Understanding the Relationship Between PeopleSoft Contracts and PeopleSoft Project Costing

You can associate PeopleSoft Contracts contract lines with projects and activities in PeopleSoft Project Costing. To bill you select the product onto a contract line and then associate that contract line with one or more projects and activities in PeopleSoft Project Costing (you can associate fixed-amount and recurring products with a single project only). PeopleSoft Contracts complements PeopleSoft Project Costing—it does not duplicate it. From within PeopleSoft Contracts, you can create new projects and activities or link to existing ones. Regardless of whether you are creating a new project or activity, or whether you are linking to existing projects or activities, all project-related information is stored within PeopleSoft Project Costing. This includes all cost transactions.

PeopleSoft Contracts stores the contractual terms and conditions. You select a rate based product onto a contract line, associate that contract line with a PeopleSoft Project Costing business unit and rate plan, and then link project activities to that contract line. In PeopleSoft Contracts, you also establish billing plans and revenue plans. Billing and revenue plans enable you to manage when and how much you bill and recognize for amounts associated with one or more contract lines.

In PeopleSoft Project Costing, you track the work performed against a project. The costs associated with the project are fed into PeopleSoft Project Costing from source systems, such as PeopleSoft Expenses and PeopleSoft Accounts Payable.

This section discusses the steps to process activity for project-related contract lines:

  1. Set up rates.

  2. Set up tiered pricing (optional).

  3. Set up rules and exceptions in PeopleSoft Project Costing for organizational sharing (optional).

    See PeopleSoft Project Costing: Understanding Accounting for Projects.

  4. Assign projects and activities to contracts.

  5. Assign billing limits and revenue limits (optional).

  6. Price and process limits for Projects.

  7. Update project progress.

  8. Bill for Projects.

  9. Recognize revenue for Projects.