Amending Withholding and Release Terms
This section discusses amending withholding and release terms.
Amendment processing enables you to track and manage any changes made to a contract or its terms and conditions, and to maintain a historical record of those changes. Because withholding terms and conditions affects billing and revenue recognition (for withholding write-offs), many of the fields and features associated with withholding processing are controlled by amendment processing.
When you are managing a contract that contains withholding, adjustments to the withholding or release terms and conditions may be required throughout the life of the contract. These changes could include:
Changes to withholding rates.
Adjustments to withholding or release transaction rows that have been passed to PeopleSoft Billing.
Managing Changes to Withholding Terms
Government contracts can sometimes span multiple years. During that time, the government may change the rates used to calculate withholding amounts for a contract's lines. When rate changes occur, the contractor must adjust invoices from the contract's inception-to-date. PeopleSoft Contracts enables you to manage these rate adjustments using amendment processing.
After rates are changed, the system uses the new withholding rate to calculate the new inception-to-date amount to be withheld, sums all previously withheld amounts, and calculates the difference to be withheld in the current billing cycle.
To manage withholding and release rate adjustments:
Enable amendment processing and make any necessary adjustments to the withholding rates, terms, or conditions.
Process the amendment.
Run the Contracts/Billing Interface process.
The Contracts/Billing Interface process:
Calculates the new inception-to-date amount to be withheld, using the new withholding terms.
Sums all previously withheld amounts.
Calculates the difference to be withheld in the current billing cycle, creates a withholding (WTH) row containing the amount of the difference, and passes the WTH row to PeopleSoft Billing for processing.
Run the Update Contracts/Projects Data process (BIPCC000).
The Contracts/Projects Data process updates the Project Resource Temporary tables (PS_PROJ_RES_TMP_BI) with all withholding (WTH) and withholding release (WRL) rows created due to the rate change. It also updates the Billing Distribution Status (BI_DISTRIB_STATUS) for the invoiced withholding bill lines to D (Distributed).
Run the Projects Retrieve Billing Items process (PC_BI_TO_PC).
The Projects Retrieve Billing Items process inserts the withholding rows into the Project Costing Project Transaction table (PROJ_RESOURCE).
Managing Manual Adjustments to Withholding and Release Rows in PeopleSoft Billing
The Contracts/Billing Interface process (CA_BI_INTFC) calls the Withholding Calculation process (CA_WITH_CALC) to calculate withholding amounts and process withholding release amounts and then passes the resulting withholding rows to PeopleSoft Billing for processing. If an adjustment is required to a withholding-applicable bill line, a withholding line, or a withholding release line, Oracle recommends that you delete the withholding-applicable bill lines, withholding line, or withholding release line from the billing worksheet prior to billing finalization. You can then make any necessary adjustments to the billing, withholding, or withholding release data in PeopleSoft Project Costing or PeopleSoft Contracts, and then run the Contracts/Billing Interface to process the updated rows.
However, if the withholding-applicable, withholding, or withholding release bill rows have already been approved in the billing worksheet and adjustments are required, you must manually calculate and adjust the withholding and withholding release rows in PeopleSoft Billing.
To manually adjust withholding or release transaction rows in PeopleSoft Billing:
Manually override the amount for the withholding (WTH) or withholding release (WRL) invoice line in PeopleSoft Billing.
Run the billing processes including the billing finalization process (BIIVC001).
This process generates the invoice, includes summarized withholding bill lines on the invoice, sets the invoice date, calculates a due date, and updates the invoice status to INV (Invoiced).
Run the Projects/Contracts Interface process (BIPCC000).
This process passes withholding adjustment (WAJ) rows and withholding release adjustment (WRJ) rows to the Project Resource Temporary tables (PS_PROJ_RES_TMP_BI), along with any withholding (WTH) and withholding release (WRL) rows, and sets the Billing Distribution Status (BI_DISTRIB_STATUS) to D (Distributed).
Run the Billing to Projects process (PC_BI_TO_PC) to update the Project Costing Project Transaction table (PROJ_RSOURCE) with the resulting withholding adjustment (WAJ) data or withholding release adjustment (WRJ) data.
This process also passes any billed (BLD), billed adjustment (BAJ), withholding (WTH), withholding release (WRL), or withholding write-off (WWO) rows, along with billing distribution status data to PeopleSoft Project Costing, which is used to calculate the withholding amounts and inception-to-date costs the next time that the withholding process is run.
Note: When you are adjusting withholding bill rows in PeopleSoft Billing using the Adjust Selected Bill Lines or Adjust Entire Bill pages, Oracle recommends that these types of adjustments are made only on project related bills to ensure that the adjustment information is successfully passed to PeopleSoft Project Costing.