Over-the-Limit Processing

PeopleSoft Contracts provides Over-the-Limit (OLT) processing to prevent billing for more than the amount of an award (contract). In PeopleSoft Contracts, you can choose to set a maximum amount that may be billed for each contract line that is associated with a contract. This is referred to as a limit.

Here's some general information about how PeopleSoft Contracts handles Over-the-Limit processing:

  • The Pricing application engine (PC_PRICING) calls limit processing to check the transactions against this limit.

  • Any transactions exceeding the limit are marked OLT and are held back from further processing.

  • OLT rows are excluded from billing and revenue processing until you select the Limit Override check box on the Related Projects page in PeopleSoft Contracts.

    If you select the Limit Override check box, the system sends the rows to PeopleSoft Billing and books them to revenue. Future transactions are processed regardless of the previously specified limit.

  • If you choose to withhold a portion of the billable amount as a retainage, the retainage may be applied against the over-the-limit item before it is sent to PeopleSoft Billing, depending on the specified installation option.

Splitting Over-the-Limit Transactions

PeopleSoft Contracts provides the option to split OLT transactions so that the portion of the bill that is under the limit amount can continue with billing and revenue processing. This option is especially useful for PeopleSoft Grants Letter of Credit billings as it enables you to optimize your cash flow and spend funds down to the penny.

The option to split OLT transactions is configured at the installation level on the Installation Options - Contracts page. To activate this option, select Split to Match Limit Exactly. When billing occurs, the system splits BIL rows into separate BIL and OLT lines. This enables you to reach limit amounts exactly with the BIL line.

The system then places the remaining contract line amount onto an OLT line. You can release all over-the-limit rows on a limit by selecting the Limit Override check box on the Related Projects page in PeopleSoft Contracts. Selecting this check box enables over-the-limit rows to be picked up for billing and booked to revenue the next time that you run the billing and revenue processes.

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