Contract Classifications

Select a value for the contract classification when creating a new contract. The contract classification appears on the contract header and cannot be changed. The contract classification selection determines the way that fields and pages are displayed in the PeopleSoft Contracts application.

Contract classification values include:

Term	Definition
Standard	The classification for a standard contract.
Internal	The classification for a contract that supports interunit billing. You can process interunit bills by selecting Internal in the Contract Classification field of the contract header. The following rules apply to internal contracts: On the Billing Options page, you can select interunit Bill To Customers only. For internal contracts, the sold to customer that you select must have an interunit bill to customer associated with it. Otherwise, the system displays an error message. The system does not allow limits on internal contracts. The system does not allow contract liability on internal contracts. The system does not allow prepaids to be linked to internal contracts. The system does not allow discounts or retainages on internal contracts. Billing Manages Revenue is the revenue recognition method for internal contracts. You can process interunit bills by selecting Internal in the Contract Classification field.
Government	The classification for a government contract. With a classification of Government, all of the features and fields that are specific to government contracts become active. Using the core features of PeopleSoft Contracts in combination with the features of government contracts, you can perform the following functions: Generate bills. Recognize revenue. Associate projects and activities with contract lines. Associate rates sets and rate plans with contract lines. Associate withholding terms and limit amounts to contract lines. Set up and associate progress payment terms with contract lines. Associate cost-plus fees with contract lines. See PeopleSoft Contracts for Government Contracting: Government Contracts Overview
Federal Reimbursable Agreement	The classification for a reimbursable contract. This option appears only if you selected the Federal Reimbursable Agreement check box on the Contracts - Installation Options page. This option is designed for U.S. federal government customers.

Note:

Once you specify a contract classification and create a new contract, you cannot change the contract classification value. Contract classification is not under amendment control. If you create a contract with the wrong classification, you must create a new one with the correct contract classification.