Rate Sets

A rate set enables you to create transaction rows when costing, billing, recognizing revenue, or reporting from incoming or existing transactions in the Project Transaction table. Rate sets have two parts:

• The source criteria that the Pricing process uses to compare against cost transactions coming in from feeder systems.

• The target definition of the cost, billing, or revenue recognition row that the Pricing process creates.

  When an incoming cost transaction matches the source criteria, the Pricing process creates a new transaction row for every target row that is defined on the rate set.

For example, you can use multiple criteria on the source page to create billing rows one way for rows with a source type of MATER (material) and another way for a source type of LABOR. The materials can be billed at cost, while the labor is marked up. The billing rows are defined by the target definition (bill MATER rows at cost, mark up LABOR rows using employee rates) and the project ChartFields. Additionally, revenue can be recognized using different markups than those used for billing.

A one-to-many relationship exists between source criteria and target row definitions. One source row, such as a cost transaction or a billing transaction, can create multiple target rows.

You can attach rate sets or rate plans to:

• Project types

  The system uses the rate set or rate plan that you specify for a project type as the default rate set or rate plan for new projects that you create for that type. You can override the default rate set or rate plan at the project level.

• Products

  If you associate a rate plan with a product, the system uses the product's rate plan for the contract line on the Contracts Related Projects page.

• Contract lines

  Rate sets and rate plans can be defined for general use or for a specific contract. Once defined, you can assign the rate set or rate plan to the rate-based contract using the Related Projects page.

• Projects

  The system uses the rate set or rate plan on the project as the default rate set or rate plan for new activities that you create for that project. You can override the default rate set or rate plan at the activity level.

• Activities

  The actual Pricing process occurs at the activity level. The association of a rate set or rate plan to an activity is effective-dated.

Rate Definition Types

You specify a rate definition type when you create a rate set. By using rate definition types, the Pricing process can create costs (indirect and direct), price transactions for billing, and price transactions for revenue recognition. Rate definition types control the type of rows that the Pricing process creates by restricting the analysis types that you can select for target rows on the rate set.

For example, when you create a rate set with a cost rate definition type, the system restricts the target rows to analysis types that belong to the actual cost analysis group. The default actual cost analysis group is PSCST (Accounting Costs), which is specified on the Installation Options - Project Costing page along with the actual revenue and billing analysis groups. During implementation you can override the default analysis groups for actual cost, revenue, and billing.

This table lists the rate definition types and analysis types that you can select for target rows:

Rate Definition Type	Target Row Analysis Types
Billing	For target rows, you can select analysis types that belong to the PSWKS (Billing Worksheet Grouping) analysis group.
Cost	For target rows, you can select analysis types that belong to the analysis group that is specified in the Actual Cost field on the Installation Options - Project Costing page. The default analysis group is PSCST (Accounting Costs). Note: You can enable variance pricing on rate sets with a cost or cost/billing rate definition type.
Cost/Billing	For target rows, you can select analysis types that belong to either: The PSWKS (Billing Worksheet Grouping) analysis group. The analysis group that is specified in the Actual Cost field on the Installation Options - Project Costing page. Note: You can enable variance pricing on rate sets with a cost or cost/billing rate definition type.
Revenue	For target rows, you can select analysis types that belong to the PSRV2 analysis group.

Rate Set Category

Rate set categories are optional. Rate set categories are used to group related rate sets for the Variance Pricing process. If Rate Set Category is selected in the Rate Processing Option field on the Variance Pricing run control page, then all rate sets tat are part of that rate set category and have the Enable Variance check box selected are selected by the Variance Pricing process.

Rate Options

Rate options specify how the Pricing process calculates the rates for the corresponding target rows. For example, you can select a rate option of ECO (Employee Cost Rate) on a target row to use the cost rates that are defined for the employee on the Rates by Employee page. For the ECO rate option, the Pricing process calculates the target amount as the source row transaction quantity × the employee-specific cost rate × the rate set rate amount.

Each rate option is associated with a specific formula that the system uses to calculate the target amount. In the previous example, the source row transaction quantity is the quantity available in the Project Transaction table for the specific row that is being priced. The employee-specific cost rate is the rate that is defined for the employee on the Rates by Employee page. The rate amount on the target row functions as a multiplier for any rate option except the FIX (Fixed Amount) rate option. If you select the FIX rate option, the rate amount functions as the actual rate.

These factors affect the list of rate options that are available for selection:

• Some rate options are available only if you integrate with other PeopleSoft applications.

  For example, if you use PeopleSoft Maintenance Management, you can select the WBI (Work Order Labor Bill Rate) and WCO (Work Order Labor Cost Rate) rate options to use the work order labor bill and cost rates. If you use PeopleSoft Program Management, you can select the ABI (Activity Resource Bill Rate) and ACO (Activity Resource Cost Rate) rate options to use the activity resource labor rates that appear on the PeopleSoft Program Management Resources by Activity page. If you use PeopleSoft Proposal Management, you can select the AML (Mark Up/Down Labor) and AMN (Mark Up/Down Nonlabor) rate options to use the signed percentage amount in the Labor % and Non-Labor % fields on the Project Definitions - Rates page to determine the markup or markdown value.

• If you use PeopleSoft Program Management, the available rate options are also based on the rate types that you specify for the business unit during implementation.

  For example, if you restrict cost and bill rate types at the business unit level to only rates by employee, you cannot select the JBI, JCO, RBI, and RCO rate options.

A complete list of rate options that are available for selection on the Rate Sets - Target Page.