Tax Reversal Not Applied For Adjustments Triggered By Rerating For Subordinate Accounts
Last updated on JULY 28, 2017
Applies to:Oracle Communications Billing and Revenue Management - Version 220.127.116.11.0 to 18.104.22.168.1 [Release 7.3.1]
Information in this document applies to any platform.
Tax reversal not applied for adjustments triggered by rerating for subordinate accounts.
We have only deferred taxation set up in BRM, and we also use sub-ordinate non-paying accounts hierarchies.
These are the CM pin.conf values we use:
This setup means that any charges applied on subordinate non-paying account are taxed only together with parent paying account.
The issue seen here is that when we rerate billed sub-ordinate non-paying account, the adjustment is applied without taxes to this account, which is correct, but the corresponding tax is never reversed on parent account.
Steps To Reproduce:
1) Create subordinate and parent account sometime in March (DOM = 1 for both) with dummy plan (to avoid any confusions in balance group).
2) On April 1st run billing and then purchase a a product of EURO 500 for the subordinate account.
3) Run billing on May 1st. The charges will be EURO 500 (April - May) and and EURO 500 (May to June) for the subordinate account. For the parent account it will be EURO 1000 (from subordinate account) + 35% tax = 1350. This is fine and perfect. Bill for EURO 1350 generated for the parent account.
4) On May 5th Change the product Cycle Forward charge to EURO 1000 and run pin_rerate starting from April 1. Charges of EURO 500 for Apr - May and May - June will be reverted and EURO 1000 for each cycle will be charged.
pin_rerate -a 247665 -t 04/01/2011
The adjustments applied to the previous bill are however without tax reversal
5) Now run billing on June 1. This is what happens :
a) For subord, bill of EURO 2000 is generated with the following calculation:
CF for May - June = 1000
CF for June - July = 1000
So the bill amount is EURO 2000
b) For parent, the tax is applied on EURO 2000 (from point (a)) and EURO 1000 which was adjustment for the period April 1 - May 1.So in all EURO 3000 is taxed.
The problem is that EURO 1000 is already charged along with the tax in previous bill and tax was not refunded back when the charges were refunded. So during pin_rerate when charges were reversed, the tax amount should have been taken care.
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