Discounts and Surcharges

Discounts can be added to amount-based and rate-based lines on Standard contracts. Surcharges are only allowed for amount-based contract lines. Discounts and surcharges are not allowed for recurring contract lines.

Amount-Based Discounts and Surcharges

Applicable for amount and percent based contract lines, an amount-based discount or surcharge is subtracted from or added to the fixed billing and fixed revenue amounts. If the contract separates fixed billing and revenue then discounts for revenue are managed separately from discounts used for billing. If not separated, then discounts for revenue match billing and cannot be edited. Discounts are associated with contract lines, and are defined as either a fixed amount or a percent of the line's billing and revenue amounts. When a discount or surcharge is sent to PeopleSoft Billing, it is always a fixed amount. Amount-based discounts and surcharges include both header and line discounts and surcharges for billing and revenue.

A header discount is any amount that is subtracted from the original fixed price of the contract. It is applied to the total fixed billing or fixed revenue amount for all amount based contract lines. A header level surcharge is added to the fixed billing amount or fixed revenue amount. You can define only one header discount or header surcharge per contract. Header discounts or surcharges must be allocated down to individual contract lines.

A line level discount or surcharge is specifically identified with an individual line and calculated on the individual lines billing amount or revenue amount. You can apply multiple discounts or surcharges to a contract line. Header level discounts allocated to a contract line are identified separately from discounts specifically identified to the contract line. If you assign a discount or surcharge amount to a contract line from the overall discounts and surcharges pages for billing and revenue, a row for that discount or surcharge amount appears with an indicator signifying that it is allocated from the overall discount or surcharge.

Rate-Based Discounts

A rate-based contract line discount is any amount that is subtracted from each billable transaction for projects and activities that assigned to the same contract line. These discounts can be defined as a percentage or fixed amount, and are specified on the Related Projects page, where you specify the relationship between the project, the activity, and the contract line. The system passes the discount ID to PeopleSoft Billing. Rate-based discounts are associated only with as-incurred billing plans.

For contracts identified as having Separate As Incurred Billing and Revenue the discount entered on Related Projects is applicable only for Billing and not used for revenue. If Separate As Incurred Billing and Revenue is not selected then this discount is applicable for both billing and revenue.

See Understanding the Relationship Between PeopleSoft Contracts and PeopleSoft Project Costing.