Pricing Amount-Based Contracts

This section discusses how to allocate billing and revenue amounts, select percent-based contract lines, apply contract billing and revenue header discounts and surcharges, apply billing and revenue line discounts and surcharges, and view contract line discounts and surcharges (discounts do not apply to recurring contract lines). Amount allocation allows you to allocate total contract price across contract lines. The Amount Allocation section is divided into separate pages for allocating billing and revenue. The Billing Allocation page is always editable. The Revenue Allocation page is editable if billing and revenue are separated on the contract. If they are not separated, then the Revenue Allocation page is read only and values are programmatically set to those used for billing.

Click to watch a short video about Separating Billing from Revenue in Contracts (Step 1) and Separating Billing from Revenue in Contracts (Step 2).

Page Name	Definition Name	Usage
Billing Allocation Page	CA_PRICING_PNL	Allocate billing amounts for amount based contract lines including contract header and contract line specific discounts and surcharges. For percent-based lines that are priced as a fixed percentage of other lines or of the total amount, you can specify the fixed percentage and the lines to which it applies. Enter limit amounts for rate based contract lines and recurring amounts for recurring type contract lines.
Revenue Allocation Page	CA_PRICING_REV_PNL	Allocate revenue amounts for amount based contract lines including contract header and contract line specific discounts and surcharges. For percent-based lines that are priced as a fixed percentage of other lines or of the total amount, you can specify the fixed percentage and the lines to which it applies. Enter limit amounts for rate based contract lines. Review revenue pricing information used in the automated allocation of total revenue across contract lines.
Price Adjustments Page	CA_PRC_ADJ_PNL	Document the reasons for any differences between total billing and total revenue on the contract.
Percent-Based Billing Pricing Page	CA_DETAIL_PRCNG	Select the contract lines to which a percent-based line applies. For example, if you are licensing two software products for fixed amounts and one year of technical support priced at 30 percent of the value of the product licenses, select the contract lines for those product licenses in the Applies to Line field.
Percent-Based Revenue Pricing Page	CA_DETAIL_REV_PRCN	Select the contract lines to which a percent-based line applies. A different basis and percentage can be used to define the revenue amount on the line if the contract separates billing and revenue on fixed amount contract lines. If the contract does not separate fixed amount billing and revenue, then this page is read only with basis and amounts equaling those used for billing.
Total Contract Billing Discounts and Surcharges Page	CA_HDR_REDUC_PNL	Apply a header level discount or surcharge for billing.
Total Contract Revenue Discounts/Surcharges Page	CA_HDR_RED_REV_PNL	Apply header level discount or surcharge for revenue.
Billing Discounts and Surcharges Page	CA_LN_REDUC_PNL	Apply specific line level discounts and surcharges for billing.
Revenue Discounts and Surcharges Page	CA_LN_RED_REV_PNL	Apply specific line level discounts and surcharges for revenue.
Billing Discounts/Surcharges Inquiry Page	CA_LN_DISC_PG	View discounts and surcharges for billing that are associated with an individual line. This page is not available for rate and recurring contract lines.
Revenue Discounts/Surcharges Inquiry Page	CA_LN_REV_DISC_PNL	View discounts and surcharges for revenue that are associated with an individual line.
Billing Discounts/Surcharges for Consolidated Target Line Page	CA_RNW_CYC_RED_SEC	Enter billing discounts and surcharges that will be copied onto the new contract line created upon the approval of the cycle. This page is available only if the Create Target Lines option is set to Consolidated.
Revenue Discounts/Surcharges for Consolidated Target Line Page	CA_RNWCYC_REVD_SEC	Enter revenue discounts and surcharges that will be copied onto the new contract line created upon the approval of the cycle. This page is available only if the Create Target Lines option is set to Consolidated.
Billing Discounts/Surcharges for Individual Target Line Page	CA_RNW_LN_RED_SEC	Enter billing discounts and surcharges that will be copied onto the corresponding new contract line created upon the approval of the cycle. This page is available only if the Create Target Lines option is set to Individual.
Revenue Discounts/Surcharges for Individual Target Line Page	CA_RNW_LN_R_DS_SEC	Enter revenue discounts and surcharges that will be copied onto the corresponding new contract line created upon the approval of the cycle. This page is available only if the Create Target Lines option is set to Individual.

Use the Billing Allocation page (CA_PRICING_PNL) to identify the total billing amount on the contract as well as to allocate that amount across contract lines. Fixed Billing amounts are allocated to amount based contract lines. This includes header and line level discount and surcharge amounts for billing. Specify the basis for allocating amounts onto percent-based lines. Options for calculation include a percentage applied to amounts on other contract lines or a percentage applied to the total fixed billing amount on the contract. Billing limits are allocated to rate based contract lines and recurring amounts are assigned to recurring type contract lines.

Navigation:

Customer Contracts > Determine Price and Terms > Amount Allocation

Note: When working in the Billing Allocation page, you can save your work at any time by clicking Save. When you click Save, any allocations that you make are reflected in the pricing fields across all PeopleSoft Contracts components using these values.

Discounts/Surcharges related fields are applicable to only Standard contracts and amount/percent based contract lines.

Contract Billing

Field or Control	Description
Total Billing	Enter the total contract price for billing for all types of contract lines. This should equal the sum of Billing Amount after discounts and surcharges for amount and percent based lines, plus sum of Billing Limit for rate based lines plus sum of Recurring Billing amount for recurring lines.
Unallocated Billing	Calculated by the system, displays the total billing amount not yet allocated to contract lines. This is calculated as Total Billing entered by the user minus Total Billing calculated by system under Line Totals group box. Unallocated billing does not need to be $0 for a contract to be activated, but this is encouraged.

Fixed Billing

Field or Control	Description
Fixed Billing	Enter the total billing amount for amount and percent based contract lines, This field acts as a control total on this page. The system sets the Allocation field to Complete when the sum of the billing amount allocated to the contract lines equals the amount entered in this field. Inclusive prepaids are included in the Fixed Billing field.
Billing Discounts/Surcharges	Use this to enter header level discounts or surcharges for amount and percent based contract lines before contract activation. Also, included in the display is the sum of all line level discounts and surcharges. Note: This link appears only for contracts with a contract classification of Standard.
Net Fixed Billing	Displays the net billing amount for amount and percent based lines after discounts and surcharges. The system calculates this value by subtracting Billing Discounts/Surcharges from Fixed Billing.
Unallocated Fixed Billing	Displays the billing amount that is required to be allocated across amount and percent based contract lines. This is calculated as Fixed Billing entered by the user minus the sum of Billing Amount on the contract lines. This amount must be zero before the value of Allocation field is set to Completed.
Inclusive Prepaids	Inclusive prepaids are fixed amounts agreed to by the customer at contract origination. Prepaid amounts identified as inclusive in the Prepaids functionality must be included in the total fixed billing amount of the contract. Prepaids can be identified as inclusive before a contract is activated. Prepaids not factored into the original contract price are referred to as non-inclusive and do not appear on this page. All prepaids, inclusive and non-inclusive are utilized against future activity on rate based as incurred contract lines. This field is not applicable for Internal contracts. See Establishing Prepaid Amounts
Allocation	The system calculates the status of the fixed billing amount allocations. Values include: Incomplete: This value appears by default and indicates that amount allocation has not been completely performed. Complete: This value appears once you have fully allocated the fixed billing amount across all eligible amount and percent based contract lines. Note: Contracts with amount and percent based contract lines must have the fixed billing amount for the contract completely allocated across its amount and percent based contract lines and the Allocation status must be set to Complete before the contract can be activated. This is not necessary for contracts with only rate-based or recurring lines. If you have percent based contract lines with amounts based on a percentage of the total fixed billing amount, after entering and applying percentages that total 100, you may be required to allocate a rounding difference as a fixed amount to one of the contract lines before the Allocation is set to Complete.
Recalculate	When you click this button, the system recalculates the unallocated billing amount and unallocated fixed billing amount and sets the value of the allocation to Complete or Incomplete based on the Unallocated Fixed Billing value. It recalculates header and line level discounts when there is a change in the discount percentage or a change in the contract line billing amount. It also recalculates the Net Amount on amount and percent based lines and recalculates all fields under the Line Totals group box to reflect the latest changes in any of the amount fields on the Contract Line Pricing grid.

Note: This grid is not visible for contracts with a classification of Federal Reimbursable Agreements as amount allocation is not applicable for them.

Contract Line Pricing

Use the fields in this group box to allocate the Total Billing amount across individual contract lines. The system displays contract lines with an Active status only.

Note: All types of contract lines are part of this page, including, amount, percent, rate and recurring contract lines.. Columns displayed depend on the price type of the contract lines with only applicable columns being shown. As an example, columns for amount based discounts are not available on rate based contract lines. Instead rate based discounts may be entered on the Related Projects page.

Field or Control	Description
Retrieve Billing Price	Applicable for amount based lines, select this check box to reprice the contract line. When you select this option and click the Recalculate button, the system retrieves the list price from the PeopleSoft Enterprise Pricer or list price in Order Management, multiplies it by the quantity on the contract line, and updates the Extended Price, Billing Amount, Billing Discounts/Surcharges, and Net Billing amount fields for the selected contract lines. The contract line Start Date is used for purposes of effective dating. If the contract line start date is not available, then the contract start date is used.
Line (line number)	Displays the contract line number assigned to the contract line when it was added to the contract.
Product	Displays the product identifier associated with the product on the Product Definition page.
Bundle	Used for grouping related contract lines displays the bundle name assigned to the contract line. See Defining Contract Lines, Defining Bundling Attributes
Price Type	Displays the price type associated with the contract line.
Quantity	Displays the quantity associated with the contract line. You can change this value at any time before contract activation. When you change the quantity, the system automatically updates the associated quantity on the Billing Plan Lines page.
Extended Price	Displays the list price multiplied by quantity for amount-based contract lines.
Billing Amount	Applicable for amount based lines, enter a price for billing. By default, the Billing Amount is set to the price defined in Order Management multiplied by the quantity, but can be overridden. The Billing Amount for a percent-based line is calculated and display-only.
Percentage	Applicable for percent based lines. If the percent based line is priced using % of Lines option then this value can be changed on Percent-Based Billing Pricing page. If the percent based line is priced using % of Total then its value is derived from the Order Management module.
Basis Type	Applicable for percent based lines, use this page to identify a basis for the calculation and the percentage.
Billing Discounts/Surcharges	Applicable for amount and percent based lines, click this link to identify contract line specific discounts. This field appears for Standard contracts only.
Net Billing	Applicable for amount and percent based lines, displays the Net Billing amount after subtracting discounts or surcharges from the Billing Amount.
Recurring Billing	Applicable for recurring lines. Recurring contract lines are available for standard and internal contracts. Recurring contract lines cannot be added to contracts that opt to Separate Fixed Billing and Revenue since revenue plans are not assigned to these lines and revenue always equals the amount billed. The Recurring Billing amount is used to identify the amount expected to be billed and recognized for revenue on the recurring contract line. It is included in the Total Billing amount of the contract. The amount entered does not directly impact amounts on the bill plan or billing processes. Instead, the billing process will use the latest List Price in Order Management when it comes time to bill the customer.
Awarded Cost	Applicable for rate based contract lines on government contracts, enter the awarded cost value.
Billing Limit	Applicable for rate based lines, enter the billing limit for the line. Billing Limit is applicable for all contract classifications except internal. For government contracts the billing limit cannot exceed the Awarded Cost. For federal contracts with federal customers, the sum of the billing limits cannot exceed the Total Billing amount for the contract as identified on the Contracts General page. For federal contracts with non federal customers the sum of the billing limits cannot exceed the total prepaid amount in ready status.
Related Revenue Amount	Hover over this field to view the revenue amount for the contract line. If the contract separates billing and revenue then the revenue amount is editable on the Revenue Allocation page and the revenue value for the line can be viewed here. If the contract does not separate billing and revenue, then revenue amounts are read only on Revenue Allocation page and match the numbers used for billing. Applicable for all contract line types including amount, percent, rate and recurring.
Limit Check	Applicable for rate based contract lines, click to perform limit checking for the contract line. Limits Check is not applicable for internal contracts.
Simulate Billing Pricing	Click to open the Pricing Simulator page in Order Management. All relevant contract attributes to identify a specific product price are populated. This includes the fields identified on the Transaction Price-by Key page in Order Management. The Enterprise Pricer Transaction Code used to support contract billing is CA and this is pre-populated on the page. The Start Date associated with the contract line is used as Effective Date. Note: This link is available only for amount based contract lines. See Understanding the Pricing Simulator Price-by Key Field Page
Actions	Select a related action to navigate to the relevant pages. The actions available depend on contract classification and contract line price type. Available related actions are: Review Limits: Available for rate based contract lines on all contract classifications except internal. Select to navigate to the Review Limits page. Tiered Pricing: Not available for government contracts. Select to access the Tiered Pricing page in a new window. Related Projects: Available for all types of contract lines on Standard, Internal and Federal Reimbursable Agreement contracts. Also available for amount Price-by Key Field page based contract lines on Government contracts. Contract Amounts: Available for rate based contract lines on government contracts. Select to navigate to the Contract Amounts page. Transaction Limits: Available for rate based contract lines on all contract classifications except internal. Billing Plan: Available for all contract lines. Select to navigate to the Bill Plan page. Bill plan must be assigned for this action to be visible.
Recalculate	When you click this button, the system recalculates the Unallocated Billing amount and Unallocated Fixed Billing amount and also sets the value of the allocation to Complete or Incomplete based on the Unallocated Fixed Billing value. It also recalculates header and line level discounts when there is change in the discount percentage or a change in the contract line billing amount. It recalculates the billing amount on an amount based contract line if the Retrieve Billing Price check box was checked on the contract line. It also recalculates amounts under the Line Totals group box.

Line Totals

The line total portion of the page summarizes the numbers entered in the contract line pricing grid.

Field or Control	Description
Billing Amount	Displays the total billing amount for all amount and percent based contract lines.
Discounts/Surcharges	Displays the total header and line level billing discounts and surcharges for all amount and percent based contract lines.
Billing Limit	Displays the total billing limit for all rate based contract lines.
Recurring Amount	Displays the total recurring billing amount for all recurring contract lines.
Total Billing	Displays the Total Billing amount, Recurring Billing and Billing Limits for all contract lines less discounts/surcharges if applicable.

Use the Revenue Allocation page (CA_PRICING_REV_PNL) to identify the total revenue amount on the contract and to allocate that amount across contract lines. The Revenue Allocation page is editable if billing and revenue are separated on the contract. If billing and revenue are not separated on the contract then the Revenue Allocation page is read only and amounts are programmatically updated from the Billing Allocation page. The ability to edit data on the Revenue Allocation page is specific to the contract line type (amount or as incurred) and whether those line types separate billing and revenue on the contract. It is possible to separate billing and revenue on amount based lines and not to separate them on as incurred lines and vice versa. The line types identified as separate for billing and revenue while creating the contract are editable on the Revenue Allocation page. Recurring contract lines are never editable since revenue plans are not assigned to these lines and revenue is recognized equal to the amount billed.

See Defining General Contract Information

Navigation:

Customer Contracts > Determine Price and Terms > Amount Allocation > Revenue Allocation

This page is used for pricing revenue on contracts in Pending status. For active contracts the pricing is tracked through the amendment process on the Amendment Revenue Allocation page.

Contract Revenue

Field or Control	Description
Total Billing	Displays the total billing amount from the Billing Allocation page. It can be edited on the Billing Allocation page.
Total Revenue	Enter the total contract price for revenue for all types of contract lines. This should equal the sum of Revenue Amount after discounts and surcharges for amount and percent based lines, plus sum of Revenue Limit for rate based lines plus Recurring Revenue amount for recurring lines. On many contracts, Total Revenue will match Total Billing, but this is not always the case and is not required. Note: This field is read only and matches Total Billing on the Billing Allocation page if both Separate Fixed Billing and Revenue, and Separate As Incurred Billing and Revenue check boxes are not checked on the contract. In this scenario, the entire page is read only.
Documented Price Adjustment	Click the price link to access the Price Adjustments page. Use this page to document the reasons for any differences between Total Billing and Total Revenue.
Revenue Allocation	Select one of the values from the drop-down list: Auto: Select this option to programmatically allocate Total Revenue to the contract lines. On selecting this option the fields Relative Percentage and Suggested Revenue are calculated and visible. The Override Revenue selection is enabled as well. Note: This option cannot be selected if the contract has header or line level discounts/surcharges or if the contract has percent based contract lines. Manual: Select this option to manually enter/update the revenue amount and revenue limit for all contract lines. This is the default option. In addition, if the contract does not separate billing and revenue (neither Separate Fixed, nor Separate As Incurred Billing and Revenue is checked) then this page is read only, the Manual option is displayed and cannot be changed. In this scenario, all revenue values are programmatically set to the values used for billing.
Unallocated Revenue	Calculated by the system, displays the total revenue amount not yet allocated to contract lines. Unallocated revenue does not need to be zero for a contract to be activated, but this is encouraged.

Fixed Revenue

Field or Control	Description
Fixed Revenue	Enter the total revenue amount for amount and percent based contract lines. This field acts as a control total on this page. The system sets the Allocation field to Complete when the sum of the revenue amount allocated to the contract lines equals the amount entered in this field. Inclusive prepaids are included in the Fixed Revenue field. This field will be grayed out and the value for this field is defaulted from the Fixed Billing field on the Billing Allocation page if the Separate Fixed Billing and Revenue check box is not selected on the contract.
Revenue Discounts/Surcharges	Use this to update header level discounts or surcharges for revenue before contract activation. Also, included in the display is the sum of all line level discounts and surcharges for revenue. The hyperlink will be display only and the value for this field is defaulted from the Billing Discounts/Surcharges field on the Billing Allocation page if the Separate Fixed Billing and Revenue check box is not selected on the contract. Note: This link appears only for Standard contracts.
Net Fixed Revenue	Displays the net revenue amount for amount and percentage based lines after discounts and surcharges. System calculates this by subtracting Revenue Discounts/Surcharges from Fixed Revenue.
Unallocated Fixed Revenue	Displays the fixed amount revenue that has yet to be allocated across amount and percent based contract lines. This must equal zero before the system sets the allocation status to Complete and before the contract can be activated. Similar to the Billing Allocation page, inclusive prepaids are include in the calculation. The value for this field is defaulted from the Unallocated Fixed Billing field on the Billing Allocation page if the Separate Fixed Billing and Revenue check box is not selected on the contract.
Inclusive Prepaids	Displays the sum of all inclusive prepaids for the contract and used to calculate the unallocated fixed revenue. Prepaids can be identified as inclusive before a contract is activated. Prepaids not factored into the original contract price are referred to as non-inclusive and do not appear on this page. All prepaids, inclusive and non-inclusive are utilized against future activity on rate based as incurred contract lines.
Allocation	The system calculates the status of the fixed revenue amount allocation upon clicking on Recalculate button. Values include: Incomplete: This value appears by default and indicates that amount allocation has not been completely performed. Complete: This value appears once you have fully allocated the fixed revenue amount across eligible amount and percent based contract lines. Note: This field is grayed out and the value of this field will match the Allocation status on the Billing Allocation page if the Separate Fixed Billing and Revenue check box is not selected on the contract. Note: Contracts with amount and percent based contract lines must have the fixed revenue amount for the contract completely allocated across its amount and percent based contract lines and the Allocation status must be set to Complete before the contract can be activated. This is not necessary for contracts with only rate-based or recurring lines.
Recalculate	When you click this button, the system does the following: Calculates the relative allocation and suggested revenue for each line when the Automated Option is selected. Recalculates the extended revenue price for lines where Retrieve Revenue Price is selected. Recalculates the unallocated revenue amount. Recalculates the unallocated fixed revenue amount and sets the value of the allocation to Complete or Incomplete based on the unallocated fixed revenue value. Recalculates header and line level discounts when there is a change in the discount percentage or a change in the contract line revenue amount. Recalculates amounts under the Line Totals group box.

The Fixed Revenue group box is not visible for Federal Reimbursable Agreements since amount based lines cannot be added to these contracts.

Contract Line Pricing

All contract lines price types should be included on this page. Columns displayed depend on the price types of the contract lines with only applicable columns being shown. As an example, columns for amount based discounts are not available on rate based contract lines. Columns are editable if revenue and billing are separated for the contract line price type. If revenue and billing are not separated for the contract line price type, then the amount is read only and defaulted from the Billing Allocation page.

Field or Control	Description
Retrieve Revenue Price	Select this check box to recalculate the contract line's revenue price based on product prices in Order Management and the Enterprise Pricer. Any changes in quantity are also used to recalculate the line’s Extended Revenue Price. This field is applicable for amount and rate based lines if the contract line price type separates billing and revenue (Separate Fixed or Separate As Incurred Billing and Revenue are selected for the contract). This check box is not enabled for percent based lines and recurring lines. After selecting this check box and clicking the Recalculate button, the system retrieves the revenue price from Order Management and this would include the Enterprise Pricer if configured for product pricing. If the Revenue Allocation is Manual then the revenue amount and revenue limit values are replaced by the updated extended revenue price. If the Revenue Allocation is Auto then the Relative Percentage and Suggested Revenue values are recalculated based on the updated extended revenue price. The revenue amount and revenue limit are replaced by the suggested revenue amount. If the Override Revenue check box is selected then the relative percentage and suggested revenue are not applicable and the revenue amount and revenue limit field are enterable.
Line	Displays the contract line number assigned to the contract line when it was added to the contract.
Product	Displays the product identifier associated with the product on the Product Definition page.
Bundle	Used for grouping related contract lines, displays the bundle name assigned to the contract line. See Defining Contract Lines
Price Type	Displays the price type for the contract line.
Quantity	Displays the quantity for the contract line. This value cannot be edited and will match the value on the Billing Allocation page. Note: This field is applicable for amount and rate based lines and modified only on the Billing Allocation page.
Extended Revenue Price	Displays the revenue price multiplied by quantity for amount and rate-based contract lines. To view the updated extended revenue price select the Retrieve Revenue Price check box and click the Recalculate button. The latest revenue price is retrieved from Order Management and the Enterprise Pricer. When the Automated Allocation is selected, the extended revenue price is used as the basis for the allocation.
Relative Percentage	Displays the contract line’s relative percentage to the total and is display only. This field is visible only if Revenue Allocation is Auto. Each contract line is assigned a relative percentage using its Extended Revenue Price relative to the total of all extended revenue prices for all lines on the contract. Contract lines where Override Revenue is selected are excluded from the relative percentage calculation.
Suggested Revenue	Displays the suggested revenue and is display only. This field is visible only if Revenue Allocation is Auto. The Suggested Revenue field assigns a portion of Total Revenue to contract lines participating in the allocation (that is where the Override Revenue check box is not selected). The system calculates suggested revenue as follows: (Total Revenue minus contract line amounts (and limits) specified as an override) Multiplied by Relative Percentage. Suggested Revenue defaults to the revenue amount and revenue limit fields and cannot be edited. Contract lines identified as being Overridden will display a blank for Relative Percentage and Suggested Revenue. After the allocation is complete, Total Revenue is allocated to a contract line via the suggested revenue calculation or an override. The total of the two should equal total revenue on the contract. The revenue allocation specific to amount based lines is altogether separate from the allocation of total revenue.
Override Revenue	Select this check box to exclude a contract line from the automated revenue allocation. After selecting or deselecting this field click the Recalculate button to get the updated revenue amounts. When selected, the revenue amount and revenue limit fields are enterable. If not selected the revenue amount and revenue limit fields default from suggested revenue and are display only. Based on the contract line price type, this check box is selected and grayed out if the contract does not separate billing and revenue and the revenue amount or limit is set to the billing amount or limit. This check box is always selected for percent-based lines and recurring lines and cannot be edited.
Revenue Amount	Applicable for amount based lines, the revenue amount works as follows: For newly added contract lines, defaults from the extended revenue price. For a percent-based line, calculated as percentage of the Revenue Amount of other amount based contract lines or as percentage of the total Fixed Revenue on the contract and is display only. For automated allocations, defaults from the suggested amount. For automated allocations where the contract line is set to override, the revenue amount is updated manually. For contracts where the Separate Fixed Billing and Revenue check box is not selected on the contract, programmatically set to match the billing amount. Note: If the Revenue Allocation is set to Manual and the Retrieve Revenue Price check box is selected, then the Revenue Amount is updated with the latest extended revenue price in Order Management and the Enterprise Pricer overriding any existing value. Similarly, for revenue allocations set to Auto where the contract line is set to Override Revenue, any previously entered revenue amounts would be updated with extended revenue price. Note: This field is not applicable for Federal Reimbursable Agreements.
Percentage	Applicable for percent based lines, displays the percentage used to determine the revenue amount on the line. It may be different from the percentage used for billing if the Separate Fixed Billing and Revenue check box is selected on the contract. Note: This field is visible for percent based contract lines on standard and internal contracts.
Basis Type	Applicable for percent based lines, use this page to identify a basis for the calculation and the percentage. The basis percentage used for revenue allocation can be different from the basis percentage used for billing if the Separate Fixed Billing and Revenue check box is selected on the contract. Note: This field is visible for percent based contract lines on standard and internal contracts.
Revenue Discounts/Surcharges	Applicable for amount and percent based lines on Standard contracts, click this link to identify contract line specific discounts. The value for this field will default from the billing discounts/surcharges field on the Billing Allocation page if the Separate Fixed Billing and Revenue check box is not selected on the contract. When you assign revenue discounts to a contract line, the system generates discount specific accounting distributions on the Accounting Distribution Discounts /Surcharges page and the revenue discount amount is used there. If the contract does not Separate Fixed Billing and Revenue then the billing discount is used to create the revenue discount.
Net Revenue	Applicable for amount and percent based lines on Standard contracts, displays the Net Revenue amount after subtracting discounts or surcharges from the Revenue Amount.
Recurring Revenue	Displays the recurring revenue amount for recurring contract lines. The value always matches recurring billing and can be modified on the Billing Allocation page only. Recurring contract lines cannot be added to contracts that opt to Separate Fixed Billing and Revenue since revenue plans are not assigned to these lines and revenue always equals the amount billed. Note: This field is visible only for standard and internal contracts.
Awarded Cost	Applicable for rate based contract lines on government contracts and always display only, the amount can be edited on the Billing Allocation page.
Revenue Limit	Applicable for rate based lines, the revenue limit works as follows: For newly added contract lines, defaults from the extended revenue price. For automated allocations, defaults from the suggested amount. For automated allocations where the contract line is set to override, the revenue amount is updated manually. For contracts where the Separate As Incurred Billing and Revenue check box is not selected on the contract, programmatically set to match the billing limit. Revenue Limit is applicable for all rate based contract lines except on Internal contracts. Note: If the Revenue Allocation is set to Manual and the Retrieve Revenue Price check box is selected, then the Revenue Limit is updated with the latest extended revenue price in Order Management and the Enterprise Pricer overriding any existing value. Similarly, for revenue allocations set to Auto where the contract line is set to Override Revenue, any previously entered revenue limits would be updated with extended revenue price. Note: Revenue Limit cannot be less than the revenue already processed. If the suggested revenue limit does calculate to a lesser amount, then you should select Override Revenue and increase your revenue limit to the amount already processed. Note: Much of the automated allocation functionality assumes the use of contract line revenue limits. With new functionality, organizations who enter a revenue limit of zero to indicate no revenue limit (or unlimited revenue) may need to update a newly defaulted default revenue limit to zero.
Related Billing Amount	Hover over this field to view the billing amount for the contract line. Applicable for all contract line types including amount, percent, rate and recurring.
Limit Check	Applicable for rate based contract lines, click to perform limit check for the contract line. Limit Check is not applicable for internal contracts.
Simulate Revenue Pricing	Click to open the Pricing Simulator page in Order Management. All relevant contract attributes to identify a specific product price are populated. This includes the fields identified on the Transaction Price-by Key page in Order Management. The Enterprise Pricer Transaction Code used to support contract revenue is RP and this is pre-populated on the page. The Start Date associated with the contract line is used as Effective Date. If contract line Start Date is not available then contract Sign Date is used. Note: This link is available only for amount and rate based contract lines.
Actions	Select a related action to navigate to the relevant pages. The actions available depend on contract classification and contract line price type.. Available related actions are: Review Limits: Available for rate based contract lines on all contract classifications except internal. Select to navigate to the Review Limits page. Tiered Pricing: Not available for government contracts. Select to access the Tiered Pricing page in a new window. Related Projects: Available for all types of contract lines on Standard, Internal and Federal Reimbursable Agreement contracts. Also available for amount based contract lines on Government contracts. Contract Amounts: Available for rate based contract lines on government contracts. Select to navigate to the Contract Amounts page. Transaction Limits: Available for rate based contract lines on all contract classifications except internal. Revenue Plan: Available for all contract lines. Select to navigate to the Revenue Plan page. Revenue plan must be assigned for this action to be visible.
Recalculate	When you click this button, the system recalculates the unallocated revenue amount and unallocated fixed revenue amount and also sets the value of the allocation to Complete or Incomplete based on the Unallocated Fixed Revenue value. It also recalculates header and line level discounts when there is change in the discount percentage or a change in the contract line revenue amount. It also recalculates the fields under Line Totals group box.

Line Totals

Similar to the Billing Allocation page, the line totals portion of the Revenue Allocation page summarizes the numbers entered in the contract line pricing grid.

Field or Control	Description
Revenue Amount	Displays the total revenue amount for all amount and percent based contract lines.
Revenue Limit	Displays the total revenue limit amount for all rate based contract lines.
Recurring Revenue	Displays the total recurring revenue amount for all recurring contract lines.
Discounts/Surcharges	Displays the total header and line level discounts or surcharges for all amount and percent based contract lines.
Total Revenue	Displays the total revenue amount, recurring revenue, and revenue limits for all contract lines less discounts/surcharges if applicable.

Use the Price Adjustments page (CA_PRC_ADJ_PNL) to document the reasons for any differences between total billing and total revenue on the contract.

Navigation:

Customer Contracts > Determine Price and Terms > Amount Allocation > Revenue Allocation. Click the Documented Price Adjustment hyperlink.
Customer Contracts > Create and Amend > Define Contract General Info > Contract - General. In the Go To drop-down list box select Price Adjustments.

Field or Control	Description
Adjustment Reason Code	Click the prompt to select from a list of predefined Adjustment Reason Codes.
Description	Enter suitable description or retain the defaulted description.
Adjustment Type	Select one of the available adjustment types: Amount Percent
Percentage	The percent adjustment is applied on Total Billing and allows both positive and negative values. Since the most common usage is to identify a discount or a reduction for revenue, these should be entered as positive numbers. Surcharges or increases to arrive at Total Revenue should be entered as a negative percentage.
Amount	Enter the price adjustment as an amount.
Comments	Click to open the Price Adjustment Code Comments modal window and enter a detailed description of the price adjustment.
Attachments	Click to attach any relevant pricing documents. Note: If the value of price adjustments documented on this page does not equal the difference between Total Billing and Total Revenue, then a warning message is displayed indicating to the user that they have undocumented price adjustments.

Use the Percent-Based Billing Pricing page (CA_DETAIL_PRCNG) to select the contract lines to which a percent-based line applies for billing.

For example, if you are licensing two software products for fixed amounts and one year of technical support priced at 30 percent of the value of the product licenses, select the contract lines for those product licenses in the Applies to Line field.

Navigation:

Click the % of Lines link on the Contract Line Pricing grid on Billing Allocation page.
Click the % of Lines link on the Billing Amount Detail tab on the Contract - Lines page.

Note: If you access this page from the Billing Amount Detail tab of the Contract - Lines page, the values on the page are display-only.

Field or Control	Description
Fixed % of Basis Amount	Enter the percentage to be applied.
Basis Type	Displays the basis type. Values are: % of Lines: Indicates that the pricing for this contract line is calculated as a percentage of the sum of the billing amounts of one or more contract lines. If the basis type is % of Lines, then you must select the appropriate lines in the Applies to Line # (applies to line number) column. % of Total: Indicates that the pricing for this contract line is calculated as a percentage of the total contract billing amount on the contract.
Billing Amount	Displays the calculated billing amount for the percent based contract line.

Field or Control

Description

Fixed % of Basis Amount

Enter the percentage to be applied.

Basis Type

Displays the basis type. Values are:

% of Lines: Indicates that the pricing for this contract line is calculated as a percentage of the sum of the billing amounts of one or more contract lines. If the basis type is % of Lines, then you must select the appropriate lines in the Applies to Line # (applies to line number) column.

% of Total: Indicates that the pricing for this contract line is calculated as a percentage of the total contract billing amount on the contract.

Billing Amount

Displays the calculated billing amount for the percent based contract line.

Basis Contract Lines

Field or Control	Description
Applies to Line #	Select the contract lines to which this % of Lines percent-based contract line applies. The list of values contains any active amount-based lines within the contract. The product, description, Bundle and billing amount for the line selected appear. Subsequent adjustments made to the billing amount of the source line(s) are reflected in the percent based contract line pricing for this product before the contract is activated.
Basis Amount	Displays the basis amount, which equals the sum of the billing amounts of all the applies-to lines that you select. For contract lines for which the basis type is % of Total, the basis amount is equal to the total Fixed Billing amount of the contract.

Field or Control

Description

Applies to Line #

Select the contract lines to which this % of Lines percent-based contract line applies. The list of values contains any active amount-based lines within the contract.

The product, description, Bundle and billing amount for the line selected appear. Subsequent adjustments made to the billing amount of the source line(s) are reflected in the percent based contract line pricing for this product before the contract is activated.

Basis Amount

Displays the basis amount, which equals the sum of the billing amounts of all the applies-to lines that you select. For contract lines for which the basis type is % of Total, the basis amount is equal to the total Fixed Billing amount of the contract.

Note: Once the contract is activated, existing percent based contract lines are treated as amount based contract lines. Hence the Billing Amount displayed on this page is an absolute value, not calculated based on a percentage and adjustments to the billing amount must be made similar to other amount based lines.

Use the Percent-Based Revenue Pricing page (CA_DETAIL_REV_PRCN) to which a percent-based line applies for revenue.

Navigation:

Click the % of Lines link on the Contract Line Pricing grid on Revenue Allocation page.
Click the % of Lines link on the Revenue Amount Detail tab on the Contract - Lines page.

Note: If you access this page from the Revenue Amount Detail tab of the Contract - Lines page, the values on the page are display-only.

Field or Control	Description
Fixed % of Basis Amount	Enter the percentage to be applied. The value can be edited only if the Separate Fixed Billing and Revenue check box is selected on the contract else the field will be display only and match the basis used for billing.
Basis Type	Displays the basis type. Values are: % of Lines: Indicates that the pricing for this contract line is calculated as a percentage of the sum of the revenue amounts of one or more contract lines. If the basis type is % of Lines, you must select the appropriate lines in the Applies to Line # (applies to line number) column. % of Total: Indicates that the pricing for this contract line is calculated as a percentage of the total fixed revenue amount on the contract.
Revenue Amount	Displays the calculated revenue amount for the percent based contract line.

Field or Control

Description

Fixed % of Basis Amount

Enter the percentage to be applied. The value can be edited only if the Separate Fixed Billing and Revenue check box is selected on the contract else the field will be display only and match the basis used for billing.

Basis Type

Displays the basis type. Values are:

% of Lines: Indicates that the pricing for this contract line is calculated as a percentage of the sum of the revenue amounts of one or more contract lines. If the basis type is % of Lines, you must select the appropriate lines in the Applies to Line # (applies to line number) column.

% of Total: Indicates that the pricing for this contract line is calculated as a percentage of the total fixed revenue amount on the contract.

Revenue Amount

Displays the calculated revenue amount for the percent based contract line.

Basis Contract Lines

If the contract does not separate fixed billing and revenue then the lines in this grid are read only and copied from the Percent-Based Billing Pricing page.

Field or Control	Description
Applies to Line #	Select the contract lines to which this % of Lines percent-based contract line applies. The list of values contains any active amount-based lines within the contract. The product, description, bundle and revenue amount for the line selected appear. Subsequent adjustments made to the revenue amount on the source line(s) are reflected in the percentage based contract line pricing for this product before the contract is activated.
Basis Amount	Displays the basis amount, which equals the sum of the revenue amounts of all the applies-to lines that you select.

Field or Control

Description

Applies to Line #

Select the contract lines to which this % of Lines percent-based contract line applies. The list of values contains any active amount-based lines within the contract.

The product, description, bundle and revenue amount for the line selected appear. Subsequent adjustments made to the revenue amount on the source line(s) are reflected in the percentage based contract line pricing for this product before the contract is activated.

Basis Amount

Displays the basis amount, which equals the sum of the revenue amounts of all the applies-to lines that you select.

Note: Once the contract is activated, existing percent based contract lines are treated as amount based contract lines. Hence the Revenue Amount displayed on this page is an absolute value, not calculated based on a percentage and adjustments to the revenue amounts must be input similar to other amount based lines.

Use the Total Contract Billing Discounts and Surcharges page (CA_HDR_REDUC_PNL) to apply a header level discount or surcharge for billing.

Navigation:

Click the value in the Billing Discounts/Surcharges field in the header section of the Billing Allocation page.

Total Contract Billing Discounts Surcharges Page

Overall Discount/Surcharge

Field or Control	Description
ID	Select an ID to populate the Description and Percentage or Amount fields with the information that is defined for the discount or surcharge ID.
Percentage	If you define a percent for the selected discount or surcharge ID, that percent appears and you can edit it. If you did not define a percent for the discount or surcharge ID, you can enter one here. Note: Discounts and surcharges are defined by either amount or percent. You can edit this field if you choose to define the discount or surcharge by percent .
Amount	If you define an amount for the selected discount or surcharge ID, that amount appears and you can edit it. If no amount is defined for the discount or surcharge ID, you can enter one here. Note: You can edit this field if you choose to define the discount or surcharge by amount .
Apply Overall After Line	Select to have the system apply the billing header level discounts or surcharges for billing to contract lines after it applies any contract line specific discounts or surcharges that you specify on the Billing Line Discounts and Surcharges page.

Total Discounts/Surcharges

Field or Control	Description
Header	Displays the value of the header level discount or surcharges for billing. You can define only one header level discount or surcharge for a contract, and the amount must be completely allocated across applicable contract lines.
Line	Displays the sum of all discounts or surcharges for billing that you define for individual contract lines on the Line Discounts and Surcharges page. This amount does not include discounts or surcharges that are allocated to lines from the billing header discount or surcharge.
Discounts/Surcharges	Displays the total billing discounts and surcharges for this contract after adding the billing header discounts or surcharges to the total billing line discounts.

Allocate Overall Discount/Surcharge to Contract Lines

Field or Control	Description
Product	Displays the product name, price type, description and billing amount for contract lines with an active status.
% of Overall	Enter the percent of the total header discount or surcharge to apply to the contract line. You can apply discounts and surcharges only to contract lines with a price type of Amount or Percent.
Allocated Amount	When you click Calculate, the system calculates the line discount or surcharge amounts for each line based on the values entered in the % of Overall column.

Click OK to save your work. Discounts and surcharges amounts for billing will be updated on the Billing Allocation page.

Use the Total Contract Revenue Discounts/Surcharges page (CA_HDR_RED_REV_PNL) to apply header level discounts or surcharges for revenue. Discounts for revenue may be different from discounts applied for billing if the contract separates fixed billing and revenue. If the Separate Fixed Billing and Revenue check box is not selected on the contract, then this page is read only and amounts will match those used for billing.

Navigation:

Click the value in the Revenue Discounts/Surcharges field in the header section of the Revenue Allocation page.

Total Contract Revenue Discounts Surcharges Page

Field or Control	Description
Apply Overall After Line	Select to have the system apply the header level discounts or surcharges for revenue to contract lines after it applies any contract line specific discounts or surcharges that you specify on the Revenue Line Discounts and Surcharges page.

Click OK to save your work. Discounts and surcharges for revenue will be updated on the Revenue Allocation page.

Use the Billing Discounts and Surcharges page (CA_LN_REDUC_PNL) to apply line level discounts and surcharges for billing.

Navigation:

Click the Billing Discounts/Surcharges link in the Contract Line Pricing section of the Billing Allocation page.

Field or Control	Description
Billing Amount	Displays the billing amount defined on the Billing Allocation page.
Billing Discounts/Surcharges	Displays the sum of the discounts and surcharges for billing that are listed in the group box. This amount includes the discounts and surcharges that are attached directly to the contract line, as well as the discounts and surcharges that are allocated from the contract header (Total Contract Billing Discounts and Surcharges page).
Net Billing Amount	Displays the net billing amount of this contract line after subtracting the sum of all discounts and surcharges from the line's billing amount.
Identifier	Select a discount or surcharges identifier for the contract line. The system populates the fields with the values that you define for the identifier (discount or surcharge).
Hdr Discount/Surch Allocated	The system selects this check box if the discount and surcharge was allocated from the header level discount or surcharge to this contract line on the Total Contract Billing Discounts and Surcharges page. This box is informational only.
Discount/Surcharge	Indicates whether this line is a discount or surcharge.
Percent	If you defined a percent for the discount or surcharge, that percent appears and you can edit it. If you did not define a percent for the discount or surcharge, you can enter one here. The system multiplies the percent by the billing amount to obtain the line discount amount. Note: Discounts and surcharges are defined by either amount or percent. You can edit this field if you choose to define the discount or surcharge by percent.
Amount	If an amount is defined for discount or surcharge, that amount appears and you can edit it. If you did not define an amount for the discount or surcharge, you can enter one here. Note: You can edit this field if you choose to define the discount or surcharge by amount.
Apply At Renewal	Select to make this discount or surcharge applicable for future renewals. This field appears for renewable contract lines only. This option does not apply if the contract line has already been renewed. This field is not available for contracts with an Active status unless you are in Amendment mode. Note: You cannot select this check box if the contract line to which the discounts or surcharges are applicable is already assigned to a renewal cycle with the Create Target Lines option set to Consolidated. Note: If you select the Apply at Renewal option for at least one discount on a contract line, you can only assign the contract line to a renewal cycle that has the Create Target Lines option set to Individual.

Use the Revenue Discounts and Surcharges page (CA_LN_RED_REV_PNL) to apply line level discounts and surcharges for revenue. Discounts for revenue may different from discounts applied for billing if the contract separates fixed billing and revenue. If the Separate Fixed Billing and Revenue check box is not selected on the contract, then this page is read only and amounts will match those used for billing.

Navigation:

Click the Revenue Discounts/Surcharges link in the Contract Line Pricing section of the Revenue Allocation page.

Field or Control	Description
Revenue Amount	Displays the revenue amount defined on the Revenue Allocation page.
Revenue Discounts/Surcharges	Displays the sum of the discounts and surcharges for revenue that are listed in the group box. This amount includes the discounts and surcharges that are attached directly to the contract line, as well as the discounts and surcharges that are allocated from the contract header (Total Contract Revenue Discounts and Surcharges page).
Net Revenue	Displays the net revenue amount of this contract line after subtracting the sum of all discounts and surcharges for revenue from the line's revenue amount.
Identifier	Select a discount or surcharges identifier for the contract line. The system populates the fields with the values that you define for the identifier (discount or surcharge).
Hdr Discount/Surch Allocated	The system selects this check box if the discount and surcharge was allocated from the header level discount or surcharge to this contract line on the Total Contract Revenue Discounts and Surcharges page. This box is informational only.
Discount/Surcharge	Indicates whether this line is a discount or surcharge.
Percent	If you defined a percent for the discount or surcharge, that percent appears and you can edit it. If you did not define a percent for the discount or surcharge, you can enter one here. The system multiplies the percent by the revenue amount to obtain the line discount amount. Note: Discounts and surcharges are defined by either amount or percent. You can edit this field if you choose to define the discount or surcharge by percent.
Amount	If an amount is defined for discount or surcharge, that amount appears and you can edit it. If you did not define an amount for the discount or surcharge, you can enter one here. Note: Discounts and surcharges are defined by either amount or percent. You can edit this field if you choose to define the discount or surcharge by amount.
Apply At Renewal	Select to make this discount or surcharge applicable for future renewals. This field appears for renewable contract lines only. Contracts lines with discounts or surcharges assigned to consolidated renewal cycle cannot select this check box. Note: You cannot select this check box if the contract line to which the discounts or surcharges are applicable is already assigned to a renewal cycle with the Create Target Lines option set to Consolidated. Note: If you select the Apply at Renewal option for at least one discount on a contract line, you can only assign the contract line to a renewal cycle that has the Create Target Lines option set to Individual.

Use the Billing Discounts/Surcharges Inquiry page (CA_LN_DISC_PG) to view discounts and surcharges that are associated with an individual line.

This page is available for amount based contract lines.

Navigation:

Click the Discounts/Surcharges Summary link on the Billing Amount Details tab of the Contract - Lines page.

Billing Discounts Surcharges Inquiry Page

This version of the Line Discounts and Surcharges page is view-only; the fields are the same.

Use the Revenue Discounts/Surcharges Inquiry page (CA_LN_REV_DISC_PNL) to view discounts and surcharges for revenue that are associated with an individual line. Discounts for revenue may different from discounts applied for billing if the contract separates fixed billing and revenue. If the Separate Fixed Billing and Revenue check box is not selected on the contract, then amounts will match those used for billing.

Navigation:

Click the Discounts/Surcharges Summary link on the Revenue Amount Details tab of the Contract - Lines page.

Revenue Discounts Surcharges Inquiry Page

Pricing Amount-Based Contracts

Pages Used to Price Amount-Based Contracts

Billing Allocation Page

Contract Billing

Fixed Billing

Contract Line Pricing

Line Totals

Revenue Allocation Page

Contract Revenue

Fixed Revenue

Contract Line Pricing

Line Totals

Price Adjustments Page

Percent-Based Billing Pricing Page

Basis Contract Lines

Percent-Based Revenue Pricing Page

Basis Contract Lines

Total Contract Billing Discounts and Surcharges Page

Overall Discount/Surcharge

Total Discounts/Surcharges

Allocate Overall Discount/Surcharge to Contract Lines

Total Contract Revenue Discounts/Surcharges Page

Billing Discounts and Surcharges Page

Revenue Discounts and Surcharges Page

Billing Discounts/Surcharges Inquiry Page

Revenue Discounts/Surcharges Inquiry Page