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Extra $0.01 Remained With A Full Refund Using Event Adjustment With Tax (Doc ID 1297784.1)

Last updated on FEBRUARY 24, 2021

Applies to:

Oracle Communications Billing and Revenue Management - Version and later
Information in this document applies to any platform.


Below scenario results in extra $0.01 remaining in account when doing a full refund.

An account with a monthly fee of $5 with taxes. Tax rate is 17.5% which comes up to .88
1. The customer gets billed on Dec 27th and the charge is $5 + 0.88 = $5.88
2. On Jan 17th the customer cancels the subscription which will result in a prorated refund -$1.89 (1.61 net and 0.28 tax)
3. Now per business rules for some customers, the remaining portion of the charge has be refunded as well (Note: this adjustment is not applicable to all customers)
4. An event level adjustment with taxes is created for the remaining amount (5 - 1.61 = 3.39). BRM will proportionate the tax and calculate it as 0.59

Now look at that account it has a $0.01 balance.
1. Charge was 5.88
2. Cycle fee Refund was -1.89
3. Event Adjustment was -3.98

So the total refunded amount becomes 5.87 which is 0.01 less than the charged amount.

The net amount remaining is 0.01 instead of 0. Also there is not a way to adjust just the tax component of 0.01.

Steps to Reproduce

1. Create an account on Nov 27 using a price plan that prorates on cancel. Pay type must be credit card.
    The charge amount should be 5.
    The tax should be 17.5% flat tax
    The total charge should be 5.88
2. Move the date to Dec 27 and bill the account and apply a CC payment.
    The total charge should be 5.88
3. Move the date to Jan 17 2011
4. Cancel the service
    A cycle forward event will apply:
       Net: 1.61
      Tax: .28
5. Apply an event level adjustment on the Dec 27 cycle fee to effectively reverse the 5.88 charge. Include tax in the calculation
    Event level adjustment amount: 3.39
    Event level adjustment tax amount: .59
6. Bill the account. The Refund issued will be 5.87, which is 0.01 less than the charges amount





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