Amending Limits

Amending Period of Performance Controls

After you have set up limits that include period of performance controls and activated the contract, you cannot change the period of performance start date. To increase a limit for a contract line that is controlled by period of performance dates, you have two options:

• Amend the contract line, increase the limit (funded amount or fee amounts) and increase the period of performance end date.

  This option applies the new limit to the full length of the contract line, from the original start date all the way through to the new end date.

• Amend the contract and add a new contract line with its own period of performance start and end dates, limit amounts, project, and activities.

  This option requires you to assign the new contract to a different project and activity combination to enable separate pricing and limit management to occur.

Modifying Transaction Limits

Transaction limits enable you to apply a limit to a subset of transactions on contract line. After a contract is activated, you can increase or decrease a transaction limit or add a new transaction limit. However, you cannot lower the limit amount below the amount that has already been processed. You must enter an amount that is either equal to or greater than the processed amount. You cannot change the transaction identifier or delete a limit amount unless the contract is in a Pending processing status.

Increasing Limit Amounts When Billing and Revenue Recognition Has Already Occurred

Throughout the life of the contract, you may receive additional funding and need to bill or recognize revenue for transactions that were previously marked as over-the-limit. To manage these situations, you can increase the contract line limit amount or increase the period of performance date range for your contract line, or both. Using amendment processing, you can address either of those scenarios by completing the following steps:

1. Open the contract in amendment mode.

   When you use amendment processing to increase the funded amount, funded costs, or funded fee amounts on a contract line, the system performs edit checking to prevent you from increasing the limit amount above the awarded amount entered on the Contract Amounts page for the contract line.

2. Increase the funded limit, revenue limit or the transaction limit as needed.

3. Increase the period of performance end date if needed.

   After a contract is active, you can no longer modify the start date for the period of performance date range if the Control Limits and Billing check box is selected. You can modify only the end date.

4. Set the amendment to Ready status and run amendment processing to include the limit changes in the current version of the contract.

5. Run the Limits process (CA_LIMITS) to recalculate the processed amount and excess amount totals, convert any previously marked over-the-limit transactions to billing and revenue rows, and mark those rows as reclaimed from over-the-limit where possible.

   If using summary limits, the Limits process adds rows in PROJ_RESOURCE, marks those rows as reclaimed amount in excess and uses the resource type, category, and subcategory defined on the Excess/Reclaim Definition page for the transaction or line.

After the limits are increased, the next time that you run limit processing for billing or revenue, the system checks whether any existing over-the-limit billing (OLT) or over-the-limit revenue (ROL) rows can be released before processing any new billing or revenue rows against the new limit amounts.

Decreasing Limit Amounts When Billing and Revenue Recognition Has Already Occurred

When you enter data using amendment mode to reduce the funded amount, funded costs, funded fee or revenue limit on a contract line, the system performs edit checking to prevent you from reducing the limit amount below the amount that has been processed to date. The system considers processed amounts as billable amounts that have been or will be processed for billing. In the case of revenue, the system considers processed amounts as revenue amounts that have been or will be recognized for revenue. Reducing a limit amount may involve one of the following scenarios:

• Reduce the limit amount to equal the amount processed to date.

  To do this:

  1. Run the Limits process (CA_LIMITS) to recalculate the processed amount and excess amount totals and convert any previously marked over-the-limit transactions to billing and revenue rows where possible.

     This action enables the system to display the most current limit data.

  2. Open the contract in amendment mode.

  3. Modify the contract line limit amounts or the transaction limit amounts to reduce the limits as needed.

  4. Run amendment processing to include the limit changes in the current version of the contract.

• Reduce the limit amount below the amount that has been processed to date.

  To do this:

  1. Create a manual adjustment in PeopleSoft Billing to reduce the amount billed by the amount that you want to reduce the limit.

     Optionally, you can also create a negative transaction entry in the Resource Entry page in PeopleSoft Project Costing, depending on which transactions you are trying to adjust.

  2. If you are reducing the revenue limit, create a manual adjustment in PeopleSoft General Ledger for the revenue amount booked.

  3. If you are reducing the revenue fee limit, create a negative entry on the Revenue Fee Worksheet.

  4. Run the PeopleSoft Contracts and PeopleSoft Billing processes to create a billing adjustment transaction entry (BAJ) on the Project Transactions table (PROJ_RESOURCE).

     Note: You do not need to run additional processes to complete your revenue adjustments because they are manual adjustments.

  5. Run the Limits process (CA_LIMITS) with the Recalculate Totals Only option selected to update your processed amounts and excess amounts.

  6. Open the contract in amendment mode.

  7. Modify the contract line limit amounts or the transaction limit amounts to reduce the limits as needed.

  8. Run amendment processing.