Pricing Renewal Plans
This section provides an overview of renewal pricing and lists the pages used to price renewal plans. Here are the steps required to set up PeopleSoft Enterprise Pricer for renewals pricing:
Set up price list (optional).
Set up price rules.
Set up arbitration plan.
Select price basis options for billing and revenue.
Page Name |
Definition Name |
Usage |
---|---|---|
EOEP_PRICE_LIST |
Define a price list. You can set up price lists in multiple currencies and create start and end dates for each product's price. Set up this page if you want to use the list price in PeopleSoft Enterprise Pricer instead of the product's list price. |
|
EOEP_CONDITION |
Select the price-by fields, values for the price-by fields, and the operator that determines how the price-by fields are related to the transaction. |
|
EOEP_FORMULA |
Define the actions that take place when the price rule conditions are met. |
|
EOEP_ARB_PLAN |
Define how price rules apply to the base or list price when pricing a transaction. |
|
CA_RNW_CYCLE2_PNL |
Select the price basis options for billing and revenue. |
PeopleSoft Contracts uses the PeopleSoft Enterprise Pricer to price renewals. The system uses the price returned from the PeopleSoft Enterprise Pricer multiplied by the quantity as the renewal amount for the new contract line.
You have ability to set up additional PeopleSoft Enterprise Pricer rules for your system. These rules provide you with greater pricing flexibility for calculating the renewal line amounts. With the additional rules set up for PeopleSoft Enterprise Pricer, you can specify the percent increase or decrease for the renewal cycle in addition to the price basis for billing and revenue and quantity. You specify the price basis for billing and revenue on the Define Renewal Cycle page. If the Separate Fixed Billing and Revenue check box is selected for the target contract of the renewal plan then you can select a Price Basis for Revenue amount else the value for this field will be same as the Price Basis For Billing field and the revenue amount will be same as the billing amount. A link on the Define Renewals Cycle page takes you to the Price Rules Maintenance page in PeopleSoft Enterprise Pricer, where you can enter the percent increase or decrease. The Renewals process uses the price returned from the PeopleSoft Enterprise Pricer multiplied by the quantity as the renewal amount for billing and revenue for the new contract line.
The renewal price can be based on one of the following price bases:
For Billing:
A renewal billing amount itself (you cannot increase or decrease this renewal amount).
Percent increase or decrease of:
Contract Line Billing Amount
Contract Line List Price
Contract Line Net Billing Amount
Then Current List Price
User-entered Amount
For Revenue:
A renewal revenue amount itself (you cannot increase or decrease this renewal amount).
Percent increase or decrease of:
Contract Line Revenue Amount
Contract Line List Price
Contract Line Net Revenue Amount
Then Current List Price
User-entered Amount
Note: The Revenue Amount Details will be same as the Billing Amount Details if the Separate Fixed Billing and Revenue check box is not selected for the target contract.
For pricing renewals, additional PeopleSoft Enterprise Pricer setup may be required. If you want to use the price increase or decrease option, you must set up the Price Rule and Arbitration Plan in PeopleSoft Enterprise Pricer for pricing to function correctly. If you select Then Current List Price for the price basis for billing or revenue on the Define Renewal Cycle page, you have the option to set up the Price List in PeopleSoft Enterprise Pricer. If you do not set up the Price List in PeopleSoft Enterprise Pricer, the PeopleSoft Enterprise Pricer returns the PeopleSoft Order Management product's list price. PeopleSoft Contracts uses the price returned from the PeopleSoft Pricer multiplied by the quantity for the renewal line billing and revenue amounts. Whether or not you set up additional PeopleSoft Enterprise Pricer rules, the system uses the price returned from the PeopleSoft Enterprise Pricer multiplied by the quantity as the renewal billing/revenue amounts for the new contract line.
When pricing manual renewals by clicking the Reprice button on the Define Renewal Cycle page, PeopleSoft Contracts passes the renewal plan, cycle number, product, and renewal start date to PeopleSoft Enterprise Pricer. The amount passed to PeopleSoft Enterprise Pricer differs for the various price basis for billing and revenue options:
If you select Individual for the Create Target Lines option, the system overwrites the value in the Billing Amount and Revenue Amount fields in the Target Lines grid on the Define Renewal Cycle page with the price returned from PeopleSoft Enterprise Pricer.
If you select Consolidated for the Create Target Lines option and the price basis for billing is Contract Line Billing Amount, Contract Line List Price, or Contract Line Net Billing Amount, the system overwrites the value in the Billing Amount field of the target line with the sum of the returned price of the source renewable contract lines.
If you select Consolidated for the Create Target Lines option and the price basis for revenue is Contract Line Revenue Amount, Contract Line List Price, or Contract Line Net Revenue Amount, the system overwrites the value in the Revenue Amount field of the target line with the sum of the returned price of source the renewable contract lines.
If you select Consolidated for the Create Target Lines option and the price basis for billing is Then Current List Price or User-entered Amount, the system overwrites the value in the Billing Amount field of the target line with the price returned from PeopleSoft Enterprise Pricer.
If you select Consolidated for the Create Target Lines option and the price basis for revenue is Then Current List Price or User-entered Amount, the system overwrites the value in the Revenue Amount field of the target line with the price returned from PeopleSoft Enterprise Pricer.
Note: You must click the Reprice button on the Define Renewal Cycle page to price the renewable contract lines before running the manual Renewals process (click the Approve button on the Define Renewal Cycle page).
The automatic renewals process passes the same parameters when calling PeopleSoft Enterprise Pricer as the manual process described previously.
Note: If the Separate Fixed Billing and Revenue check box is selected for the target contract and the price basis for revenue is User-entered Amount, then the Revenue Amount field is available for entry. If the Separate Fixed Billing and Revenue check box is not selected and the price basis for revenue is User-entered Amount, then this field will be display only and the value will be same as the Billing Amount field value.
Enterprise Pricer Pricing Elements
PeopleSoft Enterprise Pricer consists of pricing elements that you use to create your pricing structure:
Term |
Definition |
---|---|
Price Lists |
These enable you to select products and conditions where the price list applies to a transaction. During a transaction, the system either determines the product price based on your predefined search hierarchy for the transaction or the product's lowest price on any associated active price lists. This price is used as the basis for any further discounts and surcharges. |
Price Rules |
These define the conditions that must be met for the adjustments to be applied to the base price. Multiple rules can apply when conditions of each rule are met. Warning! When setting up price rules for PeopleSoft Enterprise Pricer, select the Line option in the Rollup By field in the Rules Attributes section of the Formulas page. PeopleSoft Contracts supports this Line option only. |
Arbitration Plans |
These define how the price rules are to be applied to the base price when the transaction is priced. |
Price Basis for Billing and Revenue for PeopleSoft Enterprise Pricer
PeopleSoft Contracts price-by fields include: business unit, contract number, contract type, region code, sold to customer ID, address sequence number, product group, renewal plan, renewal plan cycle, ship to customer ID, and contract sign date. In addition, PeopleSoft Contracts also passes the product ID of the target line as part of the price-by fields.
The following table shows the information that passes back and forth between PeopleSoft Contracts and PeopleSoft Enterprise Pricer based on the price basis:
Price Basis for Billing/Revenue |
Information Flow Between Contracts and Enterprise Pricer |
---|---|
Contract Line Billing Amount Contract Line Revenue Amount |
|
Contract Line Net Billing Amount Contract Line Net Revenue Amount |
|
Contract Line List Price |
|
Then Current List Price |
|
User-entered Amount |
|
Note: If you do not set up the price rule and arbitration plan in PeopleSoft Enterprise Pricer, Step 2 in the preceding table does not occur. Instead, PeopleSoft Enterprise Pricer returns the same amount for each renewable contract line that PeopleSoft Contracts passed to PeopleSoft Enterprise Pricer back to PeopleSoft Contracts.
Note: In all of the above cases, the revenue amounts are not passed to PeopleSoft Enterprise Pricer if the Separate Fixed Billing and Revenue option is not selected for the target contract of the renewal plan. Instead the billing amount returned by PeopleSoft Enterprise Pricer is also used for the revenue amount.