And the question is...? We can't help you unless you specify a question :)

Here is a rewrite, by the way: [untested]

perl -pe'
    if (length > 3) {
        my @args = split /\|/;
        # I'm surprised the following line works in a
        # shell script, with the single quotes and all...
        if ($args[1] eq '$service' and $args[3] eq '$bundle') {
            $args[4] =~ s/N/Y/;
            $_ = join "|", @args;
        }
    }
' $inputfile
[download]

There, with proper indenting and an implicit loop and use of implicit handling of $_, it looks a lot better. If you add -i, the file itself will be changed, which may remove the need for a temporary file.

- Yes, I reinvent wheels.
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