Rate Setup

You charge customers a rate for the goods and services that you provide plus the related costs. By establishing rate sets and rate plans in PeopleSoft Project Costing and then associating activities to those rate sets or rate plans, you can efficiently manage pricing across multiple project activities using a limited number of rate plans. Rate sets and rate plans in PeopleSoft Project Costing are dynamic and subject to change in rate structure over time.

When you sell a service to a customer, you establish rates for that service. The service can be provided at your standard billing rates, which may be subject to change over time, or you might provide services at rates that are fixed for the duration of the contract obligation. When you set up your contract line details on the Related Projects page in PeopleSoft Contracts, you can specify standard rates or use contract rates for that contract line. Revenue rate sets can be established if the contract separates billing and revenue.

In addition, on the Related Projects page, you can indicate that a contract line is subject to tiered pricing. The system applies tiered pricing adjustments to the rate plan or contract rates.

Using the Rate Plan

If the services provided to the customer under the contract line are provided at your standard rates, you should link the contract line to either a standard rate set or a standard rate plan in PeopleSoft Project Costing. Any subsequent changes to the standard rate set or standard rate plan in PeopleSoft Project Costing are reflected in the subsequent billing and revenue recognition activity in PeopleSoft Contracts.

Using Contract Rates

If the services provided to the customer under the contract line are provided at contract-specific rates, you should select the Contract Rate Set or Contract Rate Plan option in the Rate Selection field. You define your contract rate sets on the same pages as the standard rate sets. Similarly, you define your contract rate plans on the same pages as the standard rate plans. The rates that you define are not templates—they are contract-specific. You can update these contract-specific rates at any point during the life cycle of the contract. Any subsequent changes that you make to these rates are reflected in the subsequent billing and revenue recognition activity in PeopleSoft Contracts.

Defining Rate Sets for Rate-Based Contract Lines

Rate-based contract lines are priced using PeopleSoft Project Costing rate sets and rate plans. Rate sets and rate plans can be defined for general use or for a specific contract. Once defined, you assign the standard or contract rate set or rate plan to the rate-based contract using the Related Projects page.

A single rate set or a single rate plan comprised of multiple rate sets can be assigned to a rate-based contract line. Rate sets enable you to define how specific contract line-related transactions are priced for costing, billing, and revenue recognition. Rate plans enable you to combine multiple rate sets together to perform more complex pricing scenarios.

When defining a rate set, you assign a rate definition type. This determines the type of pricing that is performed for the contract line transactions.

After you define the rate set, you assign the rate set to the contract line on the Related Projects page. After the contract is active and transactions are priced for this contract line, the system will create bill rows based on the criteria defined in the rate set. A separate set of revenue rows are created if the contract separates billing and revenue.

The billable rows are stored in PeopleSoft Project Costing, and passed to PeopleSoft Billing by PeopleSoft Contracts when the Billing/Contracts Interface (CA_BI_INTFC) process is run. Once finalized, the billed data is passed back to PeopleSoft Contracts and PeopleSoft Project Costing. If billing and revenue are not separated on the contract, then these same transaction rows are also used for revenue recognition when the As-Incurred revenue process is run. If the contract does separate billing and revenue, then the billing rows are only used for billing and the revenue rows are used for revenue recognition.

You cannot attach rate sets or plans to amount-based or recurring contract lines.