Working With PeopleSoft Order Management

This chapter discusses how to:

• Use direct invoicing in PeopleSoft Order Management.

• Populate the Billing interface without direct invoicing.

• Bill sales orders using credit cards.

• Process prepaid sales orders

• Process deposits on sales orders

• Process returned material authorization (RMA) adjustments.

• Pass tax information from PeopleSoft Order Management to PeopleSoft Billing.

See Also

Using the Bill-By Identifier with the Billing Interface

Billing Orders

Order Processing in a VAT Environment

Processing Credit Cards

Using Direct Invoicing in PeopleSoft Order Management

Direct invoicing streamlines the billing process by combining several steps in the order-to-invoice cycle. Direct invoicing is for PeopleSoft Order Management environments that require immediate invoicing for shipped goods instead of traditional cycle billing.

Direct invoicing is available by default. Leave the option on for customers who require time-sensitive invoices based on shipment ID. However, if customers prefer summarized billing, you can disable the direct invoicing option. You can accommodate variations in the customers' billing requirements because you can change the direct invoicing option by order and by customer.

See Also

Understanding the Direct Invoicing Jobs

Populating the Billing Interface Without Direct Invoicing

When you do not pass invoices to PeopleSoft Billing using direct invoicing, you need to run each of the processes run by direct invoicing separately. The OM Billing Interface process (OM_BILL) populates the Billing interface staging tables in PeopleSoft Billing with inventory shipment history and additional non-stock shipment activity.

See Also

Populating Billing

Billing Sales Orders Using Credit Cards

You can bill sales orders to credit cards using PeopleSoft Order Management and the Billing Interface process. When Order Management supplies credit card information, the finalized credit card bills are assigned a status FNL (final), until a third-party credit card authorization and payment application authorizes the charge.

Note. Counter sales orders that are paid by using a credit card are processed the same as prepaid sales orders.

See Also

Processing Credit Cards

Processing Prepaid Sales Orders

Order Management may send fully and partially-paid invoices to the Billing interface when a customer pays for all or part of an order. Fully-paid invoices will not be printed, but will be processed to create accounting entries. If a copy of the invoice is required, one can be made using the invoice reprinting feature. The amount due on a reprinted fully-paid invoice will be zero. Taxes on fully-paid sales orders are calculated at the time of payment, so tax amounts are passed to Billing through the Billing interface. The finalization process does not recalculate taxes charged on the invoice.

Fully-paid invoices cannot be canceled or modified, except to change the accounting distribution.

Partially-paid invoices are printed normally, with the paid amount shown as a credit on the invoice. Partially-paid invoices cannot be canceled, nor can the paid amount be changed.

The value of the Paid At Source field (BI_PAID_AT_SRC) on the Interface Bill Header table (INTFC_BI_HDR) indicates the payment status of a bill:

When viewing the bill on the Review Bills page, the payment status will be displayed on Bill Summary Page 2.

See Also

Understanding Payments in the Counter Sale Environment

Payment by Corporate Voucher

When all or part of a counter sale - sales order is paid by corporate voucher, Order Management creates a bill line transaction and assigns the payment transaction a line type of PYCV. Corporate Voucher bill lines will appear on an invoice with a negative amount. Billing does not process VAT on the corporate voucher payments. PeopleSoft Receivables will create any appropriate VAT accounting entries for voucher payment lines.

See Also

Entering Payments for Credit, Debit, and Procurement Cards

Processing Deposits on Sales Orders

Deposits can be taken for a sales order whenever an order is not immediately filled. The following actions can be taken with regard to a deposit:

• the deposit can be taken for a sales order.

• the deposit can be applied to fulfilled ordered lines.

• the deposit can be refunded back to the customer.

For each of these actions, OM_Bill will send a transaction to the Billing interface. These transactions will ultimately appear as lines on an invoice in Billing. Depending on the action, deposit transactions will have one of the following line types:

Note. If an invoice with deposit transactions is copied or adjusted, the deposit ID is cleared. Copying or adjusting an invoice will not affect a deposit's open item balance.

See Also

Understanding Counter Sales

Processing RMAs in PeopleSoft Billing

This section provides an overview of RMAs, and discusses how to:

• Review pending RMA adjustment activity.

• Process RMA adjustments.

Understanding RMAs in PeopleSoft Billing

PeopleSoft Order Management enables you to enter RMAs. PeopleSoft Inventory can receive returned merchandise at a designated location, and depending on your choice, make a request to PeopleSoft Order Management for a replacement sales order and a request to PeopleSoft Billing for a credit. Depending on the circumstances described in the RMA, the request may also include billing of restocking fees.

The Billing Interface process creates invoices from RMAs entered in PeopleSoft Order Management as adjustment invoices in PeopleSoft Billing. PeopleSoft Billing tracks relationships between these invoices and prior invoices for the sales activity. The system maintains a reference to the invoice number, even if the referenced original invoice does not exist in PeopleSoft Billing. If the original bill does exist, this reference enables you to drill back to prior related invoices.

It may not be possible for the PeopleSoft Billing system to gather all of the RMA activity from a single RMA onto a single bill. Consequently, the system may create multiple bills for a group of RMA activity based on system requirements. Bill lines are grouped using the bill-by features used for grouping lines in the Billing Interface process.

PeopleSoft Order Management can supply an original invoice and invoice line. If the line exists in PeopleSoft Billing, the system copies as much information as possible from the line being credited. If no original invoice line exists in PeopleSoft Billing, the system applies default values to some fields and leaves others blank. Since quantity and extended amount can vary from the original bill line, PeopleSoft Order Management passes the quantity and extended amount appropriate for the return. PeopleSoft Order Management calculates the extended amount net of discounts and surcharges. The system does not copy line notes from the original bill. The system applies defaults to all of the values on the new bill headers.

Note. The Billing Interface process adjusts only bills or bill lines associated with invoices with an INV (invoiced) status.

The credit card information will be captured and made available to the Billing RMA Adjustment process when an RMA is created in Order Management. The Billing RMA adjustment process will then pass this information to the Billing Interface process. All bills created through the interface will be grouped based on the payment method, credit card details and VAT information.

PeopleSoft Billing Bill-By Functionality and RMAs

PeopleSoft Billing uses the bill-by functionality to group RMA adjustment (credit) lines according to user-defined bill-by groupings. The system creates one invoice for each set of activity within an RMA. Using bill-by functionality, you can define the status of the bill that the system creates. Specify the bill-by ID for RMAs for each Order Management business unit. However, if you leave the bill-by ID associated with the business unit blank, the system populates this field with a default value using the normal PeopleSoft Billing default hierarchy.

For example, imagine that you have associated for PeopleSoft Order Management business unit US001 the bill-by value RMA, which you set up to create bills in PND status. When you invoice RMA adjustments in business unit US001, the system creates RMA adjustments in pending status because it uses the bill-by value defined for the RMA bill-by associated with this business unit. However, if you invoice RMA adjustments for PeopleSoft Order Management business unit FRA01, and you have not set up a default RMA bill-by defined for business unit FRA01, the Billing Interface process populates the Bill By ID field with the default that it receives from the normal PeopleSoft Billing default hierarchy (customer, bill source, and so forth). If you leave the Bill By ID field blank, the system might use a bill-by ID value defined to create bills in a status other than one that you intended.

Note. Your business situations might require that the system create RMAs with a PND status. When you create RMA adjustments, the system cannot always derive the appropriate tax parameters, for example, when you issue a credit after the order and invoice have been migrated to history. If tax parameters for RMA adjustments require review or changes, set up the default RMA bill-by ID for the business unit to create bills in PND status. Ensure that you evaluate your business practices and define RMA setup data appropriately.

We recommend that you set up two bill-by IDs associated with RMAs. Use one RMA bill-by ID when the RMA Adjustments Billing Source defined on the Order Management business unit is the OMBU; use the second RMA bill-by ID when the RMA Adjustments Billing Source defined on the Order Management business unit is INBU.

For example, set up bill-by IDs RMA and RMA2. For bill-by ID RMA, you can include these bill-by fields:

1. BUSINESS_UNIT_OM

2. RMA_ID

3. SHIP_TO_CUST_ID

4. COUNTRY_SHIP_FROM

5. COUNTRY_SHIP_TO

6. PAYMENT_METHOD

Define bill-by ID RMA2 like bill-by ID RMA, with the addition of the SHIP_FROM_BU field.

See Also

Using the Bill-By Identifier with the Billing Interface

Pages Used to Process RMA Adjustments

Reviewing RMA Adjustment Activity

Access the Review RMA Adjustment Activity page (Billing, Interface Transactions, RMA Adjustments, Review RMA Adjustment Activity). Review RMA adjustment activity. Supply the business unit and the RMA number to review activity.

Processing RMA Adjustments

Access the RMA Adjustments page (Billing, Interface Transactions, RMA Adjustments, Create RMA Adjustment Invoices).

The PeopleSoft Billing RMA Adjustments process (BIRMAADJ) populates the Billing Interface process staging tables with PeopleSoft Billing activity provided by PeopleSoft Order Management when RMAs are entered there. The billing activity is created only when there is a PeopleSoft Billing business unit defined for that RMA's PeopleSoft Order Management business unit. The credit action that you select for the RMA on the RMA Line page determines when the billing activity is generated. This is typically either when you create the RMA or when the goods are confirmed as received. Once the billing activity is generated, you can run the Billing RMA Adjustment process to populate the Billing interface staging tables, and then run the Billing Interface process to create invoices. Following the Billing Interface process, run the VAT Defaults process (BIPVAT00) to assign appropriate values to fields required for VAT processing.

To run the RMA Adjustments process, enter the business unit, from RMA ID and to RMA ID to define the range of activity that you want to review, and define the remaining run control criteria.

On the Process Scheduler Request page, select the RMA Adj, BI Intfc & VAT Deflts job (BIJOB07). This job includes the Billing RMA Adjustment, the Billing Interface process, and the VAT Default processes. If you decide to run the processes individually, you must run them one at a time. Run the Billing RMA Adjustments process first and the VAT Default process at the end.

See Also

Changing Header VAT Defaults Manually

Passing Tax Information from PeopleSoft Order Management to PeopleSoft Billing

Taxes and VAT are calculated on sales orders in PeopleSoft Order Management, but these amounts will be passed to Billing only for fully-paid invoices. This includes use tax amount on free goods, which is the responsibility of the seller.

Taxes on orders that are not fully paid are always recalculated in Billing. For sales orders with VAT, only the VAT information, such as VAT applicability, VAT code, and VAT treatment, is used by PeopleSoft Billing in recalculating taxes. For sales orders with PeopleSoft taxes, only tax codes are used by PeopleSoft Billing. For sales orders with taxes calculated by third-party tax vendors, only tax information, such as ship-to customer and location, transaction type, ship-from location, and order acceptance location, is used by PeopleSoft Billing. The tax basis amount for free goods is usually the cost of the item, or the last price paid in the case of non-costed items. For invoices that originate from sales orders, Order Management will pass the cost of the item or the last price paid to Billing, to be used in tax calculation.

Tax amounts are calculated by the PeopleSoft Billing invoice finalization process. For RMAs, the RMA adjustments process copies old tax information (except for tax amounts) when it copies an invoice line as the basis for an adjustment. The Billing Interface process provides tax information defaulting logic for restock lines and for RMA lines that are not associated with an original invoice line. The PeopleSoft Billing invoice finalization process calculates tax amounts based on the tax information passed.