Rate-based Contract Lines

A rate-based contract line is a transaction-based product or service for which you have set up one or more projects in PeopleSoft Project Costing. The revenue and Contract Asset accounting distributions for these types of service products are stored in the accounting rules. As work is performed against a project, PeopleSoft Project Costing receives transactional information relating to that work. PeopleSoft Project Costing prices the transactions based on the rate plan or rate set. PeopleSoft Contracts picks up the PeopleSoft Project Costing billable transactions and sends them to PeopleSoft Billing.

Upon sending the billable transactions to PeopleSoft Billing, the PeopleSoft Contracts process also sends the Contract Asset accounting distribution. For rate-based lines assigned to as-incurred billing plans, the Contract Asset is pulled from the accounting rules. For rate-based lines assigned to value-based billing plans, the Contract Asset is pulled from the accounting distribution page in PeopleSoft Contracts (CA_DETAIL_UAR).

Additionally, the rate-based revenue process (Accounting Rules Engine) picks up eligible Projects PROJ_RESOURCE rows and sends them to PeopleSoft General Ledger. The revenue and Contract Asset accounting distributions are defined to each PeopleSoft Project Costing transaction eligible for revenue recognition based on the accounting rules defined.