Understanding the MSP Environment

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 these topics.

Term

Definition

Managed Services Provider (MSP)

An organization that manages the sourcing and filling of service requisitions on behalf of their customers.