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Deffered Tax Amt For Unallocated Adjustment Included In Bill_Now Bill (Doc ID 1352032.1)

Last updated on SEPTEMBER 01, 2023

Applies to:

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


The Tax for Adjustment is not getting reflected in the Bill where Adjustment is reflected. The Scenario for the same is described as below:

1) Create an account.
2) Go to billing date.
3) Run billing.
4) Pass an billinfo level adjustment with TAX.(mark here adjustment is unallocated)
5) Run bill now.
6) Bill now includes the tax amount for adjustment whereas adjustment is still unallocated.
7) goto next billing date. Run billing. Allocate the adjustment to the latest bill. Adjustment gets transferred and not the tax.

The sample scenario can be -

- A customer paid his bills but he disagrees with the amounts charged or with the quality of service.
- The CSR accepts to raise an account adjustment that will stay unallocated (because all bills are paid) and will be allocated against future bills.

- Business rules :
 Open item accounting
 Tax calculated at billing

Scenario 1

1. 30 $ account adjustment with deferred tax (10%) unallocated (all past bills are paid)  adjustment is 27$ net + 3$ tax
2. Next bill with a 2$ Net total (no tax to take a simple case)
a. Tax adjustment -3$ is fully allocated to the bill
b. Bill has a credit due of -1$

Results :
Bill is wrong : tax amount has nothing to do with the net amount (which has not been adjusted)
o Bill net amount : 2$
o Bill tax amount : -3$
The tax amount is allocated whatever the bill due is and the bill becomes credit

Scenario 2

1. 60$ account adjustment with deferred tax (10%) unallocated (all past bills are paid)  adjustment is 54$ net + 6$ tax
2. Next bill 1 with a 30$ net amount (no tax)
o Bill net amount : 30$
o Bill tax amount : -6$ tax allocated
o Bill total : 24$
3. Next bill 2 with a 10$ net amount (+ 1 $ tax (10%) will be calculated at billing stage)
4. Allocate 10$ on bill 2 then bill it
o No tax adjustment is made, the bill is fully allocated by the net portion of the adjustment

Results :
Bill 1 is wrong as in scenario 1 : 6$ tax allocated although 0$ net amount allocated from the adjustment


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