Establishing and Managing the MSP Environment

This chapter provides an overview of the Managed Services Provider (MSP) environment and discusses how to:

Set up the MSP environment.
Process MSP transactions.

Understanding the MSP Environment

In an MSP environment, the MSP manages requisitions from customers, and also takes on the role of service coordinator by sourcing requisitions to their own staff or third-party service providers. A markup is charged by the MSP for this service. In addition, the MSP may “host” external suppliers acting as service coordinators for their customers.

In order to support this business process, the concept of MSP markups is supported in the PeopleSoft Services Procurement product. MSP markup functionality is only active when the installation is set for an MSP environment. Suppliers that are part of the MSP’s internal organization are identified when setting their source type to Internal in the supplier network.

Warning! If you set the installation options to an MSP environment, you will experience implications in the way rates are displayed and calculated throughout the system. Therefore this should only be done if the organization operates in an MSP environment.

Markups

When the MSP acquires resources, an additional markup is applied on top of the supplier’s rate in order to cover the MSP cost for managing the process. You define the MSP fee at the business unit level, with override available at the service type level. The MSP fee is effective dated, which indicates that the rate in effect at the time services are performed is the rate that is used for work order consumption and invoicing purposes.

The list below indicates the various ways in which MSP information is displayed to services coordinators, internal provider contacts, requesters, requisitions approvers, and external providers.

Service coordinators and internal provider contacts view amounts that include MSP markup fees, as well as view the breakdown between supplier rate and MSP rate, which makes up the total amount shown.
Requesters, requisition approvers, and work order approvers view amounts that include MSP markup fees, but they do not have visibility of the MSP markup amount that is included in the total amount shown unless they have been given a role associated with the role action for viewing the MSP breakdown.
External provider contacts view amounts that do not include MSP markup.

MSP markup fees are also included on the supplier invoice when the service provider is from an internal supplier.

Note. In the MSP environment, the filled amount for a requisition may not match the work order amount. This will occur if the MSP rate changes between creation of the requisition line and creation of the work order.

Common Element Used in This Chapter

The following definitions are used throughout this chapter.

Managed Services Provider (MSP)

An organization that manages the sourcing and filling of service requisitions on behalf of their customers.

Setting Up the MSP Environment

To define MSP percentage, use the MSP Fees by Business Unit (SPB_MSP_BY_BU) component. To define MSP percentage or rate, use the MSP Fee by Service Type (SPB_MSP_BY_SRVC) component.

To set up supplier by business unit, use the Supplier by Business Unit (SPM_SPLR_BY_BU) component.

This section discusses how to:

Set up installation options.
Define MSP by service type.
Set up MSP fees by business unit.
Set up the supplier network.

Pages Used to Set Up the MSP Environment

Page Name	Object Name	Navigation	Usage
Services Procurement Installation Options	INSTALLATION_SP	Set Up Financials/Supply Chain, Install, Installation Options, Services Procurement Services Procurement, Define Services Procurement, General Setup, Installation Options	Define PeopleSoft Services Procurement installation options.
Services Procurement Business Unit Definition	BUS_UNIT_TBL_SP	Set Up Financials/Supply Chain, Business Unit Related, Services Procurement, Services Procurement Options Services Procurement, Define Services Procurement, General Setup, Business Unit Definition, Services Procurement Definition	Define PeopleSoft Services Procurement business units.
Service Types	SPB_ROLE_TYPE	Services Procurement, Define Services Procurement, Service Setup, Service Type Setup, Service Types	Define service types.
MSP Fee by Service Type	SPB_MSP_BY_SRVC	Click the Manage MSP Fees button on the Service Types page.	Define the MSP fee percentage or rate.
MSP Fees by Business Unit	SPB_MSP_BY_BU	Click the Manage by MSP Fees button on the Services Procurement Business Unit Definition page.	Define MSP fees percentage.
Networked Supplier Details	SPM_SPLR_BY_BU_PG	Services Procurement, Define Service Suppliers, Suppliers by Business Unit Services Procurement, Define Services Procurement, Service Supplier Setup, Supplier Network Setup Click the Supplier link in the Supplier Network Setup page or select a new supplier and click the Add button.	Create the supplier network. Associate suppliers with PeopleSoft Services Procurement business units.

Setting Up Installation Options

Access the Services Procurement Installation Options page.

MSP Installation (managed services provider installation)

Click to enable the managed services provider functionality in PeopleSoft Services Procurement. This check box should not be selected unless the organization is an MSP.

If selected, the PO Work Order Integration and PO Service Contracts check boxes are disabled. The HCM Integration check box will also be disabled.

Conversely, if the PO Work Order Integration or HCM Integration check boxes are selected, the Managed Services Provider Installation check box is disabled.

Defining MSP by Services Type

Access the MSP by Service Type page.

Markup Type

For service types with a service method of Resource, select the markup type of Percentage or Rate.

Note. It is not possible to select Markup Type for service types with a service method of Deliverable. In this case only percentage markups are available.

Managed Services Provider Fee %

If the markup type is Percentage, enter a percentage by which the managed services provider will mark up the supplier rate for performing the service coordinator function.

Note. The MSP fee that you define on the Service Type page will override the business unit MSP and default onto requisitions, work orders, and timesheets. If there is no fee defined for the service type, the MSP fee defined at the business unit level will be used.

Rate

If the markup type is Rate, enter a rate by which the managed services provider will mark up the supplier rate for performing the service coordinator function.

Note. The MSP fee that you define on the Service Type page will override the business unit MSP and default onto requisitions, work orders, and timesheets. If there is no fee defined for the service type, the MSP fee defined at the business unit level will be used.

Unit of Measure

If the markup type is Rate, enter a unit of measure for the specified markup rate

Setting Up MSP Fees by Business Unit

Access the MSP Fees by Business Unit page.

The Manage by MSP Fees link will appear only when you select the Managed Services Provider Installation check box on the Services Procurement Installation Options page.

MSP Fee %

Enter a percentage by which the managed services provider will mark up the supplier rate for performing the service coordinator function.

See Also

Setting Up Business Unit Definitions

Setting Up the Supplier Network

Access the Supplier Network page.

Source Type

Select Internal to indicate that the supplier is part of the MSP organization for this business unit. If the service provider is internal, the supplier providing the services will view and be paid the fully loaded rates.

See Also

Maintaining the Supplier Network Setup

Processing MSP Transactions

This section discusses how to:

Use MSP with requisitions.
Source with MSP.
Submit bids with MSP.
Create batch invoices with MSP.
View invoice line summaries with MSP.

Pages Used to Process MSP Transactions

Page Name	Object Name	Navigation	Usage
Create Requisition	SPF_REQ_INFO_PG	Services Procurement, Create Requisition	Enter basic service requisition information.
Manage Requisition	PV_REQ_STATUS	Services Procurement, Manage Requisitions	Manage requisitions that are entered by the requester. You can review existing service requisitions, edit them, view their statuses, cancel them, or access related sourcing and work order information.
Manage Sourcing	SPF_SRC_MANAGE_PG	Services Procurement, Review and Source Requisitions	View all the suppliers to whom a requisition was sourced; source a requisition to multiple suppliers.
Sourcing Selection	SPR_SOURCE_SELECT	Click the Sourcing Select button on the Manage Sourcing page.	Enter sourcing requirements.
Incoming Bids	SPF_SUP_COM_IN	Fulfill Service Requisitions, Maintain Bids	View incoming bids.
Supplier Sourcing Review	SPF_SOUR_REVIEW_SP	Fulfill Service Requisitions, Review Reqs/Submit Bids	Review requisitions sourced to the supplier.
Submit Bid	SPF_SUBMITAL_PAGE	Click the Submit Bid button on the Supplier Sourcing Review page.	Submit bids.
Supplier Bid Response	SPF_SUP_BIDRSP1	Click the Create Bid button on the Incoming Bids Summary - Inbox page.	Reply to bids.
Work Order Details	SPF_WO_REQ_VEN_DT	Services Procurement, Manage Services Work Orders Click the Add Work Order button on the Manage Services Work Order page and select the Details tab.	Enter work order detail information.
Work Order Cost	SPF_WO_COST_PO_PG	Services Procurement, Manage Services Work Orders Click the Add Work Order button on the Manage Services Work Order page. Click the Cost tab.	Enter cost information for the work order.
Create Batch Invoice	SPF_GEN_CLINV	Service Procurement, Services Settlement, Create Batch Invoices	Generate and print invoice.
Create Manual Invoice	SPF_INV_HDR_ADD	Enter Business Unit and/or Invoice ID and click the Add button on the Manage Invoices page.	Create invoice header information.
Manage Invoice - Line Summary	SPF_INV_LN_DTLS	Click the Edit button for an invoice on the Manage Invoice page.	Modify the selected invoice.
Manage Invoice Line Details	SPF_INV_TIME_DTL	For resource based invoices, click the Edit button on the Manage Invoices - Line Summary page.	View invoice line details and/or make adjustments.

Using MSP with Requisitions

Access the Create Requisition page.

Supplier Rate	If you have entered a Rate, the system provides a Supplier Rate by subtracting the MSP rate from the Rate. This field does not display to requesters or approvers.
MSP Rate	Displays the MSP rate for this requisition. This field displays to Service Coordinators only. The system provides this default value from the MSP Fee by Business Unit page.
Rate	Enter a total rate this requisition. If you are using a rate sheet, the system provides the default value from the rate sheet, which you can override here. If there is a rate sheet, the system adds the MSP rate to the Supplier Rate to calculate the Rate.
MSP Fee %(managed services provider fee percentage)	Displays the MSP fee percentage for this requisition. This field displays to Service Coordinators only.

See Also

Creating and Managing Requisitions

Sourcing with MSP

Access the Sourcing Selection page.

MSP Rate	Displays the MSP rate for this requisition. This field displays to Service Coordinators and MSP supplier contacts only. The system provides this default value from the MSP Fee by Business Unit page.
Loaded Rate	Displays the total rate for this requisition, supplier rate plus MSP Rate. This field does not display to non-MSP Service Provider contacts.

See Also

Managing Requisition Sourcing

Submitting Bids with MSP

Access the Submit Bid page.

Save for Later

Click to save all the submittal data without submitting the bid to the service coordinator. When you click this button, the system sets the bid status to Saved. After saving a bid, the system takes you to the draft bid page.

See Also

Submitting and Managing Bids

Creating Batch Invoices with MSP

Access the Create Invoice page.

Internal Supplier

Select to indicate that the supplier is internal and that the MSP markup will be included in the invoice amount.

See Also

Managing Settlements

Viewing Invoice Line Summaries with MSP

Access the Manage Invoices – Line Summary page.

Estimated Tax	The MSP fee is not included in the tax calculation for external suppliers, but is for internal suppliers.
Estimated Total	The MSP fee is included in the totals for internal suppliers.

See Also

Managing Settlements

Markup Type	For service types with a service method of Resource, select the markup type of Percentage or Rate. Note. It is not possible to select Markup Type for service types with a service method of Deliverable. In this case only percentage markups are available.
Managed Services Provider Fee %	If the markup type is Percentage, enter a percentage by which the managed services provider will mark up the supplier rate for performing the service coordinator function. Note. The MSP fee that you define on the Service Type page will override the business unit MSP and default onto requisitions, work orders, and timesheets. If there is no fee defined for the service type, the MSP fee defined at the business unit level will be used.
Rate	If the markup type is Rate, enter a rate by which the managed services provider will mark up the supplier rate for performing the service coordinator function. Note. The MSP fee that you define on the Service Type page will override the business unit MSP and default onto requisitions, work orders, and timesheets. If there is no fee defined for the service type, the MSP fee defined at the business unit level will be used.
Unit of Measure	If the markup type is Rate, enter a unit of measure for the specified markup rate