Amending a Contract

Detail

Click to enter details, for the contract attributes being amended.

Notes

Click to review notes attached to this amendment.

Entered On

Displays the system date and time indicating when an amendment was first saved.

Entered by

Displays the ID of the user entering the amendment.

Change Received By

Displays the ID of the user who receiving the amendment.

Change Received Date

Displays the system date and time indicating when an amendment was received.

Fixed Billing Adjustment

Displays the adjustment to the fixed billing amount.

Cancelled Billing Amount

Displays the adjustment to billing for cancelled contract lines.

Billing Limit Adjustment

Displays the adjustment to billing limits for rate based contract lines.

Total Billing Adjustment

Displays the adjustment to total billing amount.

Fixed Revenue Adjustment

Displays the adjustment to the fixed revenue amount.

Cancelled Revenue Amount

Displays the adjustment to revenue for cancelled contract lines.

Revenue Limit Adjustment

Displays the adjustment to revenue limits for rate based contract lines.

Total Revenue Adjustment

Displays the adjustment to total revenue amount.

Reference ID (reference identifier)

Enter free-form text information to create a reference identifier for the amendment. This field is informational only and does not affect amendment processing.

User Ref #1 (user reference number one)

Enter free-form text information to add additional reference data for the amendment. This field is informational only and does not affect amendment processing.

User Ref #2 (user reference number two

Enter free-form text information to add secondary additional reference data for the amendment. This field is informational only and does not affect amendment processing.

Awarded Amount Adjustment

Displays the adjustment to the awarded amount on rate based contract lines.

Component

Displays a description of the record where the change occurred. For example, if you made a change on the Contract - Lines page, the system displays Contract Line in this field.

Amend Ref #1

Displays additional information about each change to provide context for the amendment when you view amendment details out of context. You can have multiple changes for a single amendment. The system captures each individual change that you make and stores it in a consolidated amendment detail table.

Label Fieldname

Displays the label from the page associated with the field that you changed.

Edit Type

Displays the action performed on the field that you changed. Values are:

Insert: You added a new row.

Update: You changed an existing row.

Old Value

Displays the original value that is being changed by the amendment for Update edit types.

New Value

Displays the new value that is the result of the amendment for Update and Insert edit types.

Entered by

Displays the ID of the user entering the amendment.

Entered On

Displays the system date and time indicating when an amendment was first saved.

Total Billing Adjustment

Enter the adjustment for total billing on the contract. The amount entered should include all contract line types.

Total Billing After Adjustment

Displays the total billing amount after the adjustment. It is calculated as the sum of total billing on the contract before amendment plus the current total billing adjustment.

Unallocated Billing

Calculated by the system, displays the amount of billing not yet allocated to contract lines. PeopleSoft recommends adjustments be fully allocated across contract lines and after doing so, the Unallocated Billing will equal zero. This is not a necessary condition to change the amendment status to Ready and to process the amendment, but is recommended.

Fixed Billing Adjustment

Enter the total adjustment to fixed billing amounts on amount or percent based lines. To process the amendment, the amount in this field must equal the sum of the Adjustment Billing Amount values on amount and percent based contract lines.

If an inclusive prepaid has been modified in the amendment, the inclusive prepaids adjustment amount must also be included in the fixed billing adjustment amount.

Net Adjustment

Displays the net billing adjustment to amount and percent based lines.

Unallocated Fixed Billing

Displays the amount of fixed billing not yet allocated to amount and percent based lines. To process the amendment, this amount must zero.

If an inclusive prepaid is modified as part of the amendment then, this field displays the unallocated inclusive prepaid amount plus the sum of the unallocated adjustment billing amount of contract line , if any.

Inclusive Prepaids Adjustment

Displays the adjustment in prepaids designated as inclusive. Since inclusive prepaids are included in Fixed Billing Adjustment, the adjustment to the inclusive prepaids is displayed and used to validate the allocation status.

Allocation

System sets the value of this field on saving the page or clicking on Recalculate button. User also can manually set this value. Values include:

• Incomplete: This value appears by default and indicates that amounts for fixed amount contract lines have not been fully allocated.

• Complete: This value appears once fixed amount changes are allocated across all eligible amount-based contract lines.

Recalculate

Click to recalculate the Unallocated Adjustment for Billing at the contract level, the Unallocated Adjustment for fixed amount contract lines and the status of the fixed amount allocation. The amounts displayed under Line Totals are also recalculated.

If you selected the Reprice check box on an amount based contract line, when you click the Recalculate button, the system retrieves the list price from the PeopleSoft Enterprise Pricer or Product Master, multiplies it by the quantity on the contract line and updates the Extended Price, New Billing Amount, and Net Amount fields on the contract line.

Retrieve Billing Price

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 the basic list price from Order management, multiplies it by the quantity and updates the Extended Price, New Billing Amount, and New Net Billing fields on the contract line.

Line Number

Displays the contract line number for each contract line.

Related Revenue Amount

Hover over this field to view the revenue amount for the contract line. Applicable for all contract line types.

Current Billing Amount

Displays the contract line's current billing amount.

New Billing Amount

Applicable for amount and percent based lines, enter the new billing amount for the contract line. When you first access this page, the new billing amount is set to the current amount.

Adjustment Billing Amount

Calculated by the system, displays the amount of the billing adjustment for the contract line.

Adjust Billing Retroactively

Applicable for amount and percent-based contract lines.

When you select this option, the system updates event amounts on the billing plan that have already been billed and sets the billing plan status to Action Required if there is any pending amount to be allocated to the unprocessed events.

When this option is not selected, the system does not process a change to previously billed amounts. However, for percent complete billing plans, the system does adjust the incremental percentage for previously billed events such that the percentages match the adjustment being made to the billing plan.

This option can also be selected at the business unit level, and overridden at the contract line level.

Adjust Revenue Retroactively

Applicable for amount and percent-based contract lines.

When you select this option, the system updates event amounts on the revenue plan that have already been processed and sets the revenue plan status to Action Required if there is any pending amount to be allocated to the unprocessed events.

When this option is not selected, the system does not process a change to already recognized revenue events. However, for percent complete revenue plans, the system does update the incremental percentage for previously recognized revenue so that the percentages match the adjustment that is made to the revenue plan.

Reverse Billing and Revenue

This option is only available when cancelling an amount or percent based contract line.

When selected, the contract line billing and revenue amounts are brought down to zero. The system cancels discounts and surcharges for the contract line, updates the billing plan and revenue plan statuses to Action Required, and adjusts amounts already billed and recognized for revenue.

New Net Billing

Calculated by the system, displays the new net billing amount on an amount or percent based contract line.

Current Awarded Cost

Displays the current Awarded Amount for rate based contract lines. The value will be zero for new contract lines that are added as part of the current amendment.

New Awarded Cost

Enter the new Awarded Amount for rate based contract lines. By default the field displays the current Awarded Amount. By default the field value will be zero for new contract lines that are added as part of the current amendment.

Adjustment Awarded Cost

Calculated by the system, displays the adjustment to the awarded amount on the contract line.

Current Billing Limit

Displays the current billing limit for rate based contract lines. For new contract lines that are added as part of the current amendment the value for this field will be zero.

New Billing Limit

Enter the new billing limit for rate based contract lines. By default, the field value displays the current Billing Limit. For new contract lines that are added as part of the current amendment the field value will be zero. If a rate based contract line is cancelled as part of the current amendment then this field is grayed out and you cannot edit it.

The New Billing Limit cannot be greater than the New Awarded Cost of a contract line.

Limit Check

Click to perform limit check for the contract line. This button is visible only for rate based contract lines. In amendment mode the existing limit amounts are used to check the limits as the new amounts are not yet processed.

Recalculate

Billing amounts and status fields are recalculated the same as that noted earlier.

If you selected the Reprice check box for any contract lines, when you click the Recalculate button, the system retrieves the list price from the PeopleSoft Enterprise Pricer or Product Master, multiplies it by the quantity, and updates the Extended Price, New Billing Amount, and New Net Billing fields for the selected contract lines.

Price Type

Dictates the processing allowed for the product. Options include:

Amount: You can edit the billing amount on an amount based product by entering an amount in the New Billing Amount field.

Rate: You can edit the billing limit on a rate based line by entering an amount in the New Billing Limit field.

Recurring: You can edit the amount to be billed on a recurring contract line by entering an amount in the New Recurring Billing field.

Quantity

Displays the quantity for the contract line. You can change this value at any time before processing the amendment. When you change the quantity, the system automatically updates the associated quantity on the Billing Plan Lines page after the amendment is processed.

Fee Type

Displays the fee type associated with the line.

Extended Price

Displays the list price multiplied by quantity.

When you select the Retrieve Billing Price check box and click the Recalculate button, the contract line Start Date is used for pricing. If the contract line Start Date is not available then the contract Sign Date is used.

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.

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. If contract line start date is blank, then the contract sign date is used.

Actions

Select a related action to access other pages relevant to contract pricing. Available related actions are:

• Review Limits: Available for rate based contract lines on contract classifications other than internal. Select to access the Review Limits page in a new window.

• Related Projects: Available for all contract line types and contract classifications except for rate based contract lines on Government contracts. Instead this access is provided through Contract Amounts.

• Contract Amounts: Available for rate based contract lines.

• Transaction Limits: Available for rate based contract lines on contract classifications other then 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.

Billing Amount

Summarizes the adjustment to billing amount on amount and percent based lines included in the amendment.

Billing Limit

Summarizes the adjustment to billing limit on rate based lines included in the amendment.

Total Billing

Summarizes the adjustment to total billing for the contract.

Total Revenue Adjustment

Enter the adjustment for total revenue on the contract. The amount entered should include all contract line types.

This field can be edited if either the Separate Fixed Billing and Revenue check box or Separate As Incurred Billing and Revenue check box is selected on the contract. Otherwise, the field is display only and equals the Total Billing Adjustment amount on the Amendment Billing Allocation page.

Total Revenue After Adjustment

Displays the new Total Revenue for the contract including the impact of the adjustment to Total Revenue.

Documented Price Adjustments

Displays the sum of the price adjustments documented in the Price Adjustment page. You can click the amount field to access the Price Adjustments page to make any modifications. The link is enabled only if the Separate Fixed Billing and Revenue or Separate As Incurred Billing and Revenue check box is selected on the contract.

Action Required

A visual indicator to the user that some action is required to document the price adjustments. This message is visible only if the Documented Price Adjustments does not equal the difference between total billing after adjustment and total revenue after adjustment.. If either is changed then you have to recalculate the price adjustments by clicking the Recalculate button.

Unallocated Revenue

Calculated by the system, displays the amount of revenue not yet allocated to contract lines. PeopleSoft recommends amendments be fully allocated across contract lines and after doing so, the Unallocated Revenue will equal zero. This is not a necessary condition to change the amendment status to Ready and to process the amendment, but is recommended.

Basis of Allocation

The system provides options for programmatically allocating a change in Total Revenue to the contract lines and an option to do it manually. For the automated options, each contract line is allocated a portion of the total revenue adjustment based on the line’s relative percentage to total. This is similar to the methodology on the Revenue Allocation page prior to contract activation except that you have options to set the basis of allocation. Using the selected basis (Current Revenue, Extended Revenue Price or New Lines Only) the system calculates the line’s Basis for Allocation, Relative Percentage and Suggested Revenue Adjustment. New Revenue Amount and New Revenue Limit are programmatically updated by adding the Suggested Revenue Adjustment to the current amount (or limit) for the line.

• Current Revenue - Select this option to use the line’s current revenue amount (or current revenue limit if a rate based line) as a basis for the allocation.

• Extended Revenue Price - Select this option to use the line’s extended revenue price as a basis for allocation.

• New Lines Only - Select this option to allocate the change in Total Revenue to new lines being added in the amendment. If multiple lines are added in the amendment, then the product’s extended revenue price is used as a basis for allocating the adjustment to the new contract lines.

• Manual — This is the default value. With this option, the New Revenue Amount (or New Revenue Limit for a rate based line) are updated manually. Contract lines with a discount are always updated using the manual option.

Fixed Revenue Adjustment

Enter the total adjustment to revenue amounts on amount or percent based lines. To process the amendment, the amount in this field must equal the sum of the Adjustment Revenue Amount values on amount and percent based contract lines.

If an inclusive prepaid has been modified in the amendment, the inclusive prepaids adjustment amount must also be included in the fixed billing adjustment amount.

This field can be edited if the Separate Fixed Billing and Revenue check box is selected on the contract. Otherwise, the field is grayed out and equals the Fixed Billing Adjustment amount on the Amendment Billing Allocation page.

Net Adjustment

Displays the net revenue adjustment to amount and percent based lines.

If the Separate Fixed Billing and Revenue check box is not selected on the contract, then the value equals the Net Adjustment amount on the Amendment Billing Allocation page.

Unallocated Fixed Revenue

Displays the amount of fixed revenue not yet allocated to amount and percent based lines. To process the amendment, this amount must zero.

If the Separate Fixed Billing and Revenue check box is not selected on the contract, then the value equals the Unallocated Fixed Billing amount on the Amendment Billing Allocation page.

Inclusive Prepaids Adjustment

Displays the adjustment to prepaids designated as inclusive. Since inclusive prepaids are included in Fixed Revenue, the adjustment to the inclusive prepaids is displayed and used to validate the allocation status.

Allocation

System sets the value of this field on saving the page or clicking the Recalculate button. User also can manually set this value if Separate Fixed Billing and Revenue is selected on the contract. Values include:

• Incomplete: This value appears by default and indicates that revenue amount allocation has not been completely performed.

• Complete: This value appears once you have allocated the contract line revenue amount change across all eligible amount and percent based contract lines.

This field is grayed out if the Separate Fixed Billing and Revenue check box is not selected on the contract and the value will equal that on the Amendment Billing Allocation page.

Recalculate

Click to recalculate the Unallocated Adjustment for Revenue at the contract level, the Unallocated Revenue Adjustment for fixed amount contract lines and the status of the fixed amount allocation for revenue. The amounts displayed under Line Totals are also recalculated.

Retrieve Revenue Price

Used in conjunction with the Recalculate option, select this check box to reprice the contract line's revenue price based on the list price in Order Management or the Enterprise Pricer. This calculation uses the quantity for the line including any modifications to that quantity.

This field is applicable for amount, percent and rate based lines that separate billing and revenue. This check box is not enabled for recurring lines.

If the Basis of Allocation is Manual or the contract line is set using an override, then the new revenue amount and revenue limit values are replaced by the updated extended revenue price. If the Basis of Allocation is Extended Revenue or New Lines Only then the Relative Percentage and Suggested Revenue Adjustment values are recalculated based on the updated extended revenue price and the Suggested Revenue Adjustment is used to update the new revenue amount (or new revenue limit for a rate based line).

Line Number

Displays the contract line number for each contract line with an active status and lines cancelled as part of current amendment.

Extended Revenue Price

Displays the revenue price multiplied by quantity for amount, rate, and percent based contract lines. It is not applicable for recurring lines. To update the line’s extended revenue price from Order Management or the Enterprise Pricer, select the Retrieve Revenue Price check box and click the Recalculate button.

Basis for Allocation

Applicable for contracts where the basis of allocation chosen is Current Revenue, Extended Revenue Price or New Lines Only. Not visible if the Basis of Allocation is Manual nor lines selected to Override.

Relative Percentage

Applicable for contracts where the basis of allocation chosen is Current Revenue, Extended Revenue Price or New Lines Only. The value for this field is calculated using the Basis for Allocation selected for the contract line. The percentage displayed, represents the contract line’s relative percentage to the total of all contract lines. Lines set using an Override are not included in the overall calculation. This field is not visible if the Basis of Allocation is Manual.

Suggested Revenue Adjustment

Applicable for contracts where the basis of allocation chosen is Current Revenue, Extended Revenue Price or New Lines Only. Represents the line level allocation of the Total Revenue Adjustment. This field is display only and is not visible if the Basis of Allocation is Manual or blank if the lines is being overridden.

Override Revenue

Select this check box to exclude a contract line from the programmatic revenue allocation and to enter this the New Revenue Amount (or New Revenue Limit for rate based lines) manually. By default this check box will be selected where the Basis of Allocation is Manual. This check box is selected and grayed if the line does not separate billing and revenue and values are programmatically set to equal those used for billing. For recurring lines this check box cannot be edited.

Current Revenue Amount

Displays the current revenue amount for an amount or percent based line.

For new contract lines that are added as part of the current amendment this field value is same as Extended Price.

New Revenue Amount

Applicable for amount and percent based lines. This field is updated programmatically by adding the suggested revenue adjustment to the current revenue amount or updated manually if the override revenue check box is selected. When you first access this page, the new revenue amount is set to the current amount extended revenue price.

If Basis of Allocation is Manual and if the Retrieve Revenue Price is selected then a new extended revenue price is copied to this field. If the Basis of Allocation is either Extended Revenue or New Line Only and if the Retrieve Revenue Price is selected then the new suggested revenue adjustment is copied to this field.

Adjustment Revenue Amount

Calculated by the system, displays the amount of the revenue adjustment for the contract line. For new contract lines added as part of the amendment this field value will equal the New Revenue Amount field value.

Adjust Revenue Retroactively

Applicable for amount or percent-based contract lines.

When you select this option, the system updates event amounts on the revenue plan that have already been processed and sets the revenue plan status to Action Required.

When this option is not selected, the system does not process a change to already recognized revenue events. However, for percent complete revenue plans, the system does update the incremental percentage for previously recognized revenue events such that the percentages match the adjustment that is made to the revenue plan.

Reverse Billing and Revenue

This option is only available when cancelling an amount or percent based contract line. The field is read only and updated on the Amendment Billing Allocation page.

When selected, the contract line is brought down to zero. The system cancels discounts and surcharges for the contract line, updates the billing plan and revenue plan statuses to Action Required, and makes adjustments to already billed and recognized amounts.

Current Awarded Cost

Displays the current Awarded Amount for rate based contract lines. This field is edited on the Amendment Billing Allocation page.

New Awarded Cost

Displays the new Awarded Amount for rate based contract lines. This field is edited on the Amendment Billing Allocation page.

Adjustment Awarded Cost

Displays the adjustment to the awarded amount on the contract line.

Current Revenue Limit

Displays the current revenue limit for rate based contract lines. For new contract lines that are added as part of the current amendment the value for this field will be zero.

New Revenue Limit

Enter the new revenue limit for rate based contract lines. By default, the field value displays the Current Revenue Limit. For new contract lines that are added as part of the current amendment the field value will be zero. If a rate based contract line is cancelled as part of the current amendment then this field is grayed out and you cannot edit it.

If the value entered for this field is less than the amount already processed for revenue, then an error message is displayed.

The field can be edited if the Separate As Incurred Billing and Revenue check box is checked on the contract. If Separate As Incurred Billing and Revenue check box is not selected, then the New Revenue Limit field is display only and the amount equals the New Billing Limit on the Amendment Billing Allocation page.

Limit Check

Click to perform limit check for the contract line. This button is visible for rate based contract lines. In amendment mode the existing revenue limits are used to check the limits since the new amounts not yet processed.

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.

Simulate Revenue Pricing

Click to open the Pricing Simulator page where all the relevant details such as dates and contract attributes required for simulating the contract line revenue price are populated. Transaction Code used to setup the simulator is RP.

Recalculate

Revenue amounts and status fields are recalculated the same as that noted earlier.

Quantity

Displays the quantity associated with the contract line. This value can be modified on the Amendment Billing Allocation page and the same value will be reflected here. This field is not applicable for percent and rate based contract lines.

Extended Price

Displays the list price multiplied by quantity. If the quantity is modified on the Amendment Billing Allocation page and the contract line is re-priced then the latest price is multiplied with the quantity and displayed as Extended Price. This field is applicable for amount based contract lines only.

Actions

Select a related action to access other pages relevant to contract pricing. Available related actions are:

• Review Limits: Available for rate based contract lines on contract classifications other than internal. Select to access the Review Limits page in a new window.

• Related Projects: Available for all contract line types and contract classifications except for rate based contract lines on Government contracts. Instead this access is provided through Contract Amounts.

• Contract Amounts: Available for rate based contract lines.

• Transaction Limits: Available for rate based contract lines on contract classifications other then 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.

Revenue Amount

Summarizes the adjustment to Revenue Amount on amount and percent based lines included in the amendment.

Revenue Limit

Summarizes the adjustment to Revenue Limit on rate based lines included in the amendment.

Total Revenue

Summarizes the adjustment to total revenue for the contract.