Understanding Pricing Projects from Proposals

If you use PeopleSoft Proposal Management and PeopleSoft Program Management, Proposal Management uses the bill and cost role rates and hours that are captured in the proposal to populate the Resources page and Resources by Activity page in PeopleSoft Program Management. Unadjusted role rates are treated as Project Role rate types and have the rate that was in effect when the role was added to the proposal. Adjusted role rates are treated as Override rate types.

Rate sets for labor from proposals can use rate options ABI and ACO for labor source transactions. These rate options tell the Pricing process to use the bill and cost rates on the Resources by Activity page in PeopleSoft Program Management to calculate billing and costing amounts for labor source transactions. Use the Resources by Activity page to modify role rates for projects from proposals.

The system obtains nonlabor pricing information from the rate set, and rate plans from the contract lines in PeopleSoft Contracts.

The Pricing process treats resource classes of Asset, Material, and Other as nonlabor resources. Rate sets for nonlabor from proposals use a rate option of NON (Bill at Cost). After the Proposal Management Generate process completes, the Pricing process and the Distribute Costs to Budgets Application Engine process (PGM_SPREAD) do not retrieve any information from the proposal Management proposal.

Markups and Markdowns

On the Project Definitions - Rates page for projects that are created from proposals, you can enter a labor or nonlabor adjustment percentage that the system uses to determine a billing markup or markdown row amount. This field appears for projects that are created from proposals in PeopleSoft Proposal Management.

The labor adjustment percentage is used in conjunction with the AML rate option that you select on the Rate Sets - Target page. The AML rate option tells the system to use the signed percentage amount in the Labor % field on the Project Definitions - Rates page to determine the markup or markdown value. The AMN rate option tells the system to use the signed percentage amount in the Non-Labor % field on the Project Definitions - Rates page to determine the markup or markdown value. The Pricing process creates the target transaction values based on the signed percentage of the source transaction rows.

You can create markup and markdown target billing transactions from labor and nonlabor source transactions. You cannot create markup and markdown target costing transactions from labor and nonlabor source transactions.