occurred against the progress payment terms must first be reversed.

Note. It is strongly recommended that you perform any refunds or manual adjustments in the PeopleSoft Contracts system to maintain synchronicity between PeopleSoft Billing and PeopleSoft Contracts for progress payment billing data.

See Reviewing and Reversing Billing Activity.

Deleting Progress Payment Billing Transactions

In some situations, after a bill is issued for a contract line associated with progress payment terms where liquidation has occurred, and sent to PeopleSoft Billing, an adjustment may be required. In this situation, you can delete the billing row along with the liquidation utilization row and reset the related amounts.

When you run the Contracts/Billing Interface process for progress payment requests, the system processes the bill lines in the same manner as regular immediate billing plans. After the system passes the bill lines to the Billing Worksheet, you can either accept the bill row or delete it.

If you delete the bill row, the billing plan is reset to a status of Recycledand the system processes the liquidation the next time that the Contracts/Billing Interface is run.

See Integrating with PeopleSoft Contracts, Project Costing, Grants, and Pay/Bill Management.

Amending Progress Payment Terms

Progress payment terms are associated with a status. When the progress payment terms are in a pending status, you can define your terms details and make any adjustments that are needed. After the progress payment terms are set to Ready status and processing has occurred against the progress payment terms, you must use amendment processing to make most adjustments to the terms. PeopleSoft Contracts uses amendment processing to enable you to maintain a historical record of any changes that impact the obligations and entitlements associated with the contract.

For progress payments, the following actions are controlled by amendment processing:

Modification of the progress payment or liquidation rates.

Note. Any modifications to the progress payment and liquidation rates made at the PeopleSoft Contracts business unit level do not automatically update the rates defined on the progress payment terms page. Instead you must manually update the progress payment and liquidation rates displayed on any existing progress payment terms. Any newly defined progress payment terms then use the new rates defined at the PeopleSoft Contracts business unit level.
Modification of the amount-based contract lines assigned to the progress payment terms. This includes adding new lines or deleting existing contract lines.
Modification to the Use for All Contract Lines check box.

If you originally set up your progress payment terms to apply to all amount-based contract lines on the contract, and then later decide that the progress payment applies to only certain amount-based contract lines on the contract, you must use amendment processing to apply this change.

Note. If new amount-based contract lines are added to a contract that is associated with the progress payment terms, the new contract lines must first be applied to the contract using amendment processing. Then you would need to create a second amendment to associate the newly added contract lines to the progress payment terms, unless the Use for All Lines in Contract check box has been selected when Progress Payments terms have been setup. If this check box is selected, then the system automatically associates the newly added contract lines to the progress payment terms.
Addition of a new set of progress payment terms to the contract after it has been set to an active processing status.

Note. If you have a set of progress payment terms in pending status on a contract that has a processing status of Active, you can modify that set of progress payment terms outside of amendment processing. However, after progress payment terms are set to Ready status, amendment processing must be used to make any changes to the progress payment terms.

See Managing Government Contracts.

Plan Template ID	Select a billing plan template to automatically create Immediate billing plans in the progress payment worksheet. Billing plans control the timing of bill processing for contracts. Billing plan templates enable you to set automation options that the system uses to automatically create a billing plan in Ready status when the Approve button is selected on the progress payment worksheet. Leave this field blank to manually create an Immediate billing plan from the progress payment worksheet. Note. The system automatically creates a billing plan in Ready status only if you have selected the Approve Progress Payment check box on the Immediate billing plan template. If this check box is not selected on the billing plan template associated with the progress payment terms, then the system automatically creates the billing plan in Pending status.
Bill Plan Detail Template ID	Select a billing plan detail template to automatically create Immediate billing plans in the progress payment worksheet. Billing Plan Detail templates enable you to override the billing field values that are defined for a PeopleSoft Contracts billing business unit and contract header that appear by default on the billing plan. Leave this field blank to manually create an Immediate billing plan and accept the billing defaults for your progress payment worksheet.
Progress Payment Worksheet	Click to access the progress payment worksheet, where you compute progress payment requests and approve progress payment bills for processing. This link is only available when the progress payment terms row is in Ready status and the contract is in an Active processing status.
Purchase Order Reference	Enter a specific purchase order reference number or any other reference data associated with a progress payment. This information is included on the progress payment request bill. If you enter a purchase order reference on the Contract Entry - General page, the data appears in this field by default.

Use for All Lines in Contract	Select the check box to automatically link the progress payment terms to all amount-based contract lines on the contract. When this check box is selected, no other progress payment term rows can be added to the contract, and any newly added amount-based contract lines are automatically associated with the progress payment terms. After the check box is selected, it can only be changed if the progress payment terms row is in Pending status. To change the setting after the progress payment terms are in Ready status and the contract is active, open the contract in amendment mode, clear the check box, and then click the Contract Lines link to access the Contract Lines page, where you can delete any amount-based contract lines that should not be included in the liquidation process. Note. Clearing the Use for All Lines in Contract check box only, does not unassign contract lines from the progress payment terms. You must also navigate to the Contract Lines page to delete the specific contract lines. This check box is available only if one set of progress payment terms is defined for the contract. If there are multiple sets of progress payment terms defined for the contract, the check box appears as display only.
Contract Lines	Click to access the Contract Lines page, where you can select the amount-based contract lines to link to the progress payment terms and use for the liquidation computations. You also use this page to delete contract lines that no longer apply to the progress payment.
Liquidation Descr for Billing (liquidation description for Billing)	Enter the description that displays on the liquidation rows on the invoice.
Projects and Activities	Click to access the Projects and Activities page, where you can select the projects and activities to use to compute ITD and estimated costs. These costs form the basis for progress payment request amounts and liquidation computations.

Add all lines	Click the Add all lines button to automatically load all amount-based contract lines into the Contract Lines page. After contract lines are assigned to a set of progress payment terms, they cannot be assigned to any other set of progress payment terms for the contract. At least one contract line must be associated with a set of progress payment terms before the progress payment terms can be changed to Ready status. After you use the Add all lines button or manually add a contract line to the page, the Add all lines button becomes unavailable until the page is saved. Note. If the Use for All Lines in Contract check box is selected on the Progress Payment Terms - Liquidation tab, the contract lines associated with the progress payment are display only, and contract lines cannot be added or deleted from this page.
Delete	Click the Delete button to delete selected rows from the Contract Lines page. After contract lines are deleted from the grid and the Progress Payment Terms page is saved, the contract lines can be associated with another set of progress payment terms on the contract. Note. If the progress payment terms are in Ready status and the contract is active, you can delete contract lines from the grid only in amendment mode. If liquidation has occurred for the progress payment terms, a warning message will let the user know that he may have to review what has already been billed and liquidated for that contract line and an adjustment to the progress payment amount (credit) or bill plan reversal may be required.
Select	Select the contract lines to be deleted from the contract lines grid that you have loaded manually or by clicking the Add all lines button.
Line Number	Select the contract line number, from all eligible amount-based contract lines on the contract, to associate with your progress payment terms for use in the progress payment liquidation process. Note. You cannot enter the same contract line multiple times in the grid. The prompt for the contract line number is only updated after the progress payment page is saved. If you delete a contract line from one set of progress payment terms, that contract line is not available to be added to another set of progress payment terms until you have saved the progress payment terms page where the contract line was deleted.
Select All	Select this check box to select all contract lines entered in the grid for deletion.
Clear All	Select the Clear All check box to clear all of the selected check boxes for the contract lines displaying in the grid.

As of Date	Enter the date that the system uses to retrieve cost information from the PeopleSoft Project Costing Project Transaction (PROJ_RESOURCE) table. The system retrieves applicable costs data where the accounting date is equal to or less than the as of date and budget data where the accounting date is greater than the as of date. This is a required field.
Sequence	Enter the progress payment sequence identifier associated with a particular set of progress payment terms to retrieve costs for projects and activities associated with that progress payment terms row.