Understanding Project Pricing Concept Understanding Project Pricing Understanding

Understanding Project Pricing Concept

Understanding Project Pricing

Understanding Project Pricing Step 1 People. Soft Project Costing uses the pricing engine to apply calculations to project transaction rows in order to create new rows.

Understanding Project Pricing Step 2 In People. Soft Project Costing, you can define cost and bill rates for your human resource hours using the following pages: • Rates by Project Role • Rates by Employee ID • Rates by Job Code

Understanding Project Pricing Step 3 A rate set defines the transactions that are the basis for new transaction rows, and the calculation to be performed on the original row to create the new row. A rate plan groups one or more rate sets in a specific order. It enables you to layer amounts on top of the rows created by the rate set.

Understanding Project Pricing Step 4 Rate sets and plans can be assigned directly to a project or an activity to generate non-billable transactions, using these pages: • Project Type. • Project General Information, Rates. • Activity, Rates.

Understanding Project Pricing Step 5 Rate sets and plans are assigned to contract lines to generate project billing by: • Directly entering the set or plan on a contract line associated to project activities. • Entering the set or plan on a product definition, which then defaults to the contract line when the product is added.

Understanding Project Pricing Step 6 When a Rate Set is defined, it is assigned a Rate Definition Type of: Cost, Billing, Revenue, or Cost/Billing.

Understanding Project Pricing Step 7 The Rate Definition Type from the Rate Set determines the transactions that are created by the Pricing process.

Understanding Project Pricing Step 8 Tiered pricing enables organizations to adjust the amount on billable project transactions. The amount can be increased or decreased by a percentage, based on quantities accumulated against a contract line.

Understanding Project Pricing Step 9 The interface process used with People. Soft applications, such as Time and Labor, Expenses, and Payables, as well as third-party applications, automatically triggers the Pricing Application Engine process when the source transactions are picked up from the interface tables.

Understanding Project Pricing Step 10 The Pricing process matches the source transactions with rate sets and rate plans that specify what target rows to create. Both the source transaction rows and the new priced rows are written to the Project Transaction table.

Understanding Project Pricing Step 11 The Feeder and Pricing Summarization feature is an optional feature that reduces the amount of transactions that are written to the Project Costing transaction table. This feature uses summarization templates that are specific to various product interface processes and the Project Costing Pricing process.

Understanding Project Pricing Step 12 This diagram illustrates the process flow of the Project Costing pricing summarization process when pricing is called separately from a feeder interface process.

Understanding Project Pricing Step 13 This diagram illustrates the process flow of the Project Costing pricing summarization process when the Pricing process is called from, an individual feeder interface process.

Understanding Project Pricing Step 14 You should now be able to describe the Project Pricing process. End of Procedure.