Use the Processing Options page (BUS_UNIT_TBL_CA2) to define processing attributes to incorporate flexibility and automation in your Contracts system when managing revenue or performing billing and revenue credits and adjustments.
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Set Up Financials/Supply Chain, Business Unit Related, Contracts, Contracts Definition, Processing Options
Image: Contracts Definition - Processing Options page
This example illustrates the fields and controls on the Contracts Definition - Processing Options page.
You can find definitions for the fields and controls later on this page.
Revenue Management Options
Deferred Revenue Override Select the Deferred Revenue Override check box to indicate whether a user can override the deferred revenue option on the contract line. The deferred revenue option can be selected at the product group option level to automatically populate the deferred revenue settings on a contract line when a product that is associated with that product group option is added to the contract.
Note: The deferred revenue feature only applies to amount-based contract lines. After a contact is in Active processing status, you cannot modify the deferred revenue options for the contract line. Instead, you must make any modifications using amendment processing.
Revenue Recognition Method
Override Select this override check box to indicate whether a user can override the revenue recognition method on a contract line.
Revenue recognition methods dictate the type of revenue recognition plan or template that can be associated with a contract line.
The contract line can inherit its revenue recognition method from the product definition. When this override check box is not selected, the system processes the revenue for the contract line using the default revenue recognition method.
Edit Combinations Select the Edit Combinations check box if you want the Accounting Rules Process (PSA_ACCTGGL) to run the combination edit process for transactions that are processed by the Transaction Billing Processor.
Note: The Edit Combinations feature is only used by the Transaction Billing Processor. Government contracts do not use this feature.
Proration Options
Proration Method Provides the rules that the system uses to determine how much to apportion to each event for revenue plans with a revenue recognition method of apportionment. Select from:
• By Days Within Range: The system divides the number of days in the period by the number of days that are specified in the apportionment date range.
• Evenly Using All Pds: The system divides the total amount by the number of periods in the apportionment date range.
Revenue is recognized in equal portions for each event, regardless of the number of days in each period.
Future Period Accounting Dates Select the date to use as the accounting date for apportionment revenue recognition events. Select from:
• First Day in Accounting Period: Select this option to use the first day in the calendar month of the from date as the accounting date for the apportionment revenue recognition events.
accounting date for the apportionment revenue recognition events.
• User Defined: Select this option to define the accounting date each time the system builds apportionment events.
On Demand Options
Bill Plan Detail Template ID Select a bill plan detail template ID to override the fields on the billing plan for on-demand contracts. If you select a template on this page, the billing plan detail template overrides the corresponding fields on the billing plan when a billing plan is created.
Note: The On Demand Options feature is used by the Transaction Billing Processor for PeopleSoft Real Estate Management and PeopleSoft Customer Relationship Management. Government contracts do not use this option.
Renewal Options
Review Timing Enter a value in days. The system uses this value to determine when you must begin reviewing renewable contract lines. You can override this value for each renewable contract line on the Review Renewals page using either the control or default settings that you select on this page.
Control Select the Control option to enable users to override the Review Timing Days field on the Review Renewals page with a value that is greater than or equal to the value that is entered in the Review Timing field.
Default Select the Default option to enable users to override the Review Timing Days field on the Review Renewals page with a value that is less than, greater than, or equal to the value that is entered in the Review Timing field.
Note: The Renewal Options feature is not used by government contracts.
Line Amendment Default Options
Change Billing Retroactively Select this option to enable the system to adjust billing events retroactively when a contract line is cancelled or the contract line amount is modified during amendment processing.
The option that is selected at the business unit level can be overridden at the contract line level.
If this option is not selected at the business unit or contract line level, the user can only adjust any remaining future events for the contract line.
Change Revenue Retroactively Select this option to enable the system to adjust revenue events retroactively when a contract line is cancelled or if the contract line amount is modified during amendment processing.
The option that is selected at the business unit level can be overridden at the contract line level.
If this option is not selected at the business unit or contract line level, the user can only adjust any remaining future events for the contract line.
Note: Line Amendment Default Options only apply to amount-based contract lines. These options can be selected independently of one another.