Understanding Summary Limits

Summary limits can be used to summarize the amounts that are passed to PeopleSoft Billing and to PeopleSoft General Ledger for revenue. Summary limits can be used only on government contracts.

To use summary limits, you must:

  • Select the Summ. Limit for Govt Contracts (summary limit for government contracts) option on the Installation Options - Contracts page.

    When this option is selected, the Limits process (CA_LIMITS) operates differently than it does when this option is not selected. From this point forward, when the Summ. Limit for Govt Contracts option is selected the Limits process is referred to as the summary limits process.

    Note:

    When you select the Summ. Limit for Govt Contracts option for government contracts, the Split To Match Limits option does not apply to excess summary rows. The option is available for all other contract classifications.

  • Define the public voucher number (PVN) generation level on the Business Unit - Defaults page for contracts.

    The PVN generation level value is used by the system to generate a PVN, which is printed on the billing invoice.

    The PVN generation level that is defined at the business unit level can be overridden on the Contract Header - Billing Options page.

  • (Optional) Define the source type, category, and subcategory for the excess type.

    These values can be defined for each billable and revenue line that generates an excess amount and a reclaimed amount at the transaction level and line level. This is defined on the Excess/Reclaim Definition page.

  • Select the Target Excess check box on one project and activity for each contract line where limits are imposed.

    Do this on the Related Projects page for the contract line.

An excess amount is generated when the summarized billing or revenue transactions exceed the specified transaction limit or contract line limit. The amount in excess is displayed on the Excess tab of the Review Limits page and on the Limit Details page. When the contract line amount is billed, the costs are summarized and categorized on the invoice. Amounts in excess are included on the invoice as a reduction of the total amount calculated.

The summary limits process generates one transaction for the difference between what the excess amount should be compared to what the excess amount is. In other words, the current excess amount is equal to the current inception to date (ITD) excess amount minus the previous ITD excess amount.

When limits are exceeded on a non-government contract, the Limits process (CA_LIMITS) creates rows with an analysis type of over-the-limit for billing (OLT) in PROJ_RESOURCE. Over-the-limit for revenue (ROL) is also created if the contract separates as incurred billing and revenue. However, the summary limits for government contracts process does the following:

  • Creates rows with an analysis type of billing (BIL) or revenue (REV) in PROJ_RESOURCE.

    The full amount is used to generate billing and revenue including amounts that are over the limit.

  • Additional rows are generated in PROJ_RESOURCE for the amount in excess, and the Amount In Excess Flag field in PROJ_RESOURCE is set to Y.

  • The source type, category, and subcategory values defined on the Excess/Reclaim Definition page, are used when generating the excess and reclaimed rows in PROJ_RESOURCE.

Excess and reclaimed transactions are not selected for pricing and repricing; therefore, they have a system source value of CAX in PROJ_RESOURCE.

Transaction Level Limits

If you are using line level limits and transaction level limits, the transaction level limits are always checked before the line level limits. When transaction level limits are exceeded, the excess row is identified with a transaction identifier in the TXN_LMT_TRANS_ID field in the PROJ_RESOURCE table.