Understanding Summary Limits
Summary limits can be used to summarize the amounts that are passed to PeopleSoft Billing and to PeopleSoft General Ledger for revenue. Summary limits can be used only on government 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. 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. The option is available for all other contract classifications.
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 is generated when the summarized billing or revenue transactions exceed the specified transaction limit or contract line limit. 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. Amounts in excess are included on the invoice as a reduction of the total amount calculated.
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.
When limits are exceeded on a non-government contract, the Limits process (CA_LIMITS) creates rows with an analysis type of over-the-limit for billing (OLT) in PROJ_RESOURCE. Over-the-limit for revenue (ROL) is also created if the contract separates as incurred billing and revenue. However, the summary limits for government contracts process does the following:
Creates rows with an analysis type of billing (BIL) or revenue (REV) in PROJ_RESOURCE.
The full amount is used to generate billing and revenue including amounts that are over the limit.
Additional rows are generated in 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 defined on the Excess/Reclaim Definition page, are used when generating the excess and reclaimed rows in 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 excess row is identified with a transaction identifier in the TXN_LMT_TRANS_ID field in the PROJ_RESOURCE table.
Line level limits enable you to impose a billing limit on a contract line. A separate revenue limit is identified if the contract separates as incurred billing and revenue. 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.. 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.
Note: Processing amounts that are over-the-limit for revenue is similar to that used for billing except that REV analysis type is used instead of BIL and BLD and the source types, categories and subcategories on the over-the-limit rows can be separately configured.
Transaction level limits enable you to limit the amount of billing and revenue on a subset of transactions. This example describes the steps and processing for a transaction level limit scenario. Note that a transaction limit applies to billing and to revenue also if the contract separates as incurred billing and revenue. A different transaction limit cannot be entered for revenue.
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 %.