Defining Revenue Plans

This section lists common elements and discusses how to define revenue plans and use PeopleSoft Project Costing milestones as revenue plan events.

Page Name	Definition Name	Usage
Revenue Plan Page	CA_ACCTPLAN	Define a revenue plan for contract lines in which revenue is managed by PeopleSoft Contracts. For each revenue plan that you define, you select a revenue recognition method for the revenue plan, and then define the events that trigger revenue recognition. You do not define revenue plans for contract lines with a revenue method of Billing Manages Revenue.
Revenue Plan Event Note	CA_AP_EVENTS_NOTE	Create internal notes that you can associate with a revenue plan event. Click Event Note on the Revenue Plan page.
Project Information for Events Page	CA_AP_PROJ_SP	Click to link a revenue recognition event occurrence to a PeopleSoft Project Costing milestone and designate when the revenue recognition event should consider that milestone achieved. You must have a milestone event with a milestone origin of Projects.

Page Name

Definition Name

Usage

Revenue Plan Page

CA_ACCTPLAN

Define a revenue plan for contract lines in which revenue is managed by PeopleSoft Contracts. For each revenue plan that you define, you select a revenue recognition method for the revenue plan, and then define the events that trigger revenue recognition. You do not define revenue plans for contract lines with a revenue method of Billing Manages Revenue.

Revenue Plan Event Note

CA_AP_EVENTS_NOTE

Create internal notes that you can associate with a revenue plan event.

Click Event Note on the Revenue Plan page.

Project Information for Events Page

CA_AP_PROJ_SP

Click to link a revenue recognition event occurrence to a PeopleSoft Project Costing milestone and designate when the revenue recognition event should consider that milestone achieved. You must have a milestone event with a milestone origin of Projects.

Field or Control	Description
Accounting Date	Displays the date on which you recognize revenue for an event.
Contract	Displays the contract number for the revenue plans. If you created the revenue plan from the Assign Revenue Plan page, the system assigns the revenue plan to the assigned contract line's contract number.
Event	Displays a number unique to each event that is assigned sequentially by the system.
Internal Notes	Click to create notes to associate with this event.
Revenue Plan	Displays a unique identifier for each revenue plan.
Plan Status	Pending, Ready, and Cancelled are the only statuses that you can manually set; the other statuses are set as a result of a system process. The exception to this rule is that you must set the status to Completed for as-incurred revenue plans because they do not have amounts defined up front. This means that there's no way for the system to determine when revenue recognition has completed.

Use the Revenue Plan page (CA_ACCTPLAN) to define a revenue plan for contract lines in which revenue is managed by PeopleSoft Contracts.

Navigation:

Customer Contracts > Schedule and Process Revenue > Define Revenue Plan > Revenue Plan

Note: Defining a revenue recognition event is optional for revenue plans with a revenue recognition method of As-incurred. If you choose to define an event, the as-incurred revenue recognition method limits you to one Ready event at a time.

Field or Control	Description
GL Currency (PeopleSoft General Ledger currency)	Displays the PeopleSoft General Ledger business unit that you associated with this contract's PeopleSoft Contracts business unit, on the Contracts Definition - BU Definition page. This is the business unit in which revenue generated by this revenue plan is recorded, with the exception of interunit accounting. The default currency code is that of the primary ledger of the PeopleSoft General Ledger business unit.
Recognition Method	Displays the revenue recognition method, which describes the nature of the revenue recognition that applies to contract lines that are assigned to a revenue plan. The additional fields that appear on this page are specific to the events that you create for the previously selected revenue recognition method.
Amendment Amt (amendment amount)	Displays the amount of the amended event.
Plan Status	Controls your ability to enter information into, and the processing that occurs against, the revenue plan. The available revenue plan statuses that you can control are: Pending, Ready, and Cancelled.
Reviewed	This button appears on the page when your revenue plan status is Action Required. This indicates that a contract line was amended or events were reversed and you must review the revenue plan events that were inserted by the amendment process. Click this button after you have reviewed your revenue plan events and made any necessary changes to Pending events. Clicking this button enables the system to continue processing your revenue plan and the system sets your revenue plan status back to In Progress to make it available for continued processing. Note: In the scenario where the contract line amount associated with the revenue plan is amended, and the new amount equals the total recognized amount for the revenue plan and all revenue events are in Completed status, when you click Reviewed, the system changes the revenue plan status from Action Required to Completed. This applies to Milestone, Apportionment, and Percent Complete revenue plans with events.
Hold	Select to place this revenue plan on hold. Any revenue recognition activity associated with the plan is not picked up by the PeopleSoft Contracts application engine processes. You can view plans that are on hold from the revenue management pages; however, you can only initiate and remove a hold on a revenue plan from this page. This option is not available on revenue plans with a Pending status.
Ready at Activation	Select this check box if you want the system to ready the revenue plan upon contract activation.
Actions	Click and select related action from the respective folder shown in the related action widget pop-up menu. Options are: Processes Review As Incurred Journal Accounting Lines Fixed fee Journal Accounting Lines Revenue Events Status Chart Note: Related action widget will be available when the Revenue Plan Status is Ready. Based on the revenue method related actions available in the related action widget will vary. Revenue Events Status Chart will be available only for Milestone and Apportionment revenue methods.

Below is the list of related actions that are accessed using the related action widget for Process option. Each related action when selected opens in a new window.

Related Action Widget	Components
Process	Process As Incurred Revenue Process Fixed Fee Revenue Process Contract Liability Generate Journals Retrieve GL Updates
Revenue Events Status Chart	Pivot Grid Drill down
Pivot Grid Detail View	Review Journal Accounting Lines

Note: Based on the revenue method the related actions available in the related action widget will vary.

Define Events By

The fields that appear in this section vary depending on the revenue recognition method.

Field or Control	Description
Add New Events	Click to add an event. This field appears when no contract lines are assigned to the revenue plan.
Percent	Select to define events by a percent of the total amount. This field is available for Milestone and Apportionment revenue plans only.
Amount	Select to define events by a specific amount. This field is available for Milestone and Apportionment revenue plans only.
Calculate Amounts	If Percent is selected, click this button to populate the Amount field in the Event Detail group box. This field is available for Milestone and Apportionment revenue plans.
Percent Source	Select a value of Project, Project/Activity, or Specify Percent. Upon selection of Project/Activity or Project, if this contract line is attached to a project or activity, the system pulls the percentage from PeopleSoft Project Costing and displays it in display-only format next to the Percent Source field. If you select the Specify Percent option, you must enter a specific percentage for building your event. This field is available for Percent Complete revenue plans only. Note: The Project and Project/Activity options appear only if you have defined a project and activity for the contract.
Build Event	After you have selected a value for the Percent Source field, click this button to generate a revenue plan event. This field is available for Percent Complete revenue plans only.
Internal Notes	Click this link to create a revenue note to apply to the contract.
Add Milestone	Click to access the Milestone Entry page, where you can define a new milestone to add to a revenue plan event. This field is available for Milestone and As Incurred revenue plans only.
Preview Revenue	Click to preview revenue recognition for amount-based plans. This field is not available for As-incurred revenue plans.
Amendment Event Detail	Click to view the detail for the amended events associated with this revenue plan event.

Amount Detail

This group box is not available for As-incurred revenue plans.

Field or Control	Description
Total Amount	Displays the total revenue amount of all contract lines assigned to this revenue plan.
Remaining Percent	Displays the percentage of the total amount that is not yet associated with an event.
Remaining Amount	Displays the total amount minus the sum of all amounts on any events that you have created for this revenue plan.

Apportionment Parameters

The fields in this group box apply to Apportionment revenue plans only.

Field or Control	Description
Start Date	Enter the start date for your apportionment schedule. If you have assigned only one contract line to the revenue plan, the system populates this field with the contract line's start date.
End Date	Enter the end date for your apportionment schedule. The period between the start and end dates is the period in which you are spreading your revenue. If you have assigned only one contract line to the revenue plan, the system populates this field with the contract line's end date.
Number of Periods	Enter the number of periods for your apportionment schedule.
Schedule ID	Determines how often to recognize revenue. Generates the from date and to date for each event, with the Schedule's day of the month as each event's from date. Note: The Schedule ID field is user-definable in Common Definitions.
Percentage	Enter a percentage amount in this field to generate apportionment events based on a percentage of the revenue plan's total amount. Note: If, after building your apportionment events, you make subsequent changes to the pricing of the contract lines associated with this revenue plan, the system updates the apportionment event amounts by their percentage of the new total amount.
Amount	Enter a monetary amount in this field to generate apportionment events based on a specific amount. Note: If, after building your apportionment events, you make subsequent changes to the pricing of the contract lines associated with this revenue plan, your amounts will not be updated. You must rebuild your plan.
Build Event	Click to have the system generate event lines in the Event Detail group box based on the apportionment parameters that you entered. If revenue recognition is not a straight line, you may update the percentages or amounts in the group box after the events are generated. You can define multiple schedules for a single revenue plan, as long as the total apportioned amount equals the total revenue plan amount. Once you have generated an apportionment schedule and built the revenue plan events for a revenue plan, the system can automatically recognize revenue according to these events. The system determines the accounting date and calculates the amounts for each event using the future period accounting date and revenue proration options that you selected on the Contract Definition - Processing Options page.

Build Event Example 1 – If you want 12 monthly events to be created with From Dates on the first of the month, To Dates on the last of the month, and Accounting Dates on the last of the month:

Set the Future Period Accounting Date option on the Contracts Definition – Processing Options page to Last Day in Accounting Period.
Use a schedule with the Day of the Month set to 1 and the Last Day of the Month option cleared.
Enter a Start Date of the first day of the month and year desired.
Enter an End Date of the last day of the month and year desired.
Enter 12 as the number of periods.
Click Build Event.

Build Event Example 2 – If you want 11 monthly events to be created with From Dates on the first of the month, To Dates on the last of the month, 2 partial events to be created to complete the year, and all Accounting Dates on the first day of the month:

Set the Future Period Accounting Date option on the Contracts Definition – Processing Options page to First Day in Accounting Period.
Use a schedule with the Day of the Month set to 1 and the Last Day of the Month option cleared.
Enter the desired Start Date, which will be something other than the first day of the month.
Enter the desired End Date, which will be something other than the last day of the month.
Enter 13 as the number of periods.
Click Build Event.

Event Detail

Field or Control	Description
Event	Displays an event reference number. The system assigns an event reference number to each event that you associate with a revenue plan ID.
Event Type	For Milestone and As-incurred revenue plans, select an event type of either Date or Milestone. For Percent Complete revenue plans, the system populates this field with a value of Date because you cannot create any other type of event. Additional fields appear on the page based on your event type selection. Note: The criteria for a revenue plan event to be valid for booking is based on the event type that you select.
Event Status	Controls your ability to enter information into, and the processing that occurs against, the revenue recognition event. The available revenue recognition event statuses that you can control are: Pending and Ready.
Source	Specifies whether you added the percentage through PeopleSoft Contracts or PeopleSoft Project Costing. Values include: Manual and Auto. When building your event, if you selected Specify Percent in the Define Events By group box, Manual appears. If you selected Project or Project/Activity, Auto appears. This field appears for Percent Complete revenue plans only.
Accounting Date	Displays the date on which this event is valid for booking. For Date event types, this date determines when revenue can be recognized. For Milestone event types, this date and the completion of the milestone determine when revenue can be recognized. This is the date that PeopleSoft Contracts enters on the transaction prior to sending the transaction to PeopleSoft General Ledger. Note: If you select the Use Milestone for Acctg Date check box for an event, you must still enter an estimated accounting date in the Accounting Date field. The system uses the value in this field for estimation purposes only. For example, the system uses the accounting date to apply the appropriate accounting distribution for previewing and forecasting revenue. The Use Milestone for Acctg Date check box applies to revenue plans with a milestone revenue method and a Milestone event type only. When selected, the system uses the milestone completion date instead of the accounting date for processing amount-based revenue (CA_LOAD_GL1). Once the system processes the revenue for an event successfully, this field becomes display-only. Note: This field does not appear on the page for As-incurred revenue plans with Milestone event types.
Use Milestone for Acctg Date	Select this check box to use the milestone completion date as the accounting date for the milestone type event. When this check box is selected, the system overrides the manually entered accounting date with the value in the Milestone Completion Date field plus the value in the Days Lag field. This check box is available for edit for milestone events with New or Ready statuses only. The system selects this check box by default when a new milestone event is entered onto a milestone revenue plan. This applies to milestone revenue plans that are created with or without revenue plan templates. The Use Milestone for Acctg Date field appears on the page if you have a milestone revenue method and you have selected a Milestone event type.
Milestone Origin	Select from the following values: Contracts: Ties the revenue recognition event to a milestone that was defined in PeopleSoft Contracts. Projects: Ties the revenue recognition event to a milestone that was defined in PeopleSoft Project Costing.
Milestone Number	If you have a Milestone event type with an origin of Contracts, select a milestone number from the drop-down list box of all milestones that you have defined for this contract.
Contract Milestone Status	Displays the contract milestone status of the selected milestone. Values are: Pending, Ready, Completed, and Cancelled.
Project Info	If you have a Milestone event type with an origin of Projects, click to select the project and activity and activity status containing the milestone to which you want to link this revenue event.
Days Lag	For Milestone event types, you can specify a positive number in this field. The days lag is the number of days after the milestone has completed that the system waits before processing the event.
Milestone Completion Date	Displays the milestone completion date for milestone and as incurred revenue methods. The source of the milestone completion date differs for contract and project milestones: Contract: The system uses the milestone completion date of the milestone. The milestone completion date displays regardless of the contract milestone status. Note: You can enter the milestone completion date manually on a contract milestone before processing the milestone. Project: The system uses the earliest effective date of the project/activity status. Note: For a project/activity combination, the same status can occur more than once with a different effective date. When this happens, the system uses the earliest effective date as the accounting date for the event using the activity status as a milestone. If you are using a milestone revenue method and you do not want to use this date, deselect the Use Milestone for Accounting Date check box and specify the accounting date manually. The Use Milestone for Acctg Date check box does not apply to as incurred revenue methods and the value in the Milestone Completion Date field is informational-only for these types of revenue plans. This field is display-only and appears on the page if you have selected a Milestone event type.
Event Note	Click to create an internal note for your revenue plan.
Percent Complete	If you chose to define events by percent, enter the percentage of this revenue plan's total amount that is to be booked upon completion of this event: For milestone revenue plans, if you chose to define events by percent, enter the percentage of the gross amount to be billed for this occurrence. For apportionment revenue plans, this field displays the percentage of the total amount represented by this event. If this event was generated with an apportionment parameters method of Percent, you can edit this value. When you update this field, the system recalculates the Remaining Percent and Remaining Amount values for this account plan. If this event was generated with an apportionment parameters method of Amount, you cannot change this value. For percent complete revenue plans, this field displays the percentage of the total amount that is represented by this event. If the event status is Pending or Ready, you can edit this value.
Amount	If you chose to define events by amount, enter the specific amount for this event. If you defined events by percent, this value equals the total amount multiplied by the value entered in the Percentage field. This field is not available for As-incurred revenue plans. For milestone revenue plans, if you chose to define events by amount, enter the specific amount for this event. If you defined events by percent, this value equals the gross amount multiplied by the value entered in the Percentage field. For apportionment revenue plans, this field displays the revenue amount to be booked by this event. If this event was generated with an apportionment parameters method of Amount, you can edit this value. When you update this field, the system recalculates the values for this account plan in the Remaining Percent and Remaining Amount fields. If this event was generated with an apportionment parameters method of Percent, you cannot edit this value. For percent complete revenue plans, this field displays the revenue amount to be booked by this event.
Amendment Amt	Displays the sum total of any amendments that impact the revenue plan. The system prorates the amount over the events that have occurred.
Incremental % Complete	This field is only updated once revenue for an existing row has been booked. For example: If event 1 is 50% and event 2 is 75%, then 50% and 25% (75–50 is the increment for event 2) appear in this column. This field is for Percent Complete revenue plans only.
From Date	Displays the start date of the proration period for this event. This field is for Apportionment revenue plans only.
To Date	Displays the end date of the proration period for this event. This field is for Apportionment revenue plans only.

Use the Project Information for Event page (CA_AP_PROJ_SP) to click to link a revenue recognition event occurrence to a PeopleSoft Project Costing milestone and designate when the revenue recognition event should consider that milestone achieved.

You must have a milestone event with a milestone origin of Projects.