This chapter provides an overview of the Managed Services Provider (MSP) environment and discusses how to:
Set up the MSP environment.
Process MSP transactions.
In an MSP environment, the MSP manages requisitions from customers, and also takes on the role of service coordinator by sourcing requisitions to their own staff or third-party service providers. A markup is charged by the MSP for this service. In addition, the MSP may "host" external suppliers acting as service coordinators for their customers.
In order to support this business process, the concept of MSP markups is supported in the PeopleSoft Services Procurement product. MSP markup functionality is only active when the installation is set for an MSP environment. Suppliers that are part of the MSP's internal organization are identified when setting their source type to Internal in the supplier network.
Warning! If you set the installation options to an MSP environment, you will experience implications in the way rates are displayed and calculated throughout the system. Therefore this should only be done if the organization operates in an MSP environment.
When the MSP acquires resources, an additional markup is applied on top of the supplier's rate in order to cover the MSP cost for managing the process. You define the MSP fee at the business unit level, with override available at the service type level. The MSP fee is effective-dated, which indicates that the rate in effect at the time services are performed is the rate that is used for work order consumption and invoicing purposes.
The list below indicates the various ways in which MSP information is displayed to services coordinators, internal provider contacts, requesters, requisitions approvers, and external providers.
Service coordinators and internal provider contacts view amounts that include MSP markup fees, as well as view the breakdown between supplier rate and MSP rate, which makes up the total amount shown.
Requesters, requisition approvers, and work order approvers view amounts that include MSP markup fees, but they do not have visibility of the MSP markup amount that is included in the total amount shown unless they have been given a role associated with the role action for viewing the MSP breakdown.
External provider contacts view amounts that do not include MSP markup.
MSP markup fees are also included on the supplier invoice when the service provider is from an internal supplier.
Note. In the MSP environment, the filled amount for a requisition may not match the work order amount. This will occur if the MSP rate changes between creation of the requisition line and creation of the work order.
The following definitions are used throughout this chapter.
Managed Services Provider (MSP) |
An organization that manages the sourcing and filling of service requisitions on behalf of their customers. |
To define MSP percentage, use the MSP Fees by Business Unit (SPB_MSP_BY_BU) component. To define MSP percentage or rate, use the MSP Fee by Service Type (SPB_MSP_BY_SRVC) component.
To set up supplier by business unit, use the Supplier by Business Unit (SPM_SPLR_BY_BU) component.
This section discusses how to:
Set up installation options.
Define MSP by service type.
Set up MSP fees by business unit.
Set up the supplier network.
Page Name |
Definition Name |
Navigation |
Usage |
INSTALLATION_SP |
|
Define PeopleSoft Services Procurement installation options. |
|
BUS_UNIT_TBL_SP |
|
Define PeopleSoft Services Procurement business units. |
|
SPB_ROLE_TYPE |
|
Define service types. |
|
SPB_MSP_BY_SRVC |
Click the Manage MSP Fees button on the Service Types page. |
Define the MSP fee percentage or rate. |
|
SPB_MSP_BY_BU |
Click the Manage by MSP Fees button on the Services Procurement Business Unit Definition page. |
Define MSP fees percentage. |
|
SPM_SPLR_BY_BU_PG |
|
Create the supplier network. Associate suppliers with PeopleSoft Services Procurement business units. |
Access the Services Procurement Installation Options page (Set Up Financials/Supply Chain, Install, Installation Options, Services Procurement).
MSP Installation (managed services provider installation) |
Click to enable the managed services provider functionality in PeopleSoft Services Procurement. This check box should not be selected unless the organization is an MSP. If selected, the PO Work Order Integration and PO Service Contracts check boxes are disabled. The HCM Integration check box will also be disabled. Conversely, if the PO Work Order Integration or HCM Integration check boxes are selected, the Managed Services Provider Installation check box is disabled. |
See Also
Defining Services Procurement Installation Options
Access the MSP Fee by Service Type page (Services Procurement, Define Services Procurement, Service Setup, Service Type Setup, Service Types, and click the Manage MSP Fees button on the Service Types page).
Markup Type |
For service types with a service method of Resource, select the markup type of Percentage or Rate. Note. It is not possible to select Markup Type for service types with a service method of Deliverable. In this case only percentage markups are available. |
Managed Services Provider Fee % |
If the markup type is Percentage, enter a percentage by which the managed services provider will mark up the supplier rate for performing the service coordinator function. Note. The MSP fee that you define on the Service Type page will override the business unit MSP and default onto requisitions, work orders, and timesheets. If there is no fee defined for the service type, the MSP fee defined at the business unit level will be used. |
Rate |
If the markup type is Rate, enter a rate by which the managed services provider will mark up the supplier rate for performing the service coordinator function. Note. The MSP fee that you define on the Service Type page will override the business unit MSP and default onto requisitions and work orders. And, for individual child services associated to a multi-resource service, an MSP fee defined on the Service Type page will override the default MSP fee from the parent service timesheets. If there is no fee defined for the service type, the MSP fee defined at the business unit level will be used. |
Unit of Measure |
If the markup type is Rate, enter a unit of measure for the specified markup rate. |
Access the MSP Fees by Business Unit page (click the Manage by MSP Fees button on the Services Procurement Business Unit Definition page).
The Manage by MSP Fees link will appear only when you select the Managed Services Provider Installation check box on the Services Procurement Installation Options page.
MSP Fee % |
Enter a percentage by which the managed services provider will mark up the supplier rate for performing the service coordinator function. |
See Also
Setting Up Business Unit Definitions
Access the Networked Supplier Details page (Services Procurement, Define Service Suppliers, Suppliers by Business Unit).
Source Type |
Select Internal to indicate that the supplier is part of the MSP organization for this business unit. If the service provider is internal, the supplier providing the services will view and be paid the fully loaded rates. |
See Also
Maintaining the Supplier Network Setup
This section discusses how to:
Use MSP with requisitions.
Source with MSP.
Submit bids with MSP.
Create batch invoices with MSP.
View invoice line summaries with MSP.
Page Name |
Definition Name |
Navigation |
Usage |
SPF_REQ_INFO_PG |
Services Procurement, Create Requisition |
Enter basic service requisition information. |
|
PV_REQ_STATUS |
Services Procurement, Manage Requisitions |
Manage requisitions that are entered by the requester. You can review existing service requisitions, edit them, view their statuses, cancel them, or access related sourcing and work order information. |
|
SPF_SRC_MANAGE_PG |
Services Procurement, Review and Source Requisitions |
View all the suppliers to whom a requisition was sourced; source a requisition to multiple suppliers. |
|
SPR_SOURCE_SELECT |
Click the Sourcing Select button on the Manage Sourcing page. |
Enter sourcing requirements. |
|
SPF_SUP_COM_IN |
Services Procurement, Maintain Bids (external) |
View incoming bids. |
|
SPF_SOUR_REVIEW_SP |
Services Procurement, Review Reqs/Submit Bids (external) |
Review requisitions sourced to the supplier. |
|
SPF_SUBMITAL_PAGE |
Click the Submit Bid button on the Supplier Sourcing Review page. |
Submit bids. |
|
SPF_SUP_BIDRSP1 |
Click the Create Bid button on the Incoming Bids - Summary page. |
Reply to bids. |
|
SPF_WO_REQ_VEN_DT |
Services Procurement, Manage Services Work Orders Click the Add button or click an existing work order link on the Manage Services Work Order page. |
Enter work order detail information. |
|
SPF_WO_COST_PO_PG |
Click the Cost tab on the Work Order - Service page. |
Enter cost information for the work order. |
|
SPF_GEN_CLINV |
Service Procurement, Services Settlement, Create Batch Invoices |
Generate and print invoices. |
|
SPF_INV_HDR_ADD |
Services Procurement, Manage Invoices Select a business unit or invoice ID and click the Add button on the Manage Invoices page. |
Create invoice header information. |
|
SPF_INV_LN_DTLS |
Click the Edit button for an invoice on the Manage Invoice page. |
Modify the selected invoice. |
|
SPF_INV_TIME_DTL |
For resource based invoices, click the Edit button on the Manage Invoices - Line Summary page. |
View invoice line details or make adjustments. |
Access the Create Requisition page (Services Procurement, Create Requisition).
Supplier Rate |
The portion of the total rate that will be paid to the end supplier, the sum of the supplier rate and the MSP rate equals the total rate. This field is displayed to users who have the SP_VMS_MSP_BREAKDOWN role action. The field does not display to requesters or approvers. |
MSP Rate |
Displays the MSP rate for this requisition. This field displays to users having the SP_VMS_MSP_BREAKDOWN role action. The system provides this value from the MSP fee by service type, or if not present there, the MSP by business unit definition. |
Rate |
The total rate for this requisition. If you are using a rate sheet, the system provides the default value from the rate sheet If there is a rate sheet, the system adds the MSP rate to the Supplier Rate to calculate the rate. |
MSP Fee % (managed services provider fee percentage) |
Displays the MSP fee percentage for this requisition. This field displays to service coordinators only. |
See Also
Creating and Managing Services Procurement Requisitions
Access the Sourcing Selection page.
MSP Rate |
Displays the MSP rate for this requisition. This field displays to Service Coordinators and MSP supplier contacts only. The system provides this value from the MSP fee by service type, or if not present there, from the MSP by business unit definition. |
Loaded Rate |
Displays the total rate for this requisition, supplier rate plus MSP Rate. |
See Also
Managing PeopleSoft Services Procurement Sourcing
Access the Submit Bid page (Services Procurement, Review Reqs/Submit Bids (external), and click the Submit Bid button on the Supplier Sourcing Review page).
Note. Only internal suppliers will be able to view the MSP rates and amounts during bid negotiations.
See Also
Access the Create Invoice page (Service Procurement, Services Settlement, Create Batch Invoices).
Internal Supplier |
Select to indicate that the supplier is internal and that the MSP markup will be included in the invoice amount. |
See Also
Access the Manage Invoices - Line Summary page (Services Procurement, Manage Invoices, and click the Edit button for an invoice on the Manage Invoice page.
Estimated Tax |
The MSP fee is not included in the tax calculation for external suppliers, but is for internal suppliers. |
Estimated Total |
The MSP fee is included in the totals for internal suppliers. |
See Also