Processing Renewals

Renewals Process Flow

The system performs these steps when processing renewals:

1. Retrieves all eligible renewable contract lines:

   • For automatic renewal processing, the system retrieves eligible renewable contract lines based on selection criteria or selected lines for automatic renewal processing.

   • For manual renewal processing, the system processes the selected renewal cycle and associated renewable contract lines.

2. Updates the cycle status for all the renewal cycles to which the renewable contract lines are attached.

   If the cycle status is Pending, the system sets the cycle status to Ready.

   Note: This step applies to Automatic renewals only.

3. Updates the status of all the renewal plans to which the cycle is attached to In Progress.

4. Calls the PeopleSoft Enterprise Pricer to obtain the price for the billing and revenue amounts for the new contract line. If the Separate Fixed Billing and Revenue check box is not selected on the target contract, then the revenue amount will equal the billing amount.

   The system passes all PeopleSoft Contracts price-by fields as well as the renewal cycle start date to PeopleSoft Enterprise Pricer. The amounts passed to PeopleSoft Enterprise Pricer differs based on the billing and revenue price basis options selected.

   Note: This step applies to Automatic renewals only.

5. Loads the billing and revenue discounts and surcharges to temporary tables and recalculates the amounts for percent based discounts/surcharges. If the Separate Fixed Billing and Revenue check box is not selected on the target contract, then the revenue discounts/surcharges will equal those used for billing. The process then validates whether the discount/surcharge is valid as of the renewal line start date and also whether valid accounting distributions can be created for those discounts/surcharges. If all validations are complete, the system proceeds to calculate the net billing amount and net revenue amount on the renewal line. If the Separate Fixed Billing and Revenue check box is not selected on the target contract, amounts for revenue on the renewal line will equal amounts used for billing.

6. Creates the renewal lines:

   • If one or multiple renewable contract lines are linked to the same cycle and Individual was selected for the Create Target Lines option for the renewal cycle, the system creates a new contract line for each renewable contract line.

   • If one or multiple renewable contract lines are linked to the same cycle and Consolidated was selected for the Create Target Lines option, the system creates one new contract line.

7. The process then updates the billing and revenue amounts on the contract header of the target contract with the amounts of the renewal lines that are created.

8. Updates the source renewable contract line status to Renewed.

9. Assigns the next cycle to the new contract line that the system created.

   This step occurs only if additional cycles are defined for the renewal plan.

   Note: If the next cycle of the renewal plan has the Create Target Lines option set to Consolidated and billing/revenue discounts or surcharges with the Apply at Renewal check box selected have been created for the renewal line, the system does not assign the renewal line to the next cycle. In the case of automatic renewals, if a renewal line has not been assigned to the next renewal cycle, the system displays a message in the message log.

10. Creates the accounting distribution for the new contract lines.

    The renewals process uses the value in the Accounting Distribution Option field on the Define Renewal Cycle page to determine whether to create the accounting distribution for the new contract line from the default or the source renewable contract line:

    • If the value in the Accounting Distribution Option field for the renewal cycle is Inherit from Line, the system uses the renewal cycle start date and the valid effective-dated row of the source renewable contract line's revenue, contract liability (if any), and contract asset accounting distribution based on the cycle start date to create revenue, contract liability, and contract asset accounting distribution for the new contract line.

      The renewal cycle start date replaces the effective date of the accounting distribution associated to the new contract line. The system also copies future-effective dated revenue, contract liability (if any), and contract asset accounting distribution of the source renewable contract line as the new contract line's accounting distribution.

      A message will be logged for contract lines for this accounting distribution option and if project ChartFields on the accounting distribution were not brought forward to the new renewal line. This will occur when the source contract line includes only project ID in the accounting distribution, but the target contract is configured to use project ChartFields.

    • If the value in the Accounting Distribution Option field for the renewal cycle is Default, the system examines the distribution rule for the PeopleSoft Contracts business unit to determine which distribution set to use for creating the revenue accounting distribution.

      If the contract liability recognition option is enabled at the product group level, the renewals process uses the revenue distribution code for a related contract liability distribution code when creating the contract liability accounting distribution. If no contract liability distribution code is associated with the revenue distribution code, no contract liability accounting distribution is created. If the contract asset distribution code is defined at the product group level and at the PeopleSoft Contracts business unit level, the renewals process uses the contract asset accounting distribution code defined at the product group level for creating the contract asset accounting distribution. If no contract asset is defined at the product group level, the renewals process uses the contract asset distribution code define at the PeopleSoft Contracts business unit level for creating the contract asset accounting distribution.

11. Creates the renewal line billing/revenue discounts and surcharges.

12. Creates the discount accounting distribution for the new contract lines.

    The renewals process uses the value in the Accounting Distribution Option field on the Define Renewal Cycle page to determine whether to create the discount accounting distribution for the new contract line from the default or the source renewable contract line:

    • If the value in the Accounting Distribution Option field for the renewal cycle is Inherit from Line and the discount has been specified for the source contract line, the system uses the renewal cycle start date and the valid effective-dated row of the source renewable contract line's discount accounting distribution based on the cycle start date to create the discount accounting distribution for the new contract line.

      The system uses the renewal line start date as the effective date of the new discount accounting distribution. The system also copies future effective dated discount accounting distributions from the source contract line for the discount created for the renewal line.

      A message will be logged for contract lines if project ChartFields on the accounting distribution were not brought forward to the new renewal line. This will occur when the source contract line includes only project ID in the accounting distribution, but the target contract is configured to use project ChartFields.

    • If the value in the Accounting Distribution Option field for the renewal cycle is Default or if the value in the Accounting Distribution Option field for the renewal cycle is Inherit From Line but the discount has not been specified for the source contract line, then the system uses the default distribution code specified for the discount to create the discount accounting distribution. The system uses the renewal line start date as the effective date for the new discount accounting distribution.

13. Calls the ChartField combination editing process to validate all accounting distributions.

14. If a billing plan template is defined on the run control (when the process is initiated from the Process Renewals run control page), the Renewals process uses this template to create the billing plan.

    Otherwise, the Renewals process uses the billing plan template defined for the renewal plan. If no billing plan template is defined for the renewal plan, the system uses the billing plan template defined for the product to create the billing plan. When the process is initiated from the Review Renewals page or Define Renewal Cycle page, if a billing plan template is defined for the renewal plan, the Renewals process uses this template to create the billing plan.

    If the Autoready Billing Plan option is selected for the renewal plan, the Renewals process creates the billing plan with a Ready status for the new contract line. Otherwise, the process creates the billing plan with a Pending status for the new contract line.

15. If a revenue plan template is defined on the run control (when the process is initiated from the Process Renewals run control page), the Renewals process uses this template to create the revenue plan.

    Otherwise, the Renewals process uses the revenue plan template defined for the renewal plan. If no revenue plan template is defined for the renewal plan, the system uses the revenue plan template defined for the product to create the revenue plan. When the process is initiated from the Review Renewals page or Define Renewal Cycle page, if a revenue plan template is defined for the renewal plan, the Renewals process uses this template to create the revenue plan.

    If the Autoready Revenue Plan option is selected for the renewal plan, the renewals process creates a revenue plan with a Ready status for the new contract line. Otherwise, the process creates a revenue plan with a Pending status for the new contract line.

16. If a billing plan detail template override is defined on the run control (when the process is initiated from the Process Renewals run control page), the Renewals process uses this template for the billing overrides in the billing plan.

    Otherwise, the Renewals process uses the billing plan detail template ID defined for the renewal plan. If no billing plan detail template is defined for the renewal plan, the system uses the billing plan detail template defined for the product for the billing overrides in the billing plan. When the process is initiated from the Review Renewals page or Define Renewal Cycle page, if a billing plan detail template ID override is defined for the renewal plan, the Renewals process uses this template for the billing overrides in the billing plan.

17. Set the renewal cycle status to Done.

18. If the Process Billing streamlining option is selected on the run control (when the process is initiated from the Process Renewals run control page) and at least one billing plan with a Ready status is associated with the new contract line, the Renewals process schedules the Contracts Billing Interface (CA_BI_INTFC) through the Process Scheduler after all contract lines are renewed.

    When the process is initiated from the Review Renewals page or Define Renewal Cycle page and if at least one billing plan with a Ready status is associated with the new contract line, the Renewals process schedules the Contracts Billing Interface (CA_BI_INTFC) through the Process Scheduler after all contract lines are renewed.

    Note: When the Contracts Billing Interface (CA_BI_INTFC) is scheduled by the Renewals process, only the billing plans for the newly created contract lines are processed.

Contract Options

Use the fields in this group box to limit the renewals data that is included in the run of this process. Filter by PeopleSoft Contracts business unit, contract type, sold to customer, or contract number. If you leave all fields blank, the process picks up all available renewals activity in PeopleSoft Contracts.

Billing Option

Renewals Options

Use the fields in this group box to limit the renewals data that is included in the run of this process. If you leave all fields blank, the process picks up all available renewals activity in PeopleSoft Contracts.

Override Templates

Streamline Processing Option