Running the Pricing Engine for Cost-Plus Contract Lines

When a contract is awarded, a contractor can bill and recognize revenue for direct costs, indirect costs, and fees associated with the performance of the contract. Through its integration with PeopleSoft Project Costing, PeopleSoft Contracts enables you to define the rates and perform pricing to generate cost, billing, and revenue amounts on source transactions that occur against a government contract. Before you can create and record your costs and indirect costs for your contract lines you must define rate sets and rate plans and assign them to the contract lines. Rate plans are assigned to cost-plus contract lines to accommodate the complex pricing needs of government contracts associated with fees.

After the contract is defined and activated, you can begin pricing the transactions that occur against the contract lines using the rate plans that you defined. When transactions are processed from feeder systems into PeopleSoft Project Costing, the Pricing engine is called. The Pricing run control page enables you to select pricing options to generate cost rows, billing rows, revenue rows, or a combination of the three. The check boxes that you select correspond to the rate definition types assigned to the rate set of Billing, Cost, Cost/Billing, or Revenue. For cost-plus contract lines, the pricing engine looks to the rate sets that are associated to the rate plan that is assigned to the contact line, and processes the costing rates, bill rates, and revenue rates in the order that they are entered on the rate plan.

To determine which rows are eligible for pricing and repricing for cost-plus contract lines, the system uses distribution statuses, system sources and fee statuses assigned to the transaction rows. When the pricing engine runs, it processes transaction rows that are assigned analysis types that are within the analysis group PSWKS (for billable transaction cost rows), PSCST (for costing transaction rows), PSREV (for revenue transaction rows), or PSRV2 (for revenue transaction rows if you are using separate rates for billing and revenue).

You can also use the pricing engine to reprice unpriced transaction rows or rows that were previously priced when rate changes occur. Rows can be repriced if they have not yet been billed, have not been sent to the general ledger, or if fees have not yet been created for the transaction row (the transaction row cannot have a fee status of 1). Cost rows that have generated more then one billing or revenue row, or that are in the process of being billed or recognized as revenue, are ineligible for repricing.

See Running the Pricing Application Engine Process.