Tiered Pricing
With tiered pricing, you can charge varying rates based on the accumulation of various quantities such as the amount of hours charged to an activity. You apply adjustments to rates defined in the rate set or rate plan to contract rates. These quantity-based adjustments allow you to create a schedule of adjustments that are applied based on accumulated quantities. You group Project ChartfFields—source type, source category, and source subcategory—into user-defined identifiers to use on a contract line.
You can define tiered pricing for a rate-based contract line and each contract line can have one or more defined tiers. Each tier will have an arbitration sequence that represents the priority of the tier in the event that a transaction matches more than one transaction identifier.
You can also define tier templates. Tier templates may contain one or more tiers that may be defined by one transaction identifier and one or more price breaks. The templates will be used when defining tiered pricing for a contract line to facilitate data entry.
You can process billable transactions using the tiered pricing defined for a contract line. The transactions will be matched up with the appropriate tier and the adjustment percentage for the price break will be applied to the rate determined from the PC_PRICING process and the rate set or rate plan.
When using tiered pricing, you define adjustments on the Tiered Pricing Template or Tiered Pricing Definition page. The system generates billable transaction rows based on the rate set or rate plan. Then, the system applies the adjustment percentage to the billable transaction row's amount. If you do not define a rate set or rate plan, the system will not generate a billable transaction, and therefore, it cannot apply the tiered pricing adjustment to the billable transaction.
Follow these steps when using tiered pricing:
-
Set up transaction identifiers in PeopleSoft Project Costing.
-
(Optional) Create tier templates on the Tiered Pricing Template page to facilitate data entry.
-
Specify tiered pricing structures for contract lines on the Tiered Pricing Definition page.
-
Run the Pricing Engine to price or reprice lines with tiered pricing structures.
Note:
Tiered Pricing functionality is available for customers who have both PeopleSoft Contracts and PeopleSoft Project Costing installed.
Note:
Tiered pricing applies adjustments to quantity related transactions based on quantities incurred against a transaction identifier. Therefore, tiered pricing adjustments are applied to transactions generated based on the quantity related rate options offered on the rate set or rate plan and contract specific rates. These options are AMT, EBI, ECO, JBI, JCO, RBI, and RCO. Transactions generated by rate options of FIX, MUP, or NON will not receive a tiered pricing adjustment, but any quantity on the source transaction will be counted towards the Inception to Date quantity.
If you have attached a rate plan to your contract line, the system applies tiered pricing to the output of the first rate set in the rate plan only. Additionally, since tiered pricing is applicable for transactions that generate billable rows only (rows in the analysis group, PSWKS), the first rate set in the plan must be a billing rate set.