Prepaid Balance Processing
Processing prepaids involves the following Application Engine processes throughout the system:
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Contracts Billing Interface process.
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Utilization Engine process, which is called automatically from the Contracts Billing Interface process.
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Billing to Projects process.
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Prepaid Update process, which is called automatically from the Billing to PC/CA Interface process.
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Contracts to GL process (rate-based revenue process).
Initial Prepaid Billing Process (Contracts Billing Interface Process)
This process handles the initial prepaid very similar to a fixed-amount contract line. The timing and percentage to be billed depends on the status and events of the billing plan that is assigned to the prepaid. The amount itself, as well as the contract liability accounting information, comes from the CA_PREPAID_TBL. The billing information is then sent to INTFC_BI, where it awaits the Billing Interface (BIIF0001).
Prepaid Utilization Process
After the Contracts Billing Interface process selects and processes project billing activity, but prior to sending the activity to billing, the Prepaid Utilization process is called. This process considers all active prepaid balances and the utilization criteria that is defined. Then, of the active prepaids, the process selects only the prepaid balances that have had at least one event on the initial billing plan where the invoice has been finalized. The billing activity is then matched up against this data. If a match is found and an available balance exists, a new utilization row is created. If more than one match is found, the prepaid balance with the lowest-use sequence number is selected. As utilization rows are created, the committed amount in the CA_PREPAID_TBL is updated to reflect the prepaid amount that is committed to be utilized. When the process finishes, the Contracts Billing Interface process inserts the utilization rows, along with the billing rows, into the INTFC_BI table.
Note:
The Prepaid Utilization process also considers prepaid tax implications. If the initial prepaid includes ship to and ship from countries that are different from that of the billing activity, utilization rows are not created. For complex tax situations, in which the utilization may span many ship to and ship from combinations and you choose to tax upon the initial prepaid, split the prepaid into separate prepaid amounts and define utilization for each amount to specific contract lines.
Note:
If you selected the Tax on Utilization option for prepaid tax timing, utilization occurs prior to the initial billing plan being sent to PeopleSoft Billing and finalized. The utilization occurs after the bill plan has been created, and it does not have to have been processed.
The initial billing plan must still have been created before you set the prepaid status to Ready. In addition, before you allow the prepaid status to become complete, the initial billing plan must be processed and finalized.
Billing to Projects Process
After a bill is finalized, you run the Billing to PC/CA Interface process to update PeopleSoft Project Costing with actual billing information. This may include billing adjustments, credits, rebills, or utilization. Utilization data is ultimately written back to PROJ_RESOURCE as analysis types UTL and UAJ.
Prepaid Update Process
During the Billing to PC/CA Interface Process, the Prepaid Update Process is called. This process reduces the committed amount and remaining amount in the CA_PREPAID_TBL, based on the utilization being sent back to PeopleSoft Project Costing.
Contracts to GL Process (Rate-Based Revenue Process)
In addition to creating accounting entries for PROJ_RESOURCE revenue rows, the rate-based revenue process (Accounting Rules Engine) creates accounting entries for utilization rows (UTL, UAJ).