Oracle PeopleSoft Licensing

PeopleSoft Licensing

• Application User: A license is required for every user authorized to access PeopleSoft.
• Employee License: Counts total employees, contractors, and consultants.
• Expense Report: The license covers a set number of annual expense reports.
• Prerequisite Modules: Some modules require additional PeopleSoft products.

1. Overview of Oracle PeopleSoft Licensing

PeopleSoft licensing can seem complex, but understanding it is essential for managing costs and ensuring compliance. The company offers several licensing metrics to accommodate diverse organizational needs.

Here, we break down the main licensing models, prerequisites, and considerations to help you navigate PeopleSoft licensing effectively.

Introduction to PeopleSoft Licensing

PeopleSoft is a suite of business applications that requires a thorough understanding of its licensing models. Effectively licensing PeopleSoft is key to optimizing your software investment and ensuring compliance with Oracle’s terms.

Key Takeaways

• Four Licensing Metrics: PeopleSoft offers four licensing options: Application User, Employee License, Expense Report License, and FTE Student License.
• Prerequisite Licenses: Some PeopleSoft modules need additional licenses for other products (e.g., PeopleSoft eSettlements requires PeopleSoft Financials).
• PeopleSoft Tools: This includes a restricted-use license for PeopleSoft PeopleTools, covering components like the application server and database server.

Read about Oracle EBS Licensing.

PeopleSoft Licensing Options

1. Application User Licensing

An Application User is an individual authorized to use the licensed application programs. The user can access these applications on one or multiple servers, regardless of whether they are actively using them at a given time.

• Broad Access Definition: Every authorized person is counted, not just active users.
• Example: A company with 200 employees and 50 contractors authorized to use PeopleSoft would need licenses for all 250 people, even if some only log in occasionally.

2. Employee License

Employee Licensing involves licensing all employees, including full-time, part-time, temporary, contractors, and agents who use or are tracked by PeopleSoft.

• Includes Outsourced Staff: If you outsource a function, the employee count must include all workers from the outsourced company who access PeopleSoft.
• Determining License Needs: The total number of employees, regardless of software usage, determines the number of licenses required.

3. Expense Report Licensing

Expense Report License counts the total number of expense reports processed by the organization within 12 months.

• Fixed Number of Reports: You cannot exceed the number of licensed expense reports within the year.
• Example: If a company is licensed for 10,000 expense reports annually, it must track usage closely to avoid exceeding this limit.

4. FTE Student License

FTE Student License is primarily for educational institutions. Full-time students count as one unit, while part-time students are considered as 25% of an FTE.

Applicable Only to Education: Tailored for institutions managing student use of PeopleSoft programs

Rounded Licensing Requirements: The final number is rounded to the nearest whole number for licensing purposes.

PeopleSoft Licensing Prerequisites

Certain PeopleSoft modules require additional licenses to function, which are known as prerequisites. For example:

• PeopleSoft eSettlements requires PeopleSoft Financials.
• PeopleSoft Maintenance Management requires licenses for PeopleSoft Financials, Project Costing, and Purchasing.

These prerequisites are critical to understand to avoid unexpected compliance issues.e COBOL could affect licensing needs, particularly if customization or third-party integrations are involved.

PeopleSoft Tools and Restricted Use Licenses

Users are also granted a restricted-use license for PeopleSoft PeopleTools when licensing PeopleSoft. This includes:

• Reporting Tools: Oracle BI Publisher is included for generating reports, but any use beyond licensed PeopleSoft data requires a separate license.
• Application Server and Database Server components.
• Java SE and Oracle Tuxedo licenses for running PeopleSoft applications, subject to restricted usage.

Read about JD Edwards Licensing.

Best Practices for Managing PeopleSoft Licenses

To effectively manage PeopleSoft licensing, organizations should adopt a few best practices:

• Monitor Outsourcing Agreements: If you outsource any business function to a third-party vendor, track the number of vendor employees who need access to PeopleSoft. These users count towards your Employee License total.
• Regularly Review Licensing Metrics: As workforce dynamics change, so do licensing needs. To ensure compliance, regularly audit the Application User and employee and monitor user counts.
• Understand Prerequisites: When deploying new PeopleSoft modules, understand and license the prerequisites. Failing to do so can lead to compliance issues and disrupt operations.
• Work with Oracle Licensing Experts: Given the complexity of PeopleSoft’s licensing requirements, consulting with Oracle licensing experts can help optimize licensing costs and ensure compliance with Oracle’s terms.

PeopleSoft Licensing FAQ

What are PeopleSoft’s different licensing metrics? PeopleSoft offers four licensing metrics: Application User, Employee License, Expense Report License, and FTE Student License. Each metric fits a specific type of usage and helps organizations manage software access accordingly.

How does Application User licensing work in PeopleSoft? Application User licensing is for individuals authorized to use PeopleSoft applications, regardless of actual usage. Every authorized user needs a license, making it important to track who has access.

What is an Employee License in PeopleSoft? An Employee License includes all employees, contractors, and agents who access or are tracked by PeopleSoft. It covers full-time, part-time, and temporary workers and requires licensing for the entire employee population.

What does Expense Report licensing cover? Expense Report licensing is based on the total number of expense reports processed annually. It limits the number of expense reports submitted within 12 months.

How is the FTE Student License used? FTE Student licensing is designed for educational institutions. For licensing purposes, full-time students count as one unit, while part-time students count as 25% of an FTE.

What are prerequisite licenses in PeopleSoft? Certain PeopleSoft modules require other licenses to function. For instance, PeopleSoft eSettlements requires a license for PeopleSoft Financials. Prerequisites are essential to ensure compliance.

Can PeopleSoft licensing models be combined? Organizations can use a combination of licensing models based on different requirements. For example, they might use Application User licensing for specific departments and Employee licensing for others.

How can organizations maintain compliance with PeopleSoft licensing? Regular audits are key. Organizations should verify user lists, update access regularly, and ensure all prerequisite licenses are in place to avoid compliance issues.

What is included with PeopleSoft PeopleTools? PeopleSoft PeopleTools includes a restricted-use license for tools like the Application Server and Database Server. These tools are only meant to be used for PeopleSoft applications.

Can PeopleSoft PeopleTools be used for non-PeopleSoft applications? No, the restricted-use license is only for PeopleSoft applications. Using them outside PeopleSoft requires a separate full-use license.

What is the role of PeopleTools in reporting? PeopleTools includes Oracle BI Publisher for reporting purposes. It is used for online and scheduled reports within PeopleSoft, but external use requires additional licensing.

How does outsourcing impact PeopleSoft licenses? If a function is outsourced, all workers from the outsourced company who access PeopleSoft must be counted under Employee licensing, ensuring full compliance.

What is the difference between Application User and Employee licensing? Application User licensing is based on individual authorization, while Employee licensing is based on the total number of employees, contractors, and agents, regardless of whether they actively use the software.

Why is it important to end-date users in PeopleSoft? End-dating users ensure that inactive users do not consume licenses unnecessarily. It helps control costs and prevents over-licensing, which can lead to compliance issues.

What best practices can help manage PeopleSoft licenses? Maintain updated user access records, conduct regular internal audits, ensure all prerequisites are met, and use a combination of licensing models as needed to fit your organization’s specific requirements.