Contract-Specific and Standard Rates

In PeopleSoft Project Costing, you can create rate sets and rate plans that are either contract-specific or standard (general). You can link contract lines to contract-specific or standard rate sets or rate plans. A contract-specific rate plan can contain both standard and contract-specific rate sets. A standard rate plan can contain standard rate sets only.

This table lists the valid combinations of standard and contract-specific rate sets and rate plans that you can attach to activities and contract lines:

Attach at the Activity Level	Attach at the Contract Line Level
Standard rate set	If you attach a standard rate plan to an activity, you cannot attach this activity to a contract line.
Standard rate plan	Contract-specific rate set.
Nothing	Standard rate set.
Nothing	Standard rate plan.
Nothing	Contract-specific rate set.
Nothing	Contract-specific rate plan.

You can link an activity that has a rate plan to a contract line. If the contract line is linked to a rate set or contract rates, the system processes the contract line rate set first, followed by the activity rate plan. Thus you can use the resulting target rows from the contract line rate set as source rows for the activity rate plan. Alternatively, you can process the contract line rate set independently of the activity rate plan.

Example of Using Contract-Specific Rate Sets and Activity-Specific Rate Plans

As an example of using a contract line-specific rate set and an activity rate plan, assume that you set up a contract line-specific rate set to create billing rows from time entries for an activity. You also set up an activity rate plan that contains a standard rate set to create indirect labor costs for the project.

The contract line-specific rate set is associated with the contract line on the Related Projects page in PeopleSoft Contracts. This rate set has a billing rate definition type and uses incoming time report transactions to create billing transactions (rows with a BIL analysis type). On the Rate Sets - Target page, the rate option is AMT and the rate set-specific rate amount is 150 USD. The activity is associated with the contract line on the Related Projects page in the PeopleSoft Contracts system. After you enter a time report transaction of 8 work hours for the activity, the Pricing process uses the rate option and rate amount specified on the contract-specific rate set to calculate the target billing transactions (rows with a BIL analysis type) from each incoming time report transaction.

This activity is also associated with a standard rate plan on the Activity Definitions - Rates page. The rate plan contains a standard rate set with a cost rate definition type and a basis of original, which means that the Pricing process uses only the original time entry rows that you import from PeopleSoft Expenses to calculate the target rows. The rate set uses a rate option of ECO, which is the cost rate that is associated with the employee (105 USD in this example), plus a 15 percent markup, to calculate actual overhead cost transactions (rows with an ACT analysis type) from each incoming time report transaction.

This table lists the resulting rows in the Project Transaction table for this example:

Description	Source	Quantity	Analysis Type	Rate Amount	Transaction Amount
Original transaction.	Time report transaction	8 work hours	TLX	Not applicable	Not applicable
Target billing row based on the contract line rate set.	Pricing process	8 work hours	BIL	150 USD	1,200 USD (calculated as 8 hours × 150 USD)
Target cost row based on the activity rate plan.	Pricing process	8 work hours	ACT	1.15	966 USD (calculated as 8 work hours × 1.15 rate amount × 105 USD employee cost rate)