Understanding Pricing Government Contracts

Pricing contracts for billing and revenue is the process of establishing a total contract price for billing and a total contract price for revenue and then allocating that price across contract lines. A contract may require separate maintenance of billing and revenue or billing and revenue may be managed as one value. This distinction is made when a contract is added.

Pricing government contracts is similar to the pricing of standard contracts with some exceptions. More specifically, government contracts include functionality to assign cost-plus fee types to rate-based contract lines. See PeopleSoft Contracts: Understanding Pricing Contracts.

This section discusses:

• Amount-based pricing.

• Rate-based pricing.

• Contract line changes on a pending contract.

Total Contract Price for Billing and Total Contract Price for Revenue

Once you define the contract and add products to the contract, the next step is to identify the total contract price for billing and revenue. The Billing Allocation page is used to identify the total contract price for billing and the Revenue Allocation page is used to identify the total contract price for revenue. Total Billing and Total Revenue should be net of any discounts/surcharges applied.

For more details see PeopleSoft Contracts: Understanding Pricing Contracts