Understanding Products

Your core contractual obligations are the products and services that you provide to your customer. Before you can bill or recognize revenue for your contract, you must define a standard set of products, associate any attributes such as pricing structure and accounting information, and then add them to your contract.

You can only add amount or rate-based type products to government contract lines. Amount and rate-based products are associated with a price type of Amount or Rate, respectively. Your government contracts may contain either type of product, or a combination of both of these product types. Similar to PeopleSoft Contracts core functionality, certain government contracting sub-features are designed specifically for amount-based contract lines, such as progress payments, while other sub-features are designed specifically for rate-based contract lines, such as cost-plus, and withholding.

The following table identifies the product type and the government contracting features that are specific for that product type:

Product Type	Government Contracting Feature
Amount-based products	Progress payments processing Milestones
Rate-based products	Prepaid processing Cost-plus functionality Withholding management Limit management