Understanding Integration with PeopleSoft Contracts and PeopleSoft Billing

PeopleSoft Project Costing works with PeopleSoft Contracts to generate project-related customer billing. This is called rate-based project billing. For rate-based billing, PeopleSoft Contracts pulls information from project transactions and populates the PeopleSoft Billing interface tables with the billing information.

PeopleSoft Contracts stores contractual terms and conditions. You can:

  • Select a product with a rate price type on a contract line,

  • Associate the contract line with a project business unit and rate,

  • Specify retainage and discount information for standard contracts, or withholding information for government contracts, which is optional.

  • Link project activities to the contract line.

PeopleSoft Contracts enables you to establish billing plans and revenue plans. These plans enable you to manage when and how much to bill and recognize for the amounts that are associated with one or more contract lines.

When you bill rate-based contract lines, the flow of data is controlled by PeopleSoft Contracts, and the data source is PeopleSoft Project Costing. Project Costing tracks the work performed, accumulates costs against a project, and stores the information in the Project Transaction table (PROJ_RESOURCE). The system drives rate-based project billing by applying the rates that you identified in PeopleSoft Contracts against the unbilled rows in the Project Transaction table. The analysis types belong to the analysis group that is specified in the Billing field on the Installation Options - Project Costing page. The default analysis group is PSWKS (Billing Worksheet Grouping). PeopleSoft Billing generates invoices for the contract lines and sends information regarding the invoices back to PeopleSoft Project Costing and PeopleSoft Contracts.

You can link a contract line to a specific project activity or to all activities for that project. This enables you to link a single project with multiple activities to multiple contracts or contract lines. You can link a rate-based contract line to activities from multiple projects that are in the same project business unit. You cannot link a project activity to more than one rate-based contract or contract line.

When you bill fixed-amount, value-based, and recurring contract lines, PeopleSoft Contracts provides both the data source and the control over billing. You can associate these contract lines with a single project activity.

Note: You must associate a project activity with a contract line to use PeopleSoft Project Costing to accumulate, store, and report on project costs for contracts. For example, you must associate an activity with a contract line if you want to use the Project Transaction table as the source for rate-based project billing. You must also select one of the associated project activities for a contract line to use when creating fee and withholding transactions.

When you run the Process Project Accounting Application Engine process (PSA_ACCTGGL), the system selects those rate-based contract lines that are tied to As Incurred revenue recognition plans. For each project linked to a contract line that is associated with a selected As Incurred revenue recognition plan, the process selects the undistributed Project Transaction table rows where the analysis types are included in the PSREV analysis group. If you use the Government Contracting feature and select the Separate Billing and Revenue option on the Installation Options - Contracts page, the process selects the undistributed Project Transaction table rows where the analysis types are included in the PSREV or PSRV2 analysis groups. The system then books revenue for these projects based on the accounting rules. The exception to this rule is having a contract line in a government contract with a fee type of None and the Separate Billing and Revenue option is selected on the Installation Options - Contracts page. For these contract lines, the Process Project Accounting process uses the PSREV analysis group to process the revenue.

This table lists the high level steps to set up and process project-related contract lines, and provides links to the topic locations that discuss the steps:

Step

Topic Documentation

Set up rates.

See Defining Rate Set Categories, Rate Sets, and Rate Plans.

(Optional) Set up tiered pricing.

See Defining Tiered Pricing.

(Optional) Set up rules and exceptions for organizational sharing.

See Understanding Accounting for Projects and Defining the Sharing Structure.

Set up contracts and contract lines.

See Understanding Contracts, Defining General Contract Information, and Defining Contract Lines.

Assign projects and activities to contracts.

See Assigning Projects and Activities to Contracts and Maintaining Projects Using the Contracts Workbench.

Accumulate and price project transactions from feeder systems.

See Understanding the Pricing Process, Understanding Integration with PeopleSoft Time and Labor, Understanding Integration with Expenses, and Understanding Third-Party Data Integration.

(Optional) Update project progress.

See Processing Project Progress and Percent Complete.

(Optional) Approve transactions eligible for billing.

See Summarizing Transactions for Project Manager Review.

Bill for projects.

See Understanding the Contracts Billing Process and Running the Contracts Billing Interface Process.

Recognize revenue for projects.

See The Rate-based Revenue (Accounting Rules Engine) Process (PSA_ACCTGGL).

See Processing Transactions Using Accounting Rules.

Note: You can use streamlined billing to reduce the number of steps for invoicing bills. Streamlined billing enables you to process transactions from PeopleSoft Contracts to PeopleSoft Billing and back to Contracts with one job.