Creating and Administering PeopleSoft Contracts

The high-level steps involved in creating and administering a contract are:

• Capture the financial terms and conditions of a contract in PeopleSoft Contracts.

  Common contract information is stored at the contract header level.

• Select specific products and services using product IDs.

  Select the product IDs to add to contract lines and manage through the financial terms and conditions of the contract.

• Verify accounting distributions for the contract lines.

  Each contract line contains its own set of accounting distributions.

• Price the contract.

  You can allocate the gross fixed billing amount across contract lines. You can also allocate the gross fixed revenue amount if the Separate Fixed Billing and Revenue check box is selected at contract header level. You allocate a contract header billing and revenue discount or surcharge to specific contract lines. You can also define contract line discounts or surcharges for billing and revenue to those lines as well.

• Verify accounting distributions for any discounts or surcharges that you added to the contract.

  Each discount or surcharge that you add contains a separate set of accounting distributions.

• Associate each contract line with a billing plan that you set up in PeopleSoft Contracts.

  Define, administer, and maintain billing schedules and billing rules for the products and services you provide under a contract.

  You can predefine templates and associate them with a product ID to have the system automatically create billing plans and associate them to contract lines.

• Associate each contract line with a revenue plan in PeopleSoft Contracts.

  For amount-based and rate-based contract lines, either PeopleSoft Contracts or PeopleSoft Billing can manage revenue. When PeopleSoft Contract manages revenue you associate each contract line with a revenue plan that you set up in PeopleSoft Contracts. Contracts revenue plans enable you to define, administer, and maintain revenue schedules for the products and services that you manage under a contract. .

  You can predefine templates and associate them with a product ID to have the system automatically create revenue plans and associate them to contract lines.

• Associate PeopleSoft Project Costing project IDs/activity IDs and pricing rates to contract lines.

  For a contract line that has a rate-based price type, you associate that line with a project ID/activity ID from PeopleSoft Project Costing. Rate-based products can be linked to multiple projects and activities; fixed-amount products can be linked to a single project and activity. For rate-based products, you can link the product to an existing standard rate set, standard rate plan, contract rate set, or contract rate plan on the Related Projects page in PeopleSoft Project Costing. When work begins on a project, time and expense information is collected in PeopleSoft Project Costing. PeopleSoft Contracts uses the rate, time, and expense information from PeopleSoft Project Costing, matches this up with the revenue plan and billing plan you created in PeopleSoft Contracts, sends the information to PeopleSoft Billing to invoice the customer, and sends the information to PeopleSoft General Ledger to book the revenue. For billing and revenue amounts and recurring product IDs linked to a project and activity, billing activity processed from PeopleSoft Contracts is passed to PeopleSoft Project Costing for analysis.

• Manage milestones.

• Manage revenue for each revenue plan.

• Manage billing for each billing plan.

• Manage changes to the contract through amendment processing.

  Amendment processing enables you to make changes to an active contract while keeping a historical record of the original contract and any prior amendments to that contract.