Wednesday Feb 04, 2015

Separating Billing and Revenue in Support of the New Revenue Accounting Standard

The Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) issued new revenue accounting standards in May 2014 with an effective date of 2017. PeopleSoft FSCM Update Image 10 includes enhancements to PeopleSoft Contracts and Project Costing to support customers in their transition to the new accounting standards.

Separating Billing and Revenue

Enhancements provide customers the option of defining prices for revenue separate from prices used for billing. With new Contracts functionality, customers can identify a total contract price for revenue and for billing and then allocate that price across contract line items. The price assigned to a contract line for revenue recognition may be different than the price of the line item for billing. In Project Costing, new revenue rate sets can identify rates and markups for revenue recognition that are different from the rates and markups used for billing and the related contract line limit for revenue recognition may be different from the billing limit. In addition, new attributes were added to the contract enabling customers to identify prime contracts from subcontracts and at the contract line level a new bundling attribute was added allowing customers to group related contract lines.


Exhibit 1: Separating Billing and Revenue on a Contract

Additive

The new revenue pricing functionality is additive. At the contract level, customers define if prices for billing and revenue should be maintained separately. Contracts that do not need separating pricing for revenue can continue using a single amount for both billing and revenue. Other PeopleSoft modules with existing automation to create contracts and recognize revenue, such as Pay/Bill Management and Grants, have the option of using the new functionality in the PeopleSoft Contracts and Projects modules.

Exhibit 2: Contract General Page

May Be Applied to Existing Contracts

After applying new functionality, most existing contracts will be identified as not having separate prices for billing and revenue as this was the case under prior versions. However, we expect customers will be reviewing their existing contract base for impact over a period of time and that some existing contracts will need to separately define revenue while others may not. The new functionality allows customers to update existing contracts to take advantage of new pricing functionality as that analysis occurs. Other contracts that are still being analyzed for impact can continue functioning as they did under prior versions until their review is complete.

Exhibit 3: New Revenue Allocation Page

Additional Information

For additional detail on the project and the enhancements included in PeopleSoft FSCM Update Image 10, customers can review the Oracle PeopleSoft Red Paper ‘Separating Revenue from Billing’ under My Oracle Support.

Monday Jun 02, 2014

Cool Tools You Can Use: Validation Templates for PeopleSoft Contracts Processes

This is the first in a series of postings we’ll be making under the heading of Cool Tools You Can Use. Our PeopleSoft product management team identified the need for this series after reflecting on the many conversations we have each year with our PeopleSoft community members. During these conversations, we were discovering that customers and implementation partners were often not aware that solutions exist to the problems they were trying to address and that the solutions were readily available at no additional charge. Thus, the Cool Tools You Can Use series will describe the business challenge we’ve heard, the PeopleSoft solution to the challenge, and how you can learn more about the solution so that everyone can be sure to make full use of what PeopleSoft applications have to offer.

The first cool tool we’ll look at is the Validation Template for PeopleSoft Contracts Process Requests, which was first released in December 2013 as part of PeopleSoft Contracts 9.2 Update Image 4.

The business issue our customers highlighted to us is the need to tightly control but easily configure and manage the scope of data that any user can process when initiating a process. Control of each user’s span of impact is essential to reducing billing reconciliation issues, passing span of authority audits, and reducing (or even eliminating) the frequency of unexpected process results. 

Setting Up the Validation Template for a PeopleSoft Contracts Process

With the validation template, organizations can easily and quickly ensure the software restricts the scope of transactions a user can affect and gives organizations the confidence to know that business processes are being governed effectively. Additionally, this control of PeopleSoft Contracts process requests can be applied and easily maintained and adjusted from a web browser thereby enabling analysts to administer the rules without having to engage software developers to customize the software.

During the field validation template setup, an analyst specifies the combinations of fields that must contain values when a user tries to setup a run control and initiate a PeopleSoft Contracts process from a process request page. For example, for the Process Limits component, an organization could require that users enter a valid combination of values for the business unit, contract, and contract type fields or a value in the contract administrator field. Until the user enters a valid combination of entries on the process request page, he cannot launch the process.

With the validation template activated for process request pages, organizations can be confident that PeopleSoft Contracts users will not accidentally begin generating invoices or triggering other revenue management processes for transactions beyond their scope of authority.

To learn more about the Validation Template, please review the Defining Validation Templates section of the PeopleSoft Contracts PeopleBooks. 

Monday Apr 29, 2013

10 Innovations in PeopleSoft 9.2 - #6 Industry-Focused Analytics & Tools for PeopleSoft Projects (ESA)

PeopleSoft ESA delivers unique industry support for staffing, higher education, healthcare, research grants, public sector appropriations, professional services, government contracting, and more. Release 9.2 re-confirms our commitment to the industries that rely on our products.


Many of the key 9.2 features have been built through hands-on collaboration with customers. For a number of these highly complex features, we even sent our developers to customer sites to work through requirements, designs, development, and testing. In addition, participation in customer and partner testing was exceptional, resulting in delivery of deep use case coverage that was rigorously vetted by your industry peers. Adopting features designed in this manner can dramatically reduce your deployment challenges and risks, because people like you, who work with these features every day, aggressively exercised the functionality before it was released.


Let’s take a look at a few examples of what you can get out of PeopleSoft Projects 9.2.


For Higher Education, Research, Healthcare and Public Sector, users gain a number of new tools and enhanced accounting processes to easily view and manage budgets, spending, and adjustments for both sponsored and non-sponsored projects.  Based on configurable security parameters and enhancements to the Principal Investigator (PI) Grants Portal; PIs, researchers, and accounting staff can acquire immediate insight into key financial information at a granular level in order to make informed spending and project staffing decisions. Staff can quickly access important details, such as all of a PI’s related awards and projects, credits, rebills, adjustment period transactions, and project transfers, and they can improve their ability to manage their fiscal responsibilities. To support legislative, regulatory, and institutional analysis and reporting needs, institutions can configure (without having to customize) industry-specific data fields by utilizing the PeopleSoft Supplemental Data Framework which has been extended to awards and projects. Also, requesters, buyers, and accounting staff can reduce the administrative effort required to track and capitalize equipment costs. They can take advantage of the new Procurement Group feature, which enables grouping of requisition and purchase order lines that correspond to a single asset. And, PeopleSoft 9.2 also offers the ability to control how to allocate credit vouchers across assets that may have been purchased as a group. These new accounting-related features offer a simplified process for tracking capital projects that is very common among these industries.


Professional Services and Government Contracting firms will find powerful new pricing and expense management features to be very useful in addressing the complexities of global contracts, provisional rates, and enforcement of travel and expense policies across a disparate workforce. The new Custom Rates capability enables pricing administrators to dynamically configure contract and project rate sheets by up to 5 dimensions of their choosing. For instance, you could identify cost and bill rates by source type and vendor; jobcode and department; or fund, role, department, and region and know that the software will price, bill, and recognize revenue accordingly. Financial analysts and contract administrators can apply retroactive rate adjustments, account for finalization of provisional rates, and correct rate errors quickly and easily with Variance Pricing. What used to be a complex recalculation requiring a great deal of attention from accountants is now an intuitive online mass update that can process tremendous volumes of changes rapidly and thereby ensure timely, accurate project financials. On the expense management side, finance departments can configure global per diem business rules to handle the unique reimbursement methodologies and deductions found around the world, and every user can power through expense report entry faster with a new, streamlined expense reporting page.


For the Staffing Industry, branch teams and individual recruiters can manage their clients, candidates, orders, and assignments through a client-specific, fully integrated on-boarding process. Whether you are a manager, a team member, or an individual recruiter, you can proactively manage critical accounts, orders, and high-value candidates and address the need for speed with actionable, user-configurable dashboards, alerts, and analytics. You can drive business processes faster, increase revenue, and offer an unparalleled level of customer satisfaction by seeing the data you need to see, the way you want to see it and take action on it immediately from a single location. It has never been easier to drive profitability with rapid, high-quality order fulfillment.

As you can see, a rich feature set targeted for the unique demands of our customers’ industries is available with PeopleSoft ESA 9.2. Beyond what we have described here, there are many other new capabilities for other industries, and regardless of your industry, you will find that we have exploited the latest PeopleTools technologies, such as WorkCenters, Pivot Grids, and Related Actions, to help simplify every user’s experience when interacting with the applications.  With PeopleSoft Projects 9.2, you can see what you need to see, the way you need to see it, when you need it. Take a look at 9.2…we think you’ll like it.

Monday Feb 06, 2012

New Workbench to Simplify Revenue Contract Management

Easy access to a wide variety of contract elements is essential when trying to handle the complexities inherent in managing revenue contracts. A contract administrator needs to keep a watchful eye on contract terms, billing plans, revenue recognition plans, project progress, team members, limits, withholdings, budgets, lots and lots of dates, and numerous other details in order to ensure good governance of an organization’s revenue. To ease the burden of the weary contract administrator, we recently added the Contracts Workbench to the PeopleSoft Contracts application in the PeopleSoft ESA 9.1 Bundle #16.

Designed based on requirements from several industries, the Contracts Workbench acts as a window into information from the PeopleSoft Contracts, Grants, and Project Costing applications. The data users see is dependent on which applications are installed, meaning that an organization can take advantage of the Contracts Workbench even if it is not using all three of the applications. Additionally, business analysts and users can configure sections of the Contracts Workbench to display only the award, contract, and project information relevant to the way their organization does business. Contract administrators and accountants can view and access information to identify instantly the need for adjustments, and they can quickly update contract lines, projects, bill plans, and so on.

Because it provides a great deal of contextual information, the Contracts Workbench can be a powerful tool for administrators and accountants in their quest to make more informed decisions when working a contract. With the context and the configurable aggregation of data offered by the Contracts Workbench, users can reduce the time they spend navigating software and comparing data and increase the time they dedicate to preventing revenue leakage, negotiating with customers, and performing other activities that protect and grow the all-important revenue stream.
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This blog is dedicated to topics focused on PeopleSoft Applications, including Human Capital Management, Financials, Enterprise Service Automation, Asset Lifecycle Management, Procurement, Supply Chain and Customer Relationship Management.

For information about legislative updates to our PeopleSoft Applications see the PeopleSoft Legislative Updates Blog.

For information about PeopleTools see the PeopleSoft Technology Blog.

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