Understanding the PeopleSoft Transaction Billing Processor
PeopleSoft Transaction Billing Processor enables PeopleSoft FieldService, Support, Order Capture, and Lease Administration to integrate with PeopleSoft Billing and PeopleSoft General Ledger through the use of the PeopleSoft Contracts architecture. The integration enables PeopleSoft Customer Relationship Management (PeopleSoft CRM) users to bill and book revenue for recurring, one-time, and on-demand services. This integration enables PeopleSoft Lease Administration users to bill and book revenue for on-demand services.
This section discusses:
Integration with PeopleSoft products.
Integration across databases.
Transaction Billing Processor statuses.
PeopleSoft Contracts functionality used by PeopleSoft Transaction Billing Processor.
This section provides an overview of the integration between PeopleSoft Transaction Billing Processor and the following products:
PeopleSoft FieldService and PeopleSoft Support
PeopleSoft Order Capture
PeopleSoft Lease Administration
PeopleSoft FieldService and PeopleSoft Support
PeopleSoft Transaction Billing Processor enhances PeopleSoft FieldService and PeopleSoft Support by providing the functionality to bill customers and account for their services. PeopleSoft FieldService and PeopleSoft Support send recurring, one-time, and on-demand transactions to PeopleSoft Transaction Billing Processor. Various fees are sent to the PeopleSoft Transaction Billing Processor including agreement fees, service order fees, and case fees. The recurring and one-time transactions from PeopleSoft FieldService and PeopleSoft Support are always tied to an agreement. The on-demand transactions are not tied to an agreement.
See PeopleSoft Integrated Field Service
See PeopleSoft CRM Call Center Applications
PeopleSoft Order Capture
PeopleSoft Transaction Billing Processor integrates with PeopleSoft Order Capture and enables you to create invoices and recognize revenue for PeopleSoft Order Capture's service products. PeopleSoft Order Capture integrates with the PeopleSoft Transaction Billing Processor in a similar way to PeopleSoft FieldService and PeopleSoft Support with the exception that PeopleSoft Order Capture transactions do not have to be tied to an agreement.
PeopleSoft Order Capture sends recurring and one-time transactions to PeopleSoft Transaction Billing Processor. PeopleSoft Order Capture does not use on-demand transactions.
Note: PeopleSoft Order Capture never shares the same contract with PeopleSoft FieldService or PeopleSoft Support even if they have the same sold to customer.
Here are the highlights of the PeopleSoft Order Capture integration with the PeopleSoft Transaction Billing Processor that are unique to PeopleSoft Order Capture:
PeopleSoft Order Capture can send several types of product fee transactions such as recurring and one-time fees.
You can include all transactions in one order or you can send them on separate orders.
PeopleSoft Order Capture does not send the start date and end date in the contract request message for the contract line.
This allows the contract line to last indefinitely.
PeopleSoft Transaction Billing Processor controls the timing of sending PeopleSoft Order Capture recurring fee transactions to PeopleSoft Billing for invoicing and to GL for revenue recognition.
PeopleSoft Order Capture does not send a message to the PeopleSoft Transaction Billing Processor to close the contract.
This is a manual process that must occur in the PeopleSoft Transaction Billing Processor.
PeopleSoft Order Capture's hard good products are billed through PeopleSoft Order Management and their engagement services are billed through PeopleSoft Proposal Management.
These transactions are not billed through the PeopleSoft Transaction Billing Processor.
See PeopleSoft Order Management documentation.
PeopleSoft Lease Administration
PeopleSoft Transaction Billing Processor enhances PeopleSoft Lease Administration by providing the functionality to bill and book revenue for lease transactions. PeopleSoft Lease Administration focuses on lease management where a company can be the lessee and/or the lessor. Lessor can bill and recognize leasing revenue through the integration with PeopleSoft Transaction Billing Processor.
PeopleSoft Lease Administration sends three types of transactions to the PeopleSoft Transaction Billing Processor:
Term |
Definition |
|---|---|
Invoices |
Invoices utilize the PeopleSoft Transaction Billing Processor's on-demand process to perform billing functions. This involves sending transactions through the PeopleSoft Transaction Billing Processor's interface programs which create a contract and billing plan and automatically initiates the Contracts Billing Interface process (CA_BI_INTFC). Note: You must set up accounting rules prior to sending transactions to the PeopleSoft Transaction Billing Processor. |
Straightline Accounting |
Straightline accounting utilizes the PeopleSoft Transaction Billing Processor's accounting rules only. PeopleSoft Lease Administration uses the accounting rules to determine the accounting entries for the accruals and deferrals that result from straight-lining PeopleSoft Lease Administration transactions. PeopleSoft Lease Administration obtains the appropriate accounting entries from the accounting rules and handles the processing to send the entries to PeopleSoft General Ledger. |
Payments |
Payments utilize the PeopleSoft Transaction Billing Processor's accounting rules only. PeopleSoft Lease Administration obtains the appropriate accounting entries from the accounting rules and handles the processing to send the entries to Accounts Payable. |
The integration begins outside of the PeopleSoft Transaction Billing Processor application. Upon saving a transaction in PeopleSoft CRM or PeopleSoft Lease Administration, the system creates a corresponding contract and contract line in PeopleSoft Contracts through the PeopleSoft Transaction Billing Processor. Transactions are sent from PeopleSoft CRM and PeopleSoft Lease Administration to the PeopleSoft Transaction Billing Processor and stored in the PeopleSoft Contracts Interface tables. PeopleSoft Transaction Billing Processor utilizes the PeopleSoft Contracts rate-based functionality and bills charges on an as-incurred basis. The transaction information is then forwarded to PeopleSoft Billing as bill lines for invoice generation. The PeopleSoft Transaction Billing Processor manages the appropriate timing of sending these transactions to PeopleSoft Billing.
The following table provides the correlation between the PeopleSoft product that integrates with the PeopleSoft Transaction Billing Processor and the applicable transaction types for the product:
|
Product |
Recurring |
One-Time |
On-Demand |
|---|---|---|---|
|
PeopleSoft FieldService |
X |
X |
X |
|
PeopleSoft Support |
X |
X |
X |
|
PeopleSoft Order Capture |
X |
X |
|
|
PeopleSoft Lease Administration |
X |
From PeopleSoft CRM and PeopleSoft Lease Administration transactions, the system creates contracts and contract lines in the PeopleSoft Transaction Billing Processor application. The contract lines are associated with revenue plans for revenue recognition. For one-time transactions, the revenue method is as-incurred. However, recurring and on-demand transactions do not utilize revenue plans for revenue recognition. PeopleSoft Billing manages revenue for those transactions.
The following table provides the correlation between transaction type, product that manages revenue, and the PeopleSoft Contracts revenue recognition method:
|
Transaction Type |
Product Managing Revenue |
Revenue Recognition Method |
|---|---|---|
|
Recurring |
PeopleSoft Billing |
Billing Manages Revenue |
|
One-time |
PeopleSoft Contracts |
As-Incurred |
|
On-Demand |
PeopleSoft Billing |
Billing Manages Revenue |
This section discusses the following transaction types:
Recurring transactions
One-time transactions
On-demand transactions
Recurring Transactions
PeopleSoft CRM uses the PeopleSoft Transaction Billing Processor for the Billing Manages Revenue revenue recognition structure, billing cycle, schedule details, and accounting rules for their recurring transactions. Through this integration, PeopleSoft CRM can create invoices and recognize revenue to the general ledger. In addition, you can apply agreement-based uplifts or discounts as separate transactions, as well as taxes to the billable amount and process the transactions through user-defined invoice formats.
The system uses the information contained in the PeopleSoft CRM agreement or order as default values to create the contract header, contract line, billing plan, and revenue plan in the PeopleSoft Transaction Billing Processor.
Once created, the PeopleSoft Transaction Billing Processor sends the contract and contract line number back to PeopleSoft CRM to add this information to the PeopleSoft CRM agreement or order. In addition, the contract line stores the PeopleSoft CRM agreement and renewal numbers, if applicable, and uses this information for processing.
When PeopleSoft CRM sends recurring transactions to the PeopleSoft Transaction Billing Processor, the transactions are sent with an amount, start date, end date, and schedule. Based on this information, the PeopleSoft Transaction Billing Processor expands the transactions for each schedule. The schedules allow the user to book contract liability when the transaction is billed and later recognize the appropriate amount of revenue for each period.
For adjustments to transactions after billing has occurred or revenue has been recognized, the PeopleSoft Transaction Billing Processor creates reversal transactions for the original amounts, and creates new transactions for the adjusted amounts. Both the reversal and the new transactions will appear on the invoice. Therefore, the net amount on the invoice is the difference between what has already been billed and the adjustment that has been made.
For adjustments to transactions before billing has occurred or revenue has been recognized, the PeopleSoft Transaction Billing Processor replaces the original transactions with the new transactions for the adjusted amounts.
Note: For recurring transactions, you must define a schedule on the Schedules page and select your revenue proration options on the Contracts Definition - Processing Options page for the PeopleSoft Transaction Billing Processor to process the transactions.
Note: In the case of a PeopleSoft CRM renewal, the PeopleSoft Transaction Billing Processor adds a new contract line to the existing contract instead of creating a new contract and contract line.
Note: Recurring transactions are applicable to PeopleSoft Field Service, Support, and Order Capture.
One-Time Transactions
PeopleSoft CRM uses the PeopleSoft Transaction Billing Processor for the As-Incurred revenue recognition structure, billing and accounting rules for their one-time transactions. Through this integration, PeopleSoft CRM can create invoices and recognize revenue to the general ledger. In addition, you can apply agreement-based uplifts or discounts as separate transactions, as well as taxes to the billable amount and process the transactions through user-defined invoice formats.
The functionality for one-time transactions is similar to that for recurring transactions. However, for one-time transactions, revenue is managed by PeopleSoft Contracts through the PeopleSoft Transaction Billing Processor instead of by PeopleSoft Billing. Managing revenue through PeopleSoft Contracts provides you with the option to recognize revenue before processing billing. For one-time transactions, you process billing and revenue through the Process As Incurred Billing and Process Project Accounting (as incurred revenue) run control pages respectively.
Note: One-time transactions are applicable to PeopleSoft Field Service, Support, and Order Capture.
On-Demand Transactions
PeopleSoft FieldService, Support, and Lease Administration send on-demand-fee transactions to the PeopleSoft Transaction Billing Processor in order to utilize the PeopleSoft Contracts functionality to bill and book revenue. PeopleSoft Transaction Billing Processor initiates billing processing, sends the transactions to PeopleSoft Billing, and PeopleSoft Billing completes both revenue and billing processing for on-demand transactions. On-demand transactions are one-time transactions and are never associated with an agreement.
On-demand transactions use functionality similar to recurring and one-time transactions. The same messages and interface tables are used and much of the same setup is required. However, revenue recognition for all on-demand transactions is managed by PeopleSoft Billing through the Contracts Billing Interface (CA_BI_INTFC) process. In addition, contract liability is not applicable for on-demand transactions.
For on-demand transactions, the PeopleSoft Transaction Billing Processor launches the revenue and billing processes immediately after the on-demand transaction loads into the contract staging table (INTFC_CA) without any manual intervention.
Note: On-demand billing is specific to PeopleSoft FieldService, Support, and Lease Administration.
Note: On-demand transactions differ from other one-time transactions, because they are never tied to an agreement and the revenue is managed by PeopleSoft Billing instead of PeopleSoft Contracts. In addition, there is no visibility or access to on-demand contracts from within the PeopleSoft Contracts application.
Here are the contract statuses:
Term |
Definition |
|---|---|
Active |
A contract is created in Active status if the associated billing and revenue plans are in Ready status and no errors exist for the associated transaction in PeopleSoft CRM or PeopleSoft Lease Administration. The contract can now accept transactions from PeopleSoft CRM and PeopleSoft Lease Administration. Note: PeopleSoft CRM and PeopleSoft Lease Administration initiate the transaction that sets the contract to Active status by sending a message to the PeopleSoft Transaction Billing Processor. |
Closed |
A contract can be set to Closed status when the agreement and agreement lines associated with the contract are in Closed status (all transactions associated with the agreement have been sent to PeopleSoft Billing and PeopleSoft General Ledger). When you attempt to set a contract to Closed status, the system checks to ensure the revenue and billing plans associated with the contract are complete. You initiate the closure of a contract from the PeopleSoft Transaction Billing Processor. You have the option of closing a contract when all associated transactions have been billed and have had their revenue recognized. Closing a contract is a manual process. The agreement becomes read-only when the status is set to Closed for the contract and agreement. Note: A contract can no longer accept transactions from PeopleSoft CRM once it has been closed. Note: An on-demand contract never reaches Closed status, because you cannot access it from the PeopleSoft Transaction Billing Processor. |
PeopleSoft Transaction Billing Processor shares architecture and limited functionality with PeopleSoft Contracts. Here is a list of PeopleSoft Contracts functionality that the PeopleSoft Transaction Billing Processor supports.
Accounting rules.
GL Journal inquiry.
As-incurred billing plans.
As-incurred billing processing.
As-incurred billing management.
Contract entry and amendments.
Internal notes.
Product IDs.
Contract Summary.
My Contracts.
As-incurred revenue plans.
As-incurred revenue processing.
As-incurred revenue management.
Revenue redistribution.
Email notifications.
Note: Contracts created using the Transaction Billing Processor do not separate billing and revenue. Both the Separate As Incurred Billing and Revenue and Separate Fixed Billing and Revenue selections are set to unchecked.