Contract Level Amounts – Total Billing and Total Revenue Changes

You can increase or decrease the Total Billing amount and Total Revenue amount for a contract. General steps for changing total billing and total revenue are as follows:

• Select the Amend Contract button on the Contract - General page.

• Modify the contract level total billing and total revenue values as part of the amendment.

• Allocate the adjustment to Total Billing to specific contract lines.

• Allocate the adjustment to Total Revenue either manually or programmatically by selecting a basis for the allocation from one of the following options:

  • New Contract Lines Only.

  • Extended Revenue Price

  • Current Revenue.

• After allocating the billing adjustment and revenue adjustment across contract lines, validate that the total contract level adjustment has been fully allocated across the lines.

• The selections on the contract to separate (or not separate) billing and revenue impacts whether the total contract level revenue amount is editable on the Amendment Revenue Allocation page. If either fixed amount billing and revenue or as incurred billing and revenue are separated, then the total revenue amount is editable. If neither fixed amount contract lines nor as incurred contract lines separate billing and revenue then the total contract level revenue amount is not editable and will equal the total contract level billing amount. In this case, all amounts on the Amendment Revenue Allocation page are read only and match billing.

Note:

The system does not require the total contract level billing adjustment and total contract level revenue adjustment to be fully allocated across contract lines, but this is highly recommended to ensure the new contract line amounts and limits equal the new total billing and total revenue amounts.

Another set of controls requires you to identify the increase or decrease to amount based lines only. General steps for changing fixed billing and fixed revenue are as follows:

• Modify the contract level fixed billing and fixed revenue amounts as part of the amendment.

• After allocating the adjustment across amount and percent based contract lines, validate that the total contract level fixed adjustment has been fully allocated across the eligible lines.

• The selections on the contract to separate (or not separate) fixed billing and revenue impacts whether the contract level fixed revenue amount is editable on the Amendment Revenue Allocation page. If fixed amount billing and revenue is separated, then the fixed revenue amount is editable. If not then the fixed revenue amount is not editable and will equal the fixed billing amount.

Note:

You are required to fully allocate fixed billing and fixed revenue amounts across contract lines before processing the amendment.