Understanding Revenue and Billing Management for Government Contracts
This section lists prerequisites and discusses:
Revenue and billing management.
Revenue redistribution.
Before you can manage revenue and billing data for government contracts, you must first define your contract with a contract classification of Government, add contract lines to the contract, define billing and revenue plans and associate contract lines to them, activate the contract, set billing and revenue plans to Ready status, and process billing and revenue for the contract.
Managing revenue and billing for government contracts is similar to that used for standard contracts. See Understanding Revenue Management. PeopleSoft Contracts enables you to capture billing and revenue information for your government contracts and allocate that information across contract lines. This includes defining accounting distribution data for your contract lines for billing and revenue processing purposes, assigning the contract lines to billing and revenue recognition plans, managing when the conditions for generating invoices and revenue accounting entries have been met, and generating invoices and revenue journal entries for your contract lines for direct and indirect costs, fees, progress payments, and so on.
Managing billing and revenue for your contract lines consists of monitoring and updating billing and revenue plan statuses, event statuses where applicable, processing invoices and journal entries, and making any necessary adjustments to billing and revenue that has been processed.
You can initiate redistribution of revenue accounting associated with rate-based contract lines and rate-based contract lines associated with fee types (cost-plus) from the revenue management pages in PeopleSoft Contracts. For revenue plans that have an as-incurred revenue recognition method, the revenue management pages enable you to view all projects and activities for all contract lines associated with that revenue plan.
The Redistribute Revenue page displays the processed revenue rows for the contract line revenue plan selected from the search dialog box. To redistribute recognized revenue, select the revenue rows for redistribution, enter the redistribution criteria, and run the redistribution process. The redistribution process reverses the revenue entry from the original accounts and creates a new entry using the new accounts that you specify.