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

Page Name	Definition Name	Navigation	Usage
Contract Amounts	CA_DETAIL_PROJ	select Customer Contracts, then select Determine Price and Terms, then select Contract Terms, then select Contract Amounts Click the Contract Terms link on the Detail tab of the Contract - Lines page.	Set up contract amounts. Enter billing and revenue limit amounts and limit processing criteria for rate-based contract lines. You can also navigate to the Transaction Limits page to define transaction limits.
Transaction Identifiers	PC_TRANS_IDENTIFY	select Setup Financials/Supply Chain, then select Product Related, then select Project Costing, then select Transaction Options, then select Transaction Identifiers Click the Transaction Identifiers link on the Transaction Limits page.	Set up transaction identifiers. Define the transaction ChartFields that make up an identifier set that you associate with transaction limits. Transaction limits are assigned to contract lines. Any transactions with ChartField values matching the criteria defined in the transaction identifier will have transaction limits applied during limit processing for that contract line.
Transaction Limits	CA_LMT_TXN	select Customer Contracts, then select Determine Price and Terms, then select Transaction Limits Click the Transaction Limits link on the Contract Amounts page. Click the Transaction Limits link on the Related Projects page.	Define multiple transaction level limits for rate-based contract lines.

Contract Amounts Page

Use the Contract Amounts page (CA_DETAIL_PROJ) to set up contract amounts.

Enter billing and revenue limit amounts and limit processing criteria for rate-based contract lines. You can also navigate to the Transaction Limits page to define transaction limits.

Navigation

select Customer Contracts, then select Determine Price and Terms, then select Contract Terms, then select Contract Amounts
Click the Contract Terms link on the Detail tab of the Contract - Lines page.

Image: Contract Amounts page (with limits)

This example illustrates the fields and controls on the Contract Amounts page (with limits). You can find definitions for the fields and controls later on this page.

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.

See Defining Cost-Plus Contract Lines.

Awarded

Enter the full amount of the contract awarded by the government (for the life of the contract). This amount is not used in limit processing, but is used by the system as an edit to prevent the funded amount from exceeding the awarded amount. This field is controlled by amendment processing.

Funded

Enter the limit amount for billable costs for this contract line. You can edit this amount over the life of the contract using amendment processing, but you cannot enter an amount that exceeds the amount entered in the Awarded field or is less than the amount already billed.

Transaction Limits

Click link to access the Transaction Limits page. Transaction limits enable you to limit the amount of specific transactions that can be billed or recognized as revenue for this contract line.

Review Limits

Click the Review Limits link to access the Review Limits page. The Review Limits page enables you to view remaining limit amounts, transactions processed to date against the limits, and transactions in excess of the limits.

Perform Limit Checking

Click the Perform Limit Checking button to initiate limit processing for the contract line when limit amounts are changed 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 a 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 definition 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.

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.

Start Date

Enter the start date for the period of performance date range for which invoicing can occur for this contract line. After the contract is active, the date is no longer editable if the Control Limits and Billing option is selected.

This is a required field.

End Date

Enter the end date for the period of performance date range for which invoicing can occur for this contract line. Once the contract is active, you can edit this date throughout the life of the contract using amendment processing. However, it cannot be changed to a date that is earlier than the current system date.

This is a required field.

Control Limits and Billing

Select to indicate whether invoicing can occur outside the period of performance date range specified for this contract line. Selecting this check box causes the Limits process and the Contracts/Billing Interface process (CA_BI_INTFC) to select only billable transactions from the Project Transaction table that have a transaction date that falls within the period of performance start and end dates.

Selecting this check box does not limit revenue processing for transactions that fall only within the period of performance date range, (if the Separate Billing and Revenue check box is selected on the Installation Options - Contracts page). Any transactions that occur against the contract line are eligible for revenue and revenue limit processing.

Transaction Identifiers Page

Use the Transaction Identifiers page (PC_TRANS_IDENTIFY) to set up transaction identifiers.

Define the transaction ChartFields that make up an identifier set that you associate with transaction limits. Transaction limits are assigned to contract lines. Any transactions with ChartField values matching the criteria defined in the transaction identifier will have transaction limits applied during limit processing for that contract line.

Navigation

select Setup Financials/Supply Chain, then select Product Related, then select Project Costing, then select Transaction Options, then select Transaction Identifiers
Click the Transaction Identifiers link on the Transaction Limits page.

See Transaction Identifiers Page.

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.

Transaction Limits Page

Use the Transaction Limits page (CA_LMT_TXN) to define multiple transaction level limits for rate-based contract lines.

Navigation

select Customer Contracts, then select Determine Price and Terms, then select Transaction Limits
Click the Transaction Limits link on the Contract Amounts page.
Click the Transaction Limits link on the Related Projects page.

Image: Transaction Limits page

This example illustrates the fields and controls on the Transaction Limits page. You can find definitions for the fields and controls later on this page.

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.