Prerequisites

Before you can set up a government contract with rate-based contract lines associated with fee types (cost-plus), you must complete the following steps:

  1. Set up analysis types and analysis groups for processing provisional rates.

    You also must define the analysis types that you want stamped on the fee rows generated by the system.

  2. Define the fee types used in your contracts at the PeopleSoft Contracts business unit level.

    PeopleSoft Contracts supports the fee types of Award, Fixed, Incentive, and Other. Each of these fee types must be defined before you can assign them to your cost-plus contract lines and utilize the cost-plus functionality.

  3. Select the Separate As Incurred Billing and Revenue option on the contract (optional).

    If you bill and recognize revenue using separate rates for your cost-plus contract lines, then you must select this option to activate the revenue worksheet and fee features. If you bill and recognize revenue using the same rates, then you do not have to select this option.

  4. Define rate sets and rate plans.

    Rate plans must be assigned to your cost-plus contract lines to perform pricing for direct and indirect costs.

  5. Define accounting rules used to assign billing and revenue accounting distributions to your contact lines and fees.

    You must define accounting rules for each analysis type in the PSWKS, and PSREV analysis groups. If the Separate As Incurred Billing and Revenue option is selected on the contract, then you must also define accounting rules for each analysis type in the PSRV2 analysis group.

  6. Create a contract with a contract classification of Government.

  7. Add rate-based products to the contract that are assigned a fee type of Fixed, Award, Incentive or Other.

After you have added your contract lines associated with fee types, you must complete the fee-specific fields and remaining contract line attributes, such as assigning projects and activities, and so on, that are required to enable you to bill and recognize revenue for your contract lines and fees.