Progress Payment Liquidation

To manage progress payments, PeopleSoft Contracts enables you to bill for the progress payment amount, and then subsequently liquidate that amount against the bill when the item is delivered. The amount of the progress payment that can be liquidated against a bill is capped by the liquidation rate specified in the progress payment terms.

To liquidate progress payment amounts against regular bills, you must:

• Set up a billing plan for the contract lines associated with the progress payment terms.

• Identify a liquidation rate for the progress payment terms.

• Associate contract lines, projects, and activities to the progress payment terms.

• Run the Contracts/Billing Interface process (CA_BI_INTFC) to initiate billing for the contract line item.

  This process triggers the Progress Payment Liquidation process (CA_PGP_LIQ) to evaluate the bill line and liquidate any outstanding progress payments against it.

  Note:

  Progress payment liquidation only occurs if the progress payment amount and remaining amount are greater than zero. The progress payment amount and remaining amount are updated only after the progress payment request is finalized, so a progress payment request cannot be billed and liquidated in the same run of the Contracts/Billing Interface.

  The Progress Payment Liquidation process performs the following tasks:

  • Calculates the amount available for liquidation (remaining amount minus committed amount).

  • Determines if the contract lines associated with the billing line is linked to the same set of progress payment terms.

    Note:

    Contract lines that are not associated with the same set of progress payment terms are subtracted out of the total billed amount used in the liquidation calculations.

  • Calculates the maximum liquidation amount (available billing amount multiplied by the liquidation rate factor).

  • Liquidates the calculated amount against the regular bill (either the total amount available for liquidation or the maximum calculated liquidation amount; whichever is less).

    Note:

    Liquidation bill lines display on the invoice as a credit amount using the liquidation description that you entered on the Progress Payment Terms - Liquidation page.