PeopleSoft Services Procurement 9.1 PeopleBook

Establishing and Managing VMS

This chapter provides an overview the Vendor Managed Services (VMS) and discusses how to:

Set up VMS.
Process VMS transactions.

Understanding VMS

The VMS provider manages enterprise service requests, and also takes on the role of service coordinator by routing service requests to multiple staffing suppliers. VMS providers manage the fulfillment process by maintaining work orders, time reports, and invoicing for the enterprise. VMS providers are paid for all services performed by the suppliers in their network at a rate that includes the VMS markup rate or percentage.

In order to support this business process, the concept of VMS is supported in the PeopleSoft Services Procurement product. VMS functionality is only active when you select the Enable VMS option for a Services Procurement business unit or service type. The service type level is an override to the business unit. Once you enable the VMS option, you must specify a VMS supplier and location, as well as a rate and supplier service coordinator or service team that correspond to the VMS provider in order to create VMS managed requisitions and work orders for the business unit.

Note. A service team must have a least one coordinator associated with the VMS supplier to be available for selection as a VMS team.

Markups

When the VMS provider acquires resources, an additional markup is applied on top of the supplier's rate in order to cover the VMS cost for managing the process. You define the VMS fee at the business unit level, with override available at the service type level. For individual child services, VMS fees defined at the service type overrides the VMS fees defaulting from the related multi-resource parent. The VMS 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 VMS information is displayed to services coordinators, requesters, approvers, supplier service coordinator and service coordinator teams.

Service coordinators and provider contacts internal to the VMS can view amounts that include VMS markup fees, as well as view the breakdown between supplier rate and VMS rate, which makes up the fully loaded rate.
Requesters, requisition approvers, and work order approvers view amounts that include VMS markup fees, but they do not have visibility of the VMS markup amount that is included in the total amount shown unless they have been given a role associated with the SP_VMS_MSP_BREAKDOWN role action.
Sourcing notification routes to the supplier service coordinator or service coordinator team defined for the VMS.

The service coordinator or team then sources the requisition to suppliers in the VMS supplier network. The VMS markup information is visible to the VMS Service Coordinators and suppliers internal to the VMS.

Note. VMS rates are not visible to external suppliers.
External provider contacts view amounts that do not include VMS markup.

VMS markup fees are included on all supplier invoices for VMS managed work orders. These invoices are generated for the VMS supplier rather than the end supplier.

Common Elements Used in This Chapter

VMS (vendor managed services)	Provides a single point of contact for an enterprise for their services needs. A VMS provider can route approved service requests to multiple staffing services suppliers for fulfillment and then manage the work order, time reporting, and invoice settlement processes for those service companies.
Third Party Supplier	The service provider who performs the service works for a third party supplier.
Fully Loaded Rates	Includes both the supplier rate and the VMS markup rate.

Setting Up VMS

To define VMS by business unit and service type, use the VMS by Business Unit and Service Type (SPB_VMS_BUSRVC_LST) component.

To define VMS by business unit, use the VMS by Business Unit (SPB_VMS_BY_BU) component. To define VMS percent by business unit, use the VMS Percent by Business Unit (SPB_VMS_INFO_BU) component.

To define VMS details by supplier, business unit, and service type, use the VMS Details by Supplier, Business Unit, and Service Type (SPB_VMS_INFO_SRV) component.

To change the VMS service coordinator, use the Replace VMS Coordinator component (SPB_REPL_VMS_SC).

This section discusses how to:

Enable the VMS option for a Business Unit.
Define VMS suppliers by business unit.
Define VMS details by supplier and business unit.
Define VMS supplier by business unit and service type.
Define VMS details by supplier, business unit, and service type.

Pages Used to Set Up VMS

Page Name	Definition Name	Navigation	Usage
Services Procurement Bus Unit	BUS_UNIT_TBL_SP	Services Procurement, Define Services Procurement, General Setup, Business Unit Definitions, Services Procurement Defn Set Up Financials/Supply Chain, Business Unit Related, Services Procurement, Services Procurement Options	Define PeopleSoft Services Procurement business units. Define your own consolidation structures for accounting and reporting purposes.
VMS Supplier by Business Unit	SPB_VMS_BY_BU	Click the Manage VMS Supplier link on the Services Procurement Bus Unit page.	Define the effective-dated VMS vendor and vendor location information.
VMS Details by Supplier and Business Unit	SPB_VMS_INFO_BU	Click the Manage VMS Details button on the VMS Suppliers by Business Unit page.	Define effective-dated fees by percentage and assign related service coordinator or coordinator team for VMS by business unit.
VMS Supplier by Business Unit and Service Type	SPB_VMS_BU_SRVC	Click the VMS by BU and Service Type link on the Services Procurement Bus Unit page. Services Procurement, Define Services Procurement, Service Type Setup, VMS by BU and Serv Type	Use this page to indicate whether there is an override of the business unit VMS settings for this service type and view the current VMS supplier and location.
VMS Details by Supplier, Business Unit, and Service Type	SPB_VMS_INFO_SRVC	Click the Manage VMS Details button on the VMS Supplier by BU and Service Type page.	Use this page to define effective-dated VMS markups and assign related service coordinator or team by business unit and service type.

Enabling the VMS Option for a Business Unit

Access the Services Procurement Bus Unit page (Services Procurement, Define Services Procurement, General Setup, Business Unit Definitions, Services Procurement Defn).

Enable VMS

Select to determine whether requisitions or work orders are under VMS management by default. If you select this option, you can define markup costs that are charged by the VMS for service that do not have a service type level VMS override defined.

If you disable this option and there are existing VMS rows, the system populates a warning message to inform you that the VMS rows are ignored when creating new requisitions and work orders.

Note. VMS functionality is not available if you have selected the MSP installation option on the Services Procurement Installation Options page.

Note. If you select this option, you must define at least one VMS supplier and VMS fee for the designated business unit.

Defining VMS Suppliers by Business Unit

Access the VMS Supplier by Business Unit page (click the Manage VMS Supplier link on the Services Procurement Bus Unit page).

Effective Date

Enter the date to indicate when the rate is in effect. This date is used to determine the appropriate rate at the time services are performed for work order consumption and invoicing purposes.

VMS Supplier

Enter the name of the supplier that will provide vendor management for the specified business unit.

VMS Location

Enter the location of the supplier that will provide vendor management for the specified business unit.

Defining VMS Details by Supplier and Business Unit

Access the VMS Details by Supplier and Business Unit page (click the Manage VMS Details button on the VMS Suppliers by Business Unit page).

VMS Percent

Enter VMS fee percentage.

Service Coordinator

Select to identify a specific service coordinator as the VMS provider.

Service Coordinator Team

Select to identify an entire service coordinator team as the VMS team.

Coordinator

Select a specific service coordinator.

Note. This option only appears when the Service Coordinator option is selected.

Service Team

Select a specific team of service coordinators.

Note. This option only appears when the Service Coordinator Team option is selected.

Note. Rate based VMS fees are defined at the Service Type level only.

Defining VMS Suppliers by Business Unit and Service Type

Access the VMS Supplier by BU and Service Type page (click the VMS by BU and Service Type link on the Services Procurement Bus Unit page).

VMS Managed

Select an available effective-dated VMS managed option: Values include Yes, No, and BU (business unit).

Yes: If you select this option, the VMS Supplier and VMS Location fields, and the Manage VMS Details button is available.

Note. You must associate a VMS supplier and location, and related VMS details for the supplier, business unit, and service type when you select this option.

No: If you select this option, requisitions created for this effective date will not be VMS Managed.

BU: If you select this option, requisitions or work orders created for this effective date will follow the VMS setup defined at the Business Unit level.

Manage VMS Details

Click to access the VMS Details by Supplier, Business Unit, and Service Type page, where you can define rates and service coordinator or team for the VMS.

Defining VMS Details by Supplier, Business Unit, and Service Type

Access the VMS Details by Supplier, Business Unit, and Service Type page (click the Manage VMS Details button on the VMS Supplier by BU and Service Type page).

The markup types available depends on the selected service type. Deliverable and Multi Resource service types must have a markup type of Percentage, but resource service types can have a markup type of either Percentage or Rate. The other fields on the page vary based on the selected markup type. When the markup type is Percentage, the VMS Percent field appears on this page. However, when the markup type is Rate, the VMS Rate, Currency, and UOM (unit of measure) fields appear on this 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 of Rate for service types with a service method of Deliverable or Multi Resource. In this case, only percentage markups are available.

Processing VMS Transactions

This section discusses how to:

Use VMS with requisitions.
Use VMS with requisition management.
Use VMS with sourcing and bid management.
Use VMS with work orders.
Use VMS with invoices.

Pages Used to Process VMS Transactions

Page Name	Definition Name	Navigation	Usage
Create Requisition	SPF_REQ_INFO_PG	Services Procurement, Create Requisition	Enter basic service requisition information.
Manage Requisition	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.
Manage Sourcing	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.
Sourcing Selection	SPR_SOURCE_SELECT	Click the Sourcing Select button on the Manage Sourcing page.	Enter sourcing requirements.
Incoming Bids	SPF_SUP_COM_IN	Services Procurement, Maintain Bids (external)	View incoming bids.
Supplier Sourcing Review	SPF_SOUR_REVIEW_SP	Services Procurements, Review Reqs/Submit Bids (external)	Review requisitions sourced to the supplier.
Submit Bid	SPF_SUBMITAL_PAGE	Click the Submit Bid button on the Supplier Sourcing Review page.	Submit bids.
Supplier Bid Response	SPF_SUP_BIDRSP1	Click the Create Bid button on the Incoming Bids Summary - Inbox page.	Reply to bids.
Work Order - Service	SPF_WO_REQ_VEN_DT	Services Procurement, Manage Services Work Orders Click the Add button or select an existing work order link on the Manage Services Work Order page.	Enter work order detail information.
Work Order - Cost	SPF_WO_COST_PO_PG	Services Procurement, Manage Services Work Orders Click the Cost tab on the Work Order - Service page.	Enter cost information for the work order.
Create Batch Invoice	SPF_GEN_CLINV	Service Procurement, Services Settlement, Create Batch Invoices	Generate and print invoice.
Create Manual Invoice	SPF_INV_HDR_ADD	Services Procurement, Manage Invoices Enter Business Unit and/or Invoice ID and click the Add button on the Manage Invoices page.	Create invoice header information.
Manage Invoice - Line Summary	SPF_INV_LN_DTLS	Click the Edit button for an invoice on the Manage Invoice page.	Modify the selected invoice.
Manage Invoice Line Details	SPF_INV_TIME_DTL	For resource based invoices, click the Edit button on the Manage Invoices - Line Summary page.	View invoice line details and/or make adjustments.
Replace VMS Service Coordinator	SPB_REPL_VMS_SC	Services Procurement, Maintain Users, Replace VMS Coordinator Services Procurement, Define Services Procurement, User and Team Setup, Services User Setup, Replace VMS Coordinator Services Procurement, Define Services Procurement, User and Team Setup, Services User Setup Select a person ID in #3, and then click the Edit Service Provider link in 4. Click the Replace VMS Coordinator link.	Use this page to replace VMS service coordinators.

Using VMS with Requisitions

Access the Create Requisitions page (Services Procurement, Create Requisition).

If a requisition is under VMS management, the VMS rate, service coordinator or team ID, percentage information, and VMS supplier and supplier location fields appears on the requisition page. The system checks to ensure that the VMS option is specified at the BU or BU and Service type level.

Note. When the requisition is under VMS management, the fully loaded rate that displays on the requisitions includes VMS markups.

Using VMS with Requisition Management

Access the Manage Requisitions page (Services Procurement, Manage Requisitions).

This page displays fully loaded prices that include the VMS markup for requisition lines that are VMS managed.

Note. If a user has the role action to view the breakdown of VMS rates, the supplier rate, the VMS markup rate, and the fully loaded rate appear on the requisition.

See Also

Managing Service Requisitions

Using VMS with Sourcing and Bid Management

Access the Sourcing Selection page (Services Procurement, Review and Source Requisitions, and click the Sourcing Select button on the Manage Sourcing page).

This page displays fully loaded prices that include the VMS markup for requisition lines that are VMS Managed, as well as the breakdown between supplier rate and VMS markup.

The VMS breakdown also appears on the bid management pages for service coordinators and service provider contacts associated with the VMS supplier. Service provider contacts not associated with the VMS supplier only see the rate before VMS.

Using VMS with Work Orders

Access the Work Order - Details page.

This page displays VMS Managed information such as VMS supplier and supplier location. If the work order is not under VMS management, no VMS information appears on the work order. If a work order is linked to a requisition, all VMS information defaults onto the work order.

The rate that displays on the work order includes the VMS markup. The VMS markup calculation is based on the markup type defined for the business unit or service type and business unit.

Note. When the markup type is defined as percentage, the system fetches the effective-dated VMS percentage from the setup tables and overrides the requisition VMS percentage with the new effective date percentage on work order.

When the markup type is defined as rate, the system fetches the effective-dated VMS rate, currency, and unit of measure information from the setup tables and overrides the requisition VMS rate with the new effective date VMS rate on work order.

See Also

Managing Work Orders

Using VMS with Invoices

Access the Create Invoice page (click the Add button on the Manage Invoices page).

VMS Managed

Select to view VMS managed work order time and progress logs that are available for selection. All invoices for VMS managed work orders are consolidated for end suppliers under the same VMS supplier. Invoices are paid to the VMS supplier for all suppliers under their management.

Note. This option is only available if there is a VMS supplier selected.

See Also

Creating Invoices

Effective Date	Enter the date to indicate when the rate is in effect. This date is used to determine the appropriate rate at the time services are performed for work order consumption and invoicing purposes.
VMS Supplier	Enter the name of the supplier that will provide vendor management for the specified business unit.
VMS Location	Enter the location of the supplier that will provide vendor management for the specified business unit.

VMS Percent	Enter VMS fee percentage.
Service Coordinator	Select to identify a specific service coordinator as the VMS provider.
Service Coordinator Team	Select to identify an entire service coordinator team as the VMS team.
Coordinator	Select a specific service coordinator. Note. This option only appears when the Service Coordinator option is selected.
Service Team	Select a specific team of service coordinators. Note. This option only appears when the Service Coordinator Team option is selected.