Contract Limits

Costs are subject to transaction and contract line-level limits. Transaction limits, which the system applies before contract line level limits, are based on limits that you establish by contract line and transaction identifier and comprise combinations of transaction sources, categories, and subcategories.

The system applies the transaction and contract line limits against corresponding direct and indirect cost transactions. The system creates billable transactions (rows with an analysis type of BIL) for cost transactions that completely pass limit checking or over-the-limit transactions (rows with an analysis type of OLT) for transactions that exceed applicable limits. If the Separate Billing and Revenue option on the Installation Options - Contracts page is selected, the system creates revenue transactions (rows with an analysis type of REV) for cost transactions for cost-plus contract lines that completely pass limit checking, or over-the-revenue-limit transactions (rows with an analysis type of ROL) for transactions that exceed applicable limits. The system splits cost transactions into separate billing and revenue and over-the-limit transactions in the amount of the remaining limit and excess, respectively, if the Split to Match Limit Exactly option on the Installation Options - Contracts page is selected. The system excludes OLT and ROL rows from billing and revenue processing.

The Pricing Application Engine process (PC_PRICING) calls limit processing, which examines each Project Transaction table row that represents a contract line for which you have enabled bill limits. Additionally, you can run the Limits Application Engine process (CA_LIMIT) as a standalone process and select specific run control criteria to apply limits to specific contracts, recalculate limit amounts when totals are changed, or apply limits to billing and revenue transactions.

If a discount amount exists for a project, the transaction row amount is decreased by the discount amount prior to comparing the transaction row against the limit. Discounts do not apply to government contracts.

See PeopleSoft Contracts: Understanding the Contracts Billing Process.