Creating and Managing Limits

This chapter provides an overview of limits and discusses how to:

• Set up limits.

• Set up transaction limits.

• Process limits.

• Review and release limits.

Understanding Limits

PeopleSoft Contracts enables you to enter line-level and transaction-level billing limits. The billing limit amount defined for a contract line represents the maximum amount that can be billed. Limit processing is associated with this amount, which represent the "limit ceiling" for the contract line. However, within the overall billing limit, you may have sublimits on certain transactions such as travel, labor, or materials. PeopleSoft Contracts enables you to set up transaction level billing limits, in addition to overall billing limits, for your contract lines. Transaction limits enable you to apply multiple limit amounts to multiple transactions for a specific contract line.

You associate both types of limits to a contract line. You can view billing limits on the Review Contract Summary page as well as at the contract line level. Transaction limits are only visible and must be managed at the contract line level. Once you define your limits and the contract is active, any limit changes must be performed using amendment processing.

This section discusses:

• Line limits.

• Transaction limits.

• Limit processing.

Limits work differently for contracts with a classification of Government.

See Creating and Managing Limits.

Line Limits

For as-incurred and value-based billing methods on rate-based contract lines, PeopleSoft Contracts enable you to set a maximum amount that can be billed; this is referred to as a limit. You establish a line limit on the Related Projects page.

Line limit amounts are visible on the contract summary and line, and can also be viewed and managed using the Limits Review online inquiry page. Any changes made to the limits over the life of the contract must be performed at the contract line level.

Transaction Limits

Transaction limits enable you to apply multiple limit amounts to multiple transactions for a specific contract line. Transaction limits are only visible and must be managed at 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 PeopleSoft Project Costing ChartField values (source type, category, and subcategory).

The transaction identifier is associated with a transaction limit, which is subsequently associated with a contract line. Transaction identifiers enable you to apply specific limits to transactions with PeopleSoft Project Costing ChartField values matching 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 billing limit. Transactions that do not match the contents of a transaction limit transaction identifier are only applied to the contract line limit that you define on the Related Projects page.

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

Note. You must select a transaction identifier before the system enables you to enter a transaction limit amount.

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.

If assigning multiple transaction limits to one contract line, the system utilizes 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. This enables you to accommodate overlapping limit scenarios by identifying which transaction limit should be drawn against first. Multiple transaction limits need not be overlapping, however, depending on the specific contents of the transaction identifiers used. The sequence numbers must be unique.

Limits (CA_LIMIT) processing always considers transaction level limits first, and then contract line level limits, when determining if a transaction can pass limit checking. Only transactions passing transaction limits or transactions for which transaction limits are not applicable are checked against overall billing limits for the contract line. 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 billing limit for the contract line.

Note. In multi-limit 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, it is important that you carefully consider your setup and any potential negative results if defining overlapping limits.

Limit Processing

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

• Manually run the Limits process, or schedule it to run automatically, as a standalone process.

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

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

  When you are managing limits for a specific contract line, you can manually run the limit process by clicking the Perform Limit Checking button on the Related Projects or Transaction Limits pages when limits have been changed in amendment mode and the amendment has been processed.

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

  When the Pricing (PC_PRICING) process is run using the Pricing run control page, the Limits (CA_LIMIT) process is automatically called.

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

  Cost transactions for your contract lines will generally originate from within other PeopleSoft applications, such as PeopleSoft Expenses or PeopleSoft Payables. When transactions are sent from these feeder systems to PeopleSoft Project Costing, the Pricing (PC_PRICING) engine is automatically called, which also automatically calls the Limits (CA_LIMIT) process.

• Automatically run the Limits process when processing billing.

  When the Contracts Billing Interface (CA_BI_INTFC) process is run, the Limits (CA_LIMIT) process is automatically called.

No matter from where the Limits (CA_LIMITS) process is run, once initiated, the system evaluates any transaction-level limits first, then line-level limits, using the criteria that you have defined for limit processing.

Limit processing examines each PROJ_RESOURCE row that represents a contract line for which you have specified billing limits. If the amount on the row falls below the limit less the amount previously billed or set to be billed in this process, the row is marked BIL. If the amount on the row exceeds the limit less the amount previously billed or set to be billed, the row is marked OLT (over-the-limit).

The OLT transaction rows will not be billed nor recognized as revenue. The over-the-limit rows are excluded from billing and revenue processing until you release the OLT transaction or increase the limit and rerun the Limits process. Once you release the OLT transaction on the Limit Details page, the system converts the OLT row back to a BIL so it can be sent to billing and booked to revenue the next time that the billing and revenue processes are run.

Note. If you rerun the Limits process prior to billing the released OLT row (now BIL row), the row reverts back to an OLT row because the system limit checks it again and the row is still over the limit.

If a discount is specified for a rate-based contract line, the amount on the BIL resource row is decreased by the discount amount prior to comparing it against the limit. In addition, you can choose to retain a portion of the billable amount as a retainage. If so, the amount on the BIL resource row is decreased by an estimate of the retainage amount prior to comparing it against the limit, if the Reduce by retainage first option in the Limit Processing Management Options group box on the Installation Options - Contracts page is selected.

For rate-based lines, when the row is billed and fed back to PeopleSoft Project Costing, the analysis type is updated from OLT to BLD.

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

Note. In the case of contract lines that are associated with value-based billing plans, billed amounts are initiated from the billing plan and not the transaction.

Note. For contracts with a classification of Government, additional parameters apply to Limit Processing such as separating billing and revenue limits.

See Creating and Managing Limits.

Splitting Over-the-Limit Rows

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

Note. With retainages, the Contracts Billing Interface optionally checks for limits when retainages are released, depending on the value of the Apply retainage upon release Contracts Installation option. If the row is over-the-limit, it is returned to PeopleSoft Project Costing as OLT rather than RRT. With the Split to Match Limit Exactly option selected, the RRT is split into an RRT and an OLT, if there is some available limit left, but not enough for the release to fully pass limit checking.

When splitting OLT rows, the system prorates the quantity across the two new transactions. For example, if a 100.00 USD BIL, with a quantity of 10.00, was split into a 60.00 USD BIL and a 40.00 USD OLT, the BIL receives a quantity of 6.00 and the OLT receives a quantity of 4.00. The quantity is rounded to two decimal places.

The system handles OLT rows differently depending on whether revenue and billing processing has occurred:

• When no billing or revenue processing has occurred, both parts of a split transaction are eligible for repricing.

  If the transaction is no longer over the limit, the split rows are deleted and replaced with a single BIL row.

• When billing and revenue processing has occurred (processed by either the Contracts Billing Interface or the Contracts Revenue process) for the BIL half of a split transaction, the system cannot reprice the corresponding OLT row.

  However, that OLT row is still eligible for consideration against the limit. If the limit amount is increased or other activity occurs that makes a remaining limit amount available, and the OLT becomes under limit, the system converts it to a BIL row.

Setting Up Limits

This section discusses how to set up limits.

Page Used to Define Limits

Entering Limits

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

See Assigning Projects and Activities to Contracts.

Note. For limits, all PeopleSoft Project Costing transactions are matched to contract lines using the contract number and contract line number on the Project Transaction record (PROJ_RESOURCE) to the contract number and contract line number on the Contract Line record (CA_DETAIL). This is done instead of using the project ID and activity ID on the Project Transaction record to the project ID and activity ID on the Contract Line Related Project record (CA_DETAIL_PROJ). This matching may result in billed project transactions that predate the removal of a related project and activity from a contract line and its addition to another contract line, being included in the processed amount of the original contract number and line. In addition, billed or billable project transactions that occur after the removal of a related project and activity from a contract line and its addition to another contract line, may be included in the processed or to-be-limit-checked amounts of the new contract number and line.

Setting Up Transaction Limits

This section discusses how to define and modify transaction limits.

Pages Used to Define Transaction Limits

Entering and Modifying Transaction Limits

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

Note. For contracts with a classification of Government, you can access this page from the Contracts Amounts page instead of the Related Projects page.

See Setting Up Contract Amounts.

Processing Limits

This section discusses how to process limits.

Page Used to Process Limits

Running the Limits Process

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

Process Options

Contract Options

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

Reviewing and Releasing Limits

This section provides an overview of reviewing and releasing limits and discusses how to:

• Review limits.

• Review limit details and release limits.

Understanding Reviewing and Releasing Limits

Throughout the life of your contract, you may need visibility to the limit amounts for your contract lines, including the amount of the limits that have 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, with filtering capabilities, that enables you to view only the information that you need to effectively manage the limits that you have defined for your contract lines.

Use the Limit Details page when a limit has been breached to select the desired OLT transactions and release them to be billed and booked for revenue. Only rows with the OLT analysis type are visible on this page. To release OLT transactions, manually select the desired OLT transactions and click the Release button. This converts the OLT transactions into BIL transactions that are available for billing or revenue processing and launches the Limits process for the specific contract number and contract line number. The process runs with the Recalculate Totals Only option selected on the Limits Process run control which updates the Processed Amount and Excess Amount values for both the line level (CA_LMT_FEE_DTL) and transaction level limit (CA_LMT_TXN) records.

Note. If you want to bill or book for revenue the manually released transactions, you must run the Contracts Billing Interface (CA_BI_INTFC) with the streamlining options selected. Or, you must also run all the PeopleSoft Billing processes prior to rerunning the Limits process with the Recalculate Totals Option deselected. If you rerun the Limits process with the Recalculate Totals Only option deselected, prior to running the Contracts Billing Interface with the streamlining options selected, or prior to all the PeopleSoft Billing processes, then the manually released transaction becomes an excess transaction once again.

Common Elements Used in This Section

Pages Used to Review and Release Limits

Reviewing Limits

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

Search Criteria

Use the fields in the Search Criteria group box to filter search results by entering specific values in these fields. Values in the Business Unit, Limit Type, Sold To Customer, and Review By fields are required search criteria. Search results appear in the Limits scroll area. Amounts appear in the contract currency.

Review Limits: Remaining Tab

Review Limits: Excess Tab

Select the Excess tab.

Limit Amount	Displays the contract line and transaction limit amounts for this contract line.
Processed Amount	Displays the processed amounts for the contract line and transaction limits. These amounts include the totals of all billable and billed transactions. Note. This field is updated during the Limits process from the previous balance to a new balance. This field is impacted by any manual adjustments of bills within PeopleSoft Billing, but it may not be in sync with the manual adjustments unless the totals are recalculated.
Excess Amount	Displays the excess amounts for the contract line and transaction limits. These amounts indicate all over-the-limit transactions. Click the value in this field to access the Limit Details page where you can view details for the OLT transactions and release these transactions to be billed or booked for revenue.

Review Limits: Dates Tab

Select the Dates tab.

Currency	Displays the contract currency. If a transaction is processed in a different currency from the contract currency, the transaction is converted to the contract currency by the Pricing Engine and then applied to the limit in the contact currency.
Last Transaction Date	Displays the date of the last transaction.
Last Processing Date	Displays the date that the Limit Processing Application Engine was last run for this contract line.
Limit Reached Date	Displays the date that the limit amount was reached. If limits are increased using amendment processing so that all over-the-limit transactions pass limit checking, this field clears the next time that the Limits process is run with the Recalculate Total Only check box deselected.

Reviewing Limit Details and Releasing Limits

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

This page displays the limit type, transaction identifier, limit amount, processed amount, remaining amount, and excess amount for the specific limit.

Use the following fields to further filter search results by entering specific values in these fields. If you leave all fields blank, the search returns all over-the-limit transactions for the selected Excess Amount within your system.

Limit Details: Amounts Tab

The page displays the transaction date, accounting date, foreign amount, and Projects business unit amount for each OLT transaction.

Limit Details: ChartFields Tab

Select the ChartFields tab.

The page displays the PeopleSoft Project Costing business unit, project, activity, source type, category, subcategory, and description for each OLT transaction. The description comes from the Target row defined for the transaction analysis type on the rate set or rate plan associated with the contract line.

Limit Details: Transaction IDs Tab

Select the Transaction IDs tab.