Creating and Managing Limits

This chapter provides overviews of limits and summary limits and discusses how to:

• Set up limits for government contracts.

• Process limits.

• Review limit processing.

Understanding Limits

Government contractors bill and recognize revenue for their contracts according to terms and conditions specified by the government. Once funding is received for a contact, the contractor may bill or recognize revenue for a specified amount over the duration of the contract within a specified date range (referred to as the Period of Performance, or POP). Although any costs incurred during the completion of the contract must be tracked and managed, the contractor may only be able to bill or recognize revenue for a portion of those costs depending on the terms of the contract. PeopleSoft Contracts uses limit processing to enable you to set limits on the amount billed, revenue recognized, or fees processed for a government contract, as well as to enable you to set limits on specific transactions (such as labor, materials, or travel) that occur against a government contract.

This section discusses:

• Funding and revenue limits.

• Transaction limits.

Funding and Revenue Limits

PeopleSoft Contracts enables you to define funded limit amounts for your rate-based contract lines, and to define separate funded, revenue, and fee limit amounts for rate-based contract lines associated with a fee type (cost-plus). You can define period of performance controls and determine whether the system should enforce those controls for billing and limit processing by contract line.

The funded limit amount is the maximum amount that you can bill or for which you can recognize revenue for your rate-based contract lines over the life of the contract. For rate-based contract lines associated with a fee type (cost-plus), the funded limit amount represents the maximum amount that you can bill for the contract line, and if the Separate Billing and Revenue option is selected on the Installation Options - Contracts page, then a separate revenue limit amount can be defined that represents the maximum revenue that can be recognized. Fee limits are also defined for rate-based contract lines associated with a fee type (cost-plus). After you define your limits and the contract is active, you must perform any limit changes using amendment processing.

Funded and revenue limit amounts are visible on the contract header and line, and you can also view and manage them using the Limits Review online inquiry page. Any changes made to the limits over the life of the contract must be made at the contract line level.

Transaction Limits

The funded and revenue limit amounts defined for a government contract line represent the maximum amounts that can be billed and recognized as revenue. Limit processing is associated with these amounts and represents the limit ceiling for the contract line. However, within the overall funded and revenue limits, you may have sub-limits on certain transactions such as travel, labor, or materials. PeopleSoft Contracts enables you to set up transaction-level limits, in addition to overall funded and revenue limits for your government contract lines. Transaction limits enable you to apply multiple limit amounts to multiple transactions for a specific contract line. Transaction limits are visible, and must be managed, only the contract line level.

Transaction limits consist of the following main elements:

• Transaction identifiers.

• Transaction limit amounts and sequence numbers.

Transaction Identifiers

Transaction identifiers are configuration elements that enable you to set up limits on specific transactions. You define the transaction identifier using a combination of the PeopleSoft Project Costing ChartField values (source type, category, and subcategory).

You associate the transaction identifier with a transaction limit, and subsequently associate the transaction limit with a contract line. Transaction identifiers enable you to apply specific limits to transactions when PeopleSoft Project Costing ChartField values match the contents of the transaction identifier for a specific contract line. Transactions matching the contents of a transaction identifier for a transaction limit for a contract line must first pass the transaction limit before they can be checked against the contract line funded and revenue limit. Transactions that do not match the contents of a transaction limit transaction identifier are applied only to the contract line funded and revenue limit that you define on the Contract Amounts page.

Warning! After a transaction identifier is defined and associated with a transaction limit, it should not be modified, because data conflicts may occur for any transactions already processed using the transaction identifier.

Transaction Limit Amounts and Sequence Numbers

After you have defined transaction identifiers, you assign them to the transaction limit. A contract line can have multiple transaction limits, each with its own associated transaction identifier and limit, to enable you to stack limit processing and perform more complex limit processing scenarios. For example, you can set up multiple transaction limits to apply to the various transaction types that occur against your contract line, or you can set up your transaction limits to overlap one another to restrict processing for specific transactions.

If assigning multiple transaction limits to one contract line, the system uses sequence numbers that you assign to the transaction identifier and limit amount row to determine the order in which a limit amount is applied to a transaction. These sequence numbers must be unique. In the event that you set up overlapping limits, the system uses the sequence numbers to identify which transaction limit should be drawn against first.

Limits processing always considers transaction level limits first, and then funded and revenue limits defined at the contract line level, when determining whether a transaction can pass limit checking. Only transactions that pass transaction limits, or transactions for which transaction limits are not applicable, are checked against overall funded and revenue limits. Depending on your limit setup, when a transaction is processed, a portion of the transaction could be determined to be over-the-limit for the transaction level limit, even though it might have been within the available overall funded and revenue limit amount.

Note. In multilimit scenarios, the sequencing setup that you define controls how the limit process applies transactions against the transaction limit amounts. Because the over-the-limit transactions that can result from overlapping transaction limits can vary based on the order in which the limits are applied, you need to carefully consider your setup and any potential negative results if defining overlapping limits.

Transaction Limit Processing Examples

Transaction limits enable you to define multiple limits for multiple sets of transactions for a single rate-based contract line. The following example describes the steps and processing for a multilimit overlapping scenario using a transaction limit for overall travel and a second transaction limit on air travel.

Note. This example assumes that the Split to Match Limit Exactly check box is selected and the Separate Billing and Revenue check box is deselected (so that no revenue limits exist) on the Installation Options - Contracts page.

1. Define transaction identifiers to include limits for airfare and travel:

   Transaction Identifier	Source Type	Category	Subcategory
   AIRFARE	TRAVL	AIR	%
   TRAVEL	TRAVL	%	%

2. Define two transaction limits for the rate-based contract line:

   Transaction Identifier	Description	Limit Amount	Use Sequence
   AIRFARE	AIRFARE	10,000 USD	1
   TRAVEL	TRAVEL	15,000 USD	2

3. An expense transaction for airfare is submitted against the contract line, and contains the following details:

   Source Type	Category	Amount
   TRAVL	AIR	16,000 USD

4. When the transaction is priced, the Limits process (CA_LIMIT) is called.

   The Limits process applies the transaction to the first transaction limit amount with Use Sequence number 1, splits the transaction into two, one for 10,000 USD that passes the first limit and a second for 6,000 USD that is over the limit, and passes the over-the-limit transaction to PeopleSoft Project Costing:

   Transaction Identifier	Analysis Type	Source Type	Category	Quantity	Unit of Measure	Source Amount	Source Currency
   AIRFARE	OLT	TRAVL	AIR	1	EA	6,000	USD

5. The system applies the passed transaction to the second transaction limit amount with Use Sequence number 2, and passes the following results to PeopleSoft Project Costing:

   Transaction Identifier	Analysis Type	Source Type	Category	Quantity	Unit of Measure	Source Amount	Source Currency
   AIRFARE	BIL	TRAVL	AIR	1	EA	10,000	USD

6. The billable (BIL) row is passed to PeopleSoft Billing, and the over-the-limit (OLT) row remains in PeopleSoft Project Costing for reporting and analysis.

   If the Airfare travel limit amount is subsequently increased, the OLT transaction row can be reprocessed and a BIL row is created for it if the limit is sufficient to pass the transaction.

Because the system processes transaction limits in the order specified by the Use Sequence, the system produces different results if the Use Sequence of the transaction limits were reversed. In this example, if the Travel transaction limit is set to the first Use Sequence, and the Airfare transaction limit is set to the second Use Sequence, then when the 16,000 USD airfare expense is processed, the system produces the following results:

Because the Travel limit is specified as the first limit, the system applies the 16,000 USD transaction to that limit, which results in the system creating a 15,000 USD BIL row and a 1,000 USD OLT row for the transaction identifier of Travel. Then, the system applies the 15,000 USD BIL transaction that passed the first limit to the Airfare limit, resulting in another OLT row for 5,000 USD for the transaction identifier of Airfare, and a final 10,000 USD billable row.

The system applies the transaction to both the Travel and Airfare limits because the transaction contains the PeopleSoft Project Costing ChartField values that match the limit definitions.

Understanding Summary Limits

Summary limits can be used to summarize the amounts that are passed to PeopleSoft Billing. Summary limits can be used only on government contracts, not regular contracts.

To use summary limits, you must:

• Select the Summ. Limit for Govt Contracts (summary limit for government contracts) option on the Installation Options - Contracts page.

  When this option is selected, the Limits process (CA_LIMITS) operates differently than it does when this option is not selected. For example, when the option is not selected and a contract exceeds the limit, over the limit (OLT) and revenue over the limit (ROL) rows are created in PROJ_RESOURCE. Therefore, from this point forward, when the Summ. Limit for Govt Contracts option is selected the Limits process is referred to as the summary limits process.

  Note. When you select the Summ. Limit for Govt Contracts option for government contracts, the Split To Match Limits option does not apply to excess summary rows. However, the option is available for regular contracts.

• Define the public voucher number (PVN) generation level on the Business Unit - Defaults page for contracts.

  The PVN generation level value is used by the system to generate a PVN, which is printed on the billing invoice.

  The PVN generation level that is defined at the business unit level can be overridden on the Contract Header - Billing Options page.

• (Optional) Define the source type, category, and subcategory for the excess type.

  These values can be defined for each billable and revenue line that generates an excess amount and a reclaimed amount at the transaction level and line level. This is defined on the Excess/Reclaim Definition page.

• Select the Target Excess check box on one project and activity for each contract line where limits are imposed.

  Do this on the Related Projects page for the contract line.

An excess amount occurs when a transaction is over the limit that is specified for a transaction ID or a contract line. The amount in excess is displayed on the Excess tab of the Review Limits page and on the Limit Details page. When the contract line amount is billed, the costs are summarized and categorized on the invoice. If a contract amount is exceeded for a contract line, or transaction, the amount in excess is printed on the invoice.

The summary limits process generates one transaction for the difference between what the excess amount should be compared to what the excess amount is. In other words, the current excess amount is equal to the current inception to date (ITD) excess amount minus the previous ITD excess amount.

For regular contracts, the Limits process (CA_LIMITS) creates rows with an analysis type of billable over the limit (OLT) or revenue over the limit (ROL) in PROJ_RESOURCE when a limit is exceeded. However, the summary limits process:

• Creates rows with an analysis type of billable (BIL) or revenue (REV) in PROJ_RESOURCE.

  The actual cost is recorded as the billable amount, regardless of whether it passes limit checking.

• Additional rows are written to PROJ_RESOURCE for the amount in excess, and the Amount In Excess Flag field in PROJ_RESOURCE is set to Y.

• The source type, category, and subcategory values, which are defined on the Excess/Reclaim Definition page, are written to PROJ_RESOURCE.

Excess and reclaimed transactions are not selected for pricing and repricing; therefore, they have a system source value of CAX in PROJ_RESOURCE.

Transaction Level Limits

If you are using line level limits and transaction level limits, the transaction level limits are always checked before the line level limits. When transaction level limits are exceeded, the system uses the transaction ID (identifier) when it writes the excess row to the TXN_LMT_TRANS_ID field in the PROJ_RESOURCE table.

Example 1: Line Level Summary Limits

Line level limits enable you to impose a limit on the amount of money that is associated with a contract line, regardless of the number of transactions that are created against that line. This example describes the steps and processing for a line level limit scenario.

Setup

The system is defined in the following way:

• The Summ. Limit for Govt Contracts (summary limit for government contracts) option is selected on the Installation Options - Contracts page.

• The target excess type for billable line level amount in excess (Bil Ln Lvl Amount in Xs) is defined in the following way: Source Type is EXCES, Category is deselected, and Subcategory is blank.

• The target excess type for billable line level amounts that are reclaimed (Bil Ln Lvl Reclaimed Amt in Xs) is defined in the following way: Source Type is RECLM.

Contract Transaction

Define the contract transaction:

• Create a contract with one rate-based contract line.

• Associate a project and an activity with the contract line.

• Set the contract line level limit to 5000 USD.

• Select the Target Excess check box for the project and activity.

Project Transaction

Create a transaction in PeopleSoft Project Costing:

Summary Limits Processing

These rows are created in PROJ_RESOURCE:

Note. NA indicates that the field is not applicable.

Contracts to Billing Processing

The Contracts to Billing Interface process (CA_BI_INTFC) sends the billable (BIL) rows to the Billing interface table (INTFC_BI) for the full amount, regardless of the limit checking. The –8000 amount is sent to offset the amount that is in excess.

The process assigns a billable amount in excess (BAE) line type to the rows that have Y in the Amount in Excess Flag field in the PROJ_RESOURCE table.

The BAE rows are available to be passed to the general ledger and accounts receivable, depending on the accounts receivable setup.

Billing to Project Costing Processing

When the Billing to Project Costing process (PC_BI_TO_PC) runs, the Analysis Type field in PROJ_RESOURCE is updated to billed (BLD):

Note. NA indicates that the field is not applicable.

Funding Is Increased

If additional funding is received for the contract, the contract is amended and the limit is increased. For this example, the funding is increased from 5000 USD to 6000 USD.

When the summary limits process runs, as a standalone process or as a part of the Pricing/Re-Pricing process, a row is added to PROJ_RESOURCE:

Note. NA indicates that the field is not applicable.

Contracts to Billing Process After Funding Is Increased

The process assigns a reclaimed amount in the excess (RAE) line type to the rows that have a Y in the Reclaimed Flag field in the PROJ_RESOURCE table.

Example 2: Transaction Level Summary Limits

Transaction level limits enable you to impose a limit on the amount of money that is associated with a transaction. This example describes the steps and processing for a transaction level limit scenario.

Setup

The system is defined in the following way:

• The Summ. Limit for Govt Contracts (summary limit for government contracts) option is selected on the Installation Options - Contracts page.

• The target excess type for billable transaction level amount in excess (Bil Tx Lvl Amount in Xs) is defined in the following way: Source Type is EXCES, Category is deselected, Subcategory is blank.

• The target excess type for billable transaction level amounts that are reclaimed (Bil Tx Lvl Reclaimed Amt in Xs) is defined in the following way: Source Type is RECLM.

Contract Transaction

Define the contract transaction:

• Create a contract with one rate-based contract line.

• Associate a project and an activity with the contract line.

• Set the contract line level limit to 10,000 USD.

• Set a contract transaction level limit of 1,000 USD with a transaction identifier equal to DEVLAB.

  The transaction identifier has a resource type (RT) equal to LABOR and a resource category (RC) equal to PROG.

• Select the Target Excess check box for the project and activity.

Project Transaction

Create a transaction in PeopleSoft Project Costing:

Summary Limits Processing

These rows are created in PROJ_RESOURCE:

Note. NA indicates that the field is not applicable.

Contracts to Billing Processing

The Contracts to Billing Interface process (CA_BI_INTFC) sends the billable (BIL) rows to the Billing interface table (INTFC_BI).

Billing to Project Costing Processing

When the Billing to Project Costing process (PC_BI_TO_PC) runs, the Analysis Type field in PROJ_RESOURCE is updated to billed (BLD):

Note. NA indicates that the field is not applicable.

Project Transaction

Add a transaction in PeopleSoft Project Costing:

Summary Limits Processing

These rows are created in PROJ_RESOURCE:

Note. NA indicates that the field is not applicable.

The BIL row of –4000 does not have a transaction ID because the resource type and resource category do not fall under the transaction ID that is associated with the contract line; therefore, it does not qualify for a transaction level limit. However, the row does qualify for a line level limit. The net calculation at the line level is current ITD processed = 5000 + 2000 – 1000 + 8000 = 14000. The limit available is 10000 – 14000 = –4000.

Funding Is Increased

If additional funding is received for the contact, then the contract is amended and the transaction limit is increased. For this example, the transaction limit is increased from 1000 to 2000 for transaction ID DEVLAB.

Project Transaction

Add a transaction in PeopleSoft Project Costing:

Summary Limits Processing

These rows are created in PROJ_RESOURCE:

Note. NA indicates that the field is not applicable.

The amount is reclaimed at the transaction level, but exceeded the line level limit, which results in the –1000 amount in excess that is reported as a line level amount in excess.

Note. In addition, when you select this option, the system does not allow limits to overlap. For example, if two transaction IDs exist, then neither transaction ID can have common resource type, resource category, and resource subcategory with a wildcard option of %..

Setting Up Limits for Government Contracts

This section discusses how to:

• Set up contract amounts.

• Set up transaction identifiers.

• Set up transaction limits.

Pages Used to Set Up Limits for Government Contracts

Setting Up Contract Amounts

Access the Contract Amounts page (Customer Contracts, Determine Price and Terms, Contract Terms, Contract Amounts).

Limit Details

The Limit Details group box enables you to define the limit amount that the system uses to control the amount billed or revenue recognized for the individual rate-based contract line. For rate-based contract lines associated with fee types (cost-plus), the Limit Details group box enables you to define billing, revenue, and fee limits, as well as access the revenue fee worksheet (if the Separate Billing and Revenue check box is selected on the Installation Options - Contracts page).

Limit amounts defined for rate-based contract lines and rate-based contract lines associated with fee types (cost-plus) are summarized and appear on the contract header. You can navigate to the Transaction Limits page to define transaction limits and access the Review Limits page to review remaining limit amounts, transactions processed to date, and transactions in excess of the limit from this page. You can also initiate the Limits process for the individual contract line only. To do this, click the Perform Limit Checking button when limit amounts are modified, either prior to contract activation if transactions occur against the contract prior to contract activation that require limit checking, or in amendment mode, but only after the amendment has been processed.

Note. Transactions occurring against a contract prior to activation cannot be billed or processed for revenue recognition until the following conditions are met. The contract is in an active processing status and billing and revenue recognition plans (and events if needed) are assigned to the contract lines and set to a ready processing status.

The Limit Details page appears differently for rate-based contract lines associated with fee types (cost-plus). The fields that appear are specific for the fee type assigned to the contract line. The Limit Details page for cost-plus contract lines is discussed in the "Creating Cost-Plus Government Contract Lines" chapter of this PeopleBook.

See Defining Cost-Plus Contract Lines.

Period of Performance

The period of performance represents the date range authorized by the Government Contracts office within which all billing for the contract lines must occur.

Setting Up Transaction Identifiers

Access the Transaction Identifiers page (Setup Financials/Supply Chain, Product Related, Project Costing, Transaction Options, Transaction Identifiers).

See Defining Transaction Identifiers.

Warning! Do not modify existing transaction identifiers. Any change to an existing transaction identifier may affect other contracts using the same transaction identifier. Create a new transaction identifier if necessary.

Setting Up Transaction Limits

Access the Transaction Limits page (Customer Contracts, Determine Price and Terms, Transaction Limits).

Transaction Identifier	Enter the predefined transaction identifier to identify the transactions to which the limit applies. The transaction identifier is a configuration element that defines a set of transactions. Each transaction identifier may contain multiple transaction ChartField criteria and each contract line may be associated with multiple transaction identifiers.
Limit Amount	Enter the limit amount to apply to the transactions associated with the transaction identifier. If this is a rate-based contract line associated with a fee type (cost-plus) and theSeparate Billing and Revenue check box is selected on the Installation Options - Contracts page, the system applies the limit entered for both billing and revenue recognition. For rate-based contract lines associated with a fee type (cost-plus) for which the Separate Billing and Revenue check box is not selected, or for rate-based contract lines with a fee type of None, the system applies the limit only to billing.
Use Sequence	Enter the use sequence number to indicate which limit the system should draw down first in the case of overlapping limits. These use sequence numbers must be unique. This field enables overlapping limits. For example, you have a limit on Airfare as a subset of your limit on Total Travel. The limit on Direct Travel Costs may partially overlap the limit on Airfare. This is an example of overlapping limits. However, by processing transaction limits using a use sequence number, the system enables you to indicate which limit should be used first.
Transaction Identifiers	Click to access the Transaction Identifiers page, where you can view details for existing transaction identifiers or create a new one. After you select a transaction identifier, you can enter a limit amount.
Perform Limit Checking	Click the Perform Limit Checking button to initiate limit processing for the contract line when limit changes are made or limit checking is needed outside of batch processing. If this is a rate-based contract line associated with a fee type (cost-plus) and theSeparate Billing and Revenue check box is selected on the Installation Options - Contracts page, the system runs limit checking for both billing and revenue. For rate-based contract lines associated with a fee type (cost-plus) for which the Separate Billing and Revenue option is not selected, or for rate-based contract lines with a fee type of None, the system runs limit checking for billing only. Note. When you run limit processing from the Contract Amounts page or Transaction Limits page, the system automatically runs the Limits process with the Recalculate Totals Only check box deselected. To update limit totals only, run the limit checking process using the Process Limits run control page, and select the Recalculate Totals Only check box.

Processing Limits

This section provides an overview of limit processing and discusses how to process limits.

Understanding Limit Processing

The Limits (CA_LIMITS) process enables you to apply the transaction and overall limits that you define for your rate-based contract lines to transactions. You can run the Limits process using the following options:

• Run the Limits process as a standalone process.

  When you run the Limits process as a standalone process, you can select specific run control criteria to apply limits to specific contracts, recalculate limit amounts when totals are changed, or apply limits to billing or revenue transactions.

• Automatically run the Limits process for a specific contract line.

  When you are managing limits for a specific contract line, you can automatically run the Limits process by clicking the Perform Limit Checking button on the Contract Amounts or Transaction Limits page when limits have changed. This runs the Limits process for billing and revenue transactions if you have the Separate Billing and Revenue option selected on the Installation Options - Contracts page. Otherwise, the process is run only for billing limits.

• Automatically run the Limits process when performing pricing or repricing.

  When you run the Pricing process (PC_PRICING) using the Pricing run control page, the Limits process is automatically called. Because the system needs to know whether to apply limits for billing, revenue, or both, you must specify this information on the Pricing run control page.

• Automatically run the Limits process when you are processing transactions from feeder systems.

  Cost transactions for your contract lines will generally originate from within other PeopleSoft Enterprise applications, such as PeopleSoft Expenses or PeopleSoft Payables. When transactions are sent from these feeder systems to PeopleSoft Project Costing, the Pricing process is automatically called, which also automatically calls the Limits process. To determine whether the system needs to apply limits for billing, revenue, or both, the system uses the options defined on the Project Costing Business Unit Options page.

Note. Although the Limits process is used for general contracts and government contracts, the process treats government contracts differently than it does general contracts when the Summ. Limit for Govt Contracts (summary limit for government contracts) option is selected on the Installation Options - Contracts page. For example, for government contracts only, the Limits process creates BIL and REV rows in PROJ_RESOURCE from transactions regardless of limit checking. In addition, for government contracts only, the Limits process creates the offset amount in excess for BIL and REV transactions.

Processing Fees

The Proposed Fixed Fee is limit checked in one of two ways depending on the value in the Revenue Fee Limit field and the Revenue Fee Ceiling field:

• If the Revenue Fee Limit value is less than the Revenue Fee Ceiling value, then the proposed fixed fee is limit checked against the value of (revenue fee limit – fee already created).

  The "fee already created" is the amount of fees that have already been realized as billed or revenue . This is the field "xxx fee already created" where xxx is fixed, base, or other.

• If the Revenue Fee Limit value is greater than the Revenue Fee Ceiling value, then the proposed fixed fee is limit checked against the Revenue Fee Ceiling value. This is because the Revenue Fee Ceiling value includes the fixed fee value.

Over the Limit Transaction Rows

Regardless of where the Limits process is run from, using the criteria that you have defined for limit processing, the system evaluates any transaction level limits first, then funding limits (for billing), and then revenue limits (optional depending on your settings).

Note. For government contracts, if the Summ. Limit for Govt Contracts (summary limit for government contracts) option is selected on the Installation Options - Contracts page, then the Limits process operates as described in the Understanding Summary Limits section of this chapter. If the Summ. Limit for Govt Contracts option is not selected, then the Limits process operates as described in this section.

See Understanding Summary Limits.

The resulting rows are either passed as billing rows or revenue rows, or marked as over-the-limit. Billing rows that are over the limit are assigned an analysis type of OLT (Over-the-Limit). Revenue rows that are over the limit are assigned an analysis type of ROL (Revenue-Over-the-Limit). Over-the-limit transaction rows are not billed or recognized as revenue, but appear as a summarized amount-in-excess note within the header section of the invoice. This amount in excess represents a combination of any transaction and funded limits that were exceeded for the contract line.

You also can split transactions so that the portion under the limit amount can continue with billing and revenue processing. You can configure the option to split transactions on the Installation Options - Contracts page by selecting the Split to Match Limit Exactly check box. When this option is selected and a transaction exceeds the limit, the system splits a BIL row into one BIL line and one OLT line or a REV (revenue) row into one REV line and one ROL line. This enables you to reach the limit amount exactly with the BIL or REV line, and the system places the remaining transaction amount onto an OLT or ROL line.

After transaction rows exceed the limits that you defined for funding (billing) or revenue, the resulting OLT and ROL rows are passed to the Project Transaction table (PROJ_RESOURCE), where they can then be used for reporting or analysis. These over-the-limit rows appear on the Review Limits - Detail page and are included in the Limits report that is run for excess amounts.

If additional funding is received later in the contract life cycle, you can use amendment processing to increase the limit amount and process the applicable over-the-limit rows through to PeopleSoft Billing and PeopleSoft General Ledger. When you increase the limit amount and rerun the Limits process, the system:

1. Calculates the total amount of transactions processed to date against the transaction, funded and revenue limit amounts.

2. Calculates the remaining amount of each limit.

3. Applies the remaining funded or revenue limits (for a contract line) to any existing over-the-limit transactions applicable to the contract line.

   Over-the-limit transactions that are applicable to the contract line's funded or revenue limits and that are converted to BIL and REV rows are not reapplied against the contract line's transaction limits, but instead are passed to PeopleSoft Billing and PeopleSoft General Ledger. Any existing over-the-limit transaction rows are always processed first by the Limits process and converted to BIL and REV rows either in full or in part when possible.

4. Applies the remaining transaction limit to any existing over-the-limit transactions that are specifically identified with that transaction limit and converts the rows to BIL and REV rows when possible.

   The system reapplies all the remaining transaction limits to all newly converted BIL and REV rows that are applicable to the transaction limits. The reapplication of transaction limits is required to ensure that each transaction passes all applicable transaction limits, because funding and revenue at the transaction level are recorded as passed only when each transaction passes all applicable transaction limits. For over-the-limit transactions that are specific to a transaction limit, the transaction has, in effect, not passed any transaction level limits.

5. Applies the remaining transaction limits to any new BIL and REV transactions.

6. Applies the remaining funded or revenue limits against any new BIL and REV transactions that have passed limit checking at the transaction limit level, or for which transaction limits are not applicable.

7. The billing process adds the new billable rows to the current invoice and updates the amount in excess invoice line with any new amounts.

8. The revenue processes pass the new revenue rows to the general ledger.

Note. If manual adjustments to invoices in PeopleSoft Billing are performed, Oracle recommends that you run the Limits process with the Recalculate Totals Only check box selected prior to running your limit reports.

See Amending Limits.

Page Used to Process Limits

Processing Limits

Access the Process Limits page (Customer Contracts, Update Contract Progress, Process Limits).

Recalculate Totals Only	Select to update limit totals after making manual adjustments to invoices in PeopleSoft Billing. This option updates your limit totals that are displayed on the Review and Manage Limits component (CA_LMT_MGMT) and on the Limits report.
Process Revenue	Select to run the Limits process for revenue limits only.
Process Billing	Select to run the Limits process for billing limits only.

Contract Options

Use the fields in this group box to limit the transaction data that is included in the run of this process. Filter by PeopleSoft Contracts business unit, contract type, contract classification, contract, contract line, sold to customer, or contract administrator. If you leave all fields blank, the process picks up all available transaction activity in PeopleSoft Contracts.

Reviewing Limit Processing

This section provides an overview of reviewing limit processing, lists common elements, and discusses how to:

• Review Limits

• Review Limit Details

Understanding Reviewing Limit Processing

Throughout the life of your contract, you may need to view the limit amounts for your contract lines, including the amount of the limits that has been used to date, the amounts remaining, and any amounts that have exceeded your limits. PeopleSoft Contracts delivers an online inquiry page that provides both a summarized and detail view of this information. Using filtering capabilities, the system enables you to view only the information that you need to effectively manage the limits that you have defined for your contract lines.

Example 1: Line Level Summary Limits Processed and Excess Amounts

For government contracts, if the Summ. Limit for Govt Contracts option is selected on the Installation Options - Contracts page then the Processed Amount field is equal to the total amount of BIL and BLD rows, or REV rows where applicable. This total amount excludes the amount of excess rows that are created for the contract and contract line.

For example, the Separate Billing and Revenue option is selected, the Summ. Limit for Govt Contractsis selected, and the rate plan that is selected for the contract line generates one BIL row and one REV row for an amount that is equal to the cost.

A government contract has a funded or billing limit of 5,000 USD, and a revenue limit of 5,000 USD. When a transaction of 11,000 USD is incurred against the project or activity that is assigned to the contract line, then the Review Limits page displays an amount of 11,000 USD in the Processed Amount field of the Review Limits page. The processed amount excludes the excess amount. The excess amount is displayed on the Review Limits page: Excess tab as -6000 USD.

Example 2: Transaction Level Summary Limits Processed and Excess Amounts

For government contracts that have transaction limits, the Processed Amount and the Excess Amount fields at the line level include the transaction amounts at the transaction level.

For example, the Separate Billing and Revenue option is selected, the Summ. Limit for Govt Contractsis selected, and the rate plan that is selected for the contract line generates one BIL row and one REV row for an amount that is equal to the cost.

A government contract has a line level limit of 10,000 USD, one transaction level limit for DEVLAB of 1000 USD, and a second transaction level limit for EXT-LABOR3 of 1000 USD.

These transactions are incurred:

• ACT LABOR PROG - 1500 USD

• ACT MATER ADMIN - 1500 USD

• ACT - 1000 USD

The processed amount at line level on the Review Limits page displays 4,000 USD, which includes 1,500 for DEVLAB, 1,500 USD for EXT-LABOR3, and 1,000 USD for the line level limit. The Review Limits page displays these values:

Common Elements Used in This Section

Pages Used to Review Limit Processing

Reviewing Limits

Access the Review Limits page (Customer Contracts, Adjust Revenue and Billing, Review and Manage Limits, Review Limits).

Search Criteria

Use the fields in the Search Criteria group box to filter search results by entering specific values in these fields. If you leave fields blank, the search returns all limits for all Active contract lines within your system. At a minimum, you must enter the Business Unit, Limit Type, and Review By fields to perform a search request. Click the Search button to carry out a search based on the search criteria that you entered. Search results appear in the Limits scroll area. Amounts appear in the contract currency.

Note. Fee limits do not appear on this page. Fee limits for rate-based contract lines associated with a fee type (cost-plus) can be viewed on the Billing and Revenue Worksheet pages and Contract Amounts pages for the contract line.

Excess Tab

Select the Excess tab.

The Excess tab displays the funded or revenue limits depending on the value that you selected in the Limit Type field. Transaction limits display the transaction identifier value on the limit row, while funded or revenue limits display a blank field for the transaction identifier.

Dates Tab

Select the Dates tab.

Reviewing Limit Details

Access the Limit Details page (click the value in the Excess Amount column of the Review Limits page).

Date Type	Select a date type to have the system retrieve all over-the-limit billing and revenue transactions within the specified date range for the contract line. Date type values include: Acctg Date: Select to display all over-the-limit transactions by transaction accounting date using the date range specified. Trans Date: Select to display all over-the-limit transactions by transaction date using the date range specified.
From Date and Through Date	Select specific from and through dates to have the system retrieve all over-the-limit transactions within the specified date range.
Search	Click to retrieve the over-the-limit transactions that meet your date search criteria.
Transaction Date	Displays the transaction date of the original cost transaction from the feeder subsystem.
Accounting Date	Displays the accounting date of the original cost transaction from the feeder subsystem.
Foreign Amount	Displays the over the limit (OTL) , excess (negative), or reclaimed (when summary limits are used for government contracts) amount for the transaction in the original cost transaction currency.
Projects Business Unit Amount	Displays the transaction OTL, excess (negative), or reclaimed (when summary limits are used for government contracts) amount in the PeopleSoft Project Costing business unit base currency.

ChartFields Tab

Select the ChartFields tab.

Transaction IDs Tab

Select the Transaction IDs tab.