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Working with On-Demand Billing

This topic provides an overview of on-demand billing and discusses how to set up on-demand billing transactions.

Page Name

Definition Name

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Usage

Installation Options - Installed Products

INSTALLATION_FS

select Set Up Financials/Supply Chain, then select Install, then select Installation Options

Click the Products link in the General Options group box.

Select the Contracts Transaction Billing check box to indicate that this product is installed on the system.

Contracts Definition - BU Definition

BUS_UNIT_TBL_CA

select Set Up Financials/Supply Chain, then select Business Unit Related, then select Contracts, then select Contracts Definition, then select BU Definition

Create a new PeopleSoft Contracts business unit definition or manage an existing business unit.

Contracts Definition - BU Options

BUS_UNIT_OPT_CA

select Set Up Financials/Supply Chain, then select Business Unit Related, then select Contracts, then select Contracts Definition, then select BU Options

Select a bill plan template ID to use to override the fields on the billing plan (optional). If you select a template on this page, when the billing plan is created the billing plan detail template overrides the corresponding fields on the billing plan.

Contract Status

CA_STATUS_PNL

select Set Up Financials/Supply Chain, then select Product Related, then select Contracts, then select General Options, then select Contract Status

Define contract statuses and map them to processing statuses. The system uses the contract status to control all processing that can occur against a contract.

CRM Accounting Rules

CA_ACCT_CRM

select Customer Contracts, then select Create and Amend, then select CRM Acct Distribution

Define the accounting rules to apply to PeopleSoft CRM transactions. Set up the accounting rules for on-demand transactions to ensure that the system enables only one REV row per transaction.

This topic discusses:

  • Overview

  • Setup

  • Contract creation and processing

  • Integration points

  • Error handling

Note: On-demand billing is specific to PeopleSoft CRM FieldService and CRM Support.

Overview

On-demand billing provides back office processing for one-time fee transactions for service orders and cases. These transactions are not linked to agreements. The fees are usually one-time fees that are billed to the customer. Through an integration with the Transaction Billing Processor, you can bill and book revenue for on-demand service fees for cases and service orders.

Note: PeopleSoft CRM enables the system to bill on-demand transactions through the Transaction Billing Processor. The same messages and interface tables are used. Revenue recognition for on-demand transactions is managed by PeopleSoft Billing through the Contracts Billing Interface (CA_BI_INTFC) process.

Here is an overview of the on-demand functionality:

  • Through PeopleSoft Contracts, on-demand cases and service orders are processed through the Transaction Billing Processor and General Ledger for billing and revenue.

  • PeopleSoft CRM identifies a transaction as on demand when passing the transaction from PeopleSoft CRM to the Transaction Billing Processor.

  • Closure of a service order or case in PeopleSoft CRM triggers the sending of transaction information from PeopleSoft CRM to the Transaction Billing Processor.

    PeopleSoft CRM determines whether a new contract is created or if an existing contract is used based on the sold to customer. PeopleSoft CRM requests one on-demand contract per sold to customer and PeopleSoft Contracts business unit mapping.

  • The Transaction Billing Processor launches the revenue and billing processes immediately after the on-demand transaction loads into the contract staging table (INTERFACE_CA) without any manual intervention.

  • If a failure occurs during the creation of the contract or during processing of the on-demand transaction, the system does not create the contract or process the transaction.

    The system sends an error message to PeopleSoft CRM with the failure reason. In this case, you must resubmit the transaction.

Note: The Transaction Billing Processor allows no visibility to on-demand contract lines in any components, processes, or reports. Deferred revenue is not applicable for on-demand transactions.

Setup

To implement on-demand transaction processing, you must set up:

  • PeopleSoft Contracts business units.

  • Contract statuses.

  • Accounting definitions.

  • Accounting rules.

  • Billing plan detail template (optional).

Before creating on-demand contracts, set up the contract business unit and contract status. Additionally, you must set up the accounting rules for on-demand transactions to ensure that the system allows only one REV row per transaction. You must also select the Transaction Billing check box on the Installed Products page.

You have the option to create a billing plan detail template to populate or override the fields on the billing plan. Select the billing plan detail template on the Contract Definition - BU Options page. If you select a template on this page, the billing plan detail template populates or overrides the corresponding fields on the billing plan when the billing plan is created.

Contract Creation and Processing

PeopleSoft Integrated FieldService and Support send one-time fee transactions to the Transaction Billing Processor to use the contracts functionality to bill and book revenue. The Transaction Billing Processor initiates billing processing and completes both revenue and billing processing for on-demand transactions.

The system completes these steps to create and process on-demand transactions through the Transaction Billing Processor:

  1. If the service order or case is not covered by an agreement, the system sends the transaction to the Transaction Billing Processor as an on-demand transaction when a PeopleSoft CRM Support case or FieldService service order is closed.

  2. The first time PeopleSoft CRM creates an on-demand service order or case, the system searches for the sold to customer or PeopleSoft Integrated FieldService or Support business unit to map to the PeopleSoft Contracts business unit and contract number.

    If the search does not find a mapping, PeopleSoft CRM sends a contract request message (CONTRACT_REQUEST) to the Transaction Billing Processor to create a new on-demand contract. PeopleSoft CRM sends a contract request message only when the system needs to create a new contract. The request message from PeopleSoft CRM specifies the transaction type (service order or case).

  3. The Transaction Billing Processor creates an on-demand contract and sends a contract response message (CONTRACT_RESPONSE) to PeopleSoft CRM providing the contract business unit, contract number, contract line number, error status, and error message.

    The system creates the contract and contract lines, including an As-incurred billing plan, using the CA_HDR_CI component interface. On success, the Transaction Billing Processor responds to PeopleSoft CRM with the new contract number.

  4. On receipt of the contract response message, PeopleSoft CRM sends the transaction to the Transaction Billing Processor through a transaction message (CONTRACT_TXN) with all necessary data for the invoicing and booking revenue.

    In the transaction message, the contract number identifies a particular contract. Each transaction is unique and is marked by its own transaction ID (CA_TXN_ID). For all future transactions for the same sold to customer, only the transaction (through the transaction message) is sent to the Transaction Billing Processor.

  5. the Transaction Billing Processor retrieves the transaction data and loads the on-demand transaction from PeopleSoft CRM into the contract staging tables (INTFC_CA).

    Loading the contract staging tables triggers both the revenue process to apply the revenue to the appropriate account and billing process to generate the invoice to run. The transaction populates the contract interface tables, initiates the Billing Interface process (CA_BI_INTFC), and prepares the transaction for billing processing. Revenue recognition is handled by PeopleSoft Billing.

    If errors occur during processing, the system sends a reply message to PeopleSoft CRM containing the contract business unit, contract number, contract line number, CRM identifier, and status indicating that the process failed.

    If the transaction posts successfully to both PeopleSoft General Ledger and PeopleSoft Billing, the system sends a reply message to PeopleSoft CRM containing the contract business unit, contract number, contract line number, CRM identifier, and status indicating that the process succeeded. The response message is CONTRACT_RESPONSE for both request and transaction messages, and it contains the appropriate success and failure codes and descriptions.

  6. The CRM transaction changes the billing status from submitted to completed . This action marks the end of the PeopleSoft CRM processing. Contracts that are created for on-demand transactions are not visible in the front end on the Transaction billing Processor.

  7. PeopleSoft Billing runs the Billing Interface and Finalization processes.

Integration Points

These are the four major steps in the integration process between PeopleSoft CRM and PeopleSoft Contracts for on-demand contracts:

  1. Create a billing plan.

  2. Create a contract.

  3. Populate the Contracts interface tables.

  4. Process billing.

Creating a billing plan, creating a contract, and populating the interface table are the same steps that occur with agreement-based processing. These steps use the contract request (CONTRACT_REQUEST and CONTRACT_RESPONSE) and transaction (CONTRACT_TXN) messages. The last step, process billing, differs from agreement-based transactions since billing for on-demand contracts takes place immediately through PeopleSoft Billing.

With agreement-based billing, you have control over the billing plan in PeopleSoft Contracts, and you can make changes to the contract before it goes to PeopleSoft Billing for processing. The on-demand process uses the same integration points as agreement-based transactions.

Error Handling

Errors can occur during the contract and billing plan creation process, when the system loads the staging table, or when the system runs the revenue and billing processes. The Transaction Billing Processor initiates billing processing and sends the transactions to PeopleSoft Billing. PeopleSoft Billing completes both the revenue and billing processing for on-demand transactions.

Here is how the system handles errors:

  • If a failure occurs during contract creation, the system creates the contract in a cancelled status and a response is sent back to PeopleSoft CRM with a message stating the nature of the error.

    Once you correct the error manually, you must resubmit the transaction.

  • If a contract was successfully created and is ready for billing, but the transaction fails to populate the contract interface tables, the transaction is not created, and the response message sends an error message back to PeopleSoft CRM stating the cause of the error.

    Once you correct the problem manually, you must resubmit the transaction. PeopleSoft CRM resubmits only the Contract Transaction message since the contract has already been created.

  • If errors are triggered during the revenue or billing processes, each process sends a response message back to PeopleSoft CRM with the failure and message.

    Once you correct the problem manually, you must resubmit the transaction. PeopleSoft CRM resubmits only the Contract Transaction message since the contract has already been created.

This topic lists the pages used to set up on demand transactions in PeopleSoft Financials and Supply Chain Management.

Use the Installation Options - Installed Products page (INSTALLATION_FS) to select the Contracts Transaction Billing check box to indicate that this product is installed on the system.

Navigation

select Set Up Financials/Supply Chain, then select Install, then select Installation Options

Click the Products link in the General Options group box.

See Also

PeopleSoft FSCM: Application Fundamentals, “Setting Installation Options for PeopleSoft Applications”

Use the Contracts Definition - BU Definition page (BUS_UNIT_TBL_CA) to create a new PeopleSoft Contracts business unit definition or manage an existing business unit.

Navigation

select Set Up Financials/Supply Chain, then select Business Unit Related, then select Contracts, then select Contracts Definition, then select BU Definition

For detailed instructions, refer to PeopleSoft FSCM: Contracts, “Defining PeopleSoft Contracts Business Units”.

Use the Contracts Definition - BU Options page (BUS_UNIT_OPT_CA) to select a bill plan template ID to use to override the fields on the billing plan (optional).

If you select a template on this page, when the billing plan is created the billing plan detail template overrides the corresponding fields on the billing plan.

Navigation

select Set Up Financials/Supply Chain, then select Business Unit Related, then select Contracts, then select Contracts Definition, then select BU Options

For detailed instructions, refer to PeopleSoft FSCM: Contracts, “Defining PeopleSoft Contracts Business Units”.

Use the Contract Status page (CA_STATUS_PNL) to define contract statuses and map them to processing statuses.

The system uses the contract status to control all processing that can occur against a contract.

Navigation

select Set Up Financials/Supply Chain, then select Product Related, then select Contracts, then select General Options, then select Contract Status

For detailed instructions, refer to PeopleSoft FSCM: Contracts, “Defining PeopleSoft Contracts Business Units”.

Use the CRM Accounting Rules page (CA_ACCT_CRM) to define the accounting rules to apply to PeopleSoft CRM transactions.

Set up the accounting rules for on-demand transactions to ensure that the system enables only one REV row per transaction.

Navigation

select Customer Contracts, then select Create and Amend, then select CRM Acct Distribution

For detailed instructions, refer to PeopleSoft FSCM: Contracts, “Setting Up the PeopleSoft Transaction Billing Processor”.