PeopleSoft Contracts 9.1 PeopleBook

Establishing Prepaid Amounts

This chapter provides an overview of prepaid amounts and discusses how to:

Establish prepaid amounts.
Define and view utilization of prepaid amounts.
Monitor administrative activity for prepaid amounts.

Understanding Prepaid Amounts

Customers can prepay for rate-based goods and services. The prepaid amount can be applied to one or more rate-based contract lines. In addition, the amount can be used against all or a portion of the billing activity for the applicable contract lines.

Note. You cannot have prepaid amounts on internal contracts.

This section discusses:

Prepaid balance types.
Prepaid statuses.
Prepaid amounts: billing and utilization.
Prepaid accounting.
Billing plan assignment.
Prepaid streamlining.
Prepaid balance processing.
Prepaid amounts: tracking.
Prepaid amendments.
Example of a prepaid.

Prerequisite

Before you can set up prepaid amounts for a contract, you must first set up a contract.

Prepaid Balance Types

These are the prepaid balance types:

Inclusive

Prepaid amount that is included in the negotiated amount of other goods or services. Inclusive prepaid amounts (also known as inclusive prepaids) are deducted from the amount to allocate on the Negotiated Amount Allocation page. You can bill for an inclusive prepaid amount by using a billing plan that combines the billing for the inclusive prepaid amount with the billing for those goods or services with which this prepaid amount is included.

For example, you sell a software license for 500,000.00 USD, and included in that license price is 50,000.00 USD for your consulting group to install the software.

Non-Inclusive

Noninclusive prepaid amounts are not reflected in the negotiated amounts of your amount-based contract products. You can combine a noninclusive prepaid with a billing plan that also has amount-based contract lines.

For example, you offer customers a more favorable service rate if they prepay for 100,000.00 USD of consulting services.

Prepaid Statuses

These are the prepaid status values:

Pending	When you first create a prepaid amount, Pending appears by default as the status. All fields on a pending prepaid amount are fully editable. No processing occurs against pending prepaids, so they are not subject to system edit checking. You can delete a pending prepaid.
Ready	Manually update the status of a prepaid amount to Ready after you have captured all information that is associated with the prepaid and assigned it to a billing plan. After you update a status to Ready, the system performs edit checks and the prepaid amount is eligible for initial billing and utilization. After changing the prepaid status to Ready, the user can modify the Deferred Revenue Distribution fields. If utilization has begun or if initial billing has been processed, the purchased amount of the prepaid can be modified using the amendment mode. Note. Inclusive prepaids are included in the negotiated amount allocation when they have a status of Ready. You cannot mark allocation complete for the contract unless all inclusive prepaids have a Ready status.
Completed	Upon depletion of the prepaid balance, update the status to Completed. When the prepaid balance is complete, you cannot update the status. You must change billing and utilization directly in PeopleSoft Billing.
Cancelled	Prepaids can be cancelled from any status value. You can manually change the status of a prepaid to Cancelled if the following conditions are met: The remaining prepaid balance equals the original prepaid balance. This condition implies that no utilization has been finalized in PeopleSoft Billing. The committed prepaid balance equals zero. This condition implies that no utilization exists in a pending bill in PeopleSoft Billing. The billing cross-reference history for the initial billing plan nets to zero or has a status of deleted. This condition implies that the initial bill was either credited or cancelled in PeopleSoft Billing. When cancelled, a prepaid cannot be reopened.

This table shows the relationship between billing plan status and prepaid status:

Billing Plan Status	Prepaid Status
Pending	You can change prepaid status to any status except Completed. If you no longer want the prepaid, set it to a status of Cancelled.
Ready	You can change prepaid status to Cancelled only.
In Progress	Prepaid status is Ready and cannot be changed.
Action Required	Prepaid status is Ready and cannot be changed.
Cancelled	You can set prepaid status to Cancelled. However, if utilization has occurred, all amounts must first be backed out.
Completed	You can set prepaid status to Completed. However, the prepaid must first be fully depleted.
Recycled	Prepaid status is Ready and cannot be changed.
Reversal In Progress	Prepaid status is Ready and cannot be changed.
Reversed	Prepaid status is Ready and cannot be changed.

Note. You cannot ready a prepaid without first assigning it to a billing plan.

Prepaid Amounts: Billing and Utilization

When establishing a prepaid amount, you must assign it to a billing plan. Either create a new billing plan for the prepaid amount or assign the prepaid amount to an existing billing plan that is associated with fixed-amount contract lines. The billing plan determines the timing and parameters of the initial prepaid billing.

Note. You can relate prepaid utilization criteria only to rate-based contract lines. You link rate-based contract lines to a different billing plan from that of the prepaid. The billing plan that is linked to the prepaid is used for the initial billing of the prepaid amount. The billing plan that is linked to the rate-based line is used for the perpetual billing activity that occurs with the utilization of the prepaid.

Determine the parameters against which the prepaid balance can be utilized. You can choose to use the prepaid balance against any of these activities:

All billing activity for all (or some) rate-based contract lines that are contained in the contract.
All billing activity for one rate-based contract line that is contained in the contract.
All billing activity for a particular project or activity that is associated with a rate-based contract line that is contained in the contract.
A portion of the billing activity (based on project string, that is, resource type or resource category) for any of the preceding.

When PeopleSoft Contracts sends rate-based billing activity to PeopleSoft Billing, PeopleSoft Contracts creates additional utilization rows and sends those to PeopleSoft Billing to net out billable amounts. As these rows are sent to PeopleSoft Billing, the prepaid committed amount is increased. After billing is finalized by the PeopleSoft Billing to PC/CA Interface process (BIPCC000), the prepaid committed amount is removed and the prepaid remaining amount is decremented appropriately. In addition, the utilization rows are sent back to PeopleSoft Project Costing for analysis and to adjust the balance sheet accounting. The utilization process continues until the prepaid balance is fully decremented (remaining amount equals zero).

Note. A value-based billing plan enables users to define and bill independent amounts other than the actual rate-based transactions that are processed for revenue recognition. Value-based billing plans can be assigned only to rate-based contract lines. Prepaids are applied to rate-based contract lines based on the utilization controls. One of the utilization control options is to use the prepaid against all contract lines. However, even if you select this option, prepaids are not applied to any rate-based contract line that is associated with a value-based billing plan. (Value-based amounts are fixed in nature.)

Prepaid Accounting

Prepaids have two components: the initial prepaid billing and the utilization of the prepaid balance. Both components have accounting requirements associated with them.

When setting up the prepayment, you must define the deferred revenue accounting distribution to which the initial prepayment amount is to be booked. This accounting distribution is passed to PeopleSoft Billing. After finalization, PeopleSoft Billing creates an accounting entry to debit billed accounts receivable (AR) and credit deferred revenue.

Note. The accounting that is specified in the prepaid table does not depend upon your selection of the deferred revenue option on the contract line.

Note. Deferred revenue can be modified after the prepaid status is set to Ready. However, modifications to the deferred revenue distribution fields are not tracked with Amendments. Any modifications made to these fields are only applicable to processing performed after the modification is saved.

The system generates accounting entries for utilization in two parts:

The first accounting entry occurs in PeopleSoft Billing.

The accounting distribution on utilization rows that are sent to PeopleSoft Billing is the same unbilled AR distribution that is found on the corresponding billing row. When the bill is finalized, PeopleSoft Billing creates two accounting entries: one for the billable amount and another for the utilization. The utilization entry debits unbilled AR and credits billed AR. This entry nets out the billing entry that debits billed AR and credits unbilled AR. In PeopleSoft Billing and PeopleSoft General Ledger, this nets out if the utilization covers the entire billable amount.
The second accounting entry occurs in PeopleSoft Contracts.

After the bill is finalized, the utilization row is inserted into PROJ_RESOURCE. The rate-based revenue Accounting Rules Engine process (PSA_ACCTGGL) picks up the utilization row and the corresponding billing row (this can occur at separate times) and creates two accounting entries. The utilization entry debits deferred revenue (as established in the Prepaid table) and credits unbilled AR. The regular entry debits unbilled AR and credits revenue.

Note. Because all entries are derived from the source transaction row or prepaid table, you cannot set up accounting distributions for regular utilization (UTL) and utilization adjustments (UAJ) rows on the Accounting Rules page.

Billing Plan Assignment

You can assign prepaids to billing plans using one of two methods:

Billing plan template

Use billing plan templates to streamline the billing plan creation process. You can set up billing plan template defaults at the PeopleSoft Contracts business unit level. The values that you enter at the business unit level appear by default on the prepaid. Select a billing plan template or accept the default billing plan template on the Initial Billing tab of the Prepaids page.

If you use a billing plan template to create the initial billing plan for the prepaid, the system creates the billing plan when the prepaid status is changed to Ready. In addition, if the option to automatically ready the billing plan was selected on the billing plan template, the system sets the billing plan status to Ready.
Assign Billing Plan page

If you do not select a billing plan template when creating your prepaid, you must use the Assign Billing Plan page to assign a billing plan manually for the prepaid sequence. Use the Billing Planslink in the Go To field on the Prepaid component to reach the Assign Billing Plan page.

PeopleSoft Contracts enables you to unlink an initial billing plan after it has been created or assigned. You can unlink the billing plan and relink the prepaid to another plan, or create a new billing plan. You perform these tasks on the Assign Billing Plan page in the Prepaids to be Assigned/Unassigned group box.

Prepaid Streamlining

PeopleSoft Contracts streamlines the prepaid process by enabling the system to set the initial billing plan to a Ready status automatically if you selected the Ready option on the billing plan template. In addition, PeopleSoft Contracts streamlines the prepaid process by supplying default values from the business unit level onto the prepaid component. Follow these rules for readying the billing plan automatically:

If you use a billing plan template to create the initial billing plan, a check box on the billing plan template indicates whether the system should mark the initial billing plan Ready automatically when the prepaid status changes to Ready. You must select this option on the billing plan template for automation to occur.
If any contract lines, in addition to prepaids, are assigned to the billing plan, the system cannot change the billing plan status to Ready until the contract has an Active status.
If contract lines, in addition to prepaids, are assigned to the billing plan, and the contract has an Active status, when you change the prepaid status to Ready, the system changes the billing plan to Ready.
If multiple prepaid sequences are assigned to the billing plan, the system does not change the billing plan status to Ready until all of the prepaid sequences that are associated with the billing plan have Ready statuses.

Prepaid Balance Processing

Processing prepaids involves the following Application Engine processes throughout the system:

Contracts Billing Interface process.
Utilization Engine process, which is called automatically from the Contracts Billing Interface process.
Billing to Projects process.
Prepaid Update process, which is called automatically from the Billing to PC/CA Interface process.
Contracts to GL process (rate-based revenue process).

Initial Prepaid Billing Process (Contracts Billing Interface Process)

This process handles the initial prepaid very similar to a fixed-amount contract line. The timing and percentage to be billed depends on the status and events of the billing plan that is assigned to the prepaid. The amount itself, as well as the deferred revenue accounting information, comes from the CA_PREPAID_TBL. The billing information is then sent to INTFC_BI, where it awaits the Billing Interface (BIIF0001).

See Running the Contracts Billing Interface Process (CA_BI_INTFC).

Prepaid Utilization Process

After the Contracts Billing Interface process selects and processes project billing activity, but prior to sending the activity to billing, the Prepaid Utilization process is called. This process considers all active prepaid balances and the utilization criteria that is defined. Then, of the active prepaids, the process selects only the prepaid balances that have had at least one event on the initial billing plan where the invoice has been finalized. The billing activity is then matched up against this data. If a match is found and an available balance exists, a new utilization row is created. If more than one match is found, the prepaid balance with the lowest-use sequence number is selected. As utilization rows are created, the committed amount in the CA_PREPAID_TBL is updated to reflect the prepaid amount that is committed to be utilized. When the process finishes, the Contracts Billing Interface process inserts the utilization rows, along with the billing rows, into the INTFC_BI table.

Note. The Prepaid Utilization process also considers prepaid tax implications. If the initial prepaid includes ship to and ship from countries that are different from that of the billing activity, utilization rows are not created. For complex tax situations, in which the utilization may span many ship to and ship from combinations and you choose to tax upon the initial prepaid, split the prepaid into separate prepaid amounts and define utilization for each amount to specific contract lines.

Note. If you selected the Tax on Utilization option for prepaid tax timing, utilization occurs prior to the initial billing plan being sent to PeopleSoft Billing and finalized. The utilization occurs after the bill plan has been created, and it does not have to have been processed.

The initial billing plan must still have been created before you set the prepaid status to Ready. In addition, before you allow the prepaid status to become complete, the initial billing plan must be processed and finalized.

Billing to Projects Process

After a bill is finalized, you run the Billing to PC/CA Interface process to update PeopleSoft Project Costing with actual billing information. This may include billing adjustments, credits, rebills, or utilization. Utilization data is ultimately written back to PROJ_RESOURCE as analysis types UTL and UAJ.

Prepaid Update Process

During the Billing to PC/CA Interface Process, the Prepaid Update Process is called. This process reduces the committed amount and remaining amount in the CA_PREPAID_TBL, based on the utilization being sent back to PeopleSoft Project Costing.

Contracts to GL Process (Rate-Based Revenue Process)

In addition to creating accounting entries for PROJ_RESOURCE revenue rows, the rate-based revenue process (Accounting Rules Engine) creates accounting entries for utilization rows (UTL, UAJ).

See Running the Contracts Billing Interface Process (CA_BI_INTFC).

Prepaid Amounts: Tracking

When adding a prepaid amount to a contract, the system tracks three amounts that are associated with that prepaid balance: purchased amount, remaining amount, and committed amount. The following steps define how these amounts are used:

A prepaid balance of 100,000 USD is established.

Purchased Amount

Remaining Amount

Committed Amount

100,000.00 USD

100,000.00 USD

0

Purchased Amount	Remaining Amount	Committed Amount
100,000.00 USD	100,000.00 USD	0

A utilization of 25,000 USD is sent to PeopleSoft Billing through the Contracts Billing Interface process.

Purchase Amount	Remaining Amount	Committed Amount
100,000.00 USD	100,000.00 USD	25,000.00 USD

A utilization of 25,000 USD is finalized in PeopleSoft Billing.

Purchase Amount

Remaining Amount

Committed Amount

100,000.00 USD

75,000.00 USD

0

Purchase Amount	Remaining Amount	Committed Amount
100,000.00 USD	75,000.00 USD	0

Prepaid Amendments

Changes are allowed on the Prepaids page when the prepaid status is Ready. A user can reduce the prepaid amount up to the unused prepaid amount. No limit exists if the user increases the prepaid amount.

Once the prepaid Purchased Amount is modified and the amendment is processed, the initial billing has to be processed for the modified difference amount. The user should review the bill plan if the status of the bill plan is set to Action Required.

If the modified prepaid is inclusive, then it must be included in the negotiated amount of a contract by allocating the difference on the Amendment Amount Allocation page. Before changing the amendment status to Ready, the modified inclusive prepaid should be allocated on the Amendment Amount Allocation page and the allocation should be set to Complete.

If the prepaid that is modified in amendment mode is inclusive, then the change in the purchased amount should be included in the negotiated amount of the contract by allocating the difference in the prepaid amount on the Amendment Amount Allocation page. This must be performed in for Amount Allocation to be set to Complete.

The Deferred Revenue Distribution ChartFields remain open until the prepaid is closed. Any changes made to the deferred revenue distribution fields are applicable to processing performed after the change is saved.

See Amending Contracts.

Example of a Prepaid

This example shows the accounting implications of a 100,000.00 USD prepaid and the utilization against it. Column headings are abbreviated. Full spellings are billed accounts receivable (Billed AR), deferred revenue (Deferred Rev), and unbilled accounts receivable (UAR).

Steps	Billed AR	Deferred Rev	UAR	Revenue
Initial prepayment is billed. PeopleSoft Billing creates the entries in the columns to the right:	100,000.00	(100,000.00)
20,000.00 USD of billable transactions sent to PeopleSoft Billing. PeopleSoft Billing creates the entries in the columns to the right:	20,000		(20,000.00)
20,000.00 USD of billable transactions are utilized. PeopleSoft Billing creates the entries in the columns to the right:	(20,000.00)		20,000.00
The Contract-to-GL process sends billable transactions to PeopleSoft General Ledger. PeopleSoft Contracts creates the entries in the columns to the right:			20,000.00	(20,000.00)
The Contract-to-GL process sends utilization rows to PeopleSoft General Ledger. PeopleSoft Contracts creates the entries in the columns to the right:		20,000.00	(20,000.00)
81,000.00 USD of billable transactions are sent to PeopleSoft Billing. PeopleSoft Billing creates the entries in the columns to the right:	81,000.00		(81,000.00)
80,000.00 USD of billable transactions are utilized. (1,000.00 USD cannot be utilized because prepaid balance is fully decremented.) PeopleSoft Billing creates the entries in the columns to the right:	(80,000.00)		80,000.00
The Contract-to-GL process sends billable transactions to PeopleSoft General Ledger. PeopleSoft Contracts creates the entries in the columns to the right:			81,000.00	(81,000.00)
The Contract-to-GL process sends utilization rows to PeopleSoft General Ledger. PeopleSoft Contracts creates the entries in the columns to the right:		80,000.00	(80,000.00)
Totals	101,000.00 awaiting cash collection	0	0	(101,000.00)

Common Elements Used in This Chapter

	Click to access the Header Details page, where you can view contract header information such as the contract administrator, contract type, and contract classification.
Billing Plans	Select the Billing Plans link to access the Assign Billing Plan page, where you can unlink the billing plan from the prepaid, relink the prepaid to another billing plan, or create a new billing plan for the prepaid.

Establishing Prepaid Amounts

You can associate each prepaid amount that you add to a contract with one, all, or several active rate-based contract lines on a contract. This section discusses how to:

Define prepaid amounts.
Associate prepaids with contract lines.
Set up initial billing.
Set up deferred revenue distribution.

Page Used to Establish Prepaid Amounts

Page Name	Definition Name	Navigation	Usage
Prepaids	CA_PPD_CONTRACT	Customer Contracts, Determine Price and Terms, Prepaid Balances, Prepaids Click the Prepaids link in the Go To drop-down list box on any page of the Contract component.	Establish prepaid balance amounts.

Defining Prepaid Amounts

Access the Prepaids page (Customer Contracts, Determine Price and Terms, Prepaid Balances, Prepaids).

Prepaids Header

Amendment Number

Displays the current amendment number if the contract was amended through amendment processing. This field is visible after the contract is activated.

Contract Prepaid Totals

Purchased Amount	Displays the sum of the purchased amounts for all prepaid sequences in the Prepaids for this Contract grid on the General tab of the Prepaids page. Prepaids with a Cancelled status are not included in this total.
Remaining Amount	Displays the sum of the remaining amounts for all prepaid sequences in the Prepaids for this Contract grid on the General tab of the Prepaids page. Prepaids with a Cancelled status are not included in this total.
Committed Amount	Displays the sum of the committed amounts for all prepaid sequences in the Prepaids for this Contract grid on the General tab of the Prepaids page. Prepaids with a Cancelled status are not included in this total.
Amend Contract	Click this button to access the Amendments page. This field is available when a contract is activated. If no pending amendment has been created, then clicking this button takes the user to the Amendments page, where the user can enter the amendment type and reason. If the contract has a pending amendment, then that amendment becomes active and all fields that are enabled for amending are enabled. See Working with Amendments. Once this button is clicked, any modifications that were previously made to the prepaids appear on the page, and the user can change the values. If no modifications were previously made, then the original values appear and the user can modify the values from their original value. The View Current button becomes visible once the Amend Contract button is clicked. Any changes made to the purchased amount of any of the prepaids is captured and saved to the CA_CHG_DTL table.
View Current	This button becomes visible when the contract is active and the Amend Contract button is clicked. Click this button to hide any changes made to the Prepaids page and display all original values.

Prepaids for this Contract

Status	Select a status, which controls the actions that you can perform and the system processing that can occur against a prepaid amount. Values are Pending, Ready, Completed, and Cancelled.
Hold	Select to place a prepaid amount on hold. When a prepaid amount is on hold, no utilization processing occurs against that amount.
Purchased Amount	Enter the full amount of the prepaid that was purchased by the customer. If in amendment mode, the purchased amount can be increased without any restrictions. However, if the amount is being reduced, the user cannot reduce the prepaid amount to any value less than the unused amount. In other words, the purchased amount cannot be reduced to a value below the value of this formula: remaining amount of prepaid - committed amount of prepaid. If the Amend Contract button was not clicked or if the View Current button was clicked, then the original prepaid amount appears. This value comes from CA_PREPAID_TBL. If an amount was previously entered in amendment mode, then that new value appears. When a user changes this field and saves the page, the old value and the new value of the purchased amount are recorded in the Amendment detail table (CA_CHG_DTL), which is visible on the Amendment Detail page. Note. If a prepaid amount has not been used and its bill plan has not been processed, then the user cannot modify the prepaid amount in amendment mode. The user must manually change the bill plan status to Pending and then the prepaid status to Pending. When the prepaid status is changed to Pending, the amount of the prepaid can be modified to any amount without it being tracked in amendment mode.
Inclusive	Select if the prepaid amount is included in the negotiated amount of a fixed-amount contract line. For example, you might have a prepaid amount of 50,000.00 USD representing a mandatory consulting fee that was included in the purchase of a 1,000,000.00 USD software license. Deselect this check box if the prepaid amount is a noninclusive amount.
Expiration Date	Enter an expiration date. This field is for informational purposes only. No processing is keyed off of the value that you enter.
Remaining Amount	Displays the purchased amount less any utilized amounts that have been finalized in PeopleSoft Billing.
Committed Amount	Displays the amount that has been utilized, but the bills have not been finalized in PeopleSoft Billing. When a bill is finalized in PeopleSoft Billing, the amount for that bill is backed out of the Committed Amount field and is then reflected in the Remaining Amount field. The balance available for subsequent use is the remaining amount less the committed amount.
Depleted Date	Displays the system date on which the remaining amount of the prepaid became zero.
Billing Plans	Click to access the Assign Billing Plan page, where you can unlink the billing plan from the prepaid, relink the prepaid to another billing plan, or create a new billing plan for the prepaid.

Associating Prepaids with Contract Lines

Access the Prepaids page (Customer Contracts, Determine Price and Terms, Prepaid Balances, Prepaids, select the Utilization tab).

(prepaid sequence number)

Contracts can contain multiple prepaid amounts. When adding a prepaid amount to a contract, the system assigns a prepaid sequence number to that prepaid amount. The contract number and contract prepaid sequence make up the unique key of the prepaid sequence table.

(move item use sequence up)

Click to increase the Use Sequence number of a prepaid. The prepaid must be in a Ready status for it to be moved.

(move item use sequence down)

Click to decrease the Use Sequence number of a prepaid. The prepaid must be in a Ready status for it to be moved.

Use Sequence

Displays the use sequence number. If multiple prepaid amounts are associated with the same billable activity, the system uses this value to determine which prepaid amount is depleted first. The system processes the prepaids in order of lowest to highest.

The use sequence number may differ from the prepaid sequence number.

Utilize Against All Lines

Select if this prepaid amount should be applied against all rate-based lines on this contract.

Note. If you have value-based billing or recurring plans assigned to this contract, the prepaid is not applied to the contract lines that are associated with any value-based billing plans. The system applies prepaids to rate-based contract lines that are assigned to as-incurred billing only.

Contract Line Num (contract line number)

Select a contract line number to apply this prepaid amount against a specific rate-based contract line.

Note. If you want to assign more than one contract line to the prepaid, leave this field blank. You can then assign multiple contract lines to a prepaid on the Utilization Criteria page.

Utilization Descr for Billing (utilization description for billing)

The system generates the utilization description for billing by concatenating the prepaid use sequence number with the contract number. You can accept this description or enter a custom description. This is the description that is used on the utilization line that is included in the bill.

Utilization Criteria

Click to access the Utilization Criteria component, where you can define the specific projects transactions against which this prepaid amount can be applied and where you can view the utilization history for this prepaid amount.

Setting Up Initial Billing

Access the Prepaids page (Customer Contracts, Determine Price and Terms, Prepaid Balances, Prepaids, select the Initial Billing tab).

Billing Plan

Displays the associated billing plan for the prepaid amount. Prepaid amounts can be associated with billing plans with a method of Milestone, Percent Complete, or Immediate.

Note. This field does not appear on the page until a billing plan has been associated with the prepaid sequence.

Billing Plan Status

Displays the status of the associated billing plan. Click this link to access the billing plan component, where you can manage the billing plan.

Note. This field does not appear on the page until a billing plan has been associated with the prepaid sequence.

Billing Plan Template

Select a billing plan template to associate with the prepaid contract line. The billing plan template automates the creation of the billing plan.

If a default billing plan template was defined at the business unit level for prepaids, this value appears by default in this field.

Note. If you do not want to use a billing plan template to create a billing plan for the prepaid, you must select the Billing Plan link in the Go To field to access the Assign Billing Plan page, where you can manually assign a billing plan for the prepaid sequence.

Note. If you associate both contract lines and prepaids with a billing plan template that has a basis date source option of Contract Line Start Date, the system uses the contract line start date to build events for the billing plan. However, if you associate only prepaids with a billing plan template that has a basis date source option of Contract Line Start Date, the system uses the current date to build the events for the billing plan.

Bill Plan Detail Template ID

Select a billing plan detail template to associate with the prepaid contract line. Use the billing plan detail template to override the billing defaults that are defined for a contracts billing business unit and contract header.

If a default billing plan detail template ID was defined at the business unit level for prepaids, this value appears by default in this field.

Note. If you want to select a bill plan detail template, you must also select a value in the Billing Plan Template field.

Purchase Order Reference

If this prepaid amount is associated with a purchase order, enter the purchase order reference information. This information is included on the bill when utilization occurs.

Prepaid Tax Timing

Select when to tax the prepaid. Values are:

Tax on Initial Bill: Tax prepaid at time of initial bill. The initial prepaid bill is taxed, and when the row is utilized, the tax is backed out of the UTL row.

Tax on Utilization: Tax prepaid when utilization occurs. No tax information is sent to PeopleSoft Billing on the initial bill. When the row is used, the BIL row is taxed but no backing out of taxes occurs on the UTL row.

Note. If tax exempt, select Tax on Utilization.

If a default prepaid tax timing was defined at the business unit level, this value appears by default in this field. To view or edit tax information, access the billing plan.

Note. If you select Tax on Initial Bill and the tax parameters that you enter on the initial prepaid billing plan include the value-added tax (VAT) applicable PeopleSoft Billing business unit, ship to country, and ship from country, then utilization is restricted to services that occurred in the same ship to country, ship from country, and VAT registered entity as the initial prepaid.

Setting Up Deferred Revenue Distribution

Access the Prepaids page (Customer Contracts, Determine Price and Terms, Prepaid Balances, Prepaids, select the Deferred Revenue Distribution tab).

Note. The system books the prepaid to deferred revenue as specified here, regardless of whether you selected the deferred revenue accounting check box on the contract line.

Distribution Code	Represents a combination of PeopleSoft General Ledger ChartField values.
Alternate Account	Classifies the nature of a transaction for regulatory authorities. Used for statutory accounts.
Department	Used to indicate who is responsible for or affected by the transaction.
Operating Unit	Used to indicate a location, such as a distribution warehouse or a sales center. Or it is used for responsibility reporting, such as a profit center.
Product	Captures additional information that is useful for profitability and cash flow analysis, for example.
Project	Captures additional information that is useful for project accounting. When the deferred revenue accounting entry is made, the Project field is populated from the project that is associated with the billing activity (from PROJ_RESOURCE). This project is not used.
Affiliate	Used as one approach for interunit journal processing and consolidated reporting. Provides a way for you to map transactions between business units while using a single intercompany account.
Statistics Code	Identifies nonmonetary amounts. Statistic codes are associated with a specific unit of measurement.

Defining and Viewing Utilization of Prepaid Amounts

The actual utilization of the prepaid balance is based on the billing rows that are collected in PeopleSoft Project Costing. All projects or activities that are associated with a contract line are subject to utilization unless a specific project or activity is defined on the Utilization Criteria page. In addition, users can define a lower level of utilization by specifying a certain project string. For example, the prepaid may apply only to time charged on a project, not to expenses.

This section discusses how to:

Define utilization criteria.
View utilization history.

Pages Used to Define and View Utilization of Prepaid Amounts

Page Name	Definition Name	Navigation	Usage
Utilization Criteria	CA_PPD_UTL_PNL	Customer Contracts, Determine Price and Terms, Prepaid Utilization Rules, Utilization Criteria Click the Utilization Criteria link on the Utilization tab of the Prepaids page.	Define utilization criteria by restricting the billable activities in PROJ_RESOURCE that are candidates for utilization of a prepaid amount.
Utilization History	CA_PPD_UTL_DTL	Customer Contracts, Determine Price and Terms, Prepaid Utilization Rules, Utilization History Click the Utilization Criteria link on the Utilization tab of the Prepaids page.	View the utilization history for each prepaid amount use sequence, including the utilization amounts that have been finalized in PeopleSoft Billing and sent to PeopleSoft Project Costing.

Defining Utilization Criteria

Access the Utilization Criteria page (Customer Contracts, Determine Price and Terms, Prepaid Utilization Rules, Utilization Criteria).

The utilization description for billing, prepaid use sequence number, expiration date, purchased amount, remaining amount, and committed amount that you defined for this prepaid amount on the Prepaids page appear.

The system displays whether you designated this prepaid amount Use for all Contract Lines or whether you specified Use only for Contract Line number x, where number x equals the contract line number that you specified.

Balance Utilization Controls - Use % for Wildcard Grid

Use the fields in this area to select a specific set of project items to which the prepaid amount can be applied. When you first access this page, each field, with the exception of Line Num (line number), contains a % symbol. The % symbol, or wildcard, indicates that the prepaid amount will be applied to all project items that are associated with the contract line numbers that you specify. Alternatively, you can select specific values for these fields.

Line Num (line number)	If you specified use for a specific line number, that line number appears. Otherwise, you can select as many active rate-based lines on the contract as required. Note. If you chose to apply utilization against all contract lines in the contract, this field does not appear on the page.
PC Bus Unit (PeopleSoft Project Costing business unit)	Select a PeopleSoft Project Costing business unit for this contract line. The list of PeopleSoft Project Costing business units consists of those that share the same general ledger business unit as the Contract business unit for the contract. Each contract line can be associated with only one Projects business unit. The Projects business unit that you select filters the list of projects that you can associate with this contract. Note. You must select the same Projects business unit that you defined for this contract line number on the Related Projects page.
Project	Select to limit the projects to which the system can apply the prepaid amount. The list contains all projects for the selected Projects business unit that you have linked to this contract line.
Activity	To associate your contract line with a PeopleSoft Project Costing activity identifier, select an activity ID. The list contains all activities that are defined for the project that you selected. Activities are the individual tasks or events that make up a project. A single activity can be associated with only one contract line.
Analysis Type	Analysis types are assigned to individual resources to identify the different types of transactions in your system, such as estimated costs, budgeted costs, actual costs, and billed costs.
Source Type	Assign source types to individual resources to enable you to track, analyze, and report all costs, both actual and planned, for a particular resource.
Category and SubCategory	Use resource categories and resource subcategories to track resources at a finer level of detail.

Viewing Utilization History.

Access the Utilization History page (Customer Contracts, Determine Price and Terms, Prepaid Utilization Rules, Utilization History)

When billing utilization is finalized in PeopleSoft Billing, the system inserts the rows into PeopleSoft Project Costing. The Utilization History scroll area is a view of PROJ_RESOURCE. The amount that was used appears. The sum of all rows in the Amount column plus the remaining amount equals the purchased amount.

Monitoring Administrative Activity for Prepaid Amounts

This section discusses how to monitor prepaid activity.

After you enter a prepaid balance onto a contract, these actions are tracked in the CA_PREPAID_AUD table:

Changing the status to Ready.
Placing the prepaid balance on hold.
Changing the use sequence number.

Page Used to Monitor Administrative Activity for Prepaid Amounts

Page Name	Definition Name	Navigation	Usage
Prepaid Balances - Audit History	CA_PPD_HISTORY	Customer Contracts, Determine Price and Terms, Prepaid Balances, Audit History	Monitor prepaid activity, such as changes in prepaid status that have occurred for each contract prepaid amount.

Monitoring Prepaid Activity

Access the Prepaid Balances - Audit History page (Customer Contracts, Determine Price and Terms, Prepaid Balances, Audit History).

Contract Prepaid Totals

Purchased Amount	Displays the sum of the purchased amounts for all prepaid sequences in the Prepaids for this Contract grid on the General tab of the Prepaids page. Prepaids with a Cancelled status are not included in this total.
Remaining Amount	Displays the sum of the remaining amounts for all prepaid sequences in the Prepaids for this Contract grid on the General tab of the Prepaids page. Prepaids with a Cancelled status are not included in this total.
Committed Amount	Displays the sum of the committed amounts for all prepaid sequences in the Prepaids for this Contract grid on the General tab of the Prepaids page. Prepaids with a Cancelled status are not included in this total.

Prepaid Audit History

Purchased Amount	Displays the full amount of the specific prepaid sequence that the customer purchased.
Date/Time Stamp	Displays the system date on which the change was made.
User ID	Displays the name of the user who made the change.
Action Type	Displays a description of the change that was made.
Status	Displays the prepaid amount status after the change has been made.
Remaining Amount	Displays the prepaid amount that has not yet been utilized.

(prepaid sequence number)	Contracts can contain multiple prepaid amounts. When adding a prepaid amount to a contract, the system assigns a prepaid sequence number to that prepaid amount. The contract number and contract prepaid sequence make up the unique key of the prepaid sequence table.
(move item use sequence up)	Click to increase the Use Sequence number of a prepaid. The prepaid must be in a Ready status for it to be moved.
(move item use sequence down)	Click to decrease the Use Sequence number of a prepaid. The prepaid must be in a Ready status for it to be moved.
Use Sequence	Displays the use sequence number. If multiple prepaid amounts are associated with the same billable activity, the system uses this value to determine which prepaid amount is depleted first. The system processes the prepaids in order of lowest to highest. The use sequence number may differ from the prepaid sequence number.
Utilize Against All Lines	Select if this prepaid amount should be applied against all rate-based lines on this contract. Note. If you have value-based billing or recurring plans assigned to this contract, the prepaid is not applied to the contract lines that are associated with any value-based billing plans. The system applies prepaids to rate-based contract lines that are assigned to as-incurred billing only.
Contract Line Num (contract line number)	Select a contract line number to apply this prepaid amount against a specific rate-based contract line. Note. If you want to assign more than one contract line to the prepaid, leave this field blank. You can then assign multiple contract lines to a prepaid on the Utilization Criteria page.
Utilization Descr for Billing (utilization description for billing)	The system generates the utilization description for billing by concatenating the prepaid use sequence number with the contract number. You can accept this description or enter a custom description. This is the description that is used on the utilization line that is included in the bill.
Utilization Criteria	Click to access the Utilization Criteria component, where you can define the specific projects transactions against which this prepaid amount can be applied and where you can view the utilization history for this prepaid amount.

Billing Plan	Displays the associated billing plan for the prepaid amount. Prepaid amounts can be associated with billing plans with a method of Milestone, Percent Complete, or Immediate. Note. This field does not appear on the page until a billing plan has been associated with the prepaid sequence.
Billing Plan Status	Displays the status of the associated billing plan. Click this link to access the billing plan component, where you can manage the billing plan. Note. This field does not appear on the page until a billing plan has been associated with the prepaid sequence.
Billing Plan Template	Select a billing plan template to associate with the prepaid contract line. The billing plan template automates the creation of the billing plan. If a default billing plan template was defined at the business unit level for prepaids, this value appears by default in this field. Note. If you do not want to use a billing plan template to create a billing plan for the prepaid, you must select the Billing Plan link in the Go To field to access the Assign Billing Plan page, where you can manually assign a billing plan for the prepaid sequence. Note. If you associate both contract lines and prepaids with a billing plan template that has a basis date source option of Contract Line Start Date, the system uses the contract line start date to build events for the billing plan. However, if you associate only prepaids with a billing plan template that has a basis date source option of Contract Line Start Date, the system uses the current date to build the events for the billing plan.
Bill Plan Detail Template ID	Select a billing plan detail template to associate with the prepaid contract line. Use the billing plan detail template to override the billing defaults that are defined for a contracts billing business unit and contract header. If a default billing plan detail template ID was defined at the business unit level for prepaids, this value appears by default in this field. Note. If you want to select a bill plan detail template, you must also select a value in the Billing Plan Template field.
Purchase Order Reference	If this prepaid amount is associated with a purchase order, enter the purchase order reference information. This information is included on the bill when utilization occurs.
Prepaid Tax Timing	Select when to tax the prepaid. Values are: Tax on Initial Bill: Tax prepaid at time of initial bill. The initial prepaid bill is taxed, and when the row is utilized, the tax is backed out of the UTL row. Tax on Utilization: Tax prepaid when utilization occurs. No tax information is sent to PeopleSoft Billing on the initial bill. When the row is used, the BIL row is taxed but no backing out of taxes occurs on the UTL row. Note. If tax exempt, select Tax on Utilization. If a default prepaid tax timing was defined at the business unit level, this value appears by default in this field. To view or edit tax information, access the billing plan. Note. If you select Tax on Initial Bill and the tax parameters that you enter on the initial prepaid billing plan include the value-added tax (VAT) applicable PeopleSoft Billing business unit, ship to country, and ship from country, then utilization is restricted to services that occurred in the same ship to country, ship from country, and VAT registered entity as the initial prepaid.