PeopleSoft Licensing
- Application User License: Assigned to authorized individuals to use the software.
- Employee License: Covers all employees, including contractors.
- Expense Report License: Based on the number of submitted expense reports annually.
- FTE Student License: Applies primarily to educational institutions based on student count.
Introduction to PeopleSoft Licensing
PeopleSoft is an essential suite of business applications organizations use to manage everything from finance and human resources to supply chain and student information. However, understanding how PeopleSoft is licensed can be challenging, given Oracle’s diverse licensing metrics and conditions.
This article aims to clarify PeopleSoft licensing by breaking down its components, exploring the various licensing options, and providing practical examples.
Understanding PeopleSoft’s licensing model is crucial to making informed decisions, reducing costs, and staying compliant.
This guide will explore four different PeopleSoft licensing metrics, their prerequisites, and key details about PeopleSoft tools and restricted-use licenses.
Key Licensing Metrics for PeopleSoft
PeopleSoft offers four main licensing models:
- Application User License
- Employee License
- Expense Report License
- FTE Student License
Each metric has a specific application, making it suitable for different organizational needs. Let’s dive into each licensing model and understand how it works.
Four Peoplesoft Licensing Metrics
1. Application User License
An Application User License is defined as an individual who is authorized to use a licensed PeopleSoft application, regardless of whether they actively use it at all times. This model is ideal for scenarios where named individuals within an organization need consistent access to specific PeopleSoft programs.
- How It Works: If your organization licenses the PeopleSoft Financials application under an Application User License, you must count each individual who is authorized to access the software, even if they only use it occasionally. This type of licensing is common in organizations where specific individuals manage financial operations, like accountants and financial controllers.
Example: A company has 50 employees, out of which 10 are responsible for handling financial records. In this case, the organization would need 10 Application User Licenses for PeopleSoft Financials. Even if these employees do not use the software daily, they still require an individual license.
2. Employee License
The Employee License model is defined by the total number of employees within an organization, including full-time, part-time, and temporary staff, as well as agents, contractors, and consultants who have access to or are tracked by the software. Unlike the Application User License, the Employee License is determined by the overall number of employees, not just active users.
- When to Use It: This licensing model is suitable for organizations where all employees are involved in processes managed by PeopleSoft, such as payroll or HR management. The Employee License covers a broader spectrum of users, ensuring compliance for both direct employees and outsourced staff.
Example: An organization with 1,000 employees uses PeopleSoft Human Resources to manage its workforce, including HR functions like leave tracking, performance reviews, and payroll. Even though only 50 HR staff members actively manage the software, the organization still requires an Employee License for all 1,000 employees.
- Outsourcing Consideration: If a business outsources functions to a third-party service provider, the Employee License also needs to account for any external employees who access or are tracked by the system.
3. Expense Report License
The Expense Report License is based on the total number of expense reports submitted within a 12-month period. This metric is typically used by organizations where expense tracking and management are crucial parts of their operations.
- What It Means: The license is restricted to a certain number of expense reports that can be submitted within a year. If the licensed limit is exceeded, additional licenses must be obtained to stay compliant.
Example: Suppose a company licenses 5,000 expense reports for the year but ends up processing 7,000 reports due to increased business travel. In this scenario, the company would need to purchase additional licenses to cover the extra 2,000 reports to avoid non-compliance penalties.
4. FTE Student License
Educational institutions primarily use the FTE Student License (Full-Time Equivalent Student License). It counts all full-time students as one unit and part-time students as 0.25 units to calculate the total number of required licenses.
- How It Works: Educational institutions use this metric to determine the number of licenses required to access PeopleSoft applications such as student information systems or course management tools. The FTE metric ensures that licensing scales with the student population.
Licensing Prerequisites
Certain PeopleSoft modules require additional licensing of other PeopleSoft products, which are known as prerequisites. Understanding these dependencies is essential to ensuring proper licensing coverage.
- PeopleSoft eSettlements requires PeopleSoft Financials to function properly.
- PeopleSoft Grants may require PeopleSoft Financials, Project Costing, and Contracts.
- PeopleSoft Inventory is needed for PeopleSoft Order Management.
Failing to license the prerequisite products can lead to compliance issues during an audit. This is why it’s vital to completely understand the interdependencies between modules.
- PeopleSoft eSettlements
- Requires: PeopleSoft Financials
- PeopleSoft eSupplier Connection
- Requires: PeopleSoft Purchasing, PeopleSoft eProcurement
- PeopleSoft Financials
- Note: Some features use COBOL
- Entitled Products and Restricted Use Licenses: PeopleSoft General Ledger, PeopleSoft Receivables, PeopleSoft Payables, PeopleSoft Billing, PeopleSoft eBill Payment, PeopleSoft Asset Management, PeopleSoft Cash Management
- PeopleSoft Grants
- Prerequisite Products: Not applicable
- Requires: PeopleSoft Financials, PeopleSoft Project Costing, PeopleSoft Contracts
- PeopleSoft In-Memory Financial Allocations Analyzer
- Requires: PeopleSoft Financials
- PeopleSoft In-Memory Financial Position Analyzer
- Requires: PeopleSoft Financials
- PeopleSoft InMemory Project Discovery
- Requires: PeopleSoft Project Costing, Oracle Endeca Information Discovery, Oracle Exalytics X4-4 or T5-8
- PeopleSoft Inventory
- Prerequisite Products: Not applicable
- PeopleSoft IT Asset Management
- Requires: PeopleSoft Financials
- PeopleSoft Maintenance Management
- Requires: PeopleSoft Financials, PeopleSoft Project Costing, PeopleSoft Purchasing
- PeopleSoft Mobile Inventory Management
- Requires: PeopleSoft Inventory, Oracle TopLink, and Application Development Framework (part of Oracle Fusion Middleware) – single processor license
- PeopleSoft Order Management
- Requires: PeopleSoft Inventory
- PeopleSoft Pay/Bill Management
- Requires: PeopleSoft Human Resources, PeopleSoft Time and Labor, PeopleSoft Project Costing, PeopleSoft Financials, PeopleSoft Contracts, PeopleSoft Payroll
- PeopleSoft Program Management
- Requires: PeopleSoft Project Costing
- PeopleSoft Proposal Management
- Requires: PeopleSoft Project Costing, PeopleSoft Contracts, PeopleSoft Program Management
- PeopleSoft Real Estate Management
- Requires: PeopleSoft Financials, PeopleSoft Transaction Billing Processor
- PeopleSoft Self-Service Work Requests
- Requires: PeopleSoft Financials, PeopleSoft Project Costing, PeopleSoft Purchasing
- PeopleSoft Supplier Contract Management
- Requires: PeopleSoft Purchasing
- PeopleSoft Transaction Billing Processor
- Requires: PeopleSoft Financials
- PeopleSoft Treasury
- Requires: PeopleSoft Financials or PeopleSoft Cash Management
- Entitled Products and Restricted Use Licenses: Deal Management, Risk Management
Example: A university has 800 full-time students and 400 part-time students. Based on the FTE Student License metric, the total number of licenses required would be 800 + (400 * 0.25) = 900 FTE licenses.
Monitored User: is defined as an individual who is monitored by an Analytics program which is installed on a single server or multiple servers, regardless of whether the individual is actively being monitored at any given time
Individual users licensed for an Analytics program by either Named User Plus or Application User may not be licensed by Monitored User.
In the Human Resources Compensation Analytics program, all of your employees must be licensed.
Oracle Governance, Risk, and Compliance applications: Advanced Controls for eBusiness Suite, Application Access Controls Governor, Application Access
Controls for E-Business Suite, Configuration Controls Governor, Configuration Controls for E-Business Suite, Transaction Controls Governor, and Preventive Controls Governor, the number of Monitored Users is equal to the total number of unique E-Business Suite users (individuals) being monitored by the program(s), as created/defined in the User Administration function of E-Business Suite. Users of procurement and/or Self-Service Human Resources are excluded.
For the following PeopleSoft Enterprise Governance, Risk, and Compliance applications: Advanced Controls for PeopleSoft Enterprise, Application Access Controls Governor, Application Access Controls for PeopleSoft Enterprise, Configuration Controls Governor, and Configuration Controls for PeopleSoft Enterprise, the number of Monitored Users is equal to the total number of unique PeopleSoft Enterprise (or any other custom applications/programs) users (individuals) that the program monitors
PeopleSoft Tools and Restricted Use Licenses
PeopleSoft PeopleTools is the foundation of PeopleSoft applications, providing essential tools such as the Application and Database Servers and integration capabilities.
A restricted-use license for PeopleSoft PeopleTools is included when licensing any PeopleSoft application.
- Components Included: The license includes Oracle BI Publisher for reporting, which enables users to generate custom and pre-configured reports. However, its use is limited to the PeopleSoft applications and cannot be used beyond obtaining a full-use license.
Example: Suppose your organization licenses PeopleSoft Financials, which includes PeopleTools. You can use Oracle BI Publisher to generate financial reports from PeopleSoft data, but using it to report on non-PeopleSoft data requires an additional license.
PeopleSoft Licensing and Common Use Cases
To better understand PeopleSoft licensing, here are some common use cases that illustrate its application in different environments:
- Retail Sector: A large retail chain uses PeopleSoft to manage payroll and supply chain operations. In this scenario, payroll is handled by Employee Licenses, which involve every staff member. In contrast, Application User Licenses are used for inventory managers who must access the PeopleSoft Supply Chain.
- Manufacturing Company: A manufacturing firm uses PeopleSoft Financials to manage its accounts. The CFO, financial analysts, and a few accountants need regular access, so an Application User License suits their needs. Additionally, the firm uses Employee Licenses for HR, which cover every employee in the company.
- University System: A university licenses PeopleSoft Campus Solutions using the FTE Student License model. Full-time students, who comprise the majority of the student body, are counted fully, while part-time students are counted at a fraction, resulting in a lower total license requirement.
Challenges in PeopleSoft Licensing
While PeopleSoft offers flexibility in licensing, it also presents some challenges:
- Complex Metrics: Each licensing metric has specific conditions, making it difficult for organizations to determine their needs. Misunderstanding the distinctions between metrics like Employee License and Application User License can lead to under-licensing or over-licensing.
- Prerequisites and Interdependencies: Many PeopleSoft modules require other modules to function, leading to hidden licensing requirements. Organizations need to thoroughly review each product’s requirements to avoid compliance issues.
- Audit Risks: Oracle regularly audits its customers to ensure compliance. Because of the intricacies of PeopleSoft licensing, companies can easily become non-compliant if they misunderstand usage terms or fail to meet prerequisite requirements. For instance, using the PeopleTools component outside its intended use can result in compliance violations.
How to Optimize PeopleSoft Licensing
To get the most value from PeopleSoft licensing and avoid costly surprises, organizations should consider the following strategies:
- Conduct a Licensing Audit: Regular internal reviews can help identify discrepancies in licensing. For example, cross-checking the number of employees tracked by PeopleSoft HR against the licensed count can reveal gaps.
- License Only What You Need: Understand how users interact with the software. If a module is only used by a small group, consider whether Application User Licenses would be more cost-effective than Employee Licenses.
- Monitor Expense Report Submissions: If your organization uses the Expense Report License model, track the number of reports processed yearly. Exceeding the licensed number can lead to unexpected costs.
- Consider Future Needs: Licensing decisions should consider growth projections. If an organization plans to expand its workforce, it might be prudent to factor this into the initial licensing to avoid constant upgrades and renegotiations.
PeopleSoft Licensing FAQs
What are the different ways to license PeopleSoft software?
PeopleSoft has four primary licensing metrics: Application User, Employee License, Expense Report License, and FTE Student License. Each serves a different purpose, depending on your organization’s needs.
What is an Application User License?
An Application User License allows an individual to use the licensed PeopleSoft applications on a designated server. This user is authorized regardless of whether they are actively using the software at any given time.
How does the Employee License work?
The Employee License covers all employees, whether full-time, part-time, or temporary, as well as agents, contractors, and consultants who have access to the programs. If you outsource any function, you must also include the service provider’s staff who have access to or are tracked by the software.
What is an Expense Report License?
This license type is based on the total expense reports submitted over 12 months. Organizations are only allowed to use a fixed number of reports; exceeding this count requires additional licenses.
What does an FTE Student License cover?
The FTE (Full-Time Equivalent) Student License applies to educational institutions. It includes all full-time students and accounts for part-time students as a percentage of an FTE. This helps determine the number of licenses required for the software.
What are PeopleSoft Licensing Prerequisites?
Certain PeopleSoft modules require other PeopleSoft products to function. For example, PeopleSoft eSettlements needs PeopleSoft Financials. Understanding prerequisites helps ensure all necessary licenses are covered.
What is included with PeopleSoft PeopleTools?
A restricted-use license for PeopleTools is bundled with PeopleSoft applications. This includes components like Application Server, Database Server, and reporting tools like Oracle BI Publisher.
What search capabilities come with PeopleSoft PeopleTools?
PeopleTools includes HP Autonomy’s Verity Developer Kit for text searches and Oracle Secure Enterprise Search, both restricted for use within PeopleSoft applications.
Can Oracle WebLogic Server be used outside PeopleSoft applications?
No. The Oracle WebLogic Server license bundled with PeopleSoft PeopleTools is restricted for use with PeopleSoft products only. A separate license is required for non-PeopleSoft applications.
What are the licensing requirements for PeopleSoft Grants?
PeopleSoft Grants requires licensing for PeopleSoft Financials, Project Costing, and Contracts. Each module depends on other components, making prerequisite management vital for compliance.
What happens if my organization exceeds the licensed number of Expense Reports?
If you exceed the number of expense reports allowed within 12 months, you will need to purchase additional licenses to cover the extra reports. Monitoring usage is crucial to avoid compliance issues.
How does the Employee License apply to contractors and consultants?
The Employee License counts all individuals, including contractors and consultants, who access or are tracked by the software. If you outsource a function, these third-party staff must also be included in the count.
What are Monitored Users in PeopleSoft?
Monitored Users are individuals tracked by analytics programs installed on the server. Depending on the software being monitored, such as E-Business Suite or other PeopleSoft applications, these users are counted differently.
Do PeopleSoft licenses include Oracle BI Publisher for reporting?
Yes, Oracle BI Publisher is included with PeopleTools at no additional cost. It is used for online and scheduled reporting within licensed PeopleSoft applications. You can create or modify reports using data from PeopleSoft.
How does the licensing for PeopleSoft Order Management work?
PeopleSoft Order Management requires licenses for PeopleSoft Inventory. Understanding these dependencies ensures proper licensing and avoids compliance issues.
What restrictions are there for PeopleTools Database Server usage?
PeopleSoft PeopleTools Database Server includes integration with Oracle Transparent Database Encryption (TDE). However, TDE is a separate licensed product, and its use outside of PeopleSoft must adhere to Oracle’s terms.
How do licensing metrics apply to outsourcing scenarios?
If you outsource a business function, you must account for all the external company’s employees, contractors, and agents who use or access PeopleSoft programs. This can significantly impact the total number of licenses required.
What prerequisites are needed for PeopleSoft Treasury?
PeopleSoft Treasury requires PeopleSoft Financials or PeopleSoft Cash Management. Ensuring all prerequisites are licensed will avoid compliance issues during an audit.
Is there a separate license for the PeopleSoft PeopleTools Starter Kit?
Yes, the PeopleSoft PeopleTools Starter Kit is available for up to five named users. It allows the development of applications with up to 20 components, but the license is for internal data processing only and cannot be distributed or marketed.
Can I use Oracle Secure Enterprise Search outside PeopleSoft?
No, Oracle Secure Enterprise Search bundled with PeopleSoft is restricted to use within licensed PeopleSoft applications. A separate license is required for any broader usage.
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