Understanding Pricing Contracts

Pricing contracts for billing and revenue is the process of establishing a total contract price for billing and a total contract price for revenue and then allocating that price across contract lines. A contract may require separate maintenance of billing and revenue or billing and revenue may be managed as one value. This distinction is made when a contract is added.

See Defining General Contract Information

The option to manage billing and revenue separately is applied by contract line price type. If the Separate Fixed Billing and Revenue check box is selected on a contract, then revenue amounts on amount based contract lines are maintained on the Revenue Allocation page. If not selected, then the revenue amounts are read only and match billing. If the Separate As Incurred Billing and Revenue check box is selected on a contract, then rate based revenue limits are maintained on the Revenue Allocation page and separate revenue type Rate Sets can be assigned to contract lines on the Related Projects page. If not selected, then the revenue limits are read only and match billing. Contract lines with a price type of Recurring are also included in the allocation of total contract price. Recurring contract lines can only be added to contracts that do not separate fixed billing and revenue, because revenue always equal the amount billed on these contract lines.

See PeopleSoft Project Costing: Defining Rate Set Categories, Rate Sets, and Rate Plans

In addition to allocating billing and revenue to contract lines and associating rates, contract pricing includes specifying billing/revenue discounts and surcharges when applicable.

This section discusses:

• Total contract price for billing and total contract price for revenue.

• Amount-based pricing.

• Rate-based pricing.

• Recurring pricing.

• Discounts and surcharges.

• Renewals.

• Special payment terms.

• Contract line changes on a pending contract.

• PeopleSoft Enterprise Pricer.