Understanding Limits

Government contractors bill and recognize revenue for their contracts according to terms and conditions specified by the government. Once funding is received for a contact, the contractor may bill or recognize revenue for a specified amount over the duration of the contract within a specified date range (referred to as the Period of Performance, or POP). Although any costs incurred during the completion of the contract must be tracked and managed, the contractor may only be able to bill or recognize revenue for a portion of those costs depending on the terms of the contract. PeopleSoft Contracts uses limit processing to enable you to set limits on the amount billed, revenue recognized, or fees processed for a government contract, as well as to enable you to set limits on specific transactions (such as labor, materials, or travel) that occur against a government contract.

This section discusses:

• Funding and revenue limits.

• Transaction limits.