This chapter provides an overview of creating government contracts, lists prerequisites and common elements, and discusses how to:
Define general contract information.
Define contract lines.
Select products for contract lines.
Define contract terms.
Assign projects and activities to a contract line.
Create amendments.
Typically, government contracts are long-term agreements awarded for a specific amount or for defined estimated amounts and then managed to that amount. Contractors must meet specific government requirements to be awarded the contract, and they must manage the contract according to government rules and regulations. Ultimately, these requirements are centered on cost control, billing, and cash settlement. The PeopleSoft Contracts application enables you to comply with government regulations, run required reports, and perform required analysis using data captured in the Contract Entry component (CA_HDR_PNG).
The features and functions of the PeopleSoft Contracts application are the foundation for government contracts; once a contract is created and assigned the Government contract classification, which identifies it as a government contract, the contract can be built according to the specific requirements of the government contract.
The contact itself is divided into two main parts: the contact header and the contract lines. You use the header level contract pages to capture the overall customer data, as well as the overall contract terms and conditions. The line level data consists of the products and services that make up the contract. This data can be any combination of amount-based products, rate-based products, or rate-based products associated with fee types (cost-plus). At the line level, you can enter specific awarded amounts; set up limits for costs, fees, and revenue (optional); define withholding criteria to control how much of your costs and fees are billed and when; define and manage progress payments; and associate fee types with contract lines to set up and manage cost-plus contract line scenarios. After the contract is defined and contract lines are added to the contract, you can set up and manage billing and revenue at the contact line level according to the needs of each individual line.
Setting up a government contract so that it is available for billing and revenue recognition processing consists of these tasks:
Define the contract header data.
Enter the overall customer data, terms and conditions of the contract, legal entity, signed date, and so on.
Add products to the contract and enter contract line details.
Associate projects and activities to rate-based contract lines, set up progress payment details for contract lines associated with progress payment amounts, set up withholding and limit amounts where applicable, define fee details, and so on.
Price contract lines.
Set up and assign rates to rate-based contract lines and allocating contract line amounts across all amount-based contract lines.
Review and update account distribution data for the contract lines.
Set up accounting rules for rate-based contract lines, and set up and assign account distributions and deferred revenue options to amount-based contract lines.
See Structuring PeopleSoft Contracts for Government Contracting.
Create and assign billing plans to contract lines and any progress payments worksheet.
Use templates to automatically create and assign billing plans to contract lines, or manually define billing plans. Billing plans are required; they are the means by which billable contract line transaction data is passed to the PeopleSoft Billing application. If progress payments are assigned to any amount-based contract lines, then a billing plan must be defined and assigned to the progress payment worksheet to process the progress payment requests.
Create and assign revenue plans to contract lines.
Use templates to automatically create and assign revenue plans to contract lines, or manually define revenue plans. Revenue plans are required; they are the means by which accounting data for contract line transactions is passed to the PeopleSoft General Ledger.
Set the contract processing status to Active.
Only contracts with a processing status of Active are available for processing.
Before creating government contracts, you must first complete all of the setup steps.
See Structuring PeopleSoft Contracts for Government Contracting.
See Also
Amendment Number |
Displays the current amendment number assigned by the system. When the contract is activated, the system displays the amendment number 0000000000. As contract amendments are processed, the amendment number is automatically increased by one. |
Amend Contract |
Click this button on an active contract to adjust a current contract by creating an amendment. If a pending amendment exists, click to edit the existing, pending amendment. When you click this button, the system transfers you to amendment mode, and the button name changes to View Current. |
Amendment Status |
Displays the status of the last processed amendment. |
View Current |
In amendment mode, this button appears on the pages of the contract component. Click to view and edit the current contract. When you click this button, the button name changes to Amend Contract. |
Business Unit |
Establishes defaults for billing and accounting data for a contract defined using this business unit. |
Select a value for the contract classification when creating a new contract. The contract classification appears in the contract header and cannot be changed. Values for the Contract Classification field are: Standard, Internal, Government, and Federal Reimbursable Agreement. To access the features and functions associated with government contracts, you must select the contract classification of Government. |
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Contract Number |
Displays the contract number that you entered when you first defined the contract. If automatic numbering is enabled and you select a value of NEXT, then the system generates a contract number. The contract number is a unique number used to identify a contract. The parameters that you establish for a contract number affect all components of the contract. |
Contract Status |
Displays a user-defined value that provides a visual indicator of where the contract is in the contract life cycle. Since this element is associated with a processing status, it also controls what processing can occur against the contract. When you define a new contract, the contract status that was set up as the default appears; it can be overridden and changed to a different contract status. If you select a contract status that is mapped to a different contract processing status, the system performs edit checking to ensure that the contract is eligible for the new processing status that you selected. |
Contract Type |
Enter the user-defined contract type for the contract. This value is used for reporting and for determining what milestones may be applied to the revenue plans and billing plans of an amount-based contract line. |
Go To |
Select one of the following links to navigate to key contract pages to set up billing and revenue or to perform pricing for amount-based contract lines: Billing Plans: Select this link to assign contract lines for this contract to new or existing billing plans. Revenue Plans: Select this link to assign contract lines for this contract to new or existing revenue plans. Milestones:: Select this link to add new milestones or edit existing milestones on this contract. Amount Allocation: Select this link to allocate the fixed contract amount across amount-based contract lines. Once the contract is activated, this link no longer appears. |
More |
Select from the drop-down list options to navigate to the additional contract pages. Values include:
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Processing Status |
Displays the processing status corresponding to the selected contract status. |
Sold To Customer |
Displays the name and customer ID of the customer to whom this contract was sold. A sold-to customer can be associated with multiple ship to and bill to customers, enabling you to associate different contract lines with different ship to customers and different billing plans with different bill to customers. |
This section provides an overview of defining contract header data and discusses how to:
Set up and manage contract header information.
Define the sold-to address.
At the contract header level, you identify the contract as a government contract by setting the contract classification to Government. This setting enables you to view and use all of the fields that are specific to government contracting. The contact header enables you to define the customer data as well as the overall terms and conditions for the contract, such as billing options, payment terms, contract start date, and relationship, if any, to other contracts. Contract headers have a one-to-many relationship with contract lines. That is, many contract lines can be assigned to one contract header, and data assigned at the contract header level can appear by default on the contract lines. Much of the processing associated with the contract takes place at the contact line level.
See Also
Defining General Contract Information
Page Name |
Definition Name |
Navigation |
Usage |
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Set up and manage contract header information. |
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Select Sold To Address from the More drop-down list on the Contract - General page. |
View and optionally select a different address for a contract's sold-to customer. |
Access the Contract - General page (Customer Contracts, Create and Amend, General Information, Contract - General).
Copy From Contract |
Click to create a new contract using an existing contract. When you use this method to copy a government contract that contains rate-based contract lines assigned a fee type other than None, the system does not copy any fee types associated with the rate-based contract lines. Instead, when the system copies the rate-based contract line that was assigned a cost-plus fee type, the system replaces the fee type for the new contract line with a fee type of None. |
Add to My Contracts |
Click to add the current contract to the My Contracts page. |
Contract Admin (contract administrator) |
Select an administrator for this contract. |
Region Code |
Select a region code, which enables you to break your business out into smaller or larger areas for operational purposes. |
Currency Code |
Enter the currency code for the contract. The currency code defined at the contract header level is inherited by all contract lines that are added to the contract. After you set up the contract, enter the currency code at the header level, and save the contract, this field is no longer editable. |
Contract Signed |
Enter the date on which the contract was signed. You must enter a value in this field before you can assign the contract a status that is mapped to an Active processing status. |
Last Amended |
Displays the date of the last amendment processed for the contract. |
Last Update Date/Time |
Displays the time stamp of the last amendment processed for the contract. |
Last Update User ID |
Displays the user ID of the user who entered the last amendment for the contract. |
Other Information
Template Contract |
Select to designate this contract as a template. You can then use this template when creating subsequent contracts. Contracts designated as templates can contain header and line data, but they can never be set to an active processing status or have billing or revenue performed against them. |
Master Contract (check box) |
Select to designate this contract as a master. This check box is not available on active contracts. |
Legal Review Complete |
Select to indicate that the legal group has reviewed this contract. This check box is informational only. |
Credit Check Complete |
Select to indicate that a credit check was completed for this customer. This check box is informational only. |
Parent Contract |
Select a parent contract to create a parent-child relationship with another contract. |
Master Contract (field) |
To link this contract to a master contract, enter the master contract number in this field. If you designated this contract as a master contract by selecting the Master check box, then this field is unavailable. |
Legal Entity |
Enter the organizational or legal owner of the contract. The system can populate this field with the value associated with the PeopleSoft Contracts business unit. |
Purchase Order |
Enter the sold-to customer's purchase order (PO) number associated with this contract. The PO is used in billing processing and entered in the bill header. |
Proposal ID |
Enter the proposal ID associated with this contract. This field is informational only. |
Awarded Cost |
Displays the summarized amount of awarded costs defined for cost-plus contract lines (rate-based contract lines associated with a fee) that are assigned to this contract. |
Awarded Fee |
Displays the summarized amount of awarded fees defined for rate-based contract lines associated with a fee type (cost-plus) that are assigned to this contract. This field represents all awarded fees for the contract, not just fees associated with the award fee type. |
Awarded Subtotal |
Displays the summarized total of the awarded costs and awarded fees defined for rate-based contract lines associated with a fee type (cost-plus) that are assigned to this contract. |
Awarded T&M (awarded time and materials) |
Displays the summarized total of any awarded amounts entered at the contract line level on the Contract Amounts page for rate-based contract lines not associated with fees (not cost-plus). |
Fixed Price |
Displays the summarized total of any amount-base contract lines associated with the contract. |
Total Contract Value |
Displays the summarized total of all awarded costs, fees, time and material, and fixed price amounts associated with the contract lines. |
Funded Cost |
Displays the total limit amount for billable costs that were entered for rate-based contract lines associated with a fee type (cost-plus) on the Contract Amounts page. |
Funded Fee |
Displays the total fee limit amount for billable fees that were entered for rate-based contract lines associated with a fee type (cost-plus). |
Funded T&M (funded time and materials) |
Displays the total limit amount for billable costs that were entered for rate-based contract lines not associated with a fee type (not cost-plus) on the Contract Amounts page. |
Revenue Cost |
Displays the total revenue limit amount defined for rate-based contract lines associated with a fee type (cost-plus) associated with the contract. Revenue cost limit amounts are only entered when the Separate Billing and Revenue option is selected on the Installation Options - Contracts page. |
Revenue Fee |
Displays the see Revenue Fee Worksheet link. Click the link to navigate to the revenue fee worksheets, where the revenue fee amount is managed for rate-based contract lines associated with a fee type (cost-plus). This link is active only if the Separate Billing and Revenue option is selected on the Installation Options - Contracts page. |
See Also
Defining General Contract Information
Access the Sold To Address page (select the Sold To Address link in the More drop-down list on the Contract - General page).
Address Sequence Number |
Select the address location for the sold-to customer. Select from addresses previously defined for the customer on the Customer Information - General Info page. |
Contact |
Select the contact for the selected sold-to address for the customer. |
This section provides an overview of defining contract lines, lists common elements, and discusses how to:
Add general contract line information.
Add contract line details.
View contract line amount details.
Set the contract line deferred revenue option.
After you create a contract header, you can begin creating contract lines for the contract by adding products to the contract. Products represent the goods and services that you are contracted to provide to the government entity. These products can be defined in advance, or they can be created on an ad hoc basis specifically for the contract. Attributes assigned to the product appear by default in the contract line, along with contract header-level data that pertains to the contract line, but these can be overridden at the line level. After selecting products for the contract, you can assign the following additional attributes to your amount-based contract lines:
Accounting distribution data.
Project and activity data.
Fixed price data.
Progress payment data.
You can also add these attributes to your rate-based contract lines:
Fee information.
This information includes fee types, fee rates, and other data used for fee calculations.
Rate sets or rate plans.
Projects and activities.
Limits.
Withholding and release criteria.
To price the contract lines, you can assign a fixed amount to your amount-based contract lines using either a list price defined for the product or the PeopleSoft Enterprise Pricer. Then, you adjust the amount, as needed, using the Amount Allocation page. For contract lines that are rate-based or rate-based associated with a fee type (cost-plus), pricing is done using rate sets or rate plans, and projects and activities are assigned to the contract line on the Related Projects page. As transactions are accumulated in PeopleSoft Project Costing for these contract lines and for the projects and activities associated with these contract lines, the PeopleSoft Project Costing Pricing Engine prices the transactions using the rates associated with those same contract lines.
After the contract is activated and after pricing is complete for the contract lines, you can bill and recognize revenue for the contract line transactions as needed. Billing and revenue recognition plans are required to perform billing and revenue processing, and they can be assigned to the contract lines before or after the contract is activated. However, before billing or revenue recognition can occur for the contract line, the contract line must have a processing status of Active and it must be assigned to a billing or revenue recognition plan, respectively.
See Setting Up Products.
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Click the Header Details icon to view the contract header data for the contract lines. |
Add Contract Lines |
Click to navigate to the Add Contract Lines page to add existing products or define new products to add to this contract. You can add contract lines to contracts in Pending processing status or, after the contract becomes active, you can add contract lines using amendment processing. When you activate a contract, the Add Contact Lines button no longer appears. It will only reappear when the contract is opened using amendment mode. |
Add Default Kit |
Select to add a default product kit to the contract. To use this default feature, you must first have defined a default product kit for the contract's contract type. |
Line |
Displays the contract line number assigned to the product once the line is added to the contract. |
Price Type |
Displays the price type associated with the product. Amount and Rate are the only applicable price types for government contracts. |
Product |
Displays the product identifier for the product assigned to the contract line. |
Page Name |
Definition Name |
Navigation |
Usage |
Customer Contracts, Create and Amend, General Information, Lines |
Add products to a contract. Each product appears on the contract as a distinct contract line number. From this page, you can view or access all details defined for a contract line. |
Access the Contract - Lines page: General tab (Customer Contracts, Create and Amend, General Information, Lines).
After selecting products into the contract, the Contract - Lines tabs enable you to view and enter all required details for the contract lines. Each contract line represents a unique contract product that can be associated with its own accounting distributions, limits, fees, progress payments, billing and revenue plans, and so on.
Fee Type |
Displays the fee type, if any, assigned to the rate-based contract lines. Fee types are assigned on the Add Contract Lines page. If you will be using cost-plus functionality for the contract line, you must select a fee type for the product before the product is added to the contract. |
Start Date |
Displays the period of performance start date entered on the Contract Amounts page for rate-based contract lines. For amount-based contract lines, the start date represents the beginning of a recurring bill schedule or renewal term. Recurring billing and renewal processing are not applicable to government contracts. |
End Date |
Displays the period of performance end date entered on the Contract Amounts page for rate-based contract lines. For amount-based contract lines, the end date represents the end of a recurring bill schedule period or renewal term. Recurring billing and renewal processing are not applicable to government contracts. |
Status |
Select the status of the contract line. Values include:
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Access the Contract - Lines page: Detail tab (click the Detail tab on the Contract - Lines page).
The Contract - Line Details page provides links for each contract line to enable you to set up billing and revenue plans, contract terms, accounting distribution, and to add internal notes.
Billing Plan |
Displays the status of the billing plan assigned to the contract line as a link. To access the Billing Plan General page for the billing plan created and assigned to the contract line, click the status link for the contract line. |
Revenue Plan |
Displays the status of the revenue plan assigned to the contract line as a link. To access the Revenue Plan page for the revenue plan created and assigned to the contract line, click the status link for the contract line. |
Contract Terms |
Click the Contract Terms link to access the Contract Terms component (CA_DETAIL_PROJ). The Contract Terms component enables you to define limits for contract line funded amounts and fees, associate projects and activities with the contract line, and set up withholding parameters. |
Accounting |
Click the Distribution link to access the Accounting Distribution page. Use this page to manage account distribution data for amount-based and rate-based contract lines. For amount-based contract lines, specify the unbilled accounts receivable, revenue, and deferred revenue accounting distributions used by the system to generate accounting entries for the contract line. For rate-based contract lines, specify the Revenue Forecasting account distribution data used by the system when generating a revenue forecast for the contract line. If an error occurs during processing, an Action Required link appears instead of the Distribution link. Errors may occur for the following reasons:
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Internal Notes |
Click to access the Internal Notes page to add or view notes related to this contract line. |
Ship to Customer Name |
Click to access the Ship To Address page to manage the ship-to customer information for this contract line. Defaults are based on the sold-to customer that you selected on the Billing Options page. You can select an alternate ship-to ID. |
Access the Lines page: Amount Detail tab (click the Amount Detail tab on the Contract - Lines page).
The Contact - Lines Amount Detail page enables you to view the pricing information for a contract line. The system updates these fields to reflect changes that you make to the price detail for amount-based contract lines on the Amount Allocation page and for rate-based contracts on the Contract Amounts page.
List Price |
Displays the list price defined on the Product Price page for amount-based products. The list price appears in the contract currency. |
Quantity |
Displays the quantity for the product that you added to the contract line. For amount-based products, the system uses the quantity as a multiplier to determine the total fixed price amount for the contract line. This field is display-only. If you want to change the quantity before the contract is activated, do so on the Amount Allocation page. After contract activation, you can change the quantity through an amendment on the Amendment Amount Allocation page. |
UOM (unit of measure) |
Displays the unit of measure defined on the Product Price page for amount-based products. |
Fixed Price |
Displays the fixed price amount for amount-based contract lines, allocated for this contract line, on the Amount Allocation page, and then multiplied by the quantity. This field is updated when changes are made on the Amount Allocation page. |
Awarded Amount |
Displays the awarded limit amount defined on the Contract Amounts page for rate-based contract lines. |
Access the Lines page: Deferred Revenue tab (click the Deferred Revenue tab on the Contract - Lines page).
Generating accounting entries for deferred revenue enables you to post revenue that you expect to realize in a future accounting period for amount-based contact lines to the general ledger. If the contract is in Pending status, you can enable deferred revenue by selecting this check box. If the contract is in Active status, you cannot change this setting unless you are in amendment mode.
Deferred Revenue |
Select to enable deferred revenue processing at the contract line level for amount-based contract lines. The deferred revenue option can also be set up on the Product Group Options page, so that it appears on this page when the product associated with that product group is added to the contract. Note. If you choose to set up the deferred revenue option at the Contracts Product Group Options level, you will not be able to override the deferred revenue setting at the contract line level unless you have also selected the Deferred Revenue Override option at the PeopleSoft Contracts business unit level. |
Deferred Revenue Status |
Displays the status of the deferred revenue processing for this contract line. This field only appears when the Deferred Revenue check box is selected. |
Deferred Revenue Acctg Date (deferred revenue accounting date) |
Select the deferred revenue accounting date for the amount-based contract line. The Deferred Revenue process does not process any contract line until you specify the deferred revenue accounting date. In addition, if deferred revenue is enabled, any related amount-based revenue processes do not process until the deferred revenue process is run. This field only appears when the Deferred Revenue check box is selected. |
This section provides an overview of selecting products for contract lines and discusses how to select products to add to a contract line.
When you select a product onto a contract line, the system creates a single contract line. If products or services are sold as part of a product kit (a collection of products), then when you select a product kit onto a contract, the system creates an individual contract line for each product within the product kit. When selecting products for government contracts, you can select from amount- and rate-based product types. You can add any combination of these contact line types onto the same contract according to your business needs. For rate-based contract lines associated with a fee type other than None (cost-plus), you must assign the fee type on the Add Contract Lines page so that the various contract pages appear with the appropriate fee information after the product is added to the contract.
The Add Contract Lines page provides a number of automation features to reduce the amount of data entry needed after the product is added to the contract. For example, by assigning billing or revenue plan templates to the products, the system automatically creates billing and revenue plans for the contract lines, combining contract lines onto the same billing and revenue plans where applicable. For rate-based contract lines that are assigned a fee type (cost-plus), you can use billing and revenue plan templates to automatically create billing and revenue plans, but the contract lines cannot be combined onto a single billing or revenue plan, even if they use the same fee type, because the various fees must be managed separately for each individual contract line.
When using templates to automatically create billing and revenue plans, only certain billing and revenue plan methods can be used for your amount- and rate-based contract products. This table shows the available billing and revenue methods that can be associated with the amount- and rate-based contract lines assigned to government contracts:
Contract Line Price Type |
Eligible Billing Method |
Contract Line Price Type |
Eligible Revenue Method |
Amount |
|
Amount |
|
Rate (Time and Material) |
|
Rate (Time and Material) |
As-Incurred |
Rate (Cost-Plus) |
As-Incurred |
Rate (Cost-Plus) |
As-Incurred |
See Also
Page Name |
Definition Name |
Navigation |
Usage |
Customer Contracts, Create and Amend, General Information, Lines Click the Add Contract Lines button. |
Search for and select products to be added to a contract. From this page, you can also create and add ad hoc products to a contract line. |
Access the Add Contract Lines page (click the Add Contract Lines button on the Contract - Lines page).
Search Products
Use the Search Products group box to search for predefined amount- and rate-based contract products. Optionally, filter the search using this search criteria:
Product Group |
Select a product group. Product groups are optional. If they are set up, they provide a logical grouping of products. |
Product |
Search for products by entering all or part of a product name. |
Product Description |
Search for products by entering all or part of a product description, as entered on the Product Definitions page. |
Price Type |
Search for products by price type associated with the product. Select from a price type of Amount or Rate. |
Physical Nature |
Search for products by the physical nature if this criterion is assigned to the product on the Product Definitions page. Select Goods or Services. |
Product Kits |
Select this check box to search only for product kits. |
Search |
Click the Search button for the system to carry out the search based on the search criteria that you entered. The Search Results grid will be populated with all products that meet the criteria. |
In the Search Results grid, the system displays the products that meet the search criteria.
To add products to the contract, select the check box and click Add Contract Lines, , but remain on the Add Contract Lines page. When you select multiple products, the system adds each selected product to the contract as a new contract line.
Product |
Displays the product identifier defined for the product on the Product Definition page. |
Price Type |
Displays the price type associated with the product. Values include:
|
Physical Nature |
Displays the physical nature of the product if one was assigned on the Product Definition page. |
Product Kit |
Displays whether the product is part of a product kit. |
Fee Type |
Select a fee type to assign to products with a price type of Rate to enable cost-plus functionality to be used for the contract line. |
Start Date |
Enter a start date for the contract line. The value that you enter here populates the Contract - Lines page. The system uses this start date to initiate billing for products with recurring price types. In addition, if this contract line is associated with a template with a basis date source option of Contract Line Start Date, then the system uses this start date when populating events on the contract line. Note. You must enter a value in the Contract Line Start Date field if a template with a basis date source option of Contract Line Start Date is associated with the product that you are adding to the contract. Note. This field is not available for entry if you selected the Product Kits check box in the Search group box. |
End Date |
Enter an end date for the contract line. The value that you enter here populates the Contract - Lines page. The system displays the latest end date from all contract lines that are defined for the contract on the Contract - General page. Note. This field is not available for entry if you selected the Product Kits check box in the Search group box. This field is also not available for entry if you selected Recurring in the Price Type field. |
Quantity |
Enter the quantity of the product selected. |
UOM (unit of measure) |
Displays the default unit of measure assigned to the product. You can select a different unit of measure from those values previously defined for the product. |
Select All |
Select this check box to select all products returned by the search process and to add them to the contract. |
Clear All |
Select this check box to deselect the selection box for any products returned by the search process to be added to the contract. |
Access the Add Contract Lines page: Templates tab (select the Templates tab on the Add Contract Lines page).
Revenue Plan |
Add a revenue plan template or override the existing revenue plan template before adding the contract line to the contract. Adding a revenue plan template to the contract line enables the system to automatically set up a revenue plan for the contract line once the product is added to the contract and the contract is saved. For rate-based contract lines assigned a fee type (cost-plus), revenue plan templates must use the As-Incurred revenue plan method. Note. When selecting a revenue plan template for contract lines, all active revenue plan templates appear in the drop-down list. However, if a revenue plan template is selected that uses a method that is not valid with the price type, then the system displays an error message when you attempt to add the contract line to the contract. |
Billing Plan |
Add a billing plan template or override the existing billing plan template before adding the contract line to the contract. Adding a billing plan template to the contract line enables the system to automatically set up a billing plan for the contract line once the product is added to the contract and the contract is saved. For rate-based contract lines assigned a fee type (cost-plus), billing plan templates must use the As-Incurred billing plan method. Note. When selecting a billing plan template for contract lines, all active billing plan templates appear in the drop-down list . However, if a billing plan template is selected that uses a method that is not valid with the price type, then the system displays an error message when you attempt to add the contract line to the contract. |
Billing Plan Detail |
Add a billing plan detail template or override the existing billing plan detail template before adding the contract line to the contract. Billing plan detail templates enable you to automatically enter or override data on the Billing Plan - General page. |
Add Contract Lines |
Click to add any currently selected products to the contract. Clicking this button does not automatically return you to the Contract - Lines page, but enables you to perform any additional product searches using the Add Contract Lines page. |
Create Adhoc Product |
Click to access the Create Adhoc Product page, where you can create a new product to use only on this contract. |
Return to Contract Lines |
Click to return to the Contract - Lines page and view newly added contract lines. |
Create Plans from Template
Billing Plans |
Select this check box to enable the system to automatically create a billing plan using a specified template when adding the contract line to the contract. Deselect this check box if you do not want the system to automatically create a billing plan using templates when the contract line is added to the contract. |
Revenue Plans |
Select this check box to enable the system to automatically create a revenue plan using a specified template when adding the contract line to the contract. Deselect this check box if you do not want the system to automatically create a revenue plan using templates when the contract line is added to the contract. |
Combine Like Templates
If you choose to combine like templates and you select a revenue or billing plan template with a basis date source option of Contract Line Start Date for more than one product, only products with the same contract line start date are assigned to the same billing or revenue plan. If the start date is different for different products, the system assigns them to separate billing or revenue plans.
Billing Plans |
Select this check box to combine multiple contract lines with the same billing plan template into one billing plan. To keep each contract line and its respective billing plan separate, deselect this check box. To combine like billing plans, you must have the same billing plan template and billing plan detail template. Note. This option does not apply to rate-based products associated with fee types (cost-plus) because they are required to have their own billing plan and cannot be combined with other contract lines, even if they have the same fee type. |
Revenue Plans |
Select this check box to combine multiple contract lines with the same revenue plan template into one revenue plan. To keep each contract line and its respective revenue plan separate, deselect this check box. Note. This option does not apply to rate-based products associated with fee types (cost-plus) because they are required to have their own revenue plan and cannot be combined with other contract lines, even if they have the same fee type. |
This section provides an overview of defining contract terms and discusses how to:
Define contract terms and amounts.
Set up withholding terms.
Government contractors bill for their contracts according to terms and conditions specified by the government. After funding is received for a contract, the contractor may bill for a specified amount over the duration of the contract within a specified date range (referred to as the period of performance or POP). Government contractors manage revenue recognition according to a different set of dates and different limits.
Although any costs incurred during the completion of the contract must be tracked and managed, the contractor may only be able to bill or recognize revenue for a portion of those costs depending on the terms of the contract. The PeopleSoft Contracts application enables you to enter, track, and manage billing, revenue, and fee details, as well as project, activity, and rate data, for your rate-based contract lines on government contracts. The Contract Terms component (CA_DETAIL_PROJ) enables you to:
Enter and manage funding and revenue limits.
Link to transaction limit details.
Link to the Review Limits page.
Enter, track, and manage billing and revenue fee amounts and calculations.
Set period of performance constraints.
Define withholding and release terms and criteria.
View and assign projects, activities, and rates to rate-based contract lines.
See Also
Setting Up and Processing Withholding
Defining Cost-Plus Contract Fees
Page Name |
Definition Name |
Navigation |
Usage |
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Define contract terms and conditions, and set up limit processing parameters for rate-based contract lines (cost-plus and non-cost-plus). |
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Customer Contracts, Determine Price and Terms, Contract Terms, Withholding |
Set up withholding and release terms and conditions for rate-based contract lines. |
Access the Contract Amounts page (Customer Contracts, Determine Price and Terms, Contract Terms, Contract Amounts).
The Contract Amounts page enables you to enter funded, revenue, transaction, and fee limit details for contract lines associated with a government contract. For rate-based contract lines associated with a fee type other than None (cost-plus), this page will display fields specific to the fee type selected for the contract line.
See Defining Cost-Plus Contract Lines.
See Creating and Managing Limits.
Awarded T&M (awarded time and materials) |
Enter the awarded amount for the contract line. This amount is used as a control amount and cannot be exceeded by the funded amount that is entered. |
Funded T&M (funded time and materials) |
Enter the funded costs amount for the contract line. This amount is used for limit processing for transactions occurring against this contract line, where the amount to be billed cannot exceed this amount. The amount that you enter here cannot exceed the awarded amount. |
Transaction Limits |
Click to access the Transaction Limits page and enter transaction limit criteria and amounts for this contract line. |
Review Limits |
Click to access the Review Limits component. The Review Limits component enables you to review overall limit amounts, amounts remaining, and any amounts in excess for the contract line. For excess limit amounts, you can also view the details of the excess transactions. |
Perform Limit Checking |
Click this button to perform ad hoc limit checking for this contract line. Clicking this button will launch the Limits (CA_LIMIT) process, which will run limit checking for the contract line's billing and revenue limit amounts if changes were made using amendment processing. |
Period of Performance
Start Date |
Enter the start date for the contract line. PeopleSoft Contracts enables you to control billing and limit processing within a specified date range per contract line. After the contract is set to an active processing status, this date can no longer be changed if the Control Limits and Billing check box is selected. Otherwise, you can change this date using amendment processing. |
End Date |
Enter the end date for the contracts line. After the contract is set to an active processing status, this date can be changed using amendment processing. However, this date cannot be set to a date before the current system date if the Control Limits and Billing check box is selected. |
Control Limits and Billing |
Select to control billing and limit processing for rate-based contract lines associated with a fee type (cost-plus). When this option is selected, the Contracts/Billing Interface (CA_BI_INTFC) process and the Limits (CA_LIMIT) process will not select transactions for processing if the transaction date falls outside the period of performance date range. |
Access the Withholding page (Customer Contracts, Determine Price and Terms, Contract Terms, Withholding).
ITD Withheld (inception to date withheld) |
Displays the amount withheld from billing for the contract line from the inception date of the contract to the current date. This amount is based on transaction data stored in the Project Costing Project Transaction table. This amount does not include any withholding in progress amounts, such as withholding amounts calculated by the Contracts to Billing Interface process (CA_BI_INTFC) but not yet reported to PeopleSoft Project Costing by the Retrieve Billing Items process (PC_BI_TO_PC). |
ITD Released (inception to date released) |
Displays the withholding amount released to billing for the contract line from the inception date of the contract to the current date. This amount is based on transaction data stored in the Project Costing Project Transaction table. |
Amount Remaining |
Displays the calculated difference between the amount withheld to date and the amount released to date. |
Withholding Rate |
Enter the withholding percentage that the system will use to calculate withholding amounts on withholding applicable billed or billable project transactions. |
Start Amount Billed |
Enter the actual amount that must be billed for the contract line before the system should apply the withholding terms. Leave this field blank if the system should apply the withholding terms for all applicable transactions that occur for this contract line. |
Maximum Applicable |
Select this check box to indicate that there is a maximum amount that can be withheld from this contract line. If you select this check box, then you should also enter a maximum withholding amount. The system issues a warning message if you do not enter a maximum withholding amount. |
Max Withholding Amount (maximum withholding amount) |
Enter the maximum amount that can be withheld from this contract line. Use this field in conjunction with the Maximum Applicable check box. |
Withholding Source |
Select the type of project transactions that are eligible for withholding calculations. Select from:
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Transaction Identifier |
Select the transaction identifier that the system should use to determine which transactions to include in the withholding calculations for the contract line. Transaction identifiers must first be defined in PeopleSoft Project Costing that will enable you to predefine groupings of valid project ChartFields, which can be used to identify specific transactions. Note. This option must be used when the Withholding Source option of Specific is selected. |
PC Bus Unit (PeopleSoft Project Costing business unit) |
Displays the PeopleSoft Project Costing business unit associated with the rate-based contract line on the Related Projects page. |
Project |
Enter the project identifier that the system assigns to the summary withholding and release bill lines sent from PeopleSoft Contracts to PeopleSoft Billing and back to the PeopleSoft Project Costing project transaction tables. Select from projects that are associated with the contract line on the Related Projects page. This field is required. |
Activity |
Enter the activity identifier that the system assigns to the summary withholding and release bill lines sent from PeopleSoft Contracts to PeopleSoft Billing and back to the PeopleSoft Project Costing project transaction tables. Select from activities that are associated with the contract line on the Related Projects page. This field is required. |
Source Type |
Select the Source Type project ChartField value that the system assigns to the withholding and release summary lines that are passed to PeopleSoft Billing from PeopleSoft Contracts and to PeopleSoft Project Costing from PeopleSoft Billing. Source types, which are defined in PeopleSoft Project Costing, enable you to define a value that identifies a transaction's purpose. Source types can be used to track, analyze, and report on transactions. Note. This field is required if the Input Control for Source Type is set to Required on the PeopleSoft Project Costing Business Unit-Project Costing Options page. |
Category |
Select the Category project ChartField value that the system assigns to the withholding and release summary lines that are passed to PeopleSoft Billing from PeopleSoft Contracts and to PeopleSoft Project Costing from PeopleSoft Billing. Categories defined in PeopleSoft Project Costing enable you to further define source types to better track the types of costs occurring against your project and activities. Note. This field is required if the Input Control for Category is set to Required on the Project Costing Business Unit-Project Costing Options page. |
Subcategory |
Select the Subcategory project ChartField value that the system assigns to the withholding and release summary lines that are passed to PeopleSoft Billing from PeopleSoft Contracts and to PeopleSoft Project Costing from PeopleSoft Billing. Subcategories defined in PeopleSoft Project Costing enable you to further define source types to better track the types of costs occurring against your project and activities. Note. This field is required if the Input Control for Subcategory is set to Required on the Project Costing Business Unit-Project Costing Options page. |
Description |
Enter the description that you want to appear on the billing invoice for the withholding bill line. This field is required. |
If any of the fields in the Requested Release section are populated, even with a zero value, then all fields become required by the system.
Option |
Select the release option for the release amount row. Select from the following options:
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Release Amount |
Enter the amount to be released. When entering a release amount, it cannot exceed the withholding Amount Remaining for the contract line. |
Description |
Enter the description that you want to appear on the billing invoice for the release bill line. |
Release Status |
Displays the processing phase for the release row during release processing. The release row may be set to or display one of the following statuses:
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Justification |
Click the link to open a free-form text box that enables you to enter details to justify the release amount. This data is informational only and does not prohibit any processing from occurring. |
This section provides an overview of assigning projects and activities to a contract line and discusses how to assign projects and activities to a contract line.
Typically, government contracts have one project in a contract or many projects in one contract, but the project does not span multiple contracts. To track direct costs for a project and to calculate indirect costs and fees, PeopleSoft Contracts partners with PeopleSoft Project Costing. As transactions are accumulated against a project and its activities, the system prices and stores the transaction data in Project Transaction tables in PeopleSoft Project Costing, where it can be used to generate invoices and recognize revenue for rate-based contract lines.
You set up the processing rules for your government contract transactions in PeopleSoft Contracts. The contract-related transactions are tracked and stored in PeopleSoft Project Costing. To determine which transactions apply to which contract lines and how these transactions should be priced, the system uses the data specified on the Related Projects page. To define the relationship between rate-based contract lines and the associated projects and activities, you select a rate-based product onto a contract line, associate that contract line with a PeopleSoft Project Costing business unit and rate set or rate plan, and then link projects and activities to that contract line. From the Related Projects page, you can create new projects and activities or link to existing ones. After you define the relationship between the contract line and its projects and activities, the system also uses this relationship to determine which transactions should be considered for limit and withholding processing.
Note. Progress payment processing has its own mapping between the contract lines associated with progress payment amounts and the related projects and activities. It does not use the setup on the Related Projects page for processing.
See Defining Progress Payment Terms for Projects.
See Also
Working with PeopleSoft Project Costing
Page Name |
Definition Name |
Navigation |
Usage |
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Review existing projects and activities, add new links to projects and activities for a contract line, and associate rate sets or rate plans to a contract line. |
Access the Related Projects page (Customer Contracts, Determine Price and Terms, Contract Terms, Related Projects).
PC Business Unit (PeopleSoft Project Costing business unit) |
Select the PeopleSoft Project Costing business unit used to filter the list of projects and rate templates that you can associate with this contract. You can associate each contract line with only one PeopleSoft Project Costing business unit. |
Click to access the Transaction Limits page. Transaction level limits are assigned to a contract line. Transaction level limits consist of a transaction identifier, a description, limit amount, and use sequence. Transaction level limits are used to specify limits for a set of project transactions, defined by a grouping of valid project ChartFields. |
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Review Limits |
Click to access the Review Limits page. This page enables you to search for and review limits that have been exceeded, all limits remaining, or all limits. |
Effective Date |
Enter the effective date for the rate set or rate plan. The contract signed date appears in this field by default, but it can be overridden. Only transactions that occur against the contract line on or after the effective date will be picked up and priced by the Pricing Engine process. |
Status |
Specify whether the associated rates for the contract line are active or inactive. You can only have one active associated rate row on the contract line at one time. |
Select a rate structure for this contract line that the system uses to price transactions associated with this contract line. If you have associated a rate structure to the product, then that value will appear by default, but it can be overridden. Values include:
Note. If using contract-specific rate sets or rate plans, you must first define these rate sets or plans for the specific contract and contract line using the Rate Set (PC_RATE) or Rate Plan (PC_RATE_PLAN) components. See Defining Rate Set Categories, Rate Sets, and Rate Plans. |
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Rate Set or Rate Plan |
Select a predefined rate set or rate plan or define a new rate set or rate plan to use for transaction pricing for the contract line. Whether you select Rate Set, Contract Rate Set, Rate Plan, or Contract Rate Plan for the Rate Selection option will dictate which field label appears and which rate sets or rate plans can be selected. |
Rate Set or Rate Plan |
Click the link to view the rate set or rate plan details selected for the contract line, or to add a new rate set or rate plan if a rate set or rate plan is not selected for the contract line. Whether you select Rate Set, Contract Rate Set, Rate Plan, or Contract Rate Plan for the Rate Selection option determines whether the link appears as Rate Set or Rate Plan. |
Associated Projects and Activities
After a contract is activated, much of the data that is entered is controlled by amendment processing. A contract amendment is any change made to an active contract by which you are altering the fundamental obligations and entitlements of the contract. An amendment could include modifications to the data contained in the contract entry component, limit changes, changes to withholding terms and conditions, changes to progress payment terms, and so on. By using amendment processing, PeopleSoft Contracts enables you to maintain an audit trail, as well as a historical record, of changes made to the contract throughout its life cycle.
See Managing Government Contracts.
See Also