Understanding Billing in Contracts

PeopleSoft Contracts enables you to define and administer the billing rules for the products and services that your customer has purchased under a contract. After you have defined the billing rules for a contract, data from PeopleSoft Contracts drives the creation of bill lines for fixed-price contract lines. Data from PeopleSoft Contracts and PeopleSoft Project Costing drives the creation of bill lines for rate-based contract lines. In both cases, PeopleSoft Contracts creates bill lines for the Billing Interface tables, and the Contracts Billing Interface process is then run to transfer the bill lines to PeopleSoft Billing. Once the bill lines have been transferred to PeopleSoft Billing, you can use the PeopleSoft Billing comprehensive billing solution to customize your bills as needed. PeopleSoft Contracts enables you to manage your billing activity, with full views into the billing related activity within PeopleSoft Contracts, and information on the status of bill lines that interact with PeopleSoft Billing.

A contract can consist of multiple contract lines with complex and diverse billing requirements. In PeopleSoft Contracts, each product is assigned to its own contract line. You then associate each contract line with a billing plan. Billing plans store the timing of when billing occurs, how bill lines should appear, and what notes should relate to the bill. You can assign contract lines with similar billing requirements to the same billing plan. Each contract has at least one billing plan, and a contract may have more than one billing plan.

When you define your contract's business units and products, you define default billing options and billing rules for those business units and products. When you create a new contract, the billing options that you associated with the contracts billing unit appear by default on the contract header, where you can edit them if necessary. When you select a product onto the contract line, the billing options that you defined for that product are selected onto the contract line. When you define your billing plan, the billing options defined at the header and line levels populate the billing plan. You can edit them if necessary. The billing options that exist at the contract billing plan level take precedence over those defined at a higher level.

A series of high-level management pages enable you to review billing activity for contracts and to manage the activity by holding and releasing billing activity that is otherwise ready to bill according to the defined terms.

The Contracts Billing Interface process reviews contract billing activities, locates billing activity that is ready to be billed, and creates billing lines in the Billing interface tables to initiate billing of this activity.

This section discusses:

• Billing plans.

• Billing methods.

• Billing statuses.

• Billing plan assigning rules.

• Billing summarization.

• Billing notes.

Note:

For contracts with a classification of Government, you can find additional billing information in the Contracts for Government Contracting documentation.