Processing Cost-Plus Contract Line Revenue
This section provides an overview of processing revenue for cost-plus contract lines and discusses how to process revenue for cost-plus contract lines and adjust revenue for cost-plus contract lines.
|
Page Name |
Definition Name |
Usage |
|---|---|---|
|
RUN_PSA_ACCTGGL |
Run this process to write revenue for rate-based contract lines and rate-based contract lines associated with fee types (cost-plus) to CA_ACCTG_LN_PC. This process picks up rate-based contract lines assigned to as-incurred revenue plans and any associated fees. The system sets the GL_DISTRIB_STATUS for lines and fees that it writes to the CA_ACCTG_LN_PC table to G (generated). |
Processing revenue for cost-plus contract lines consists of two parts: generating revenue accounting entries for the contract lines and generating revenue accounting entries for the associated contract line fees. Before you can generate accounting entries for cost rows and fees, you must complete the following tasks:
Define the accounting rules containing the PeopleSoft Project Costing ChartField combinations and business units for your contract line transactions.
Assign a standard or contract specific rate set or rate plan to your cost-plus contract lines.
Assign projects and activities to your active cost-plus contract lines.
Assign your cost-plus contract lines to as-incurred revenue plans.
Your revenue fee worksheets are part of your revenue plans, and as such, enable you to process both revenue for your cost transactions and any associated fees.
Set your contract to an active processing status.
Set the as-incurred revenue plans and any associated events to a status of Ready.
Before generating revenue accounting entries for cost-plus contact line fees, you must first calculate and generate the fees for each contract line. Using the fee worksheets, you must evaluate the system calculated, proposed fee amount and either accept the amount or enter a different amount. When you click the Submit button on the fee worksheet, the system will evaluate the proposed amount against the revenue limits and fee criteria and determine if the proposed amount can be processed. Once processed, summarized fee rows are generated and posted to the Project Transaction tables in PeopleSoft Project Costing using the fee definition criteria setup for the contract's business unit. If you have selected the Separate Billing and Revenue option on the Installation Options-Contracts page, then you must use the revenue fee worksheets to calculate and generate the revenue fee rows. If you have not selected the Separate Billing and Revenue option on the Installation Options-Contracts page, you must use the billing fee worksheet to calculate and generate both the billing and the revenue fee rows. Fee rows can be created outside of revenue processing and do not change the status of the revenue plan.
After you have generated the fees you can run the As-Incurred Revenue (PSA_ACCTGGL) process to generate the accounting entries for both your contract lines and associated fees. The As-Incurred revenue process performs the following steps:
Selects all eligible revenue and fee transactions from the Project Transactions table (PROJ_RESOURCE) for processing.
If you have selected the Separate Billing and Revenue option on the Installation Options-Contracts page, the As-Incurred Revenue process selects transactions that are assigned analysis types associated with the PSRV2 analysis group. If you have not selected this option, or if the contract line is associated with a fee type of None, then the As-Incurred revenue process selects transactions that are assigned analysis types associated with the PSREV analysis group.
Creates revenue accounting entries for the contract lines and fees according to the processing criteria specified on the As-Incurred Revenue run control page and writes them to the Contracts/Projects Accounting Line (CA_ACCTG_LN_PC) table and assigns the transaction rows a general ledger distribution status (GL_DISTRB_STATUS of Generated (G).
You must run the journal generator process to post the accounting entries from the (CA_ACCTG_LN_PC) table to the general ledger.
Changes the status of the revenue plans and award and incentive fee events to In Progress.
After the journal generator has posted the accounting entries to the general ledger, you must run the Journal Generator Load Update (CA_LOAD_UPD) process to update PeopleSoft Contracts and PeopleSoft Project Costing with the processed revenue data, set the revenue distribution status in the CA_ACCTG_LN_PC table from Generated (G) to Distributed (D) for revenue transactions, and set the Cost distribution status from Generated (G) to Distributed (D) for costing transactions.
Streamline Processing
PeopleSoft Contracts delivers streamline processing to enable you to generate fees and recognize revenue for cost transactions using a single process. By performing a few simple setup tasks, you can set up the As-Incurred Revenue process to perform all of the steps for generating accounting entries for your cost transactions and associated fees, post the entries to the general ledger, and update PeopleSoft Contracts and PeopleSoft Project Costing with the results.
To set up streamline processing for revenue generation for cost-plus contract lines and fees, perform the following steps:
Set up the accounting definition defaults for the Journal Generator at the installation level on the Contracts – Installation Options page.
Select the Process Automatically option on the revenue fee worksheets.
By selecting the Process Automatically option on the revenue fee worksheets, the As-Incurred Revenue process initiates the fee processor to evaluate the fee amount proposed by the system to determine if it meets the revenue fee limit criteria, and submits the fee for processing. The fee is then processed through to the general ledger and fee data updates are sent back to PeopleSoft Contracts and PeopleSoft Project Costing.
Select the Process Milestones option on the Process Project Accounting page. (Optional)
If you are using milestone events for your award or incentive fee schedules, then the milestone status must be complete before the revenue event can be processed. By selecting this option on the Process Project Accounting page, the As-Incurred revenue process initiates the Milestone Processing Application Engine process (CA_MS_PRCS) to update any eligible milestone statuses to Complete.
Select the Process Journal Entries option on the Process Project Accounting page.
By selecting the Process Journal Entries option, the As-Incurred Revenue (PSA_ACCCTGGL) process automatically runs the Journal Generator process and the Journal Generator Update process to book the revenue accounting entries to general ledger for your cost-plus contract lines and fees, and then updates PeopleSoft Contracts and PeopleSoft Project Costing with the booked revenue data.
Use the Process Project Accounting page (RUN_PSA_ACCTGGL) to run this process to write revenue for rate-based contract lines and rate-based contract lines associated with fee types (cost-plus) to CA_ACCTG_LN_PC.
This process picks up rate-based contract lines assigned to as-incurred revenue plans and any associated fees. The system sets the GL_DISTRIB_STATUS for lines and fees that it writes to the CA_ACCTG_LN_PC table to G (generated).
Navigation:
Throughout the life of the contract, changes may occur that impact revenue costs, limit amounts, or fees. To manage revenue adjustments, PeopleSoft Contracts uses amendment processing to enable you to keep a historical record of any changes that you make. To manage revenue fee adjustments, you must use the revenue fee worksheets and the Fee Adjustment page (if adjusting award or incentive fees).
The following table lists some examples of revenue adjustments that you might make and the tasks required to complete the changes:
|
Revenue Adjustment |
Tasks |
Controlled by Amendment Processing |
|---|---|---|
|
Increase or decrease revenue fee percentage for fixed or award fee types. |
Enter the fee percentage change on the appropriate Contract Amounts page. The overall fee percentage cannot exceed 100 percent or be less than zero. |
Yes |
|
Increase or decrease the revenue cost share percentage for incentive fee types. |
Enter the fee percentage change on the Contract Amounts page. The overall fee percentage cannot exceed 100 percent or be less than zero. |
Yes |
|
Increase or decrease the revenue target fee for incentive fee types. |
Enter the fee percentage change on the Contract Amounts page. The overall fee percentage cannot exceed 100 percent or be less than zero. |
Yes |
|
Increase or decrease the revenue maximum or minimum fee for incentive fee types. |
Enter the fee percentage change on the Contract Amounts page. The overall fee percentage cannot exceed 100 percent or be less than zero. |
Yes |
|
Reduce revenue fee amounts due to cost adjustments. |
Use the revenue fee worksheet for the contract line and enter a negative revenue fee amount. The fee adjustment cannot be greater than the revenue amount already recognized to date. |
No Note: To maintain a historical record of this transaction, use the internal notes page for the contract. |
|
Increase revenue fee amounts due to cost adjustments. |
Use the revenue fee worksheet for the contract line and enter the revenue fee adjustment amount. |
No Note: To maintain a historical record of this transaction, use the internal notes page for the contract. |
|
Modify the revenue or revenue fee limit amount. |
Enter the new revenue limit or revenue fee limit amount on the appropriate Contract Amounts page. |
Yes |