Cost-Plus Contract Line Accounting Distribution

PeopleSoft Contracts enables you to capture billing and revenue information for a contract and allocate that information to individual contract lines. You associate each contract line with billing and revenue accounting distributions, billing and revenue plans and methods, manage when the conditions for billing and recognizing revenue have been met, and generate invoices and journal entries to book the revenue to the general ledger. Before you can perform bill and revenue processing for your government contract lines, you must first set up the required accounting distributions.

For rate-based contract lines and rate-based contract lines associated with fee types, you must define accounting rules. Accounting rules are set up using the Project Costing Accounting Rules pages and are defined by PeopleSoft Contracts and PeopleSoft Project Costing business units and analysis type. Depending on whether you will be using different rates for your billing and revenue calculations for your contract lines, and whether the Separate As Incurred Billing and Revenue option is selected on the contract the amount of accounting rules setup needed.

For billing purposes, the Contracts/Billing Interface (CA_BI_INTFC) process retrieves the contract asset ChartField values from the billing accounting rules. When the As-Incurred revenue process is run in PeopleSoft Contracts, it looks to the accounting rules defined to retrieve the appropriate revenue accounting distribution ChartFields for the eligible contract lines and fees.

The system processes all undistributed billing and revenue rows stored in the PROJ_RESOURCE table in PeopleSoft Project Costing and generates the billing and revenue accounting entries that can be billed and booked to the general ledger. To ensure that the system generates accounting entries for all of your eligible contact lines and fees, you must define an accounting rule for each analysis type associated with the PSWKS, PSREV and PSRV2 analysis groups.

Note:

If you have elected to use separate rates for billing and revenue calculations and have selected the Separate As Incurred Billing and Revenue option on your contracts, then you must also set up accounting rules using the REV (revenue) analysis type. This analysis type is associated with the PSRV2 analysis group and is used to generate the revenue accounting entries for your cost-plus contract lines and fees when the As-Incurred Revenue process is run.

See PeopleSoft Project Costing: Understanding Accounting for Projects.