Progress Payment Billing

PeopleSoft Contracts enables you to bill the government for progress payment amounts, then liquidate those amounts against regular bills after your contracted items are delivered. To manage this process, you must define billing plans for both your progress payment requests and the contract lines associated with the progress payment amount. Billing plans control the timing and parameters for contract bills.

To bill for progress payment amounts, you must complete the progress payment worksheet, set up a billing plan that uses the Immediate billing method, and assign it to the progress payment worksheet. A separate Immediate billing plan is required for each occurrence of a progress payment request and cannot span multiple progress payment requests or multiple contract lines. Any adjustments made to progress payment bills require a new immediate billing plan to be created.

Note:

Although progress payment amounts and prepaid amounts may coexist on the same contract, they cannot be combined onto the same immediate billing plan. Progress payment amounts do not include taxes. Instead, all taxation occurs on the regular bill.

Setting up and assigning Immediate billing plans for your progress payment requests can be done manually or automatically. When you perform computations in the progress payment worksheet, and the worksheet is approved, the system may create an Immediate billing plan in either Ready or Pending status (depending on the billing plan template setup).

To bill for delivered items associated with your contract lines, you can set up billing plans using the Milestone, Percent Complete, or Immediate billing plan method and assign them to the corresponding contract lines. When regular bills are processed for these items, the system liquidates the progress payment amounts against the bill amount according to the progress payment liquidation rate specified for the progress payment terms.

When setting up billing plans for contract lines associated with progress payment terms, it is important to note that PeopleSoft Contracts provides the user complete flexibility when setting up and sharing billing plans across contract lines associated with the same price type. However, for contract lines associated with progress payment terms, consider the following points:

• PeopleSoft Contracts enables you to combine contract lines with the same billing parameters onto the same billing plan.

• You can combine contract lines that have the same billing parameters, whether or not the contract lines are associated with the same set of progress payment terms, different sets of progress payment terms, or no progress payment terms at all.

• Contract lines combined onto a single billing plan, but not associated to the same set of progress payment terms are prorated during the liquidation process based on the contract line net amount.

  The system uses this proration calculation to determine how much of the total billed amount is associated with the contract line linked to the set of progress payment terms.

  The calculated prorated amount is used to complete the liquidation calculation.

  Note:

  To avoid proration of your billed amount for progress payment liquidation purposes, it is strongly recommended that you only combine contract lines that are associated with the same set of progress payment terms onto a single billing plan.

See Progress Payments Terms Page, Progress Payment Worksheet Page.