Government Contract Limits Processing

Costs are subject to transaction and contract line level limits. The system applies transaction limits before contract line level limits. Transaction limits are based on limits that you establish by contract line and transaction identifier, and are comprised of combinations of transaction sources, categories, and subcategories. The system applies the transaction and contract line limits against corresponding direct and indirect cost transactions, excluding the transactions that are outside of the period of performance if the Control Limits and Billing option is selected for the contract line on the Contract Amounts page. The system creates billable transactions (with an analysis type of BIL) and revenue-recognizable transactions (with an analysis type of REV) for cost transactions that completely pass limit checking. The system creates over-the-limit billing transactions (with an analysis type of OLT) and over-the-limit revenue transactions (with an analysis type of ROL) for cost transactions that exceed any applicable limit. The system splits a cost transaction into separate billable and over-the-limit billing transactions and separate revenue-recognizable and over-the-limit revenue transactions in the amount of the remaining limit and excess, respectively, if the Split to Match Limit Exactly option is selected on the Installation Options - Contracts page. The system excludes OLT and ROL rows from billing and revenue processing, and from the costs to be used for the fee calculation, when OLT and ROL analysis types are excluded from the analysis groups in the BIL Analysis Group and REV Analysis Group fields that are specified in the Calculation Basis group box on the Contracts Definition - Fee Definition page for the business unit.