Project Costing Price Engine, Rate Sets, and Rate Plans

For work orders associated with work order-managed projects, accounting entries for any transactions generated from performing work order tasks in PeopleSoft Maintenance Management are created in PeopleSoft Travel and Expenses (by means of shared functionality) for labor, PeopleSoft Inventory for inventory items, PeopleSoft Purchasing and PeopleSoft Payables for non-inventory items, open descriptions, and services procured, and PeopleSoft Project Costing for tool usage costs.

The Project Costing Price Engine (PC_PRICING) is run on the costs generated from the feeder systems and the tool costs generated in PeopleSoft Project Costing. PeopleSoft Project Costing applies accounting rules, which are determined by the selection of Rate Set or Rate Plan for the value of the Rate Selection field on the Work Order Definition - Integration page of the work order business unit, and the Define Shop - Definition page. The values selected on these pages determine the default value that will be used to by the PeopleSoft Project Costing Pricing Engine.

Rate sets do only one level of pricing. For example, if you an Actual row of $100 is calculated in PeopleSoft Maintenance Management and sent to the subsystems. The rate set WO_ACT1 is specified in the work order business unit and applies to the work order task row. This rate set indicates that actual rows are to be marked up by 20 percent. The rate set is applied and the new row is referred to as the markup row and is priced at 120 USD. Since you specified rate set, this is the only rate that applies.

However, what if you want the Pricing Engine to apply another rate WO_DISC1, which indicates that actual rows are discounted by 5 percent? Since you selected rate set on the Integration page of the work order business unit, you cannot apply this second rate to the transaction, which would created a newly priced row for the discount of 95 USD in PeopleSoft Project Costing. In this case, you would select a rate plan.

A rate plan is a collection of rate sets that the system executes in a specified order. Continuing with our example, if you had selected Rate Plan, you can create a rate plan in PeopleSoft Project Costing, for example, WO_RATEPLAN1, that contain both of the rate sets, WO_ACT1 and WO_DISC1. If WO_RATEPLAN1 is associated with the work order then for an actual row of 100 USD, two priced rows are created in PeopleSoft Project Costing:

  • Row 1 = 100 USD (This is the transaction originating from PeopleSoft Maintenance Management.)

  • Row 2 = 120 USD based on WO_ACT1 rate set (20 percent markup).

  • Row 3 = 95 USD based on WO_DISC1 rate set (5 percent discount).

The rate set is associated with a rate template that resides in PeopleSoft Project Costing and contains four rate options specific to PeopleSoft Maintenance Management:

  • WBI, which is the work order labor bill rate option.

  • WCO, which is the work order labor cost rate option.

  • TBI, which is the work order tools bill rate option.

  • TCO, which is the work order tools cost rate option.

Once the Pricing Engine (PC_PRICING) runs, these costs reside in the Project Resource (PROJ_RESOURCE) table. When a work order transaction is priced, the Pricing Engine (PC_PRICING) updates the GL_DISTRIB_STATUS in PROJ_RESOURCE to Hold, which prevents the Accounting Engine (PSA_ACCTGGL) from selecting or processing any rows with this status. When a work order task is closed, the Work Order (task) Close Process (WM_CLOSE) updates GL_DISTRIB_STATUS to Costed. The rows in PROJ_RESOURCE are then selected by the Accounting Engine to apply the accounting rules, which enables the Journal Generator to generate chargeback accounting entries.

See PeopleSoft Project Costing: Setting Up Rate Sets and Asset Integration Rules.