Understanding Limits

PeopleSoft Contracts enables you to enter line-level and transaction-level billing and revenue limits. The billing limit amount defined for a contract line represents the maximum amount that can be billed and the revenue limit amount represents the maximum amount that can be recognized for revenue. Limit processing is associated with these amounts, which represents the "limit ceiling" for the contract line. In addition, within the overall limit, you may identify a limit on a subset of transactions such as travel, labor, or materials. In addition to overall line limits for billing and revenue, PeopleSoft Contracts enables you to set up transaction level limits that apply to both billing and revenue. Transaction limits enable you to apply a limit to one or more subsets of transactions on a specific contract line.

At a contract level, if the Separate As Incurred Billing and Revenue check box is selected then you specify separate revenue limits for the rate based contract lines on the contract. This is applicable for Standard, Government, and Federal Reimbursable Agreement contracts and not applicable for Internal contacts. If the contract does not separate as incurred billing and revenue then the revenue limit will equal the billing limit and cannot be modified. Revenue limit can be set to infinite if this check box is selected on the contract and the revenue limit is left at zero.

You associate limits to a contract line. You can view billing and revenue limits at the contract level on the Review Contract Summary page and in detail on the contract. Transaction limits are only visible and must be managed at the contract line level. Once you define your limits and the contract is active, any limit changes must be performed using amendment processing.

This section discusses:

• Line limits.

• Transaction limits.

• Limit processing.

• Processing Order.