Example 1: Line Level Summary Limits

Line level limits enable you to impose a billing limit on a contract line. A separate revenue limit is identified if the contract separates as incurred billing and revenue. This example describes the steps and processing for a line level limit scenario.

Setup

The system is defined in the following way:

• The Summ. Limit for Govt Contracts (summary limit for government contracts) option is selected on the Installation Options - Contracts page.

• The target excess type for billable line level amount in excess (Bil Ln Lvl Amount in Xs) is defined in the following way: Source Type is EXCES, Category is deselected, and Subcategory is blank.

• The target excess type for billable line level amounts that are reclaimed (Bil Ln Lvl Reclaimed Amt in Xs) is defined in the following way: Source Type is RECLM.

Contract Transaction

Define the contract transaction:

• Create a contract with one rate-based contract line.

• Associate a project and an activity with the contract line.

• Set the contract line level limit to 5000 USD.

• Select the Target Excess check box for the project and activity.

Project Transaction

Create a transaction in PeopleSoft Project Costing:

Category	Amount
Labor	8000
Material	5000

Summary Limits Processing

These rows are created in PROJ_RESOURCE:

Analysis Type	Category	Amount	Currency	Amount in Excess Flag	Project	Activity	Resource Type
BIL	LABOR	8000	USD	NA	NA	NA	NA
BIL	MATERIAL	5000	USD	NA	NA	NA	NA
BIL	NA	-8000	USD	Y	AA	11	EXCES

Note:

NA indicates that the field is not applicable.

Contracts to Billing Processing

The Contracts to Billing Interface process (CA_BI_INTFC) sends the billable (BIL) rows to the Billing interface table (INTFC_BI) for the full amount.. The –8000 amount is sent to offset the amount that is in excess.

The process assigns a billable amount in excess (BAE) line type to the rows that have Y in the Amount in Excess Flag field in the PROJ_RESOURCE table.

The BAE rows are available to be passed to the general ledger and accounts receivable, depending on the accounts receivable setup.

Billing to Project Costing Processing

When the Billing to Project Costing process (PC_BI_TO_PC) runs, the Analysis Type field in PROJ_RESOURCE is updated to billed (BLD):

Analysis Type	Category	Amount	Currency	Amount in Excess Flag	Project	Activity	Resource Type
BLD	LABOR	8000	USD	NA	NA	NA	NA
BLD	MATERIAL	5000	USD	NA	NA	NA	NA
BLD	NA	–8000	USD	Y	AA	11	EXCES

Note:

NA indicates that the field is not applicable.

Funding Is Increased

If additional funding is received for the contract, the contract is amended and the limit is increased. For this example, the funding is increased from 5000 USD to 6000 USD.

When the summary limits process runs, as a standalone process or as a part of the Pricing/Re-Pricing process, a row is added to PROJ_RESOURCE:

Analysis Type	Category	Amount	Currency	Amount in Excess Flag	Reclaimed from OL Flag	Project	Activity	Resource Type
BLD	LABOR	8000	USD	NA	NA	NA	NA	NA
BLD	MATERIAL	5000	USD	NA	NA	NA	NA	NA
BLD	NA	–8000	USD	Y	NA	AA	11	EXCES
BIL	NA	1000	NA	NA	Y	AA	11	RECLM

Note:

NA indicates that the field is not applicable.

Contracts to Billing Process After Funding Is Increased

The process assigns a reclaimed amount in the excess (RAE) line type to the rows that have a Y in the Reclaimed Flag field in the PROJ_RESOURCE table.

Note:

Processing amounts that are over-the-limit for revenue is similar to that used for billing except that REV analysis type is used instead of BIL and BLD and the source types, categories and subcategories on the over-the-limit rows can be separately configured.