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:

Category	Amount
Labor	8000
Material	5000

Summary Limits Processing

These rows are created in PROJ_RESOURCE:

Analysis Type	Category	Amount	Currency	Amount in Excess Flag	Project	Activity	Resource Type
BIL	LABOR	8000	USD	NA	NA	NA	NA
BIL	MATERIAL	5000	USD	NA	NA	NA	NA
BIL	NA	-8000	USD	Y	AA	11	EXCES

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):

Analysis Type	Category	Amount	Currency	Amount in Excess Flag	Project	Activity	Resource Type
BLD	LABOR	8000	USD	NA	NA	NA	NA
BLD	MATERIAL	5000	USD	NA	NA	NA	NA
BLD	NA	–8000	USD	Y	AA	11	EXCES

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:

Analysis Type	Category	Amount	Currency	Amount in Excess Flag	Reclaimed from OL Flag	Project	Activity	Resource Type
BLD	LABOR	8000	USD	NA	NA	NA	NA	NA
BLD	MATERIAL	5000	USD	NA	NA	NA	NA	NA
BLD	NA	–8000	USD	Y	NA	AA	11	EXCES
BIL	NA	1000	NA	NA	Y	AA	11	RECLM

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:

Analysis Type	Amount	Resource Type	Resource Category
ACT	5000	MATER	ADMIN
ACT	2000	LABOR	PROG

Summary Limits Processing

These rows are created in PROJ_RESOURCE:

Analysis Type	Amount	Transaction Identifier	Resource Type	Resource Category	Amount in Excess Flag
BIL	5000	NA	MATER	ADMIN	NA
BIL	2000	NA	LABOR	PROG	NA
BIL	- 1000	DEVLAB	EXCES	NA	Y

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):

Analysis Type	Amount	Transaction Identifier	Resource Type	Category	Amount in Excess
BLD	5000	NA	MATER	ADMIN	NA
BLD	2000	NA	LABOR	PROG	NA
BLD	–1000	DEVLAB	EXCES	NA	Y

Note: NA indicates that the field is not applicable.

Project Transaction

Add a transaction in PeopleSoft Project Costing:

Analysis Type	Amount	Resource Type	Category
ACT	8000	MATER	ADMIN

Summary Limits Processing

These rows are created in PROJ_RESOURCE:

Analysis Type	Amount	Transaction Identifier	Resource Type	Resource Category	Amount in Excess
BLD	5000	NA	MATER	ADMIN	NA
BLD	2000	NA	LABOR	PROG	NA
BLD	–1000	DEVLAB	EXCES	NA	Y
BIL	8000	NA	MATER	ADMIN	NA
BIL	–4000	NA	EXCES	NA	Y

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:

Analysis Type	Amount	Resource Type	Category
ACT	2000	MATER	ADMIN

Summary Limits Processing

These rows are created in PROJ_RESOURCE:

Analysis Type	Amount	Transaction Identifier	Resource Type	Resource Category	Amount in Excess	Reclaimed Amount in Excess
BLD	5000	NA	MATER	ADMIN	NA	NA
BLD	2000	NA	LABOR	PROG	NA	NA
BLD	–1000	DEVLAB	EXCES	NA	Y	NA
BIL	8000	NA	MATER	ADMIN	NA	NA
BIL	–4000	NA	EXCES	NA	Y	NA
BIL	2000	NA	MATER	ADMIN	NA	NA
BIL	1000	DEVLAB	RECLM	NA	NA	Y
BIL	–1000	NA	NA	NA	Y	NA
BIL	–2000	DEVLAB	EXCES	NA	Y	NA

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 %..